In an attempt to stimulate the Cypriot property market, the island’s MPs unanimously voted in the House of Representatives this week to abolish or reduce its official “Property Transfer Fees” for a period of six months.
The politicians have also proposed that:
· For those who pay VAT on their house purchase, no transfer fees will be payable.
· For those who do not pay VAT on their purchase, property transfer fees are to be reduced by 50%.
The draft law will be effective for six months, until the Cyprus government submits a full proposal to the House.
“Property Transfer Fees are based on the Land Registry’s assessment of the market value of a property at its date of purchase. However, using its discretion to reassess the amount of Transfer Fees payable, the Land Registry relies on its own historical data in a way that cancels out any transfer tax benefit of a ‘bargain-buy’, which can result in double the expected amount being levied,” Cyprus Property News told OPP.