Buy now to qualify for no transfer fees!
In 2011 Cyprus MPs voted unanimously to annul/reduce property transfer fees by changing the property transfer tax law with the intention of helping to stimulate property sales. The changes came into effect on Friday 2nd December 2011 and have been extended to remain in force until 31st December 2014.
The reduction applies only to the first sale of a property (includes: off plan, under construction & key ready properties. Excludes: resale/previously owned property). The reduction in transfer fees is applicable for contracts of sale lodged at the land registry offices during the above mentioned period and irrespective of when the actual title deeds are ready to be transferred.
There are 2 categories of reduction:
- Properties that include VAT on their purchase, no transfer fees are payable.
- Properties exempt from VAT on their purchase, transfer fees are reduced by 50%.
The bill does not have retroactive effect and there are provisions in the law to prevent abuse, for example, buyers withdrawing contracts of sale deposited at the Land Registry for Specific Performance and then re-depositing them to change the date.