News

Dec 20

Written by:
Tuesday, December 20, 2011 

After MPs voted unanimously to abolish/reduce property transfer fees for a period of six months, the amended law has finally been published in the Cyprus Government Gazette. Changes to the law designed to help stimulate sales of new property by abolishing and reducing property transfer fees for a period of six months have finally been agreed and published.

The changes came into effect on Friday 2nd December 2011 and will remain in force until 2nd May 2012 (6 months). The reduction only applies 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: 1. Properties that include VAT on their purchase, no transfer fees are payable. 2. 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.