Attaining title to property in Cyprus
Attaining title to property in Cyprus can be hindered by the actions of the initial owner, where for example a property was purchased ‘off the plan’ and the developer has not taken the necessary actions to divide the land, attain the requisite approvals or has mortgaged the property and is unable and/or unwilling to take the necessary actions to enable the Title Deed to be issued. In 2015 the Government enacted the (Immovable Property Transfer and Mortgage Law (Amendment) (No. 10) Law of 2015 to aid buyer considered to be ‘trapped’ . Under this law in cases where the title deed has yet to be issued, an applicant has the right to apply to the Department of Lands and Surveys for the compulsory acquisition of title according to the provisions of Part VI of the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224, provided of course that an applicant meets the applicable criteria.
For further information or assistance please contact our Immovable property experts.
In 2016 the Cyprus parliament voted in favour of new legislation which sees Immovable Property Tax (“IPT”) for 2016 based on 1980 values but reduced by 75 per cent on the amount paid last year with IPT being abolished in 2017. It is important to note that payments after the 31st of October but before the end of the year will result in a penalty of 2.5% and payments after the end of the year will see a 10% penalty.
A guide to calculating property tax based on the value of the 1st of January 1980:
|VALUE OF PROPERTY
|Property tax payable
If a property is values at less than €12500 then no tax is payable while tax exemptions also apply to religious buildings, public hospitals, schools, buildings owned by the Government, embassies, consulates, common use areas, properties under Turkish occupation, preserved buildings and buildings used by charities.
From dealing with statutory tenants to recovering rent in arrears for landlords or protecting tenants against illegal rent increases, we will find the right solution for your circumstances.
Contracts of Sale and leases
Alongside our wide network of associates in Cyprus our firm’s experience dealing with contracts for multimillion Euro commercial investments and private transactions ensures that we have the tools and skill set to assist you in all aspects of a transaction.