Cyprus Real Estate News
06/02/2012 Cyprus Real Estate News January 2012
According to Januarys 2012 information provided by the Land Registry Department the Cyprus Real Estate Sales are on the highest level for the past 18 months. This of course is a result mainly because of the reduction of the transfer fees and the 5% Vat when purchasing a Cyprus real estate first property.
According to information published regarding Januarys Cyprus Real Estate and Cyprus Real Estate Transactions the Buy-Sell Agreements that were registered in the Cyprus Land Registry Department of Land and Surveys came up to the 803 compared to 522 for past January 2011. This is giving an increase of 54%.
This is the first increase in the Cyprus Real Estate Transactions for the past 17 months and the number of sales is the biggest number of sales since June 2010. (Ioannis Michalaki Chartered Surveyors Cyprus).
the House of Representatives passed a number of tax incentives designed to boost business activity and attract foreign investment to Cyprus.
Changes to the income tax laws concerning the 5% VAT which is paid when purchasing a new house intended as primary residences have been expanded to include also non-EU citizens.
This changes to Property Transfer Fees, which took place last December for a period of six months, have now been extended until the 31st December 2012.
The changes apply only to the first sale of a property, where the contract is dated and deposited at the Land registry departments by the end of the year. Specifically:
- For those who pay VAT on their house purchase, Property Transfer Fees are waived.
- For those who do not pay VAT on their purchase, Property Transfer Fees are reduced by 50%.
Property Transfer Fees become payable at the legal completion of a sale and enable the ownership of a property to be transferred from the vendor to the purchaser by the Land Registry.