Transfer Tax Reduction?

99problems


Joined: 24/02/2009
Posts: 10

Message Posted:
06/03/2009 11:35

Hello All



I was wondering if anyone has actually done this and received the benefit of the reduced rate. When i say received i mean actually 'in the bank' lol



The reason i ask is because a friend of mine recently went through the process and has told me he feels its all a load of rubbish. Apparently he went to the Land Office and went through the process up to the point they explained where it would go from after he paid his money. It was said to me that he was asked to pay a percentage of the overall transfer (a sizeable percentage at that, i can't remember how much but over 70% i'm sure is about right) after paying this 'deposit' it was said that they would then begin making the transfer and 'if' they managed to get it processed before the 31st March then he would benefit from the reduced rate. He asked how long this would take and they said around 6-8 weeks, bearing in mind he was there at the beginning of March.

99problems


Joined: 24/02/2009
Posts: 10

Message Posted:
06/03/2009 11:38

Is this an exagerated tale, or is it that the government with the upcoming election are trying to get their hands on some money to 'spend' 'run off with' before they are inevitably kicked out?



It seems possible, but also my friend, who is more of a bloke in the bar lol could just be trying to make life more interesting.



Any thoughts? Experiences would be great though.



Thanks guys

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
06/03/2009 12:44

This is interesting because we completed the paperwork at the LRO at end of January and have been waiting to pay the KDV, transfer fee, etc. We weren't asked for any money when the paperwork was submitted. Now our builder has announced that he wants new contracts drafted because on our original contract he is shown as an individual instead of a company. Additionally, he is not the landowner so wants one contract between him and us and another between us and the landowner. This puts us back to square one and we now wonder if it's worth all the hassle especially if the deadline is not extended. I assume that we have to register the new contracts, pay 0.5% tax and we have been told that our advocate will charge for drafting up the new contracts. Brilliant isn't it.

ozankoys


Joined: 20/06/2008
Posts: 905

Message Posted:
06/03/2009 12:48

Don't we just love Cyprus!! If you have the same lawyer surely he is at fault for not preparing the contract between the correct parties in the first place?

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
06/03/2009 13:01

My thoughts exactly but he'll quite happily pass the cost on to us...

99problems


Joined: 24/02/2009
Posts: 10

Message Posted:
06/03/2009 13:07

I understand why he would like the new contract for the landowner, it begs the question why he wishes to remove himself from association to the land, unless he doesn't have a partnership with the land owner and was originally selling on behalf of the landowner unlawfully. But i doubt it if he wishes to be shown as a company not an individual on his contract (that shows he has some integrity as he is obviously not intending to transfer 3 or less properties this year which he could benefit from not paying KDV as he would not be classified as a professional)



I would honestly say that it seems strange this reduced rate is offered when the standard lead time for transfer is still longer (in realistic terms) than the offer stands. I can only see having benefited from this offer if you had submitted the transfer on the day of this whole scheme being announced. I still stand to be proven wrong though by someone who has completed this offer. Hope i do get proven wrong too

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
06/03/2009 13:33

Hi, just spoke to my neighbour (different advocate), they have managed to get all the paperwork done and have paid the KDV and reduced transfer fee. All on the original contract and their advocate has given them their Kocan number. So it can be done. Their paperwork was done at the same time as ours, end of Jan.

99problems


Joined: 24/02/2009
Posts: 10

Message Posted:
06/03/2009 13:50

Thanks for the info.



Do they have a original deed with their names on it?

jardap


Joined: 08/08/2008
Posts: 318

Message Posted:
06/03/2009 16:55

After a meeting last week to sort out paying our taxes at a reduced rate one of the questions i asked was,can it all be sorted out before the deadline expires if not there is not a lot of point in it,her reply was the deadline has been extended to April 12

magicart


Joined: 05/10/2008
Posts: 985

Message Posted:
06/03/2009 17:33

Hi Everyone,



Interesting thread!



Can anyone explain the process we have to go through in order to get our deeds before the deadline date.



Its a very confusing process and we would like to know how it all works.



Thanks.



Art

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
06/03/2009 19:03

99,



They have been told that the shared kocan will be issued in a few weeks due to the 'rush' at the LRO.



Art,



We completed a pink form N270 and 4 identical copies of V.D. 89, most of the information is straight off the kocan that should be attached to your contract. However, we did get help from our builder and his mate, who works for LRO, checked it. According to our neighbour, the next step is for the builder to pay his KDV and then the buyer pays their KDV at the tax office taking the receipts back to LRO where they pay the transfer fees. Our neighbours are now waiting for the kocan to be issued in their name but they have been given it's number by their advocate.

piggy


Joined: 15/02/2009
Posts: 132

Message Posted:
07/03/2009 09:40

Msg 11/11



The forms you are referring to, are these available from the LRO for completion.



Thank you

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
07/03/2009 10:50

Piggy



Yes, you get the forms from LRO. Sometimes the N270 is blue rather than pink. They should hand you it plus 4 VD89s. If you can get hold of carbon paper it would be handy so you don't have to complete the same info on each form. The builder/landowner has to sign the forms too.

piggy


Joined: 15/02/2009
Posts: 132

Message Posted:
07/03/2009 11:00

That's great, thanks again.



Piggy

magicart


Joined: 05/10/2008
Posts: 985

Message Posted:
08/03/2009 11:08

Thanks for sending me some very useful information.



Please keep it going.



Art

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
08/03/2009 13:35

Can anyone confirm extension to 12th april.

piggy


Joined: 15/02/2009
Posts: 132

Message Posted:
08/03/2009 13:46

My understanding is that it is 3 months' from the 9 January 2009.

rtddci


Joined: 29/12/2007
Posts: 842

Message Posted:
08/03/2009 23:39

See the Home Buyers Pressure group advice



http://www.hbpg-trnc.net/documents/tax_transfer.html