Amnesty on transfer tax

audge


Joined: 09/02/2009
Posts: 18

Message Posted:
23/09/2009 01:18

Does anyone know the situation regarding the amnesty on the transfer tax. Is the amnesty being extended beyond the end of September? Also what is the current rate for the builders tax? Is it back to 6.25%?



Also are many of you being asked to pay your builders tax in order to obtain your deeds?

jfoggy


Joined: 23/12/2006
Posts: 260

Message Posted:
23/09/2009 02:06

Good questions, hope you get answers of help to many of us

Thanks

Julie

sunnyday


Joined: 14/03/2008
Posts: 269

Message Posted:
24/09/2009 12:36

Have been told by a lawyer that the council of ministers have extended the transfer tax reduction to the end of the year, but not announced it yet. If the builders stopaj tax is not also reduced to 4%, they will refuse to do transfers until that is also reduced, as happened at the beginning of July.



For those being asked to pay the builders tax, you should be aware that the 6.25% is the only tax developers pay on profits. If you pay it, they are working tax free! (am not sure if they will have to pay 2.25% after the end of the year - this is the difference between the original 6.25% & the reduced stopaj payment of 4%)

StGeorgeI


Joined: 27/08/2009
Posts: 973

Message Posted:
24/09/2009 13:13

Builders tax is reduced from 6.25% to 4.25% (may be 4%) and transfer tax has been reduced from 6% (3%) down to 1.5% (.75%) - prices in brackets are for your first purchase. It is expected that the reduction will continue for a further 3 months to the end of the year, but no official announcement has been made. There is even some talk that the new Government may make it permenant - full stop!



KDV (VAT) is still fixed at 5%.



The builder should pay the Capital Gains tax (builders tax) - however, because the process has taken so long there are some that are pleading poverty. In this case you have 2 options:



1) Fight him in a lengthy court case until he pays, and in the meantime have no deeds.

2) Pay his Tax and get your deeds straight away - not right, but may be the only way.



We have been lucky, and our developer has recently transfered all our complex's deeds and paid his taxes!!



Anyway - good luck.

jfoggy


Joined: 23/12/2006
Posts: 260

Message Posted:
24/09/2009 21:49

StGeorge1 can you tell us who your developer is? We are also on a complex and word has it we are almost at the transfer stage, so deeds getting nearer. We are going out this weekend so are hopeful. Thanks to all for a very informative and helpful thread.