vat and transfer tax

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
23/08/2010 22:52

Hi all, can anyone offer any advice on the above topic? We have our ptp and are beginnig the transfer process.

Our lawyer has asked for 9% for vat and purchase tax but i was led to believe that it should be 8%, although it's written in our contract that we have to pay these taxes it doesn't mention the percentages. We are still on builders electric and i'm a bit concerned that the lawyer is trying to aquire 1% and also sitting on our money knowing that we can't obtain our deeds until the electrical certificate has been obtained by the developer. Can any of you guys that have the experience of already gone through this help?

Regards.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
23/08/2010 22:59

Hi, the VAT is 5% of the contract price and the transfer tax is 3% again of the contract price.



Details here - http://www.nmplegal.com/pdf/GUIDE%20TO%20TAXES%20FOR%20PROPERTY%20TRANSACTIONS.pdf

oceana


Joined: 12/07/2010
Posts: 395

Message Posted:
23/08/2010 23:05

I can surely say that the VAT is 5% of the contract price.

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
23/08/2010 23:05

Thanks Cooper

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
23/08/2010 23:06

thanks oceana

cyprusjoker


Joined: 29/08/2009
Posts: 1107

Message Posted:
23/08/2010 23:06

That looks a lovely pint Simma

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
23/08/2010 23:09

I'd love to say it was a pint of efes cyprusjoker but it's a cold litre of peroni.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
23/08/2010 23:10

There is also a tiny sum due for the Belediye. I think it's 1% of the amount you pay for transfer tax, so effectively peanuts. It is not 1% extra on the contract price.

Just be careful that your lawyer doesn't ask for too much. Many advocates haven't/hadn't got a clue about the taxes due, a few years ago.

Many advocates are also not totally honest!!

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
23/08/2010 23:13

Cheers scruff, i've been dealing with my "advocate" for 3 years now and to say we've had our ups and downs is an understatement. The classic "our fees did not include conveyencing" springs to mind!

sunnyday


Joined: 14/03/2008
Posts: 269

Message Posted:
24/08/2010 10:05

The transfer tax has to be paid in TL, even if the contract is in £. The exchange rate used varies & in Kyrenia it is often the rate for the year of the contract, so it could be as high as 2.7. So your lawyer does probably need a bit more than the 5% VAT & 3% transfer tax. But get him to account for it all to you afterwards & demand back anything left over.

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
24/08/2010 12:57

Thanks sunnyday

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
24/08/2010 13:07

Better still change lawyers

Halil1982


Joined: 05/10/2009
Posts: 17

Message Posted:
24/08/2010 13:20

Actually there is a 1% tax occurrence paid to the belediye but its 1% of the 3% transfer very minimal.



5% VAT

3% Transfer

0.5% stamp



hope all the above helps

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
24/08/2010 13:22

Scruff,

Mess 8 who told you that,lol,

Paul.

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
24/08/2010 17:04

At least you've got your PTP Simma, lucky you.

Geoff

Famagusta, the PTP-free City.

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
24/08/2010 17:20

Msg-10 looking forwards to the "Sunnyday" when the TL rate to the £ is 2.7 !

Blackpoolfan


Joined: 03/12/2008
Posts: 1568

Message Posted:
24/08/2010 17:22

I have my PTP but suprise the builder is not in a position to transfer title as he cant pay his taxes, my advocate says in this situation i may if i wish pay his taxes then i can receive the deeds, What a joke it takes the pisstachio but what can i do

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
24/08/2010 17:50

So is vat payable on any property you purchase even if its a resale. When does the vat and tax get paid, is it when the ptp is ready or before. I have seen in some agents adverts that some property for sale states no vat to be paid.

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
24/08/2010 17:57

Deniz1 re message 12, thats still on the cards if he tries it on again, Halil1982, thanks for that, total is 8.03% excluding stamp duty then.

John.

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
24/08/2010 18:05

tarry67, i think it depends on whether you're classed as a proffesional seller or not, (sell more than 3 properties in a year), if you're classed as a private seller then i believe there is no vat to pay.

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
24/08/2010 18:15

Blackpool fan pay the builders taxes he is in the sticky stuff the next thing there will be a charge on the property and you can loose the lot and the property