Cyprus Property Law Update Q&A part 2
Is there a time limit on the current Cyprus legislation that calls for 50% reduction on transfer fees? Or will it be indefinitely?
Currently, according to the law that governs the discount: The Land and Surveys Department (Fees and Rights) (Amendment) (No. 2) states there is no time limit and there is no discussion about introducing full transfer fees in Cyprus in the near future.
There is a Limassol seaside road project that will accommodate 400 apartments; have there been the necessary environmental repercussions and traffic impact studies conducted on the land by the Cyprus land registry?
Each new building venture in Cyprus is examined on an individual basis by the land registry; however this does not take into account the total number of developments under construction. The seaside road in Limassol cannot accommodate another 400 units and perhaps an application will have to be sent to court to review the roads and current infrastructure.
If foreign citizens of Cyprus consider buying a house on the island, will the investment estate be automatically given to the next of kin?
The process of wills estates is not automatic in Cyprus, all purchasers will need to go through the will procedure and have an administration. A simple way to do this is by transferring the estate to the beneficiary and reserve on title a life interest for all parties involved.
What about the changes to the VAT laws in January? Will this change anything if I want to sell my property within the next few years?
VAT on houses 5% or 19% will not change as the 5% refers to permanent residents in Cyprus only. All buyers should carry out the necessary due diligence through the use of a legitimate service provider and wait for the issue of the planning permit first prior to paying anything. If you decide to sell your house before the 10 year period, you must refund the VAT paid to the Tax Authorities.
For help with any property matters, contact us, Eltoma Property has local legal experts on hand to assist you with any Cyprus property legislation changes.