Answering your property questions
How is property purchase tax calculated?
After many years of waiting I’ve been told by my developer that I will be getting my Title Deeds “very soon”.
This means that I will have to pay the outstanding property purchase tax.
What property valuation will be used to calculate the tax?
My contact was dated February 2002 but my property wasn’t ready for occupation until September 2005.
Will they use the contract valuation of CYP125,000?
If so, will they use the exchange rate in 2002 or 2005 or maybe the ‘irrevocable’ fixed exchange rate of 0.585274 which came into force when Cyprus entered the Euro on 1st January 2008?
Or will they use today’s valuation index-linked backwards to 2/02 or 9/05?
Or is there some other method of working out how much I must pay?
Who is the decision-maker and do I have the right to appeal?
Do you recommend seeking professional help to complete the process?
You are responsible for payment of property tax from the delivery date to that of transfer (depending on your sales contract terms). The valuation date is the purchase date (if deposited contract with the Lands Office and if not proof is required on the exact date of purchase). The Lands Office is not bound by the contract price and might dispute this and charge for a fee based on a higher value. the exchange rate will be that on date of payment.
You can visit the local Lands Office or a land clerk to assist you over how much you will pay. The decision maker is the Lands Office and you can dispute the cost if you disagree (you can appeal to the court).