Simple answers to the most frequently asked questions regarding Land Registry transfer fees in Cyprus property transactions.
Property transfer fees are charges imposed by the Department of Land and Surveys, namely the Land Registry, when transferring ownership of immovable property.
The purchaser (or transferee) is responsible for paying the transfer fees.
On the date of the transfer of ownership, at the office of the relevant District Land Registry, as an integral part of the process, the Land Registry will calculate the applicable transfer fees, which must be paid at the cashier’s desk, before the Land Registry official will accept to finalize the transfer process.
The property transfer cannot be completed without payment of the transfer fees.
Transfer fees are calculated based on the market value of the property on the transfer date, using a tiered rate system.
There is a presumption that the market value is the declared sale and purchase price of the property between the seller, or transferor, and the buyer, or transferee. The final market value is determined by the Land Registry based on their own metrics relative to the nature and characteristics of the property.
Its 3% on the first €85,000, plus 5% on the next €85,000, plus 8% on any amount above €170,000. On the amount calculated, based on the above tiered rate system, there is a 50% discount for transactions not subject to VAT. For example, for a property of €340,000, the transfer fees are €17,000, namely €2,550, for the first €85,000, plus €4,250 for the next €85,000, plus €13,600 for the next €170,000, up to the total of €340,000, thus total transfer fees of €20,400 minus an applicable discount of 50% thus €10,200.
Yes, the Land Registry website has an online calculator to easily determine transfer fees. You can also find many private real estate and other websites that offer accurate calculator tools.
Yes, the Land Registry can use its own calculation of market value in determining transfer fees, typically where they find it significantly differs from the agreed purchase price. It is generally at their discretion whether to adopt the purchase price or impose another market value, however you have a right to legally challenge their decision, if you disagree.
No transfer fees are required if VAT is applicable to the transaction. In other words, no transfer fees apply for purchase of newly developed property from property developers, or for properties otherwise deemed new under applicable VAT laws. Additionally, no transfer fees apply if the transfer is part of a company reorganization. Furthermore, properties transferred as gifts or between relatives are wholly or partially exempt from transfer fees.
Yes, there is a 50% discount on transfer fees for transactions not subject to VAT.
From parents to children: No fees
Between spouses: 0.1%
Between third-degree relatives: 0.1%
To trustees: €50
Transfer fees are payable at the District Land Registry on the date of application for the property transfer, in the context of processing the ownership transfer but in any event prior to the completion of the transaction.
Accepted methods include banker’s drafts, credit/debit cards, cash, or any combination of the above.
The Land Registry will not accept overpayments via banker’s draft. If the amount on the banker’s draft, as originally calculated is less than the imposed amount, you can pay the balance by credit/debit card or cash.
Ensure you have additional funds available on the date of the transfer. If you deem it necessary, you can formally object to the assessed value, but this will not be examined on that date. You must pay the transfer fees based on the assessed value and undergo a separate independent objection process, which can take weeks. If you are successful monies are returned.
If you deem necessary, you can formally object to the assessed value, but this will not be examined on that date. You must pay the assessed value and undergo a separate independent process which can take weeks or months. If you are successful monies are returned. If not, and you deem necessary, you can again challenge the decision in court by way of judicial review.
No, transfer fees are not applicable in such cases. This process is not handled through the Land Registry.
Transfer fees are governed by the Lands and Surveys Department (Fees and Rights) Law Cap 219 and its amendments. The decisions, circular and guidelines of the Land Registry are also relevant.
The responsible authority is the Department of Land and Surveys, namely the Land Registry, of the Ministry of Interior, and specifically the district Land Registry where the property is situated.
For more information on this or any other property law-related matter, you can contact the author and his team of expert property law practitioners at [email protected].
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