Deed transfer - Constructor Fees- New build

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
17/03/2011 11:17

Can anyone advise the % that the constructor has to pay to the government to transfer the deeds on a new build?

greenman


Joined: 16/02/2008
Posts: 526

Message Posted:
17/03/2011 11:28

These are fees as I understand them:

Your Fees:

Transfer Tax @ 3% of Contract Price

Municipality tax @1% of Transfer tax

KDV @5% in return for an official Fatura

Property Tax to Belediye @1ytl per sq metre + pool

Stamp Duty @ ??



Builder Fees:

Capital Gains (Stopaj) at 6.25% (but currently can be spilt 4% this year 2.5% next)

Final Approval Fee

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
17/03/2011 12:00

Thank you very much Greenman!

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
17/03/2011 12:09

msg. 2

I object strongly to the description of "Stopaj" as Capital Gains Tax. We have no Capital Gains tax here in TRNC. "Stopaj" means "Stopping at source" and it is really an advance tax towards the income tax of the builder i.e. at the end of the year if the income tax liability of the builder is say 10,000 TL and if he already paid 8000 TL in Stopaj, then he has to pay only 2000 TL to meet his responsibility for the income tax.



It is amazing how people like to change descriptions to bring them in line with something they are familiar with, e.g.

Advocvate-Solicitor

Certifying Officer-Noter

Stopaj-Capital gains Tax

etc.

ismet

greenman


Joined: 16/02/2008
Posts: 526

Message Posted:
17/03/2011 12:24

Message 4: trouble is Capital Gains Tax is the term my lawyer used - so wasn't a term I changed. But your description of Stopaj is interesting and begs the question that many of us are facing - what is the Stopaj on a property built several years ago but not yet paid? There are some builders who try to get their customers to pay this in return for their (dare I say it) Deeds!!

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
17/03/2011 13:05

Ismet

Does the constructor have to actually pay the 6.25% and the VAT 5% ( if handed over already by the buyer to the constructor), before the deeds are transfered or can they transfer the deeds and pay their tax liability later? Thanks

kaiserphil


Joined: 14/12/2008
Posts: 1096

Message Posted:
17/03/2011 14:46

Ismet, message 4 - object all you want old chum, but CGT is the term used by my advocate during the sale of my house.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
17/03/2011 14:49

msg. 5 Greenman, many advocates here also talk about solicitors here. Unlike me they give up in the end.



msg. 6 pogle, the land Registry will not deal with transfer of deeds until they show proof that these have been paid by the constructor to the Inland Revenue.



Prices in the shops normally include the VAT. So if you agree on a price with no mention of VAT, legally it means that the VAT is included in the price. However, as long as we have the Specific Performance Law in place, you dare not argue with your constructor.

ismet

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
17/03/2011 14:52

msg 7 Kaiserphil, obviously they did not want to alert you by using the correct term. It is the constructors who bring regular customers to the solicitors ooops, advocates

ismet

kaiserphil


Joined: 14/12/2008
Posts: 1096

Message Posted:
17/03/2011 15:10

Ismet - tee-hee!