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Property Transfer Tax in North Cyprus

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twaddle


Joined: 06/07/2008
Posts: 245

Message Posted:
31/01/2009 10:44

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Message 1 of 19 in Discussion

I am trying to sort out paying transfer tax and VAT in order to obtain my title deeds. I am more than a little confused as to what is expected of me. Is it correct that transfer tax is calculated as 0.75% (at the moment) of the original Sterling contract price that is then to be paid in Turkish Lira at the exchange rate of the day that the tax is paid, whilst VAT is paid as 5% of the original Sterling contract price at the exchange rate that was in force on the day that the contract was signed??. This is what my Solicitor advises me. I am just a little confused at to whether this is correct. Andy



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
31/01/2009 11:59

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Message 2 of 19 in Discussion

Hi Andy you are quite correct in that the transfer tax is 0.75% at the moment, but when we paid our VAT it was calculated in Sterling.



You must also ensure property tax is all payed up before your Advocate can transfer title.because they will need to present a receipt to the land registry.



Hope this helps



Cooper



Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
31/01/2009 12:09

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Message 3 of 19 in Discussion

Cooper,could you explain the property tax you mention.



Thankx

Ray



Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
31/01/2009 13:34

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Message 4 of 19 in Discussion

Andy, your lawyer is correct. Tell me what year your contract was signed in and I'll tell you the rate they use.



All taxes are calculated from sterling and paid in TL. The exception was stamp duty.



Property tax is like the UK council tax. The vendor may pay it but if you have had possession for some time, it will be down to you. Shouldn't be a huge amount.



Receipts are issued at issued at every stage.



Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
31/01/2009 14:05

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Message 5 of 19 in Discussion

Molly,

Is that the 1% property tax payable to the beledyie.



twaddle


Joined: 06/07/2008
Posts: 245

Message Posted:
31/01/2009 14:17

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Message 6 of 19 in Discussion

Hi Molly, the contract was signed in December 2006.

Andy



gates


Joined: 08/12/2008
Posts: 1096

Message Posted:
31/01/2009 14:48

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Message 7 of 19 in Discussion

it is not you are entiteld to a one off buying of 3/5 % the goverment gives you to use once i a life time ask your lawyer to look into this it is not a lot but you are better off to use it on your 1st purchase in case you dont buy another



McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
31/01/2009 16:01

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Message 8 of 19 in Discussion

Can I ask if the Contract price in the contract is the price before or after "Extras" are added, as they are all listed separatley in my contract.



Mc



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
31/01/2009 16:19

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Message 9 of 19 in Discussion

This is the property tax i mentioned - http://www.hbpg-trnc.net/documents/Tax_property.html



Mc if you have already payed your stamp duty you should be able to work out from that the amount payed. ie the figure they used.



Cooper



McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
31/01/2009 16:24

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Message 10 of 19 in Discussion

Cooper thanks for that and I will work it out, but do you know if it should be the "headline" figure or the full amount including exrtras?



Sorry to be a pain.



Mc



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
31/01/2009 17:01

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Message 11 of 19 in Discussion

Mc are you wanting to know this for the taxes payable purposes or because you dont know how much you are going to have to pay for the property ? sorry but i dont fully understand the question.



Cooper



kavenkoy


Joined: 10/04/2008
Posts: 1787

Message Posted:
31/01/2009 17:59

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Message 12 of 19 in Discussion

so property tax is paid to local beledyir (council tax)



so whats then 1% municipality tax ,paid to DLO?



kav



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
31/01/2009 20:05

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Message 13 of 19 in Discussion

The property tax is payable annually to the belediyesi in addition to the council tax.

When transfer takes place there is also a small fee to pay the municipality which is 1% of the transfer fee, your advocate should include this in their calculations.



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



Cooper



McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
31/01/2009 21:33

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Message 14 of 19 in Discussion

Cooper,



No I want to know what I will have to pay in the future, when it comes to it, whatever the going rate is at the time I get my ptp and everything else required.



I know how much I have paid for the house and I know how much all the extras are, so all I need to now, is what figure do I apply the percentage(whatever it is at the time) to. The house price, as stated in the contract or the house price plus all the extras (like the pool etc) which are also listed separatley in the contract.



Thanks



Mc



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
31/01/2009 23:03

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Message 15 of 19 in Discussion

Mc my guess is that they will include extras such as the pool etc in there valuation for tax purposes but i would clarify this with your advocate.



Cooper



McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
01/02/2009 00:56

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Message 16 of 19 in Discussion

Thanks Cooper, I will.

have a good night.



Mc



Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
05/02/2009 15:20

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Message 17 of 19 in Discussion

Andy - re message 4



Tax office will use TL rate of 2.7302 to convert sterling to Lira. Not favourable compared to current rate.



Sorry for the delay, I've been busy dealing with lots of transfers.



allycatthree


Joined: 22/04/2008
Posts: 86

Message Posted:
05/02/2009 15:54

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Message 18 of 19 in Discussion

re mes 17,

Molly am I correct from your info, my contract was june 2006, tax office will calculate contract price stirling x 2.7302 to tl x 3% less 75% = transfer tax to be paid so if 100k then at todays rate 2.4 = 853.



Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
06/02/2009 08:25

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Message 19 of 19 in Discussion

Alleycat



No, the transfer fee is calculated using the current rate at 0.75% of sale price. Only the VAT and Capital Gains Taxes are calculated using the old rate.



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