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Transfer of Title/Capital Gains/Stoppage Tax??

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whynot


Joined: 05/07/2007
Posts: 12

Message Posted:
02/03/2009 22:45

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Message 1 of 9 in Discussion

We are hoping to proceed with the Transfer of Title of our property soon. We have two items that we don't understand:



A) Our solicitor has informed us that the vendor wishes to exercise his option not to pay Capital Gains Tax. Apparently this can only be done on the value of the house and we will need to pay the amount due on the land. Apparently the Lands Office will give us a separate value for the land and the house in due course ?



B) Because our property has trees on it we will have to pay a 'Stopping Tax' ?



I don't remember being made aware of these little extras when we were buying the property. Are we being ripped off ?



fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
03/03/2009 08:38

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Message 2 of 9 in Discussion

yes, trees would have something to do with it, they mentioned this when we purchased.

i think it goes back to the ottoman empire as trees had kochans so i have been told.

we purchased a resale property but the seller did have to pay the capital gains tax.

i guess you can ask at the office where you pay these taxes to explain it to you.



whynot


Joined: 05/07/2007
Posts: 12

Message Posted:
03/03/2009 11:42

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Message 3 of 9 in Discussion

fire starter



Thanks for the advice.



sunnyday


Joined: 14/03/2008
Posts: 269

Message Posted:
03/03/2009 14:01

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Message 4 of 9 in Discussion

Whynot,

The developer does not normally have an option not to pay the capital gains tax. He has to pay it, unless the contract says that you do. You need to check your contract. For a developer this is the only profits tax that they pay & like everything else now should be based on the contract price, unless a higher valuation has been made.



ozankoys


Joined: 20/06/2008
Posts: 905

Message Posted:
03/03/2009 16:59

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Message 5 of 9 in Discussion

There seems be a new tax which is now imposed 'Income Tax' @ 3% does anyone know how long this has been around



Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
03/03/2009 19:55

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Message 6 of 9 in Discussion

Hi CGT should be in your contract....normally paid by the developer up to the price he sold it to you.



If you signed the contract agreeing to pay it...then... use your once in a lifetime option not to pay it.



VAT is also due ( at 5% ) this is generally paid by the purchaser upon completion....the developer has to pay it via payment from you....pay it in at a solicitor so you get a reciept, signed. dated and "stamped". ( make sure it is complete ie snagging etc )



hope this helps



fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
04/03/2009 09:34

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Message 7 of 9 in Discussion

ozankoys,

this may be the equivilant to the stamp duty?

is it not 6% and if it is your first property you can opt to pay only the 3%?

is that the one you are talking about?



michelle3012


Joined: 07/11/2008
Posts: 578

Message Posted:
04/03/2009 11:57

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Message 8 of 9 in Discussion

The way i understand CAPITAL GAINS TAX is:



If the Kocan is NOT in your name and you decided to sell the property ,this is when you are liable to pay capital gains tax and its 6.25% of the profit. Ie inital purchase price say 50K, sale price 100K then the 6.25% is payable on 50k.



If the kocan is in your name you have a one in a lifetime TAX FREE sale.



So maybe this is what your builder is doing?



ozankoys


Joined: 20/06/2008
Posts: 905

Message Posted:
05/03/2009 10:50

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Message 9 of 9 in Discussion

No this is not stamp duty it is an additional tax levied on 'professional owners' i.e. people who sell more than 3 or 4 properties.

So when buying originally, if for example your Lawyer/Estate Agent/Cypriot friend offered to have the deeds transferred into their own name to help you out until your permissions came through the Govt has decided that, even though they have not received any monetary gain for doing this they have to pay an additional 3% tax before deeds can be transferred.

DAYLIGHT ROBBERY



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