Kocan taxes how much?

Chelpet


Joined: 10/03/2010
Posts: 253

Message Posted:
22/02/2011 18:31

I am writing this with tougue in cheek, and I really do not need the doom and gloom merchants having a go at me regarding this, especially after my last posting about getting my PTP.

I have been offered the deeds on my property, on a payment of 9445 GBP, is this too much? as we paid 100000GBP for the villa.

I was told you could elect to a one off payment at 2.5% or pay 6% and if you sold and bought another property that was more expensive, then pay the 2.5% on that one.

Please bear in mind we do not live out there and the information we got was second hand, but we have nowhere else to ask.

Please helpful answers only.

Thank you in anticipation.

Peter

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
22/02/2011 20:49

Hi Peter,



I think the figure is 3% and not 2. 1/2/ Did you pay your VAT when you paid for your villa? This is 5%, if you didn't it has to be paid before you can receive your Kocan. If you have already paid the VAT, it sounds like your builder is asking you to pay his taxes before transferring. I would ask your advocate to get a breakdown of the sum asked.





The butlers wife

clivearup


Joined: 29/10/2008
Posts: 44

Message Posted:
22/02/2011 20:56

you might be interested in this thread

http://www.cyprus44.com/forums/56626.asp

Chelpet


Joined: 10/03/2010
Posts: 253

Message Posted:
22/02/2011 21:24

Thank you for reply Butlers wife, thanks yes you are right about the 3%, not sure whether we paid VAT as it was private sale, pre built although we were the first occupiers, not from a builder, do we still have to pay vat on a private sale? all I know was out the 100k we paid the solicitors retained 5k from the seller (which he did moan about) but will have dig out all our sale papers and check them.

harita


Joined: 14/08/2008
Posts: 1343

Message Posted:
22/02/2011 21:31

Chelpet .. The figure you have quoted seems about right if you have to pay all the taxes, yours & the sellers in order to get your koçan ..

sutcu


Joined: 21/02/2011
Posts: 23

Message Posted:
22/02/2011 23:34

You pay 3% purchase tax and 5% vat , seller pays 6.25% capital gains tax .



Govsa & Co

Certified Accountants

Chelpet


Joined: 10/03/2010
Posts: 253

Message Posted:
23/02/2011 10:02

Got breakdown from our solicitors this morning, when I queried the price, it seems the tax office is based in a different planet, as their exchange rate £ to TL is 2.60, then all prices are calculated in TL and then converted back to GBP.

The othe thing that has become apparent, is that every TC is a tax collector I never seem so many varied taxes, coming from the goverment right down to the waiter at out local bar, all want a bit of the action.

Will probably put it on hold until we need to have Kocan if we decide to sell the villa in future, at least we know its available.



Peter

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
23/02/2011 10:09

You would be well advised to pay up and get it because until such time you dont own the property and if the builder gets into difficulty your property could be used as collateral to pay of his depts. You have been warned.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
23/02/2011 10:30

Sorry i should have added i am not a doom and gloom merchant, far from it but i am a realist.

Chelpet


Joined: 10/03/2010
Posts: 253

Message Posted:
23/02/2011 10:43

Its not a builder I bought it off Chris,

Regarding to "Doom & Gloom" its just I needed practical advise without the negative vibes that seem so prevelent on this forum.

I thank you for your reply though and will bear it in mind.



Peter

pinky2


Joined: 04/10/2010
Posts: 28

Message Posted:
23/02/2011 10:47

Speak to S&A Adovcates they dealt with my transfer of title deed and were very efficient. info@sa-advocates.com

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
23/02/2011 11:22

The rate of 2.6 may refer to when you bought the property as that is what the tax office uses. You can find historical rates by Googling the date you purchased.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
23/02/2011 11:39

This is a good site to use for historical interest rates - http://fxtrade.oanda.com/account/historical-rates

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
23/02/2011 11:55

If the person on the title deed is not "professional", there is no VAT to pay. The best method is to ask for a breakdown of the taxes and then you can see if you are being asked to pay the Vendor's tax.