Government rental tax demands

glencoe


Joined: 01/02/2008
Posts: 256

Message Posted:
03/12/2008 14:34

Hi All,

Just a quick note to bring to everyone's attention something that will affect a lot of people it is on http://www.glencoecyprus.com website forum, saves me repeating myself,

anyone can view the forum, but only registered members may reply and we do moderate sensibly.

mickey rourke


Joined: 27/08/2008
Posts: 157

Message Posted:
03/12/2008 15:16

Hi Greg why not tell on here it makes good reading thanks

C

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
03/12/2008 15:33

This seems to be part of a concerted efort to catch up with many aspects of lost tax revenue.



In fact on an earlier thread, which I cannot be bothered tracing, I did say it is about time they started chasing for the rental tax and here it is.



Again why should people flout the laws of the land with seeming total disregard of them. With rental tax there has been blanket coverage in all the press over several months to ensure everyone is aware. I would anticipate that if you have never paid any rental tax then the authorities will offer a notional amount which you will be given no opportunity to appeal.



I am sure that if there was a Crime Stoppers scheme here with suitable incentives then there would be people turned in very quickly. Whatever you do, do not fall out with your neighbours!!!!!

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
03/12/2008 15:51

I hope you don't mind Greg but I am going to copy it here because it took me a while to find it and as you say it is very important.



Hi All,

This is very important and it affects everyone who is renting their properties anywhere on the Island (trnc)



The government has now started issuing tax bills in the Esentepe/Bacheli/Tatlisu areas, this is not a joke, they have been going round checking with Muchtars, Belidieres, management companies, bars, internet bulletin boards, web sites etc and they have identified a very large number of apartments & Villas for rent, they have heard nothing from these owners so they have started sending out OFFICIALLY STAMPED TAX DEMANDS being delivered by special courier to targetted owners with ESTIMATED bills for the year 2008, the demands are for amounts ranging from £150-£300, these HAVE to be paid and owners have to get in touch with the tax office to make arrangements for future rentals.



continued

bazilbrush


Joined: 29/03/2008
Posts: 404

Message Posted:
03/12/2008 15:54

Been paying my taxes for a year now. If you dont pay it mounts up each month with a fine back dated to the start of the rental. They will trace you if you have long term tenents because these people must pay for stamps on there rental agreements each year for residency. Nothing worse than being stopped at the airport and told you can't leave.

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
03/12/2008 15:54

If your apartment has not been rented the onus is now on you to prove this is the case, if it was empty this can reasonably easily be proved, by electricity usage and other things - they are reported as saying, or if you were in the apartment yourself this will be borne out by your in out stamps from the immigration dept (police).



The tax office say they will take people to court if they continue to avoid their tax liability.



We know officially of several who have already received these tax demands, our advice to all our owners is and always has been that they must contact the tax office and keep them informed of tenancies.

..................



Thanks Greg.

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
03/12/2008 15:54

thats a better approach than what happened in Spain. In the late eighties and early nineties some years the Spanish govt levied a la renta tax on all properties which had to be paid. It was nominal but a nominal amount from all meant that those who had not rented out were penalised whilst those who had rented out gained.

susief


Joined: 06/11/2008
Posts: 529

Message Posted:
03/12/2008 16:10

Just to point out that the tennants of rental properties must also register their rental agreements at the tax office and pay 0.5% tax on the term of the agreement - ie if your rent is 300stg per month and the agreement is for 12 months you will pay 18stg (0.5% of 3600stg). This must be done within 4wks or I think it doubles to 1%. It also means the tax office will then have a record of the property as being a rental so the owner will then be chased for the rental tax.

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
03/12/2008 18:05

Bazilbrush,



Could you detail the process that you had to go through at the tax office? My understanding is that it is the tenant's responsibility to register the contract, so what does the landlord have to produce?

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
03/12/2008 18:26

Come on aylin,



I have always paid the tax on my holiday lettings but recently I rented to long term tenants. I had a rental agrrement drawn up with the names of the tenants and their passport numbers. I took this to the tax office, they looked at and fed it into the computer. I then was sent to a different department and had to pay for the stamp. This is the bit the tenant should pay for but they weren't with me. Then I went to the cashier and paid the one months tax I owed. They did want to charge me for the whole year in advance but I said no, I am only getting the rent monthly. Word of warning to any would be owners. Do not rent to Turkish Cypriots. You will never get them to leave and the law is on their side. The Butlers wife

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
03/12/2008 18:47

Thanks for the information. I remember reading a post by Elko on Villa Owners website saying that the landowner was under no obligation to produce a rental agreement, let alone a stamped one. However, I'm sure this is easier said than done, especially if you are not a TC.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
03/12/2008 20:15

Hi come on aylin,



The stamp on the rental agreement is for the tenants benefit. When they go to get their residency, they must produce either a purchase contract or a stamped rental agreement. No rental agreement, no residency.



The Butlers wife

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
03/12/2008 21:33

So if the tenant is someone who has bought over here and already has a stamped contract then there is no point in getting the rental agreement stamped. I can't imagine explaining that one to the tax office ;-)

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
03/12/2008 21:42

Surely as a landlord you should have your own stamped copy of the tenancy agreement. If you ever needed to go produce the document in court for whatever reason you would need to have had it stamped for it to be accepted. Or am I barking up the wrong tree?

phylray



Joined: 21/09/2007
Posts: 1727

Message Posted:
03/12/2008 22:58

What is the situation if you just let to few relatives & friends to cover

costs (which it barely does) How can they work it out? Relatives ran up

a big electricity bill in mid-summer, so how can they go on bills. This is

my family for heaven's sake!

andysue


Joined: 12/11/2007
Posts: 891

Message Posted:
03/12/2008 23:30

you stole my thunder phylray,we are waitng to complete on our appartment at sweetwater bay and we go over a couple of times a year and stay at our freinds appartment at turtle bay,he dont even charge us costs to cover electric ect. so where does he stand if proved hes let it out to us? minefield me thinks. regards andy

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
03/12/2008 23:32

Hi phylray,



The rental tax you pay is gross rental income, they do not allow any allowances to be deducted. ie water, electric, cleaning, laundry, service charges etc.

When I took in the wear and tear on furniture bedding etc it wasn't worth renting to holiday lets. Long term rental is better, less money gross but they pay all the bills except the tax. I don't think you would get away with saying, they are friends or relatives. After all everyone would be saying that.



The butlers wife

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
30/08/2009 13:02

do you have to have a rental agreement for the tax office if you want to rent your place out for holidays only



more people would pay the taxes if it was easier to get round the red tape



any advice re renting and what to do would be appreciated thanks in advance