Can anynoe tell me the % for kocan please

numpty


Joined: 20/05/2009
Posts: 554

Message Posted:
30/09/2010 17:46

our builder has just told us that we have to pay 11.5% for our kocan this seems quite a lot. anyone out there know any better.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
30/09/2010 17:56

That probably includes his own tax liability as well.... a common trick currently being tried on buyers...



Ask you lawyer for a breakdown... he'll give you one but it will be a mental one...

japeal



Joined: 12/09/2008
Posts: 1052

Message Posted:
30/09/2010 18:43

Used to be 5% of contract price plus 3% of the 5% . 2 year ago they reduced the 3% to 0.75% but belive that has now been cancelled.

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
30/09/2010 19:03

Probably he's asking you for his stopaj tax at 3.5% - assuming he is not professional, 5% vat and 3% transfer fee.

stilluvithere



Joined: 03/12/2008
Posts: 765

Message Posted:
30/09/2010 19:13

land registry fees are 6% but everyone is entitled to one purchase at 3%, there is 1% of that fee payable to Belydesi. You may be liable for 5% vat. If you add all that up it is roughly 11.5% or 8.5% if you take the 3% option. Likewise when you sell, everyone is entitled to sell once with no land registry fees. You should have been told by your solicitor at the outset of these amounts.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
30/09/2010 19:24

Your original posting isn't totally clear.

Are you asking a builder what your total fees for purchase will be, before signing a contract?

If so then what he has told you is correct.

Within 1 month of signing a contract, you have to pay 1.5% of the contract price to the Tax Office, to register the contract with the land registry.

When the house is completed & keys are handed over, some builders will ask you to pay the 5% VAT due on new builds.

Finally when the kocan is ready to be transferred you have to pay the Land Registry either 3% or 5% of the contract price & in additon a miniscule amount for the Belediye (1% of the 3% or 5%). You can exercise an option to pay only 3% once only & would normally opt to pay on your first purchase, unless you knew that a subsequent purchase might be for a larger sum. ie. You might sell & upsize in the future.

If however, your house is already built & you are asking for the kocan, then you are being overcharged, since the 1.5% should

ctd.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
30/09/2010 19:27

have already been paid at the outset.

To sum up

Scenario 1. 1.5%+ 5%+3% = 9.5%

(or maybe 1.5%+5%+5% = 11.5%)

Scenario 2. 5%+3%= 8%

(or maybe 5%+5%=10%)

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
30/09/2010 19:32

3rd possibility, as has been mentioned, he's asking you to pay his stopaj tax as well. This is not uncommon in the TRNC.

You are not liable, but he is basically blackmailing you into paying his charges as well.

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
01/10/2010 08:03

Scruff, the stamp duty on the contract is 0.5% of the purchase price if you pay within one month of signing to the tax office, not 1.5%.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
01/10/2010 08:13

Also the transfer fee is either 3% or 6% not 5% as stated above.



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

numpty


Joined: 20/05/2009
Posts: 554

Message Posted:
01/10/2010 09:23

we have paid land registry fee, all our bills are up to date, its just for the kocan,

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
01/10/2010 16:07

msg 10.

The link downloading the PDF will not open & it doesn't for me even from Naomi Mehmet website, even in German. I don't dispute what you are saying about 5% has gone up to 6%, since others are saying the same. But it is unlikely to apply for most buyers anyway, unless they choose the higher option or are not 1st time purchasers in the TRNC. & there are not many of them around.

msg 11

I assume that when you say 'you have paid the land registry fee' you mean the Tax figure paid on registering your contract?

To get your title deeds you should then be paying only 3% transfer fee & assuming not already paid, 5% VAT.

The amount paid for the Belediye is 1% of the 3%. eg. Your house contract price was £100K. Your trnafer fee will be £3k & your Belediye fee will be only £30.

So really only 8% of the contract price. The Belediye figure is insignificant.

As I said in my last message. Ask the builder how his figure stacks up, assuming your haven't got a lawyer dealing with this?.

stilluvithere



Joined: 03/12/2008
Posts: 765

Message Posted:
01/10/2010 16:30

I dont understand, if you have paid your land registry etc, did your builder not pay his dues at the same time, if he did you should have your kocan. If he didn't, you have a choice, try to make him pay or, to get your kocan, you wil have to pay his share, but it should not be 11.5%

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
01/10/2010 16:51

msg. 13

I think numpty is trying to say that he paid his 1.5% (maybe reduced to 0.5% during early 2008 for the short period) to the Tax Office when his contract is registered.

If numpty is not saying this then I too am confused by his initial question.

I do sometimes wish that posters asked clearer questions. They may understand what they are asking but the rest of us become easily confused.

stilluvithere



Joined: 03/12/2008
Posts: 765

Message Posted:
01/10/2010 17:06

doh!!!! yes we do