when to pay property tax

Elenka


Joined: 21/05/2011
Posts: 5

Message Posted:
17/08/2011 22:21

Hi guys,



What is procedure of paying tax property in NC for the new built house? When do you need to pay it and how much it will be? For example, our house is going to be completed by developer in September, do we need to pay property tax straight away or I heard it can take a few years after when the house price will be estimated by the government committee...

ang1706


Joined: 28/01/2009
Posts: 570

Message Posted:
17/08/2011 22:29

Hello Elenka,



I bought my house in 2005 and was wrongly advised on when this becomes payable.



I am with Karsiyaka/Lapta Beledeysi and it was due when I received a water meter so I had to pay 2 years and a fine for late payment.



My advice is go to your Beledeysi with a copy of Contract that states all your house details, size, pool, storeys, garden size etc.



I have a 3 bed Villa with a 10 by 5 pool on about a donum of land and was billed 187.50 lira a year my fine was 144 lira so not a lot but a friend had to pay almost 15 years worth in February, so go to local Beledeysi.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
17/08/2011 22:30

Elenka. Ang1706 is correct. Get it done sooner rather than later.

Jonesy299


Joined: 07/02/2009
Posts: 367

Message Posted:
17/08/2011 23:15

I think Elenka is enquiring about the sales tax not annual rates / tax i.e. normally approx 8%-9% of sale price.

I'm not a deep expert on that subject so will defer to others....

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
17/08/2011 23:45

Property tax(stamp duty) is actualy paid at the time of receiving your title deeds,however I've heard construction companies demanding it earlier.If you have already got your PTP thats all fine but if you haven't?

Go to 'tapu dairesi' and register your house,which at that point you'll be asked to pay 0.5% of your 3.5% property tax.

Once thats done,if you still have to wait for your PTP,go to your bank with all the paper work and take out a small loan on the land.That's just to give yourself a peace of mind,just in case.........

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
18/08/2011 08:13

There are 4 taxes to pay.

1. Stamp Duty - this should be paid within 1 month of signing your purchase contract. It is 0.5% rising to 1% after 1 month and later 1.5%. This is vital and NEVER let the builder pay it. Once it is paid no mortgage can be obtained on your property. An unscrupulous builder can pocket the cash and later get a mortgage on your property.

2. VAT (KDV) which is 5% of the contract price - they no longer do a separate valuation. This is paid after you get PTP as a prelude to issue of the Kocan. It is quoted in sterling but actually paid in lira calculated at the average exchange rate in the year you sign the purchase contract. Many solicitors ask for the money in sterling - but if you have the lira then pay in lira. You can plan for this by exchanging sterling when the rate is favourable (like now) and earning 10% interest on the lira until it is needed. It is only paid the first time a kocan is issued - not on a resale property that already has a kocan.



cont...

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
18/08/2011 08:14

....cont



3. Land Registration Fee. This is 6% with a once per lifetime option of a 50% discount which nearly everyone takes on their first purchase - thus 3%. All purchasers of a given property pay this tax but in all other respects (timing, currency etc.) it is like VAT.

4. Annual Property Tax. As message 2 says, this becomes due when you have your water meter installed and you need to go with your contract to the council offices to register your ownership. Most councils show the amount once per annum on the water bill but you can legally pay in 2 instalments. It is 1% of the registered 'covered area' of your property plus another 0.5% if you have a pool.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
18/08/2011 08:48

Msg7 Point 4 is incorrect, your property tax is calculated as in this link - http://www.hbpg-trnc.net/documents/Tax_property.html

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
18/08/2011 11:35

Message 6 is now incrorrect as to the VAT. The exchange rate of pound to lira, is now done at the days rate, that you pay. I know this as I got my PTP this year and was quoted one price, I did not go and pay straight away, and was then told a much higher price, as it is now a new law that you pay at current rate of exchange. So now I am waiting and hoping for the lira to get stronger so I can afford my VAT.

Elenka


Joined: 21/05/2011
Posts: 5

Message Posted:
19/08/2011 09:40

Many thanks all of you for the information

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
19/08/2011 11:01

Lots of developers including ours, Medview Homes insist on you paying the VAT when you sign your contract. This is before you have received ptp. We paid ours to Medview over 5 years ago and have still not received our title deeds, in the meantime house prices have dropped at least 20%. When we eventually get parcellised, will we receive a refund? Me thinks not.





The butlers wife

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
19/08/2011 11:12

re message 11



perhaps Cornish aka Jack Lobb would take this scam up in the rag he writes for.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
19/08/2011 16:49

ummmm, lovingcyprus,



does Jack Lobb write for Cyprus Star by any chance?







The butlers wife

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
20/08/2011 10:15

Message 11 - This should work in your favour. Providing you have the company invoice (fatura) and receipt (makbuz) this should be sufficient when transfer of title takes place.



Message 9 - this would not be in your favour. Vat is calculated using the contract sale price. However, if at the time of transfer, and you haven't yet paid the KDV, and the exchange rate is really high - the tax office will use the higher rate.



individuals cannot pay VAT/KDV direct to tax office and you should only pay your vendor providing you are given a company invoice (fatura) and receipt (makbuz) that has the tax office logo on it, not a demand knocked up on a pc or email.

misunderstood


Joined: 08/04/2011
Posts: 1004

Message Posted:
20/08/2011 10:39

Which office would I pay at under GIrne Beledeysi, is it the same one as the water?

MrsSnakes



Joined: 19/12/2008
Posts: 1100

Message Posted:
30/08/2011 13:31

Message 7. With regards to the Transfer Tax being 6% or a 50% reduction 'once in a lifetime' 3%, I have read on 2 local Developer's websites that if the property is above 200m2, then the Transfer Tax reverts back to 6%. Can any one confirm this please?