Should You Pay Your Developers Tax to Receive Title Deeds in Cyprus?
Sam Orgill ProACT Partnership Examines the validity of claims for additional payments to developers in exchange for title deeds
When you make a contract it sets on 3 things: 1. the buyer and seller 2. the goods sold and the price paid 3. what and when happens to fulfill the contract.
Normally a cyprus contract states the buyer pays the money and the seller delivers the property - with title deeds later. The conditions in the contract for buyer and seller determine what you are legally obliged to pay.
Sticking to the letter of the contract could save you thousands off the price.
IMPT Paid to the developer
This can be complex. If you pay IMPT to a developer for your procession of property under contract of sale before 2013 , then you can reclaim this tax from the tax office 1/ after you receive title deeds 2/ if you have a contractual obligation to pay the tax to the developer.
Before you agree to pay any developer you should carefully check your contract to ensure you have a liability to the developer. If you there is no contractual liability, you don’t legally have to pay, and you won’t be able to reclaim from the tax office if you do. In any case you can never reclaim any interest the developer may try to charge you for late payment of their IMPT liability to the Cyprus Tax office.
Under new property laws anyone who has a contract of sale can apply directly to have the title deed issued, without having to wait for the developer settle mortgage, planning or contractual issues. This gives the property owner power to move forward without overpayment to developers.
If you do pay valid IMPT payments under contract to a developer, to receive title deeds, then you can make an application to reclaim this IMPT from the developer.
Tax Saving Review and Reclaims
ProACT Offer a Free Review of all Cyprus property title deed issues including issues regarding IMPT tax savings, returns and rebates. Contact Us firstname.lastname@example.org
Make a Will to Protect Overseas Property
Make a Will and Trust your family and friends to protect your assets on death. A Family Trust avoids Cyprus laws of succession. By creating a Family Trust today for Cyprus Property you could also make tax savings in capital gains, inheritance tax, IMPT and inheritance taxes on your death.
Look Forward – Plan Ahead
Overseas Property in Cyprus has become a better investment with lower property taxes in Cyprus. ProACT can offer help and guidance about the Movable Property Taxes for Expats . Asset Protection is about looking forward to make tax savings. ProACT expat experts offer tax saving for people living and working and investing abroad. Find out more at our website.
ProACT expat experts offer tax saving for people living and working and investing abroad. Find out more at our website.
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