Title Deeds Developers & Reclaiming Immovable Property Tax
Title Deeds, Developers and Reclaiming Immovable Property Tax,
Sam Orgill www.proactpartnership.com How to protect your Cyprus Property Cyprus
In 2015 Big changes allowed buyers to claim title deeds without waiting for developers and their banks to release them. Also banks can reclaim property where mortgages in default. We understand Bank of Cyprus has reprocessed Secret Valley from Aristo developers, illustrating the dangers to property buyers of not securing their title deeds now.
Big changes in 2016 Immovable Property Tax (IMPT) on Cyprus Property mean that tax savings are available for Expats owning Cyprus Property.
If you own a property with only a contract of sale , since 2014 you are responsible for immovable property tax and should be registered. This tax is paid through the income tax office. If not you could pay a higher rate of tax to the developer. Register as the IMPT payer to save expensive bills from a developers that only pay the developers IMPT.
2015 IMPT Tax Saving
If you paid your 2015 IMPT on time, you have overpaid! In Retrospect 2015 IMPT on Cyprus property has been reduced by 25%. Anyone who has paid in full will be due a tax credit. This will be processed with the next event. The tax could be offset against other IMPT due. If the property has been sold the overpayment needs to be reclaimed.
2016 IMPT Tax Reclaim
Anyone who has received title deeds, transferred or sold property in 2016 so far, has over paid IMPT for 2016. The rate for 2016 has been reduced giving a tax saving of 75%. Any over payment needs to be reclaimed if you no longer own the property.
If you have yet to pay your IMPT your payment is due by 31st October. The tax saving can work well for you if you have a 25% 2015 rebate due. This can be credited to 2016 tax meaning no additional payment is due for 2016.
2017 IMPT – Tax Saving
There is no IMPT tax due for 2017 onwards. In a radical approach the Cyprus Tax approach is to abandon a complicated process to claim this property tax.
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 info@proactpartnership.com
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.
Sam Orgill
ProACT Partnership - Tax Saving Experts
www.proactpartnership.com info@proactpartnership.com
TEL: +357 26 819 424
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