When you sell property in Cyprus the final step is the actual transfer of the Title Deeds from the seller to the buyer. Transfer of immovable property means the passing of the title of immovable property from one person (the transferor) to another (the transferee) by the voluntary act of such persons. Selling your property in Cyprus is not altogether straight forward however. According to the law you the owner can not simply transfer the property to another person. In the first instance, the owner has to secure a number of clearance certificates from various departments. All certificates have to declare that all fees, charges and taxes have been paid in full.
Responsibilities of Property Ownership in Cyprus
1. IPT (Immovable Property Tax)
2. Local Taxes
4. Capital Gains Tax on Property (only on sale of property)
When selling property it is the Sellers responsibilityto secure following documents for transfer of property (Places to visit) :
- Lands Department – Immovable Property Tax
- Sewerage Board – Sewerage Board Tax
- Municipality – Town rate receipt obtained from municipality in whose boundaries the property is situated
- Community Council – Communal rate receipt obtained from the Community Council in whose boundaries the property is situated
- Internal Revenue Department – Receipts of payment of Capital gains tax (in event of selling property) (or certificate of exemption from paying capital gains)
1) Completion of Declaration of Transfer of Immovable Property (Form N.270)
2) The Title Deeds of the property under transfer must be attached
3) Completion of Form N.313 which states all items for which the seller has to obtain clearing certificates/ or the receipts of payment of all fees, charges and taxes payable for the property under transfer.
- Immovable Property Tax
- Capital gains tax
- Sewerage Board Tax
- Town rate
- Communal rate
Power of Attorney
Whilst the procedure is simple most sellers (and buyers) appoint their legal representatives and give them Power of Attorney to secure all the relevant certificates and complete the transfer process on their behalf.
Power of Attorney normally there are two types of fees that apply:
- Legal fees
- Disbursement fees
Disbursements do not form part of your lawyer’s own costs or charges. Disbursement are fees that your lawyer has paid to other individuals/organisations to secure all required documentation mentioned above but also include registration and stamps/certification and lodgment of Power of Attorney.
All documents mentioned above must be completed and signed by the interested persons and deposited with the Lands Office accepting the transfer.