Transfer of title stamp 12%

[RAZR63]

Apparently all properties regardless of when the sales contract were registred are now liable for 12% tax. So when does a legal binding contract become viable?? Another kick in the teeth...

[MnM]

Does this apply to ALL Koçan transfers though, or just transfers from developers?

[benjaminbutton]

So we signed our original sales contract December 2004 and we still pay 12%. What a greedy b====y bunch they are.

[kerry 6138]

I read somewhere that the 12% transfer tax was not for properties whose sales contracts were registered before February 2023.

[Laura B]

I read somewhere that the 12% transfer tax was not for properties whose sales contracts were registered before February 2023.

Apparently that agreement finished on Feb 7th 2024.

[MnM]

Only in TRNC could get away with doing something like this retrospectively. Imagine if the manufacturers or retailers came knocking on our doors demanding money as a result of price increases on everything we've ever bought back-dated over the last 20 years???

[davedee]

Is it 12% f valuation or contract price ?

[MnM]

I believe it should be 12.5% of original advertised sale price, however i have been told over the weekend by one Estate Agent that they are now doing 2 contracts, one for property and one for furniture etc (say £10k on a £100k property) in order to reduce the tax payable.

[Tanky]

Is this new price for everybody or just expats. We all know how the locals get away with things like this however hammering the good old expats is seen as the thing to do.
Tanky

[Reyntj]

Turkish and trnc no contract 6% only 6 % on transfer so yes it's only for expats.

Its on the higher of contract or valuation...
It's an attempt to reign in prices and of course create revenue.

Uk expats have little to whinge about as UK charge an extra 2 % sdrt tax surcharge to foreigner buyers ...

Maybe be that's where they got the idea from....

[benjaminbutton]

I don't understand your last two sentences. Can you explain please. This isn't UK. What happens in Germany. Norway, Sweden, Holland, Denmark. etc. etc. RoC etc.,

[Reyntj]

There is nothing to explain to be honest . It can't be more clear what I have said . Pot calling the kettle black.

[Reyntj]

Also referring to the tax i.understand why they have done it many have simply not taken the deeds to avoid paying transfer taxes and they can also avoid sales taxes if they just transfer the contract . Looks like they have been caught out here. The permission to purchase process wasn't set up so foreigners could avoid paying transfer tax. If you could have took the deeds but didn't that gamble didn't pay off. There has also been discounts so.you could have just paid 1% ..some must be kicking themselves they didn't act although I appreciate others haven't been able to take deeds due to developers etc.

[bigbadbob]

I have been let down twice now by 'legals' who have been paid their fee to help with the PPI. Firstly back in 2012 when Bob and I bought the property. Our solicitor failed to complete for us and has since ignored our plea's for help. Secondly in 2021 when I was advised to apply in my name only for personal reasons.
I have the file numbers from the Mnistry of Interiors but to this day no permission to purchase. Now the tax is 12%. I would not be able to procede even if it got granted.
I am tryng to cope with all of this but I am worried sick and know I am not the only one.
BBB's other half.

[RAZR63]

Turkish and trnc no contract 6% only 6 % on transfer so yes it's only for expats.

Its on the higher of contract or valuation...
It's an attempt to reign in prices and of course create revenue.

Uk expats have little to whinge about as UK charge an extra 2 % sdrt tax surcharge to foreigner buyers ...

Maybe be that's where they got the idea from....

Yep yes it is 2% not a whopping 12%! And the UK have not increased that tax after "legal contracts" have been exchanged?? So why are we whinging, well because it has increased from 3% to 12% that is why....

[Reyntj]

The 2 % is just a surcharge and not the full amount .it can be as high as 17 % in the UK for a foreigner buying on a 2 Nd home.....

My comment was with regards to charging foreigners more and not the amount which clearly the UK do something similar as well. UK charges 2 % to non residents and 3 % for owning a 2 Nd home so 5 % extra for foreign buyers buying a holiday home .. the extra charge here for a foreigner to buy a second home is now 6 % .

Stamp duty in the UK is due on completion and title registration not on a private contract . The stamp duty due is payable on completion at the prevailing rate which has absolutely changed over the years in the UK just like here and is not related to when any contract is signed .

Stamp duty has been as low as 1% here and many have avoided not even paying that by not taking deeds . If the deeds where available and you didn't take them whose fault is that ?

Most properties have just doubled in value in a short space of time and that's why they have increased the taxes to try to reduce or cap property prices. So anyone sat on a contract has likely made a significant increase you can try to sell with just contract many do and avoid all taxes which is why imo they have brought this in .

Of course the tax may well be reduced again if the market corrects . Probably .

[RAZR63]

The 2 % is just a surcharge and not the full amount .it can be as high as 17 % in the UK for a foreigner buying on a 2 Nd home.....

My comment was with regards to charging foreigners more and not the amount which clearly the UK do something similar as well. UK charges 2 % to non residents and 3 % for owning a 2 Nd home so 5 % extra for foreign buyers buying a holiday home .. the extra charge here for a foreigner to buy a second home is now 6 % .

Stamp duty in the UK is due on completion and title registration not on a private contract . The stamp duty due is payable on completion at the prevailing rate which has absolutely changed over the years in the UK just like here and is not related to when any contract is signed .

Stamp duty has been as low as 1% here and many have avoided not even paying that by not taking deeds . If the deeds where available and you didn't take them whose fault is that ?

Most properties have just doubled in value in a short space of time and that's why they have increased the taxes to try to reduce or cap property prices. So anyone sat on a contract has likely made a significant increase you can try to sell with just contract many do and avoid all taxes which is why imo they have brought this in .

Of course the tax may well be reduced again if the market corrects . Probably .

thanks for all that information. Yep hopefully it will correct itself.