Title Deed or certificate of ownership of a real estate object is the main document of the owner of housing in Cyprus.
There is nothing more important than title deeds in the island's legal system. Whoever possesses it has the full right to dispose of real estate.
He can sell it, inherit it, rebuild it or turn it into a vineyard on the hillside. And the buyer, who does not have a Title, accordingly, has no rights, even if he has fully paid for the object.
Therefore, it is necessary to know how to get A title to feel 100% the owner of a house or a piece of land on a sunny island.
Recall that a citizen of any country can buy real estate in Cyprus and become its rightful owner. The only thing is that a foreigner will need permission from the Council of Ministers before obtaining a Title. But this is not an insurmountable obstacle. As a rule, foreigners are treated friendly, investments in the Cypriot economy are accepted willingly, and they do not drag time with papers.
The title must be fully ready for transfer
In other words, before making a decision about buying a property, you need to make sure that the Title to the object is in perfect order. To do this, you need to call the local Land Department and ask the following questions: who is the final owner (if the property is not being sold for the first time, there may be many of them, but we are only interested in the last one), what is the purpose of the property, the year of construction, what is included in the object.
The Title prescribes absolutely all the nuances of a particular object. For example, the availability and parameters of a parking space for a car.
At what stage of the purchase and sale transaction is the Title Deed executed?
After registration of the contract of sale in the Land Department of his city, the buyer receives permission from the Council of Ministers to transfer the Title. After receiving a letter of authorization, the buyer visits the Land Department again, pays taxes and receives Title.
The title must be fully ready for transfer
It is believed that the Title Deed registration procedure in Cyprus is quite long due to the sluggishness of anti-corruption structures. Sometimes it lasts for months. But in fact, this is not always the case.
Buying a new building with a ready-made Title, everything is made out in a matter of days and for free. The developer takes care of all the paperwork.
Buying a second home directly from the owner, re-registration also does not take much time. In this case, it is better to do it in the presence of a lawyer.
What taxes to pay when registering a Title Deed
Since 2016, Cyprus has abolished the tax for the transfer of Title for buyers of new buildings. The developer does everything himself and you do not need to pay extra for it.
When registering a Title to secondary real estate, it is necessary to pay a state fee, which is called the Property transfer Fee and is calculated in the following way:
- From the first 85 thousand euros — 3%.
- From 85 thousand euros to 170 thousand euros — 5%.
- From the amount of over 175 thousand euros — 8%.
You can calculate the exact cost of the tax on the website Land Department.
At the same time, on the Department's website, it is emphasized that for the transfer of the Title of real estate objects for which VAT was paid, Property transfer Fee not charged. In other cases, including the secondary market, 50% of the settlement amount is paid.
How to reduce the cost of the tax for the transfer of the Title Deed
If you arrange a property for two or more people, the total price is divided by the number of participants and the tax is calculated for each separately. Accordingly, the final amount of tax is reduced.
If the property is transferred free of charge from relative to relative, the amount of The property transfer Fee will be from 0 to 0.1%.Buyers of new buildings who have paid VAT, the tax for the transfer of ownership, that is, for the transfer of Title, do not pay.
The procedure for registration of property rights in Cyprus takes place in English. And in general, there is nothing supernatural about it. Well, in the case of work through a certified agency, the registration of the Title with the client is included in the draft transaction.
Have you decided to buy an apartment or a house in Cyprus?Contact DOM! The website offers a large selection of real estate —residential and commercial. Experienced agency specialists will be happy to help you make the right choice.
See also:
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- Land Registry Department in Cyprus
- Cyprus Developers Alliance (CDA Group): affordable luxury in Cyprus
As an expert in real estate matters, particularly in the context of Cyprus, I can provide comprehensive insights into the concepts and procedures mentioned in the article about title deeds and ownership of real estate in Cyprus.
Title Deeds and Ownership in Cyprus: A Comprehensive Guide
Title deeds, also known as certificates of ownership, serve as the primary legal document establishing ownership of real estate in Cyprus. Possession of these deeds grants full rights to the property owner, enabling them to sell, inherit, remodel, or repurpose the property as they see fit. The legal significance of title deeds cannot be overstated in the context of Cyprus, forming the bedrock of property ownership within the island's legal system.
Foreign Ownership and Permissions:
Foreigners are allowed to purchase real estate in Cyprus, but obtaining permission from the Council of Ministers is a prerequisite. While this may seem like a bureaucratic hurdle, the process is generally accommodating, reflecting the country's friendliness towards foreign investments in its economy.
Ensuring Title Readiness:
Before committing to a property purchase, it is crucial to ensure that the title deed is in perfect order. This involves inquiries with the local Land Department to ascertain details such as the final owner, property purpose, year of construction, and specific inclusions like parking spaces. The title captures all nuances, making it essential to thoroughly understand the details before finalizing a transaction.
Title Deed Execution:
The execution of a title deed occurs after the sale contract registration at the Land Department. The buyer, armed with authorization from the Council of Ministers, revisits the Land Department to complete the transfer, pay applicable taxes, and receive the title deed.
Tax Implications:
Tax considerations are integral to the title deed registration process. The tax burden varies depending on factors such as whether the property is a new building or secondary real estate. Since 2016, buyers of new buildings are exempt from transfer taxes, as developers handle the paperwork. For secondary real estate, a Property Transfer Fee is levied based on a tiered percentage system, with rates ranging from 3% to 8%.
Reducing Transfer Tax Costs:
Several strategies can mitigate transfer tax costs. Joint ownership allows the division of costs among multiple buyers, potentially reducing individual tax liabilities. Transfers between relatives may incur lower fees, ranging from 0% to 0.1%. Buyers of new buildings exempt from VAT payments are also exempt from transfer taxes.
Registration Procedure and Language:
The property rights registration process in Cyprus is conducted in English, and it typically involves straightforward steps. Working through a certified agency often includes title registration as part of the transaction process.
In conclusion, understanding the nuances of title deeds, ownership procedures, and associated tax implications is paramount for anyone considering real estate transactions in Cyprus. Engaging with reputable agencies like DOM can streamline the process and ensure a well-informed property acquisition decision.
