We would like to remind our website visitors that the incentives to buy a property apartment land or any other form of investment in Cyprus will expire on 31st of December 2016.
The incentives provide:
a) 50% reduction on Transfer Fees
Any transfer of property that is made until 31/12/2016 will incur half transfer fees that would normally pay. However purchase of new property which includes VAT are still not subject to any transfer fees, whenever the transfer is made.
We would like to explain above with an example.
Someone buys a used house for € 300,000. Before the above incentive, the buyer would have normally paid during the transfer the amount of € 17,200. With this incentive, the buyer currently pays half transfer duties. This means that the buyer will save around € 8,600.
b) Capital Gains Tax
Motivation determines that anyone who buy property until 31/12/2016 and sell it at a profit in the future he is exempted from paying any capital gains.
More precisely, if the buyer purchases a house at the cost of €250 000 during 2016 and sells it in the future for €350 000 the seller of the above residence would have made a profit of €100 000 which would have been due to capital gains tax of 20%. With other words the seller of above residence would have paid€ €20,000. With the new incentives for 2016 he will not pay at all and will therefore benefit € 20,000.
The above incentives for investing in Cyprus are applicable for all types of buildings e apartments, houses, plots, offices, shops, land, whether the buyer will use it for residential purpose or for any other investment purpose.
The benefits of above incentives are surely important and alongside with the above conditions for 2016 let’s not forget the equally important Citizenship by Investment program in Cyprus which provides the Cyprus Citizenship to any investor that purchases a house, invests in government bonds, financial assets or makes any other investment in Cyprus worth 2.5 million. Noteworthy is that the investment in order to apply for the Cyprus Citizenship was 5 million before April 2013.
Noteworthy is also the fact that real estate fees in Cyprus the latest years has fallen dramatically and in many circumstances has been reduced as much as 50 % of the initial value. If someone is planning to buy a house it is surely advantageous to do so now and benefit from the incentives.
By the editorial team of www.lawyersincyprus.com
