Cyprus to introduce a tax for real estate sales
The House of Representatives in Cyprus has approved a legislative proposal according to which a tax of 0.4% will be levied on the sale of real estate. All money collected will be channelled into help for Greek-Cypriot refugees, informs Cyprus Mail.
The sellers must pay tax for any property sold. This rule is also applied when the shares are transferred to an organization that owns real estate.
According to Ksenia Sorokina, Head of the Cyprus department at Russia Sotheby’s International Realty, the alterations are currently in the final stage of discussion. They won’t necessarily entail any drastic consequences since a tax of 0.4% is hardly a significant amount for the real estate market. In this regard, the changes made will not correct the current market situation for either sellers or buyers. Given the fact that in most cases the real estate market adapts to the buyer, the introduced tax will not affect the cost of the property.
The new changes regarding the developers are still being discussed. When they are finally adopted, there will be no increase in the prices of the objects. According to preliminary forecasts, the new proposal will be approved and will come into effect in the nearest future.