Valuations for Property Transfer Tax
| Quote: |
| My good friend Renos Pitros RICS, showed me the database and how it worked in July 2006. |
The Land Registry has a “database” of valuations going back years. Actually the one I saw was a print out. They look up their valuation of plots and properties close to the development and make a judgement on value which is not necesarily the price in the purchase contract.
On what basis does the Director of Dept of Land & Surveys determine his revised market value?
From a database of properties, which have already been assessed for transfer tax by the Land Registry, being “local” to the one being valued. In theory you pay the same as everyone else and nobody gets away with paying part cash and a lower figure on the contract for sale to reduce the transfer tax.
Is it his considered opinion or is there a set formula?
No set formula – as above.
Is this a new ruling? If not, I am surprised that more people haven’t questioned that they are paying more PTF than they initially anticipated.
Nothing new.
In our case we are the 3rd owners before Title Deeds were issued so our Sale Contract is dated November 2005 and consequently the sale price is considerably more than the original Sale Contract. I assumed the PTF would be based the value of OUR Sale Contract (Nov 2005). Is this correct?
You will be assessed against the price declared in your Contract for Sale in 2005. Not the original sale price.
Overall, it appears to me that the Director is saying that the developer sold you a house for a sum considerably less than he could have done! Nice development man!!
May be he had a cashflow problem.
All the developers have copies of the “database” so when they buy land or sell land they have a yardstick for their deals. It tells them what they can get away with in terms of transfer tax when they buy for land bank. You can draw the rest of the picture yourself.
Cyprus Property Help & Advice Centre™ ® ©The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu
