FAQ

Taxes are usually payable right at the end of the transaction after your purchase permit has been granted and the title deeds are being transferred into your name. However, some vendors require VAT to be paid on the sale price at the date of delivery of possession of the property.

The rates of tax are as follows:

• Land Registry Transfer Fee - 6%. However, every person has a once in a lifetime exemption to reduce this tax to 3%.
• VAT – 5%

There is also a new regulation governing stamp duty on property purchases. The Tax Office is now requiring the contract of sale to be presented prior to transfer fo title and for stamp duty to be paid. Stamp duty is payable at 0.5% of the contract price if paid within 1 month of the contract date. If it is not paid within this time, it increases until after 6 months, it becomes 1.5% of the contract price.

This depends on the terms of your contract of sale. Selling before taking title also has tax advantages as taxes are only payable when a transfer of title takes place.

No. Once your property is complete, you will be able to take possession of your property and move in.

In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:

• whether the vendor is a professional vendor
• whether your contract requires you to pay the VAT. Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

Taxes are usually payable right at the end of the transaction after your purchase permit has been granted and the title deeds are being transferred into your name. However, some vendors require VAT to be paid on the sale price at the date of delivery of possession of the property. The rates of tax are as follows:

• Land Registry Transfer Fee - 6%. However, every person has a once in a lifetime exemption to reduce this tax to 3%.
• VAT – 5%

There is also a new regulation governing stamp duty on property purchases. The Tax Office is now requiring the contract of sale to be presented prior to transfer fo title and for stamp duty to be paid. Stamp duty is payable at 0.5% of the contract price if paid within 1 month of the contract date. If it is not paid within this time, it increases until after 6 months, it becomes 1.5% of the contract price.

Generally, no, Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

This depends on whether you are a private individual or a professional vendor:

Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

Capital Gains Tax is not payable if you sell the property before taking title.