Filenews 8 January 2023 - by Eleftheria Paizanou
The data from the Land Registry in relation to property sales made from February 2021 to November 2022 expects a Tax Department, to start imposing the 0.4% fee. This fee had been approved on February 22, 2021 by the Plenary Session of the Parliament, for the support of the refugee world, through the Equal Burden Sharing Body, however the state had not determined a mechanism or Authority that would collect it, resulting in the legislation not being applied for 20 months. On November 18, 2022, Parliament approved new legislative regulations, which designate as the competent Authority the Tax Commissioner to collect the 0.4% fee from the sale of real estate and shares.
As "F" is informed, the Tax Commissioner Sotiris Markides sent a relevant letter to the Director of the Land Registry, requesting data on the sales of real estate that took place from February 22, 2021 to November 18, 2022, so that the imposition of the relevant fee can begin. As soon as the Tax Department receives the relevant data, it will inform the citizens.
It is estimated that retroactively 43,000 property buyers they will be required to pay the 0.4% fee. In fact, based on data cited in the Parliament, it appears that from the sales of real estate made from February 2021 to September 2022, €15.6 million should end up in the coffers of the Equal Burden Sharing Body.
However, despite the provision of the new legislation, which provides that the Tax Commissioner will be able to take court measures and collect any amount due as a civil debt to the Republic from those who do not pay the 0.4% fee, weeks ago the competent Department gave time credit to citizens who bought real estate during the specific period (22/02/21-18/11/22) that the legislation that had been approved was not applied. As is known, the Tax Commissioner granted a reasonable period of time to settle the relevant obligation without the imposition of interest and monetary charges.
In the meantime, for the rest of the real estate sales made from November 18, 2022 onwards, the levy of 0.4% is imposed.
It is reminded that, according to the law, in cases of transfer, by virtue of sale, of immovable property or shares of a company which is not listed on any recognized Stock Exchange and which directly or indirectly owns immovable property, a fee of 0.4% is paid by the seller for the sale of immovable property, on the sale price and for the sale of company shares, of immovable property, which is attributable to the shares sold. It is worth noting that real estate transfers made in the context of loan restructurings from February 2021 onwards are exempted from the imposition of the 0.4% fee on real estate and share sales.
