On the 22nd of February 2021, it was published in the Official Gazette of the Republic of Cyprus Law No. 12(I)/2021, amending the Central Agency of Equal Distribution of Burdens (Establishment, Objects, Responsibilities and other related matters) Laws of 1989 to 2019, by introducing a levy at a rate of 0,40% on the value (purchase price) of any transfer of immovable property situated in the areas where the Cypriot Government exercises effective control. Pursuant to the law, the levy is payable by the seller of the immovable property.
The purpose of this law is to compensate refugees for their inability to possess, have access to, use or take advantage of their properties situated in the occupied areas of the Republic of Cyprus.
In addition, this new levy applies in the event of transfer of shares in a company, where that company owns immovable property, provided that the said transfer of shares results in the buyer of the shares taking control of the company. In this case, the levy is calculated on the basis of the latest valuation of the property in question made by the Department of Lands and Surveys.
DISCLAIMER
This publication has been prepared as a general guide and for information purposes only. It is not a substitution for professional advice. One must not rely on it without receiving independent advice based on the particular facts of his/her own case. No responsibility can be accepted by the authors or the publishers for any loss occasioned by acting or refraining from acting on the basis of this publication.
February 2021
Author
Kallia Agrotou
Senior Associate Lawyer – Property Division
Kallia.Agrotou@kinanis.com
OUR FIRM
We are a Law Firm with offices in Cyprus and Malta and a representative office in Shanghai China comprising of more than 50 lawyers, accountants and other professionals who advise, international and local clients.
The Firm has been offering legal and consulting services since 1983 evolving from a traditional law firm to an innovative cutting-edge multidisciplinary law firm combining exceptional expertise in law, tax, vat and accounting.
From its establishment the Firm’s focus has been heavily business oriented and always abreast with the latest global developments and innovations. Drawing from our pool of experienced professionals we provide our clients’ businesses full legal and accounting support on an everyday basis as well as customized solutions in today’s global financial and legal challenges.
We consider ourselves as ‘traditional pioneers’ and our motto is to foresee and anticipate any issues that may potentially impact our clients’ business and to offer effective advice and solutions proactively.
Kinanis LLC
Lawyers’ Limited Company
12 Egypt Street, 1097, Nicosia
P.O. Box 22303, 1520 Nicosia, Cyprus
Tel: + 357 22 55 88 88 – Fax: + 357 22 66 25 00
E-mail: KinanisLLC@kinanis.com – Web site: www.kinanis.com
Kinanis
Civil Partnership, Law Firm
Kinanis Fiduciaries Limited
Suite 20, The Penthouse, 4th Floor, Ewropa Business Centre,
Dun Karm Street, Birkirkara, BKR 9034, Malta
Tel: + 356 27 54 00 24, Fax: + 356 27 54 00 25
E-mail: malta@kinanis.com - Website: www.kinanis.com
Kinanis (China) Limited
China Representative Office
Unit 661, 6/F CIROS PLAZA,
388 Nanjing West Road, Huangpu District,
Shanghai City, 200003, China
Tel: + 86 18 410 072 690
E-mail: china@kinanis.com - Website: www.kinanis.com