Sale of Immovable Property
New tax announcement
Update: December 13, 2023
Extension of the deadline for the payment of the Fee of the Cyprus Central Agency for Equal Distribution of Burdens (K.F.I.K.B.) 0.4% due to the transfer of real estate and shares after sale during the period 22/02/2021 until 18/11/2022. Following the announcements of 1/9/2023 and 7/11/2023 and with a new decision of the Tax Commissioner, the date of payment of the relevant Fee without the imposition of monetary charges and interest is extended until March 31, 2024.
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The collection of a 0.4% fee debt from individuals who transferred real estate between February 22, 2021, and November 18, 2022, is applicable with retroactive effect.
In accordance with the legislation published in the official Gazette of the Republic on February 22, 2021 (Law 12(I)/2021 No. 4808, 22.2.2021, amending the Central Agency for Equal Burden Distribution Law of 2021), which carries retroactive implications, the Tax Department is issuing notices of debt for the Central Agency for Equal Distribution of Burdens (K.F.I.K.B.) fee at a rate of 0.4% to individuals who, between February 22, 2021, and November 18, 2022, transferred real estate subsequent to its sale and have come to the attention of the Tax Department.
With the accompanying notification, the payment deadline is established until December 31, 2023, allowing for fee settlement without incurring monetary charges and interest, as per the decision of the Tax Commissioner on November 21, 2022. Post this deadline (31/12/2023), legal fees and interest will be applicable until the complete settlement of the debt.
It is emphasised that individuals who have engaged in the sale of immovable property within the aforementioned timeframe and have not received a corresponding debt notice should either (a) check for the relevant debt on the Tax Portal under “Debt Status” and proceed with payment, or (b) visit the local District Offices of the Tax Department, furnishing all necessary information for the repayment of the debt.
Disclaimer
Disclaimer
The content of this article cannot be considered as a legal advice. For any further information or advice on the particular matter, we strongly recommend that you contact us to be guided accordingly.
