Price Reductions

The Cyprus Association of Business Development Land and Buildings has just submitted a press conference advising that there are three measures that will help the state to increase revenue and seven measures to revive the property market in Cyprus.

According to the president of the Association, Lakis Tofarides decided to make the speech for three reasons. Why in the discussions of the state budget have found a significant reduction in government revenue much of which is due to land, because they see an alarming trend recorded in the unemployment figures for the industry and they want to catch any errors and omissions in the evolving drafts on urban amnesty.

Going one step further, Mr. Tofarides analyzed the three papers of the Association to help the state to raise revenue.

Version property deeds

With the problem of delays that have accumulated over many years, the system has short-circuited and cuts are needed to help the functioning of the housing market. Today, for example, in the province of Nicosia there is a need for 4.7 years to issue securities. The complex process includes 12 steps. Outdoor division, consolidation, planning permission, building permits, amending planning permission, amending building permit division planning permission, building permit division, hiding leave final approval of an application for dividing the Land Registry and issuance of securities and issue final approval and division titles.

The response from the Association, to which NCAC agrees, is the final authorization and approval of division titles to be awarded to individuals experienced and certified in the 11 scholars from 12 procedures with the Land Registry to focus on these. In this way, the developers believe it will be possible to issue annual 30.000-40.000 securities for which the State will have no additional cost and which will receive 30. more annually.

Urban Amnesty

The Association, to ensure the successful implementation of the Urban Amnesty, proposes to give incentives to encourage as many applications as possible to be filed. Recommend at least 30% discount on the first year, paying the entire amount of the second year and thereafter a fine on those who have not followed the procedure. Only then will it be possible to appreciate the quick results and immediate contribution to the effort to increase government revenue. They claimed that the state must work to secure special financing programs for those who would use the process.

Single Development Authority

The Association recommends the introduction of the Single Development Authority and Monofyridikis Access.

A single agency will have the form of a one stop shop. From there all operations and procedures will be carried out for issuing permits to all existing departments (planning municipalities, fire brigade, EAC, CYTA, Public Works, etc.), and thus considers the link will remove the bureaucracy, avoid unneeded costs and a very short period of time that the license is issued for which this is all about.

Given that the turnover is EUR 1 billion and that the cost of land is 40%, then the cost of delays resulting each year from repayments of loans at 5% will be 20 thousand euro.

The second set of seven recommendations included measures to revive the housing market which will help reduce prices and make it easier for Cypriot consumers and especially young couples to have a roof over their heads.

These measures are as follows.

Remove transfers subject to VAT. As explained, Cyprus is the only country in the world to impose a tax without repealing transfers fees.

Differentiation of scales transfers fees so as to reflect the current picture. For example, Salatin Nariye established 10 years ago when an average apartment was € 50,000 at 3% for the first 85,000, 5% for the next 85,000 and 8% surplus. Today the same apartment costing € 200,000 and the citizen has to pay Salatin Nariye EUR 9000 plus EUR 30,000 VAT, 2600% more tax.

The reduction of interest on housing loans. The developers’ estimate that the government should help by monitoring how banks might pass this onto the market, generated by a special three-year bonds.

Increase funding for the annual income ceiling for a couple lending on low-interest loan from the Housing Finance Corporation from 40,000 to 60,000 to help more couples.

Simplifying regulations on VAT to refund first home. The developers note that the VAT should be refunded to all Cypriots as well as all other EU citizens who purchase a permanent residence in Cyprus.

Reduce the capital gains tax from 20% to 10% for this period. It will help to make transactions on more reasonable land prices and limit the phenomenon of undeclared money that does not enter the economy.

The ETSC will arrange mandatory training for members of the legislation, regulations and responsibilities of supervisors and scholars in the Interior Ministry will extend the institution of self to higher growth and more stages of licensing.