Those selling their mortgaged property in Cyprus to reduceor repay their mortgage debt will be exempt from paying capital gains, incometax, special defence contributions, as well as stamp duty and transfer fees.
Borrowers who sell their property to reduce or repay theirloans on the free market will be eligible for tax relief, extending a regimethat has so far applied only for sales to banks.
Following Tuesday’s unanimous vote on DISY’s five proposedbills at the House of Representatives, those who sell their property to thirdparties on the free market will be exempt from paying capital gains, incometax, special defence contributions, as well as stamp duty and transfer fees,provided the sale is to reduce or repay loans as part of a loan restructuringdeal.
Borrowers will be able to enjoy tax relief until the end of2019. Covered by the new legislation are loans made up to 31 December 2015.
The exemption from the payment of taxes and fees can beapplied both to the sale of a property to a private buyer and to the sale to acompany.
DISY chairman, Averoff Neophytou said these laws will makeit easier for borrowers to pay off their debts. He remarked that it was amistake that the previous laws did not cover borrowers selling mortgagedproperty on the open market. This, he stated, was exploited by the banks whopressed borrowers to sell at lower prices through them, in order to takeadvantage of the relief.