# Logic



## Maureen Allen (Oct 22, 2008)

Can anyone explain the logic of this problem:
We have now been in Cyprus 4 months and we thought we had settled in well with no paperwork problems - today although not a major problem we have found out that even though we are renting we are liable to stamp duty - no amount of info that I looked at prior to arriving mentioned this nor did our agent - beware new renters a % of your rental is charged for this and as we did not know this and pay within the 30 day due we have now a penalty to pay.

I have one more query but will make that a 2nd thread


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## Veronica (Apr 5, 2008)

Maureen Allen said:


> Can anyone explain the logic of this problem:
> We have now been in Cyprus 4 months and we thought we had settled in well with no paperwork problems - today although not a major problem we have found out that even though we are renting we are liable to stamp duty - no amount of info that I looked at prior to arriving mentioned this nor did our agent - beware new renters a % of your rental is charged for this and as we did not know this and pay within the 30 day due we have now a penalty to pay.
> 
> I have one more query but will make that a 2nd thread


That is the first time I have heard of this. It sounds like someone trying to rip you off.
Its nonsense.


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## Maureen Allen (Oct 22, 2008)

*Stamp duty*

Hi Veronica

This was a professional Tax Specialist here in Paphos who informed us and even showed us some applications that they were in the process of making, I have no reason to not believe her.


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## Veronica (Apr 5, 2008)

Maureen Allen said:


> Hi Veronica
> 
> This was a professional Tax Specialist here in Paphos who informed us and even showed us some applications that they were in the process of making, I have no reason to not believe her.


It is very strange that we have never heard of this. We have rental properties and have never ever come across this.


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## Veronica (Apr 5, 2008)

Maureen Allen said:


> Hi Veronica
> 
> This was a professional Tax Specialist here in Paphos who informed us and even showed us some applications that they were in the process of making, I have no reason to not believe her.


I would recommend that you talk to a solictor about it because it really sounds very odd to me.


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## Adam Samy (May 27, 2010)

*i didnt heard about this before where is cyprus*



Maureen Allen said:


> Can anyone explain the logic of this problem:
> We have now been in Cyprus 4 months and we thought we had settled in well with no paperwork problems - today although not a major problem we have found out that even though we are renting we are liable to stamp duty - no amount of info that I looked at prior to arriving mentioned this nor did our agent - beware new renters a % of your rental is charged for this and as we did not know this and pay within the 30 day due we have now a penalty to pay.
> 
> I have one more query but will make that a 2nd thread


i didnt heard about this before where is cyprus


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## Veronica (Apr 5, 2008)

Adam Samy said:


> i didnt heard about this before where is cyprus


I am surprised you don't know where Cyprus is as it is just North of Egypt in the mediterranean.


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## Adam Samy (May 27, 2010)

*sorry*



Veronica said:


> I am surprised you don't know where Cyprus is as it is just North of Egypt in the mediterranean.


aha am sorry i misunderstand the name sorry i just logged to the site so forgive me for my mistake ad hi to u


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## Cleo Shahateet (Feb 23, 2009)

Don't pay it! It is nonsense like Vernoica said. We are both in the business and never heard of it. My father is law is a lawyer in Paphos and has properties he rents out and never charges a stamp duty as it is not applicable to renters! Please seek advice from a lawyer and I would find a new place to rent if your landlord is trying to do this.


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## Maureen Allen (Oct 22, 2008)

Thank you all for your reponses - we are very concerned about this as we thought it was strange - I will seek professional advice.
Many Thanks


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## Veronica (Apr 5, 2008)

Cleo your opinion on this please. This is what Maureen tells me.

The lady in question is ***********- she is a UK person and specialises in Tax here in Cyprus she has a practice office near the law courts in Paphos - she came highly recommended. I have had another look at the paperwork and it clearly states Stamp Duty (DT ????) and another line states Stamp Duty Rental Contract, she advised us that the owners were breaking Cyprus law buy buying a property here and never lived in it just rented it out - only Cypriot Nationals are allowed to to this - all very confusing we are going to have a talk with the property management agent on Monday.


This looks highly suspicious to me.


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## AradippouTales (Jan 27, 2010)

Veronica said:


> The lady in question is ***********- she is a UK person and specialises in Tax here in Cyprus she has a practice office near the law courts in Paphos - she came highly recommended. I have had another look at the paperwork and it clearly states Stamp Duty (DT ????) and another line states Stamp Duty Rental Contract, she advised us that the owners were breaking Cyprus law buy buying a property here and never lived in it just rented it out - only Cypriot Nationals are allowed to to this - all very confusing we are going to have a talk with the property management agent on Monday.



Is this fee approximately 3% of the annual rental costs? If so it sounds like the owner has registered with the CTO to rent out their property and they are passing the associated fees on to you, the renter.

I've not heard of it referred to as a stamp duty but, from what I have read, it certainly is a legitimate tax that the owner must pay. Whether it is appropriate for them to pass that on to the renter is another question.

Mands


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## Veronica (Apr 5, 2008)

AradippouTales said:


> Is this fee approximately 3% of the annual rental costs? If so it sounds like the owner has registered with the CTO to rent out their property and they are passing the associated fees on to you, the renter.
> 
> I've not heard of it referred to as a stamp duty but, from what I have read, it certainly is a legitimate tax that the owner must pay. Whether it is appropriate for them to pass that on to the renter is another question.
> 
> Mands


At no time should any fees such as this be passed on the tenant. 
To suddenly tell the tenant after 4 months that they not only have this fee to pay but also a penalty for late payment is scandalous.
It is a tax on the owners earnings not a tax for the tenants to pay.


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## Cleo Shahateet (Feb 23, 2009)

Veronica said:


> Cleo your opinion on this please. This is what Maureen tells me.
> 
> The lady in question is ***********- she is a UK person and specialises in Tax here in Cyprus she has a practice office near the law courts in Paphos - she came highly recommended. I have had another look at the paperwork and it clearly states Stamp Duty (DT ????) and another line states Stamp Duty Rental Contract, she advised us that the owners were breaking Cyprus law buy buying a property here and never lived in it just rented it out - only Cypriot Nationals are allowed to to this - all very confusing we are going to have a talk with the property management agent on Monday.
> 
> ...


This is a first for me. If the owner wanted the tenant to pay this it should have been in the lease agreement from the get-go or at least been made aware of it in my opinion.

I have emailed this to my father in law for some advice from a legal standpoint and will let you know when he comes back to me.


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## AradippouTales (Jan 27, 2010)

Veronica said:


> To suddenly tell the tenant after 4 months that they not only have this fee to pay but also a penalty for late payment is scandalous.


People behave badly the world over, Cyprus is no different sadly.

If it isn't in the contract then, clearly, they have no obligation to pay it. Hopefully this throws some light on what the charge is and therefore assists in their argument that they have no liability.

Mands


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## Veronica (Apr 5, 2008)

Cleo Shahateet said:


> This is a first for me. If the owner wanted the tenant to pay this it should have been in the lease agreement from the get-go or at least been made aware of it in my opinion.
> 
> I have emailed this to my father in law for some advice from a legal standpoint and will let you know when he comes back to me.


Thanks Cleo, it will be interesting to see what he says about it.


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## Cleo Shahateet (Feb 23, 2009)

Veronica said:


> Thanks Cleo, it will be interesting to see what he says about it.


I asked about it and although he doesn't answer specifically about this case, here are his comments:

"Stamp duty is an issue which covers any legal document, in order to make it either admissible in Court or acceptable in some authorities. There is a law that states how much stamp duty should be paid in every case, like the contracts for the sale of immovable property.

After May 1st 2009, all restrictions, concerning the activities of the E.E.C citizens in Cyprus have been completely abolished. Before this time Europeans could only transfer one property in their names, provided a permit was granted from the Council of Ministers and provided that the property was going to be used as a residence.

Whereas it is an option now for the Europeans to rent a property, at the same time strictly speaking they will have an income which if they do not declare, they are violating the tax laws.

On the other hand, there is no effective system to control these issues and the 99.9% do the rentals without declaring anything"


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## Cleo Shahateet (Feb 23, 2009)

Just to add on, I asked specifically about renters and like we thought here is the answer: 

"In a lease contract,it has to be a contractual term in order for the owner to get payment of a stamp duty. If this is not in the lease, then it is up to the party that wishes to stamp the lease to pay for it."

Maureen - what does your lease say if anything at all about the stamp duty?


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## Veronica (Apr 5, 2008)

So if I understand it correctly Cleo, if the owner wants to have the contract stamped then there is a duty to pay, but unless it is specifically written into the contract that the tenant will pay then the owner has to pay it and cannot charge the tenant for it?

I have never known an owner to want a tenancy agreement stamped. 

Maureen check your contract very carefully. If it does not mention you being liable to paying a stampy duty you should refuse to pay it.


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## Cleo Shahateet (Feb 23, 2009)

Veronica said:


> So if I understand it correctly Cleo, if the owner wants to have the contract stamped then there is a duty to pay, but unless it is specifically written into the contract that the tenant will pay then the owner has to pay it and cannot charge the tenant for it?
> 
> I have never known an owner to want a tenancy agreement stamped.
> 
> Maureen check your contract very carefully. If it does not mention you being liable to paying a stampy duty you should refuse to pay it.


That's right.


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## Maureen Allen (Oct 22, 2008)

Thank you all very much for you information - very interesting.

Our lease does not mention anything about this "Stamp Duty" this subject only came up when we started proceedings to register for tax here in Cyprus. Our Agent when asked about this stated " not a problem nobody pays this anyway" 
This money has been paid to our accountant as she stated the lease is a legal document that goes to the tax authority with our tax paperwork, therefore we had no choice but to pay.

The Agent has not mentioned reimbursement of this sum - but now we have all the information from the forum - we will push to get this repaid to us.

Many thansk for all your assistance


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## theresoon (Apr 11, 2008)

Maureen Allen said:


> Thank you all very much for you information - very interesting.
> 
> Our lease does not mention anything about this "Stamp Duty" this subject only came up when we started proceedings to register for tax here in Cyprus. Our Agent when asked about this stated " not a problem nobody pays this anyway"
> This money has been paid to our accountant as she stated the lease is a legal document that goes to the tax authority with our tax paperwork, therefore we had no choice but to pay.
> ...


My husband had gone and register for taxes and never had to take the lease with him.


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## Veronica (Apr 5, 2008)

I would recommend a change of accountant. Sounds as though this one works in much the same as another one here in Paphos who finds any excuse he can to get money out of his fellow expats.


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