Dear Sir,
We have recently moved to Cyprus to live here. We had an apartment in Larnaca, now sold and moved to a house we bought. I understand that we can claim VAT back on what we paid for on the house. Do we have to have lived in the house for so long or not?
It is our only residence in Cyprus and we do not have a house back in England. If we are eligible for this VAT refund do we have to get in touch with our solicitor and ask her to proceed with the request?
J. Gibbins
In order for you to be eligible for a VAT refund, you must have paid the same. VAT is applied on all buildings for which their town planning application was made after 1.4.04. If this is not the case, then you cannot apply for a VAT refund.
There is a certain formula which is applied, which relates to the size of your property. If the size of the property is 250m² or less, then you are eligible for VAT refund. You are eligible for 100 per cent of the 10 per cent VAT refund on the basis of your property having an extent no more than 130 m² (as your property’s size increases, so the VAT refund decreases). You must prove to the authority that you live in this house permanently (in excess of 183 days p.a.) and proof of this could be the electricity/telephone bills, property taxes etc. You need not stay there for years prior to your application for the refund, but I would say for at least six months. Once the refund is secured, you must live in the house for at least 10 years, in order for the VAT refund to be written off. If shorter you must refund the VAT in analogy.
Do I have to pay for rubbish collection at empty house?
Dear Sir,
Question-1: I bought a small, two-bedroom detached house in Engomi, Nicosia and will keep it unoccupied. I received the bill for rubbish collection from Engomi Municipality and paid. Can I ask for my money back on the grounds and evidence that the house will not be occupied?
Question-2: For the same house, with the rubbish collection bill, I also paid a sum of money-tax, but nobody could give me any answer to that. But some friends informed me that if your house is worth less than £100,000, then you are free from this tax, is it true ?
Antipova Xenia
For your first question the answer is no, as you are obliged to inform the municipality that the flat is unoccupied. Once you inform the municipality that nobody lives there, then they will not charge for the periods that the property is unoccupied. However the responsibility is yours to inform them.
For your second question the answer is yes. You must declare your total real estate assets and if they are less than the £100,000, you are taxed free. You can ask for a refund at the income tax office.
Are homes soon to be for the select few?
Dear Sir,
The way that prices are moving upwards, will housing be a rich man’s prerogative in a few years’ time?
Thalia Evans
Yes, I am worried especially for the younger people and lower income groups. This means that people must either borrow more and more, or decide to rent as an alternative; a most difficult situation in a free market. Bearing in mind that 35 per cent of the housing cost refers to the land cost, the solution is to tax heavily the undeveloped land, so that speculators will release the land in the market, at least, retaining present value levels. The government is considering this line of action now.
Can you clear up deeds problem?
Dear Sir,
I have bought, through an estate agent, an apartment covered by two titles. This has been explained to me and I have used the services of a solicitor, who has suggested to hold back around £12,000 until the two titles are joined into one. For some reasons, including the death of the seller, the need of administration etc, this has not happened for the last few years. Who is at fault?
Jerry Cliff
I do not see whose fault is other than you being unlucky. The death of the owner and the long time that it takes for an administration, is quite known. Since, as you say, the situation was explained to you from the start and since you held back a substantial sum of money, I do not see whose fault is.
Do I need insurance for a loan?
Dear Sir,
I have a housing loan with a 15 year repayment. The bank insists on a medical and life insurance to go. Is this normal?
Lucas Philips
Yes but not always insisted upon. Do not forget that in the event of death, the loan is automatically paid off, leaving your beneficiaries with no serious problems on this count.
How to best secure my home?
Dear Sir,
With our house being left for long periods unattended, I am considering putting aluminium shutters everywhere to reduce the risk of theft. I have got an estimate for a two-bedroom bungalow of £800. Alternatively, I have asked for a burglar alarm system, which will cost me £500. Which one should I choose since I cannot afford both?
Julian Harris
A difficult decision, but I would opt for the burglar alarm system connected with the security firm. At least if there is a break-in, you will know. The aluminium shutters are not by themselves burglar proof. Don’t forget to have a good insurance cover just in case. The maintenance of the burglar alarm system (approximately £120 p.a.) must also be considered.
Buying property is a serious business and to most people it is a lifetime commitment. In this fortnightly column, Antonis Loizou &Associates, Chartered Surveyors, who provide a full range of services in the field of real estate, answers your property and home queries. If you have a question about your property, home or the market in general please address it to: Antonis Loizou, [email protected], fax: 22 676385, PO Box 21144, 1502 Nicosia.
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