Cyprus-Forum.com

[Oneness]

Except perhaps for new property it is quite common that a cash payment in made in addion to the declared purchase price. I have heard as much as 10-30% can be paid in this way! Unfortunately, this IMO can cause more problems than benefits. Lowering the sale price increase the buyers eventaul capital gain tax when he wants to sell. This kind of practise and culture damages Cyprus image abroad. Also some unscupulous owners / administrators who share property with others can take secret payment without benefitting the other owners. This I would not be surprised if it happenned a lot in families and administrations. Vulnerable people can be taken advantage of in a huge way. It is scandalous this kind of practise is happening in an EU country in the 21st c. Estate agents, tax office and DLOs just turn a blind eye!!! They should be doing something about it? Its time this custom comes to an end.

[andri_cy]

CGT?

[mountainman]

If Capital Gains Tax on the sale of property was abolished for private individuals then there wouln't be any tax evaded.

[Svetlana]

The Tax Authoriteis have the right to 'revalue' (upwards) a property if the contractual sale price seems artificially low at the time of sale, for CGT claculation.


Lana