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Developers oppose new property tax

DEVELOPERS in Cyprus have expressed their opposition to a proposed tax on large houses, currently being considered by the government as part the island’s bailout adjustment programme.

The developers said Cyprus could raise property taxes at a time when it was trying hard to attract foreign investors.

In a written statement, the developers association considers “especially unfair” a proposal to introduce a tax on homes larger than 300 square metres.

The state can increase its revenues by taxing the thousands of properties, which are not even on file.

Developers also voiced their opposition to a proposal by the island’s international lenders for foreclosure procedures to be expedited to 18 months.

This should not be done in less than between seven and 10 years, they said.

Developers propose that banks should be allowed to give loan extensions that would suit the borrowers’ current capabilities.

The association also recommends speeding up examination and approval of permits for large projects and also provision of tax breaks to encourage investment.

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4 COMMENTS

  1. Adrian,

    You have it absolutely and completely right.

    The ‘manufactured’ delays in issuing Certificates of Final Completion and then Individual Title Deeds is designed to progressively turn the screw on buyers, ramp up the pressure and remove all vestiges of hope, leading to a lot of buyers giving up and cutting their losses before they lose their health, sanity and any wealth which they may have remaining.

    A system designed and maintained by charlatans, aided and abetted by people at every stage from the rotting head downwards.

  2. The first signs are showing that the cosy relationship between the government and the developers is going sour. If you think about it, the reason is pretty obvious; the developers are not bringing in the Euros like they used to pre – 2009 and after a period of denial, the government is coming to realise that happy days, courtesy of the building industry, won’t be here again anytime soon, for reasons we all know too well.

  3. Mike says why does the bank wait 7 or even 10 years? It’s simple the developer with the loan builds on the land, sells everything and keeps the money. The bank comes along, they sell all the property to their Cypriot friends at a knock-down price to cover the loan and plus interest and admin fees plus all the developers creditors. The developer is now clear and can keep his big house and mercs. And the homeowner is out in the street his retirement money blown away by “THE SYSTEM”. I have to stop now my wife says my blood pressure is showing.

  4. Getting twitchy and sensitive aren’t we?

    Re-posession after 18 months of not servicing a loan seems rather generous to me, to ask for 7 to 10 years is ridiculous. Why prolong the agony?

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