Cyprus ranks 25th out of 37 European countries when it comes to transaction costs in purchasing a house, with buyers needing an extra 7 % to cover fees and charges when they buy a Cyprus Property.
A study by Property Guide shows 12 countries with lower transaction costs than Cyprus, including Ireland at only 6.9 % and UK at 5.03 %. Property investments in Europe incur high transaction costs in many countries, exceeding 15 % in several cases. Purchasers of new properties often incur even higher costs.
The study takes into account all transaction costs involved in the property sale-purchase process, including registration and notary fees, legal fees, real estate agents’ commissions, and sales and transfer taxes.
In many countries VAT at 15-20 per cent is added on the purchase of new homes, hiking the cost up even more. Buyers of new residential property are in for a shock, because additional taxes are charged on newly constructed or renovated properties.
The lowest charges are recorded in Lithuania, where buyers pay only 2.3 % on top of the cost of their new homes. Other countries under ten % include Turkey, Denmark, Switzerland and Norway.
Buyers in Russia will pay the highest amount in transaction costs at 25 %, with Bulgaria at 24.8 % and Monaco 19.6 %, Belgium, Italy, France and Greece are close to 15 %. While actual registration costs in Cyprus are among the 12 very lowest of the 37 countries, transaction costs rise dramatically when agent’s fees and sales and transfer taxes are added. Legal fees, which also comprise part of the four criteria, are also low in Cyprus.
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