Recent changes in the property law show a light at the end of the tunnel and puts minds at rest. Taxes, Land sizes and purchase applications have all seen changes in the favour of the foreign purchaser. This law has pushed the developers to transfer deeds to benefit paying less tax and this means that the purchaser gets title quicker

Title Transfer Tax

The government has announced a reduction in taxes for both sellers and buyers,

Ø  Buyers transfer reductions of 75% making the 6% now 1.5% and making the optional discounted rate of 3% down to 0.75%

Ø  Seller’s stoppage tax reductions have seen the 6.25% come down to 4.25% or professionals sellers and 1.5% for amateur sellers.

Land Purchase

As a foreigner prior to this date you were only entitled to purchase a maximum of 1 donum (1,380 m2) of land but the new land law now permits a foreigner to purchase up to 5 donum’s (6,900 m2) of land as long as there is only one dwelling within the boundaries.

Permission to Purchase Applications

Current months have also seen an increase in the volume of Permissions that are being granted to foreign buyers in order to obtain title deeds to there properties. This is to clear the back log of applications and speed up the process for any new applicants.