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12° Nicosia,
14 June, 2024
 
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Parliament enacts law granting tax exemption on loan repayments

Legislation retroactively waives 0.4% tax for property sales or share transfers used in non-servicing loan settlements

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The House of Representatives has unanimously approved a law exempting individuals who sold real estate or transferred shares to repay Non-Servicing Loans from the 0.4% tax designated for the Central Equal Weight Sharing Agency (Κεντρικού Φορέα Ισότιμης Κατανομής Βαρών). The legislative proposal, put forth by Member of Parliament Alekos Tryfonidis of DIPA, received widespread support.

The retroactive law waives the 0.4% tax for borrowers when proceeds from property sales or share transfers are utilized to settle non-performing loans within the context of restructuring.

The Department of Taxation has committed to refunding fees already paid between February 22, 2021, and November 17, 2022, to individuals who made payments during this period, provided the proceeds from such transactions were used to reduce or clear their non-performing loans.

MP Alekos Tryfonidis emphasized that this legislation addresses a loophole in the law, benefiting approximately 3000 borrowers who utilized their properties for restructuring purposes.

AKEL MP Nikos Kettiros acknowledged the relief provided to borrowers in restructuring cases but noted that the tax, though significant for some, amounts to 400 euros on the sale of a 100,000 euro property. He highlighted concerns about certain individuals, including millionaires, lobbying for a blanket exemption from February 2021 to November 2023.

Stavros Papadouris, MP for the Ecologist Movement, raised concerns about the procedural aspects, stating that even though the amounts involved are small, the tax exemption process, when handled by the Land Registry, has resulted in incorrect procedures and notifications.

Individual Socialist MP Kostis Efstathiou commended Mr. Tryfonidis and credited the Refugee Commission for resolving a longstanding issue, attributing the delay not to Parliament but to the executive branch's sluggish implementation of the law.

[Information from CNA]

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