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Cypriot Tax Reforms On Immovable Property

News Posted On: 16 November 2012

Alpha Bank has offered a repayment cessation to those borrowers who are lagging behind on their loan repayments. The Bank also confirmed that it is ready to resolve the situation in a cordial manner. There seems to be a light at the end of a long, dark tunnel for the thousands who had fallen into arrears on their repayment of mortgages. Alpha Bank’s motion of goodwill is expected to offer new hope as the Cypriot economy strives hard in efforts to recover from the hard-hitting recession.

The Head Office of the bank in Nicosia held a meeting in late October this year. In attendance were a Maxwell Alves consultant named George Kounis and Solicitors in London City. The bank expressed its desire to communicate with all borrowers concerned with the matter, while confirming its willingness to amicably resolve matters. Other banks in the country are believed to follow in Alpha Bank’s footsteps.

Banks in The Country Cannot Fix Everything

George Kounis says that even if considerable amounts are written off from borrowers’ debts, there will be plenty of other things that need fixing in order for the borrowers to have a good chance of selling or keeping these properties. Real estate in Cyprus has been sold with dishonourable rent guarantees, amenities like spas or golf courses that didn’t quite materialised along with a host of other irregularities. While banks can offer aid by pressurising developers and funding, they are not in a position to fix everything.

The Government’s Role in the Crisis

It is believed that the Cypriot Government can better benefit by dissuading cash buyers, especially from those countries where recession hasn’t taken its toll on the economy. However, Mr Kounis believes that it’s a mistake. He said that the government will have to get rid of the existing real estate assets if the nation is to eliminate ghost complexes and if prices are to rise again.

Kounis went on to express his opinion of how the Government had to avert the environment of mis-selling. He said that developers needed to be pushed towards having distinctive title numbers for every single unit in a construction before sales could commence. He believes that is unlicensed financial advisers and sales agents were hit hard by the Law, if proper supervision controlled the banks, and if proper discipline was enforced upon lawyers, the problem of mis-selling would vanish overnight.

Letters have been written to several bodies in the country, as Maxwell Alves tries to follow up on related issues. The organisations that have been contacted include the Cypriot Central Bank, The Bar Association of Cyprus, the Attorney General, the Interior Minister and the Securities and Exchange Commission of Cyprus. Formal complaints have also been filed with the CCPS (Competition and Consumer Protection Service). The Ministry of Trade is the ultimate authority that is responsible for co-ordinating and enforcing action against reprobate traders. However, the CCPS is not expected to act even though it is the service’s duty to help resolve matters.

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