THE ANTICIPATED changes to property taxes in Cyprus that were scheduled to be implemented this year have been postponed until 2016.
The changes, which amalgamated Immovable Property Taxes imposed by the Tax Office and the municipality and community authorities into a single tax based on 2013 property values, will not be discussed by Parliament until after the summer recess – despite the government’s request to pass the bill before the summer break.
The Tax Office has started to issue IPT notices to home buyers and owners who should receive them later this month – and the municipalities and communities have also started sending out tax demands.
Immovable Property Tax rates
The rates remain the same as last year:
|
Assessed 1980 Property Value
|
Tax Rate
|
Tax
|
Cumulative Tax
|
|---|---|---|---|
| €1 to €12,500 | nil | €0 | €0 |
| €12,501 to ?€40,000 | 0.6% | €240† | €240† |
| €40,001 to €?120,000 | 0.8% | €640 | €880 |
| €?120,001 to €?170,000 | 0.9% | €450 | €1,330 |
| €170,001 to €?300,000 | 1.1% | €1,430 | €2,760 |
| €?300,001 to €?500,000 | 1.3% | €2,600 | €5,360 |
| €500,001 to €?800,000 | 1.5% | €4,500 | €9,860 |
| €800,001 to €?3,000,000 | 1.7% | €37,400 | €47,260 |
| More than ?€3,000,000 | 1.9% |
†Those owning property(ies) whose total 1980 value exceeds €12,500 will pay tax on their total 1980 value.
Early bird discount
Those who pay IPT to the Tax Office early will receive a 10% discount. (Last year the government offered a 15% early-bird discount, which was only valid for 2014. This may be offered again, but it will have to be discussed by parliament after MPs return from their summer break.)
@Deanna, ‘cumulative tax’ is simply the total tax you would have to pay if your property price was at the top end of that bracket.
E.g. A €120,000 property would have to pay €240 + €640 I.e. A cumulative amount of €880.
Someone please explain; what is ‘cumulative tax’?