Immovable property tax is normally payable on 30 September each
year by all owners of immovable property in Cyprus. The tax is
assessed on the taxpayer's total holding of immovable property
on the preceding 1 January, valued at 1980 values.
After a number of proposed amendments the new law setting the
rates of immovable property tax for 2013 has been passed by the
Cyprus parliament and published in the official gazette. The rates
applied to each successive tranche of the 1980 value are as
follows.
Band Rate
|
First €40,000 |
0.6% |
|
Next €80,000 |
0.8% |
|
Next €50,000 |
0.9% |
|
Next €130,000 |
1.1% |
|
Next €200,000 |
1.3% |
|
Next €300,000 |
1.5% |
|
Next €2,200,000 |
1.7% |
|
Above €3,000,000 |
1.9% |
Owners of property with a 1980 value of €12,500 or less are
exempt. Above this threshold, tax is payable on the entire value,
including the first €12,500.
For 2013 the payment date has been extended to 15 November 2013. A
penalty of 10% of the tax due will be imposed in the event of late
payment and a discount of 10% will be allowed if the tax is paid 30
days or more before the due date.
The government has announced that it intends to rebase the tax for
2014 and subsequent years onto current values.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.