- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Developers oppose new property tax

DEVELOPERS in Cyprus have expressed their opposition to a proposed tax on large houses, currently being considered by the government as part the island’s bailout adjustment programme.

The developers said Cyprus could raise property taxes at a time when it was trying hard to attract foreign investors.

In a written statement, the developers association considers “especially unfair” a proposal to introduce a tax on homes larger than 300 square metres.

The state can increase its revenues by taxing the thousands of properties, which are not even on file.

Developers also voiced their opposition to a proposal by the island’s international lenders for foreclosure procedures to be expedited to 18 months.

This should not be done in less than between seven and 10 years, they said.

Developers propose that banks should be allowed to give loan extensions that would suit the borrowers’ current capabilities.

The association also recommends speeding up examination and approval of permits for large projects and also provision of tax breaks to encourage investment.