THE COUNCIL of Ministers today approved changes to a bill imposing a tax on immovable property as part of the bailout agreement with Cyprus’ international lenders.
If passed by Parliament, the tax will generate up to €131 million/annum.
According to Stockwatch, the revised annual rates are as follows and are based on the assessed value of property at the 1st January 1980.
- Up to €12,500 – €50/annum
- From €12,500 to €40,000 – 0.4%
- From €40,000 to €120,000 – 0.6%
- From €120,000 to €170,000 – 0.8%
- From €170,000 to €300,000 – 1%
- From €300,000 to €500,000 – 1.2%
- From €500,000 to €800,000 – 1.4%
- From €800,000 to €3,000,000 – 1.6%
- More than €3,000,000 – 1.8%
However, government spokesman Christos Stylianides has admitted that there are shortcomings in the data used to assess the new tax rates.
For example, there are areas in Limassol, Nicosia and Larnaca where houses have been built that are worth many millions of Euros but no building permits have been issued for their construction; they are currently registered as lands and fields. Municipalities and Communities need to gather data on these properties by June to arrive at a final fill that includes them.