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

Property tax chaos may continue

immovable property taxACCORDING to a report in today’s Phileleftheros, government policy on Immovable Property Tax (IPT) remains unchanged, i.e. it will be imposed on a property’s 2013 value, as required in the MoU between the government and the troika of international lenders.

However, Inland Revenue officials have expressed serious doubts as to whether there is sufficient time to complete the revaluation of all properties and carry out the work necessary so that Immovable Property Tax can be levied on their updated 2013 values.

The director of the Department of Lands and Surveys is optimistic that the revaluation project will completed by June 30, as required by the MoU. Speaking to Phileleftheros he also said that the Department intends to provide preliminary data to the Finance Ministry in late May, so that a new scale of IPT charges can be prepared for this year.

Regrettably it seems that the problem that arose last year by taxing property developers at a high rate for properties that they had sold but which had not been transferred to their buyers will remain. But as previously unknown properties have now been identified, the tax burden should be fairer this year.

Another source was reported as saying “unfortunately this year, like last, will be a transition period and a comprehensive reform of this tax will be implemented in 2015.”

We await further developments.