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

IPT payment extension anticipated

A PROPOSAL to extend the deadline for payment of immovable property tax (IPT) by a month, as well as an extension by one month of the 15 per cent discount has been welcomed by the political parties, head of the House Finance Committee Nicolas Papadopoulos said on Monday.

According to EDEK MP’s Nicos Nicolaides’ proposal, the latest payment date for IPT will be December 31, instead of the end of November as had been announced. Homeowners will receive 15 per cent discount if they settle their account by November 30, instead of the end of October.

A 10 per cent penalty plus interest and other administrative fees will be charged if IPT is paid after December 31.

As part of the bailout, the government was supposed to have updated real estate values by mid-2014, but in July, the parliament decided that this year’s IPT rates would be based on 1980s values, like last year, while the new system is expected to be implemented in 2015.

IPT payment extension anticipated

Editor’s comments

The revised Memorandum of Understanding (MoU) issued in September 2014 calls on the Cyprus Government to:

“implement the recurrent immovable property tax for the tax year 2015 based on a General Valuation (GV) for all immovable properties, determined on the basis of tangible building- and plot related characteristics. The design of the immovable property tax should ensure a broad tax base and IPT proceeds not lower than in 2013.

“A draft of the proposed tax rates and thresholds will be submitted for timely consultation with programme partners by Q4-2014. Following consultation with programme partners, the final design of the immovable property tax will be adopted by the House of Representatives by Q1-2015.

There is some speculation as to whether the Government will be able to achieve this goal in light of the many thousands of objections it has received to the 2013 property valuations.