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Property activity slumps

FIGURES released by the Cyprus Inland Revenue Department show that Capital Gains Tax receipts resulting from the sale of properties slumped 42% in August, driving down total losses for the first eight months of the year by 18%. The Cyprus Government collected approximately €54.5 million less from the property sales compared to the same period […]

FIGURES released by the Cyprus Inland Revenue Department show that Capital Gains Tax receipts resulting from the sale of properties slumped 42% in August, driving down total losses for the first eight months of the year by 18%.

The Cyprus Government collected approximately €54.5 million less from the property sales compared to the same period in 2007.

The figures confirm the forecasts for a sharp drop in demand, particularly in tourist areas, where there was a very high dependence on sales to British property buyers.

According to the IRD’s figures released Thursday, revenue from the Capital Gains Tax in the first eight months of 2008 fell to €246.9 million from €301.4 million during the same period last year.

A similar slump was reported in receipts from stamp duties, charges and real estate tax.

The world-wide credit crunch, the falling value of Sterling against the Euro, and the widely reported property scams are having a significant detrimental impact on the Cyprus property market.

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