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

Government tax hike will hit small home owners

ONE of the suggestions made by the troika was that it wanted to see the Cyprus government collect an additional revenue of at least €20 billion from property taxation.

Although the Interior Minister Eleni Mavrou has gone on record as saying that small-time property owners would not be hit by a rise in property tax, the government is proposing to lower the threshold at which Immovable Property Tax becomes payable from €120,000 to €40,000. The revised tax tales are as follows:

Properties with an assessed 1980 value up to €40,000 will be exempt.
From  €40,000 to €120,000 – the proposed rate is 0.3%
From €120 000 to €170,000 – the proposed rate is 0.4%
From €170,000 to €300,000 – the proposed rate is 0.9%
From €300,000 to €500,000 – the proposed rate is 1.0%
From €500,000 to €800,000 – the proposed rate is 1.1%
For properties valued above €800,00 – the proposed rate is 1.2%

The government is also proposing that residential properties with a total area exceeding 300 square metres will be taxed automatically.

If implemented, many small-time property owners will find themselves caught in this tax hike contradicting assurances given by Interior Minister Eleni Mavrou.