Latest Headlines

Revised property tax bill vote

The House plenum will vote today on an amended bill to increase the rate of Immovable Property Tax, which was part of the preliminary agreement between Cyprus and its international lenders.

FOLLOWING much criticism from the Cyprus Land & Property Owners Association, hoteliers, property developers, etc. a revised bill to increase Immovable Property Tax (IPT) will be voted on today by MPs at the House plenum.

Yesterday the Cabinet approved the tax increases that should enable the government to raise a further €118 million/annum as part of the agreement with the troika. However, a government spokesman noted that it was likely that approximately €90 million would be collected, based on a return of 75 per cent.

In the past, Interior Minister Eleni Mavrou has said that that that the government is making every effort to avoid taxing the average home owner, such as those with a house on half a building plot or a large apartment. “If the €40,000 threshold based on the values of 1980 is finally adopted we more or less maintain the groups included in the existing law and increase the number of contributors,” she said.

However, by lowering the threshold from the present €120,000 to €40,000 will affect many property owners who were previously exempt.

The proposed rate revisions to be voted today are as follows:

1980 Property Value
Proposed Tax Rate
Up to ?€40,000nil
From ?€40,001 to ?€120,0000.4%
From €120,001 to €170,0000.8%
From €170,001 to €300,0001.2%
From €300,001 to €500,0001.5%
From €500,001 to €1,000,0001.8%
€1,000,001 and above2.0%

The tax changes are designed to collect approximately €43 million from individuals and €75 million from companies.

The bill exempts property with a 1980 value of up to €40,000, but it also removes the tax-free threshold. This means that properties valued above €40,000 will be taxed on their full value. So, using the table above, the owner of properties whose total 1980 value was €50,000 would be liable for €200 IPT.

We understand that opposition parties DISY, DIKO and EDEK are not satisfied with the provisions of the revised bill and are preparing to submit a number of amendments.

Evening update

MPs refused to vote on the bill saying they wanted more time to consider its ramifications.

Readers' comments

Comments on this article are no longer being accepted.

  • @Sheik yr Mami – I added an update to the article yesterday evening saying that MPs had rejected the bill. Did you not see it?

    The Cabinet approved the bill on Wednesday and it was put before the House yesterday.

  • Sheik yr Mami says:

    But this article is a bit pre-mature, isn’t it? Elsewhere I read that the Deputies had not approved it. Not to sure how it all works in Nicosia, but I guess those guys rejecting means not approved? Please can you clarify, thanks.

  • Pete, Reading says:

    I would probably have purchased a few more properties, but if they add them all up for a final bill, FORGET THAT!!
    There’s lot’s of other places to buy more properties

  • Costas Apacket says:

    Forget about the hammer & nails.

    Let’s get out the pneumatic nail gun to ensure this coffin stays shut tight!

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.


Back to top