A DRAFT BILL to extend the payment period for Immovable Property Tax to November 15 will be put before the Cabinet in the next few weeks but the tax brackets will not change.
According to reports, the extension of the time period from September 30 to November 15 was necessary to enable the appropriate department to print, file and send property owners the owed tax amounts.
The time needed for printing the letters is estimated to be approximately two and a half months, not including placing them in envelopes and mailing.
Reports claim that the government is in no position to change the new tax brackets that were passed in the plenary a few months ago, as it was not possible to gather the necessary information from property owners whose property value exceeds the value listed on the land registry’s records.
Meanwhile, president Anastasiades has requested that the information be re-assessed as gaps had been found in the taxing of property which had been developed and gained greater value but was presented at the land registry office as simple plots.
Based on recent legislation, the government expects to receive €100 million of the estimated €130 million in taxation of property following deductions that will be made as part of its Troika commitments.
More specifically, property estimated between €0 and €40,000 based on prices in 1980 will be taxed at 0.6%. Property worth between €40,001 and €120,000 will be taxed at 0.8% and for property worth between €120,001 and €170,000 the tax will come to 0.9%
Property ranging from €170,001 to €300,000 will be taxed at 1.1%, property worth €300,001 to 500,000 at 1.3% and for property worth between €500,001 and €800,000 tax will come to 1.5%. Finally, any property that is worth between €800,001 and €3m will be taxed at 1.7% and for anything above €3m tax will come to 1.9%.