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Majority have paid their Immovable Property Tax

The Inland Revenue Department had collected around €93 million in Immovable Property Tax by lunchtime yesterday from some 207,000 registered property owners according to reports.

NEARLY 90 per cent of property owners had paid their Immovable Property Tax (IPT) before yesterday’s deadline when the 10 per cent discount offer expired.

A tax official who spoke to the CyBC said that of the 236,000 Immovable Property Tax forms sent out, 87 per cent (approximately 207,000) had been returned; roughly €93 million in payments had been collected.

The 10 per cent discount period has now expired and remaining registered owners have until the 15th November 2013 to pay the full amount they owe.

Registered owners who delay paying their IPT until after the 15th November will face a 10 per cent penalty on the tax they owe – plus a pro-rata 4.75 per cent annual interest rate.

Inland Revenue help lines

The Inland Revenue has a number of help lines for those with Immovable Property Tax queries:

Nicosia
Limassol
Larnaca
Paralimni
Paphos
2280748825803700248036582381145826804342
22807277258038372480365526804337

Readers' comments

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  • Aggie says:

    Our developer sent us a letter to say that my apartment one of 15 apartments have to pay 75 euros each plus my apartment 190m2 x €180 = €19,620 x 0.015 which is the tax rate = €294 total to pay €369.

    Developer also states he is not in the position to pay on our behalf what should I do confuse as I can’t ask him for proof of payment any advice?

  • @John Rose – Title Deeds are available at completion (completion occurs when title to a property becomes available for transfer to its purchaser).

    Why are Title Deeds not available on the delivery of a property? Several reasons, including:

    Antediluvian bureaucracy in local and central government departments.

    Planning infringements due to illegal construction by developers and changes to properties made by their purchasers without permission.

    Developers not paying mortgages and taxes.

    Unpaid developer debts that result in ‘memos’ preventing transfer.

  • John Rose says:

    Themis Anastasiou. Why where Title Deeds not available on completion of the properties?

  • UBoat says:

    Its all well and good BUT what if you only get to wonderful Cyprus once or twice a year and no one tells you what’s going on what do you do ????

  • andyp says:

    Glad to hear it Themis. I sincerely hope there are more of you and you speak out to rid your industry of the crooks who have spoiled it for all of you.

  • @Themis Anastasiou – thank you for your comment. People understand that there are honest and reliable developers in Cyprus who have to battle with an antediluvian bureaucratic system in need of radical root and branch reform.

    Regrettably the island’s property market has been destroyed by the nefarious practices of the ‘crooks’ and charletons that plague the industry. Even today I see them pointing the finger of blame at the troika despite the fact that the market collapsed in 2008, long before the arrival of the troika. (Sales to the local market have been in decline since 2004)

    And what did the honest and reliable developers do to rid the island of these ‘crooks’ and charletons? Absolutely nothing – they sat there and watched it happen.

    Six years ago the Finance Minister requested the Cyprus Property Action Group to prepare a report (to which I constributed) on the problems in the property industry and what actions needed to be taken to resolve them. That report cautioned:

    “The future of the Cyprus property industry has reached a crossroads. Unless the authorities act quickly to remedy the situation, the damage caused to Cyprus’ good name and reputation could have far-reaching consequences. At the very least, the financial repercussions resulting from the drop in foreign revenues from property sales, and tourism, could be catastrophic for the island’s economy.”

    What did the government do to resolve the problems? Absolutely nothing.

    It has taken the collapse of the island’s economy for the government to take some positive steps (with ‘encouragement’ from Europe).

  • Themis Anastasiou says:

    Our Company, Africanos Property Developers has issued titles for all it’s projects – in fact – over 70 property owners have been notified in a timely manner to present themselves and complete the title deed transfer procedure.

    Unfortunately despite the countless reminders property owners continuously avoid their responsibilities and come up with all kind of excuses not to pay.

    We have paid over €11,000 in property taxes for properties which are not legally ours (I.e. We cannot sell the property and we do not use the property).

    It’s time property owners (Cypriot residents and non) understand that in Cyprus there are many developers who honour their commitments and are in fact professionals.

  • @Sue – If you haven’t receive a bill and the 1980 value of your property (as shown on its Title Deed) is more than €12,500 – you need to contact your local Inland Revenue office.

    For a comprehensive guide on paying IPT, please see Money off your Immovable Property Tax bill (updated)

    If you delay paying until after the 15th November you will face a 10 per cent penalty on the tax you owe – plus a pro-rata 4.75 per cent annual interest rate.

  • @john rose – As the registered owner of the property it is the developer’s responsibility to pay his Immovable Property Tax liability to the Inland Revenue Department.

    Once he has done so, he will apportion the amount he has paid amongst those who have bought property and who have yet to receive their Title Deeds and is required to provide them with records of the amount paid as Immovable Property Tax (IPT) and a certificate showing the rate of IPT applicable to the property.

    Please refer to this letter from the Interior Ministry.

  • andyp says:

    They could probably have collected two or three that amount if title deeds were in the hands of the rightful owners thereof.

  • john rose says:

    Developer gets the bill and divides it up between the properties for each owner to pay.

    Some owners have not paid.

    Developer goes to pay the collected IPT at the tax office and gets told no 10% as you have not paid the whole bill.

    So now all the property owners who thought they would get the discount will now have to pay the penalty and the annual interest charge on the WHOLE amount for the development.

  • UBoat says:

    Well thats either good news or a little bit of over exageration of the truth …. I will leave you to ponder on that one.

    How can this be when I for one have had NO notification No contact No Nothing from any authority or Developer…..

    It puzzels me beyond belif.

    Here we go again with the B…it

    Sti ya Mas

    UBoat

  • Sue says:

    What happens if you haven’t received your bill? Can they still impose the penalty?

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

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