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Property tax chaos may continue

Although government policy on Immovable Property Tax has not changed, the Inland Revenue has expressed serious doubts as to whether there is sufficient time to complete the work necessary.

immovable property tax ACCORDING to a report in today’s Phileleftheros, government policy on Immovable Property Tax (IPT) remains unchanged, i.e. it will be imposed on a property’s 2013 value, as required in the MoU between the government and the troika of international lenders.

However, Inland Revenue officials have expressed serious doubts as to whether there is sufficient time to complete the revaluation of all properties and carry out the work necessary so that Immovable Property Tax can be levied on their updated 2013 values.

The director of the Department of Lands and Surveys is optimistic that the revaluation project will completed by June 30, as required by the MoU. Speaking to Phileleftheros he also said that the Department intends to provide preliminary data to the Finance Ministry in late May, so that a new scale of IPT charges can be prepared for this year.

Regrettably it seems that the problem that arose last year by taxing property developers at a high rate for properties that they had sold but which had not been transferred to their buyers will remain. But as previously unknown properties have now been identified, the tax burden should be fairer this year.

Another source was reported as saying “unfortunately this year, like last, will be a transition period and a comprehensive reform of this tax will be implemented in 2015.”

We await further developments.

Readers' comments

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  • Peter Davis says:

    We need transparency. I want to know how much my neighbours are paying. I have a right to know I’m not being ripped off.

    Then can the Inland Revenue explain why my villa in a small village (without gas and main drainage) is valued at more than a house in London?

    Or is it that there is an English price?

  • Martyn's says:

    Oh well, we are used to e~l~a~s~t~i~c~i~t~y in both Inland Revenue and Land Registry departments, so why suggest 2015 might see the ‘ReValuation’ completed. Maybe, just maybe, they can time it to coincide with Pafos, European City of Culture, scheduled for 2017?

  • Adrian says:

    The Inland Revenue has “serious doubts about completion of the survey”. They must have been the only ones, all the home-owners were certain that it would not be completed, after all they are catching up with years of pathetic administration by people who were badly trained in the job and led by people who hadn’t a clue and were only out for a quiet life and early retirement!

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


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