A BILL for the Immovable Property Tax to be levied in 2014 was agreed by the Cypriot parliament earlier today with 53 votes in favour and just one against.
Reports coming in say that the tax will be levied as last year (on 1980 property values).
The property tax will be paid by those who have gained possession of the property, regardless of whether the property is registered in their name (i.e. regardless of whether they have its Title Deed).
However there is a provision in the bill that exempts those who have not obtained the Title Deed through no fault of their own. Hopefully this provision will apply to those who are unable to obtain their Title Deeds because:
- They have not been produced.
- They cannot be transferred to the purchaser due to encumbrances (such as developer’s mortgages and other debts) that prevent their transfer.
- The buyer is unwilling to pay the extortionate fees that the more nefarious property developers tend to charge to release the deeds for transfer.
But it looks as if those whose Title Deeds are freely available but who have not paid the Property Transfer Fees will be required to pay the Immovable Property Tax.
The bill also moves the payment date from October to the end of November as this will give the taxpayer more time to find the money – and this move will also allow the Land Registry to find more new properties, which will help to increase the tax revenue collected.
In addition, while the existing law provides a 10% discount for those who pay within 30 days of the deadline, the new law provides a 15% discount for those paying 30 days before that.