Cyprus Property News magazine for overseas buyers & real estate investors

Thursday 9th July 2020
Home News Property values call for transparency

Property values call for transparency

THE CYPRUS Technical Chamber (ETEK) has demanded the Land Registry publish the criteria they have used to determine immovable property values for taxation purposes.

The chamber’s chairman Stelios Achniotis argued on state radio on Wednesday that the state was obliged to provide transparency to the public and that all data used by the Land Registry in reappraising immovable property, adjusting them to 2013 prices, should be made public.

“It is a fundamental right of citizens, and a fundamental obligation by the state,” he said. “We cannot fathom an appraisal methodology based on specific criteria and hard data that is selectively available to government officials or others.”

In an earlier statement, the chamber said that such disclosure would facilitate the application of immovable property tax (IPT) as it would allow citizens to be better informed and understand the appraisal method.

“Educating the public will directly result in fewer objections to the bare minimum, which will in turn help the Land Registry deal with objections more effectively,” ETEK said.

Daily Phileleftheros reported on Wednesday that several property owners from rural areas complained that the appeals process against the Land Registry’s appraisal of their properties would prove too costly as it requires an independent appraisal by a private-sector professional. The cost for appraising properties far from large cities ranges from €200 to €350, as transportation costs are also included, the paper said.

Achniotis said he was not sure why the government was reluctant to release detailed information, but balked at the suggestion that inconsistent methodology may have been followed.

“It is a fair assumption that at least some basic criteria were consistently employed,” he said. “Randomness is not acceptable by anyone. We cannot accept that this work has been done at random.”

Meanwhile, Interior Minister Socratis Hasikos offered a response to questions over the IPT placed on a plot of land owned by First Lady Andri Anastasiades which had been raised by AKEL MP Irene Charalambidou.

Charalambidou had noted that a plot of land bought by the First Lady from the Archbishopric earlier this year was appraised twice by the Land Registry in the space of just a few months, with the second appraisal producing a 15 per cent lower value. The MP’s questions implied that different appraisal criteria may have been applied in the updating exercise completed last month, which adjusted property prices in Cyprus to 2013 values.

Hasikos presented a letter of response from the Land Registry’s acting head Kyriacos Tsolakis, which argued that the second appraisal was made in March 2014 to determine the plot’s market value for the purpose of selling it, while the first one was carried out to determine the 2013 value for taxation purposes.

According to the acting Land Registry boss, “this particular property is adjacent to an electricity plant and is particularly large.” These factors, he added, were considered when appraising the plot’s market value and justified a 15 per cent reduction in the appraised value, but were not considered for the purposes of the general appraisal.

Additionally, Tsolakis argued, “it has been established that property values have decreased by approximately 15 per cent since the start of 2013, following the Eurogroup decision in March 2013,” a fact also reflected in the second appraisal in March 2014.

But Charalambidou was quick to question this reasoning, arguing that the 15 per cent drop in property values since 2013 should have been applied to all properties so that citizens are taxed on true market property values.

“Why did the Land Registry not consider this 15 per cent drop in market value, cited by the acting director of the Land Registry, for the purposes of taxing immovable property, so that appraisals approach real market values?” she asked.

“Why will citizens be asked to pay IPT on the basis of inflated pre-haircut prices?”

4 COMMENTS

  1. Irene Charalambidou should be congratulated for her challenge to the Land Registry over its inconsistency in failing to apply the 15% drop in market value across the board, while Mr Hasikos tried to justify the anomaly with some lame excuse about an electricity plant. Did Irene Charalambidou ever get a satisfactory answer to her final question? I doubt it.

  2. “Transparency a fundamental right”? “some basic criteria were consistently employed”? “We cannot accept that this work has been done at random.”?

    Really, well please forgive me but I would suggest the formula is as plain to see as the sun. Think of a number, add P for plenty, multiply by 3 if in a predominantly ex-pat conurbation, multiply by a further 2 if the owner is Russian or Chinese.Then finally apply a fudge factor just for sheer devilment (because we can) and any discount forced to be offered to be inversely proportional to ethnicity.

    Or have I been misinformed?

  3. Well done the Chamber. Enough of the ‘cloak and dagger’ attitudes that seem to permeate many parts of government, and public administration in this country.

Comments are closed.

WEATHER FORECAST

EXCHANGE RATES

EUR - Euro Member Countries
GBP
1.1123
RUB
0.0124
CNY
0.1261
CHF
0.9401

TOP STORIES

Corrupt lawyers continue to plunder estates

Corrupt lawyersin Cyprus continue to plunder the estates of their deceased clients by calculating their fees for administering estates on the Cyprus Bar Association's 'Minimum Fee Regulations', which were abolished in 2018

Cyprus house price index up 2.5 per cent

The Cyprus house price index rose by an average of 2.5 per cent in the first quarter of 2020 compared to the previous quarter according to official figures from the Cyprus Statistical Service (CYSTAT)

MPs commit to expedite citizenship bills

MPs have committed to expediting the bills and regulations aimed at improving the transparency of the citizenship-by-investment programme, so that the items can be voted on before the House breaks for the summer recess.

Decision soon on Pissouri homes devastated by landslide

The government said Monday it will soon have in hand the recommendations of experts concerning the landslide in the area of Pissouri, which has seriously damaged dozens of properties throughout the years.