REGULAR readers will be aware that the basis on which Immovable Property Tax (IPT) is calculated will change this year; the calculation will be based on the revised valuation as at 1 January 2013.
The details of the revised IPT rates and tax bands are still being debated by parliament, but they cannot be set until all objections to the valuations have been processed and finalised. Last October Interior Minister Socrates Hasikos admitted that mistakes were made during the property revaluations and that 4,671 objections had been received by the end of September 2014.
Initially, those wishing to appeal the valuation may phone the Land Registry help line on 77777730 and follow the instructions.
You will need to have your passport and details of the property handy. The Land Registry officer will check if there has been a mistake in the valuation while you wait.
If they say there is nothing wrong and you then decide to object to the valuation you have until the April 24 to file your objection, which must be submitted to the District Land Office by themselves or their representatives. They need to complete the relevant form – and submit it together with the appropriate fee based on the 2013 valuation of their property:
- For properties valued up to €100,000, the fee is €37.50.
- For properties valued between €100,001 and €500,000 the fee is €75.00.
- For properties valued between €500,001 and €1 million, the fee is €150.00.
- For properties valued in excess of €1 million, the fee is €357.00.
Even if your appeal is accepted, the fee is not refundable. Regrettably, this is the way it is in Cyprus. You end paying up for the mistakes/incompetence of other people and government departments!
(Note that you will need Adobe Acrobat to read the relevant form and to display an approximate English translation of each field, float your mouse over the yellow speech bubbles.)
The latest property valuations can be found on-line by following my guide at Cyprus property valuations now online.
Massive Immovable Property Tax hikes
Finally, irrational rumours have been spreading that massive hikes in Immovable Property Tax will take place this year, which apparently emanate from expatriates living in Paphos who seem intent on spreading fear, uncertainty and doubt amongst their compatriots.
As far as we are aware, owners of property valued up to €200,000 will be exempted from paying IPT, while the remainder will be charged at a flat rate of 0.1% on their property’s 2013 value. But note that this may change once all the objections to the valuations have been processed and finalised.
The amount of tax to be collected is set out in the Memorandum of Understanding:
“Ensure additional revenues from property taxation of at least EUR 75 million by: (i) updating the 1980 prices through application of the CPI index for the period 1980 to 2012; and/or (ii) amending tax rates and/or (iii) amending value bands.” MoU April 2013.
“Implement the recurrent immovable property tax for the tax year 2015 based on a General Valuation (GV) for all immovable properties, determined on the basis of tangible building- and plot related characteristics. The design of the immovable property tax should ensure a broad tax base and IPT proceeds not lower than in 2013.” MoU September 2014.