ASSUMING parliament approves a series of bills aimed at modernising and reforming Cyprus’ tax framework, those who own or who have purchased and taken delivery of property will be asked to pay Immovable Property Tax at the rate of 0.1% on the property’s 2013 taxable value.
Those whose IPT liability is €25 or less will be exempted and those paying early will be receive a discount of 10 per cent.
At the same time the municipal property tax will be abolished and the government will compensate local authorities for the loss in revenue.
As the basis on which IPT is calculated has not been revised for 35 years, some people will receive IPT demands much higher than in previous years. One person commenting on yesterday’s article Tax incentives target rich foreigners has land whose taxable value has been revised from €14,000 in 1980 to €270,000 in 2013 and is facing a tax bill more than 200 per cent higher than last year.
Between January 1980 and December 2010, property values rose considerably:
Appealing the Land Registry valuation
Those wishing to appeal the Land Registry valuation have until the end of 2015 to do so by phoning the Land Registry help line on 77777730 and following 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 may file your objection on the relevant form, which you or your representative must submit to the District Land Office in which the property is located 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.
(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.)
Finding a property’s revised taxable value
Those wishing to find a property’s revised taxable value should follow my guide at Cyprus property valuations now online.
Registering with the Tax Office
Both residents and non-residents who own or who have taken delivery of a property in Cyprus need to register with the Tax Office and should refer to my article Paying Immovable Property Tax 2014, which contains a guide on how to register together with the relevant forms.