Cyprus' leading on-line resource for home buyers & real estate investors -

29th March 2024
Cyprus Property News logo
HomeNewsIPT payment deadline & discount

IPT payment deadline & discount

THE HOUSE on Thursday passed a law extending the deadline for payment of Immovable Property Tax (IPT) to the end of December, with a significant discount for those paying their tax earlier, by the end of November.

For early payments by end-November, a discount of 17.5 per cent will be given, unless payments are made online or through a bank, in which case the markdown is 20 per cent.

The final legislation passed was as amended by the parties. Initially, the government bill entailed extending the payment deadline to the end of November and in addition offered an early-settlement discount of 15 per cent, 17.5 per cent if paid via a bank or online.

The new, November 30 deadline for early payment discounts was an amendment tabled by main opposition AKEL. It was approved unanimously.

But another AKEL amendment, providing for different discounts for different IPT rates, was defeated, as was also a proposal for exempting from IPT farming land worth up to €60,000.

The Greens proposed payment of IPT for 2015 in three interest-free instalments, the first of which would be paid this year. Socialists EDEK proposed exempting from IPT properties valued up to €30,000. Both proposals, intended to alleviate the tax burden of low-income persons, failed to garner the necessary backing in parliament.

The idea of increasing the discount came from DIKO, which argued that this would incentivise more people to pay their IPT and on time, thus also helping the state’s cash flow.

But during a discussion earlier in the week, the finance minister did not appear to be on board, as the fiscal impact of the greater discount had not been calculated.

According to data cited in parliament, last year the state collected €104m from IPT, local administration authorities a further €14m, while property transfer fees came to €53m, for a total of €171m.

In 2014, 79.9 per cent of eligible people paid their IPT.

Data showed that the lower the IPT rate, the higher the percentage of collection. For the 0.006 tax rate, the collection percentage was 92.21, 91.15 per cent for the 0.008 rate, 90.49 per cent for the 0.009 rate, 86.53 per cent for the 0.011 rate, and 82.08 per cent for the 0.013 rate.

The collection percentage dropped to 72.43 per cent when it came to the 0.015 rate, 65.85 per cent for the 0.017 rate, and only 63.11 per cent of those charged with the highest rate, 0.019, paid their IPT.

RELATED ARTICLES

8 COMMENTS

  1. I got my lawyers to sort this out last year and it was calculated as nil payment.

    Do I need to do anything this year as it is a nil payment?

    Regards

    Harjinder

    (Editor’s comment: You shouldn’t need to do anything as this year’s IPT is the same as last year.)

  2. Nigel, purchased property may this year have title deeds , do I need to register with tax office to receive immobile tax bill,I am not a resident in Cyprus used as holiday home if I need to register what do I need to take to tax office and if so can I pay on day regards paul.

    (Editor’s comment: You need to register at the Tax Office – see Paying Immovable Property Tax 2014.

    You can ask a friend or a lawyer to register on your behalf.)

  3. This is all very well but I and everyone else I know have still to receive the bill for 2015 IPT.

    (Editor’s comment: You’ll need to be patient, the Tax Office started to send out IPT notices a week last Friday and there are hundreds of thousands. I haven’t received mine yet.)

  4. Good morning, my local Mukhtar has my tax details, including IPT, on his computer system (must be a centralized system). He tells me that I can pay my IPT to him. Does anyone know if this is an option?

    Thanks

    (Editor’s comment: I have not heard of this – I recommend that you pay on-line via JCCSmart or through a bank.)

  5. Our IPT assessment first payment is more than the Land valuation on line, we did query this and were told this would be put right next time??
    How can we be sure this will happen.

    (Editor’s comment: You’ll have to trust the Tax Office/Land Registry.)

  6. There is now the link to pay this on the JCC website but when I put in the JCC reference is says it is incorrect. I have tried a few references with the same response.

    (Editor’s comment: Are you sure that you’re using the reference on this year’s IPT notice? If so, I suggest you pay at a bank.)

  7. Hi Nigel,

    Do you know the interest calculation for late payments?

    (Editor’s comment: We’ll have to wait until the law is published in the Cyprus Gazette. Last year the penalty for late payment was 10% of the tax owed plus a pro-rata 4.75 per cent annual interest rate.)

  8. Have the payment notices already been sent? I didn’t receive any. Also I’ve checked the JCC website, there is no section to pay IPT yet.

    (Editor’s comment: The Tax Office started sending IPT Notices last Friday. It will take JCC a few days to code the changes into it’s on-line payment system and I suggest you wait until (a) you receive the IPT Notice (which will contain your JCC reference code) (b) JCC has updated its website before making your on-line payment. To be sure I suggest you wait until the start of next month.)

Comments are closed.

Top Stories

Sign up to receive our free newsletter

We handle your data responsibly, find more about our privacy policy

Cyprus property transfer fees

Elsewhere in Cyprus Property News

EUR - Euro Member Countries
GBP
1.1684
RUB
0.0101
CNY
0.1285
CHF
1.0436

Property capital gains tax (CGT) calculator