LOCAL property tax in Cyprus is set to change this year as the Municipalities and Communities will be assessing the tax payable on the 2013 property valuations rather than the 1980 valuations.
It is anticipated that most people will pay about the same local property tax as they did in 2016.
However, the new assessments may result in those whose properties were registered as plots or fields in 1980 and which have subsequently been developed – and those whose properties are in planning zones that have subsequently been rezoned will pay more tax this year than previously.
The Greek language newspaper ? ???????????? (Phileleftheros) reports that a person in the Limassol Municipality of Agios Athanasios has been asked to pay €229.32 compared to the €78.49 he paid last year, while another in Larnaca has been asked to pay €200 this year compared to his 2016 bill for €70.
We understand that the Municipalities have the option of imposing a uniform rate of up to 0.024 per cent on a property’s 2013 valuation. This will result in the Municipalities collecting approximately €20.8 million this year compared to the €19.1 million they collected last year.
The Phileleftheros reports that the rate in the Municipalities of Strovolos will be 0.015%, Aradippou 0.019%, Larnaca 0.023%, Limassol 0.024%, and Paphos 0.019% per thousand, while the rate in Paralimni has yet to be set.
We live in Nata and we have always paid a village tax and a separate refuse charge. The combined fees are around €140 per year. Our builder fled the island leaving the site unfinished. We have never had any other sort of request for IPT etc.
Ed: Your’village tax’ is the local property tax. Nata is a Community and your ‘village tax’ will also be assessed on the 2013 valuation of your property.
If the price of property costs 50 k euro in Peigia I shall …
what is the formula?
Ed: The local property tax is calculated on its 2013 valuation as assessed by the Department of Lands and Surveys – not its purchase price.
Follow the link I provided to your earlier comment to find out the 2013 valuation. You will need to check at the Pegeia Municipal Office to see what rate they will be charging.
It’s not about what we’ll pay, it’s who will pay that annoys me and who I will be subsidising because of their connections.
How to calculate the sum?
Ed: Get the 2013 valuation from the Department of Lands & Surveys website as described at Online property valuations revisited and then calculate the possible charge.
Like others also confused. In Peyia we pay an annual Rubbish bill and up until last year a Town Tax but only for title deed holders which I was told when I paid last year as now also abolished.
Ed: I suggest that you look at your contract of sale. I expect this makes you liable to pay all property-related taxes from when you accepted delivery of the property. Also, check out my article Cyprus property taxes in 2017.
Nigel, I find the rates as quoted above (% per thousand) confusing – can you confirm that I understand the rates correctly as Municipalities of Strovolos will be 0.015%, Aradippou 0.019%, Larnaca 0.023%, Limassol 0.024% and Paphos 0.019% of the 2013 valuation? I omitted the “per thousand” phrase.
In this case, a property in Paphos valued at €50k would have a municipality tax of €9.50.
PS I look forward to your Cyprus Property News e-mails every Sunday.
Ed: The article in Phileleftheros, when translated says:
“The rate of the municipal fee to be imposed by the Municipality of Strovolos will be 0.15 per thousand, the Municipality of Aradippou 0.19 per thousand, the Municipality of Larnaca 0.23 per thousand, the Municipality of Limassol 0.24 per thousand, the Municipality of Paphos is oriented At 0.19 per thousand, while the Municipality of Paralimni has not yet decided. The Union of Municipalities sent to the local authorities a guiding table for the imposition of the municipal property tax.”
I think you may be looking at the property’s 1980 value?
I knew they would need the extra money sooner than later, hence the need for more taxation. I wouldn’t be surprised if they resurrect the IPT at some point, haskikos was so adamant that CY was the only country in Europe that had no such tax! and that it was not about to be scrapped….
Nigel I am totally confused. I thought IPT was no longer payable after last year. I know we pay a very small amount in Chlorakas. Is it this tax? They dont notify us we just suddenly remember when we are there that we need to go in and pay. Or is it Garbage? We live in UK but bought a small flat in Paphos and then a house in Chlorakas thinking we could then sell the small flat but have never been able to. Added together the totals just about brought us into IPT. Many thanks
Ed: It was the Immovable Property Tax that was paid to the Tax Department that was abolished. This is the local tax paid to the Municipality/Community.
hi Nigel…..
just reading your latest re; property tax….
correct me if i am wrong….but i thought this tax was abolished this year….
Ed: It was the Immovable Property Tax that was paid to the Tax Department that was abolished. This is the local tax paid to the Municipality/Community.
The 2013 valuations didn’t solve the problem of the hundred thousand unregistered houses. The Cadastral plan near me shows a large plot with two houses with a valuation of 1.4 Million Euros. Next door to it is a similar sized plot with two even bigger houses valuation 400,000 Euros. This is because the houses on this plot have not been registered at the Land office. This Cadastral plan near me seems to show two thirds of the houses on it are not registered.
Trust Paralimni to keep us guessing…..
Nigel, please could you explain the TWO property taxes that apply, how they differ etc. When we lived in Oroklini, we only paid the national IPT once a year. However, when we sold up last year, we had to pay an additional local property tax that had accumulated. Unbeknown to us and I suspect the rest of the local residents (and possibly generally in Cyprus), we were advised that this additional tax is only collected when a property is sold.The sum in our case was not large even after 12+ years but it was still a surprise!
I have heard that recently Oroklini Community Council has now started to collect this local additional IPT annually and that owners have also received demands for past years.
Ed: There used to be two property taxes in Cyprus:
1) The annual Immovable Property Tax paid to the Tax Department. This was the local equivalent of the ‘Mansion Tax’ that was talked about in the UK a few years ago – a tax on the value of a property paid to central government. This tax has been abolished and is no longer payable (although those who still owe tax for previous years are being pursued).
2) A local annual property tax paid to the Municipality or Community in which the property is situated. This is the local equivalent of the UK Council Tax and pays for things like rubbish collection, street lighting and other local services.
As far as I am aware Oroklini was the only community that collected the local property tax when a property was sold. It started to collect the tax annually this year and has sent notices to all residents to collect the tax owed in previous years.