Following the amendment of the Immovable Property Tax Law, all owners of immoveable property property in Cyprus are liable to pay an annual tax to the Inland Revenue on their aggregate property holdings as of the 1st of January each year, on the basis of the assessed valuation as at 1 January 1980.
The legislation provides that the tax is payable no later than the 30th of September of each year. Our previous update on this matter is relevant.
On the 12.07.2013, the Cyprus Inland Revenue Department announced that the payment date for 2013 Immovable Property Tax has been extended to 15.11.2013. Further, if the tax is paid by the 15.10.2013 a 10% discount will be allowed.
The Department`s announcement concerning the payment of Immovable Property Tax is is reproduced verbatim below.
The Inland Revenue Department wishes to announce that the immovable property tax for 2013 is due for payment until the 15th of November this year.
All companies, organizations or individuals, either residing in Cyprus or abroad, who had immovable property registered in their name in Cyprus as at 1.1.2013, are obliged to file a Declaration (IR 303) and pay the resulting Immovable Property tax (IPT).
The IPT can be paid either by submitting your own declaration (IR303) which is available at the web page http://www.mof.gov.cy/ird or by presenting the tax bill that it will be issued and posted in the next two months.
The Inland Revenue is currently in the process of making available the payment electronically. An announcement will be made in due course.
The Inland Revenue Department would like to bring to your attention that if the IPT is paid by the 15.10.2013 a discount of 10% on the tax paid will be allowed. Any IPT paid after 15.11.2013 will have a 10% penalty plus interest and any other administrative charges imposed by the law.
Briefly, following the amendment of the Immovable Property Tax Law, property estimated to be worth between the following prices, based on 1980 values, will be taxed as follows:
- between €0 and €40,000 at 0.6%
- between €40,001 and €120,000 will be taxed at 0.8%
- between €120,001 and €170,000 will be taxed at 0.9%
- between €170,001 to €300,000 will be taxed at 1.1%
- between €300,001 to 500,000 will be taxed at 1.3%
- between €500,001 and €800,000 will be taxed at 1.5%
- between €800,001 and €3m will be taxed at 1.7%
- property valued at above €3m tax will come to 1.9%
Our firm routinely answers queries from individuals and corporate clients on a wide range of property law matters. If you have a property law query or wish to receive further information, please contact us using [email protected]
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.