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Cyprus IMMOVABLE PROPERTY TAX (‘IPT’)

Posted on September 17, 2013

Every person who owns immovable property situated in the Republic of Cyprus is obliged to pay property tax. IPT is imposed, based on Immovable Property Tax Laws, based on the market value of property 1/1/1980, located in Cyprus.

By Jennifer Petridou Sharpe BSc(Hons), MRICS, ETEK Chartered Surveyor - Property Consultant -  jennifer@cyprusprop.com

Jennifer Sharpe

 

Under the new tax legislation for IPT, the owners of immovable property situated in Cyprus must pay to the Inland Revenue Department ('IRD') the relevant taxation for the year 2013 based on the following percentages:

Estimated value of immovable property according to prices of 1980

Percentage IPT


 Estimated value of immovable property according to prices of 1980

Percentage IPT

€0 - €12,000

€0

€12,501 - €40,000*

0,6%

€40,001 - €120,000

0,8%

€120,001 - €170,000

0,9%

€170,001 - €300,000

1,1%

€300,001 - €500,000

1,3%

€500,001 - €800,000

1,5%

€800,001 - €3,000,000

1,7%

€3,000,000 and up

1,9%

 

IMPORTANT NOTES FOR IPT

- It relates to immovable property which is registered on each taxpayer as at 1 January 2013.

- It is imposed on the total value of immovable property of each taxpayer.

- It is imposed on immovable property for which no title deeds have been issued yet (e.g. apartment in a building for which no separate title deed has been issued yet).

-In case of a miscalculation, there is a set procedure for refund by the IRD.

- In case the taxpayer believes that the valuation of the Department of Lands and Surveys is incorrect there is a set procedure for objections.

- The notice of assessments is expected to arrive by mail to the taxpayers by 15 September 2013.

- The deadline for payment is by 15 November 2013. In case of non-compliance there will be a penalty of 10% plus interest.

- There will be a 10% discount on the amount due, if repaid before 16 October 2013.

IF I DO NOT HOLD TITLE TO THE PROPERTY?

There are situations where the Developer / Contractor despite the completion of the construction of each building do not issue individual title deeds. In these cases, responsible to pay property tax is the registered owner of the property and then paid by the buyer / owner of the property.


Problems arise where the registered owners are more than one. The usual practice in paying the IPT is in proportion to the share attributable to each owner. The share is calculated based on the reported square meters that are registered on the title deeds.

Important of course is that no repayment is not made if the owner does not hold the hands of title.

 

WHERE AND WHEN CAN I PAY THE IPT IMPOSED ON ME ?

The payment deadline is November 15th 2013 .

Payments of IPT paid until Oct. 15 will benefit from 10% discount on the outstanding amount. If the amount owed for IPT is paid after November 15th 2013, there will be a penalty of 10 % plus interest and any other applicable administrative sanctions imposed by law.

Cyprus residents - should submit the following documents:

• Registration Certificate (Yellow Slip) ( MEU1 ) .

• A completed Form 303

• Valid passport.

Property owners who do not reside in Cyprus should appoint a representative to act before the local Inland Revenue Department (in Cyprus) by submitting the following documents:

• Copy of Registration Certificate

• Permanent address and contact information.

• Clear copy of their passport.



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