Cyprus Immovable Property Tax
By Andrew Sharpe
PLEASE NOTE CYPRUS IPT WILL BE CANCELLED IN 2017 and will be reduced by 75% for the tax year 2016. SEE LINK HERE: http://www.news.cyprus-property-buyers.com/2016/07/14/immovable-property-tax-2016/id=00151477
THE BELOW IS NOW OLD NEWS AND NO LONGER APPLICABLE WRITTEN 13TH OF SEPTEMBER 2016 BUT WE HAVE LEFT THE DETAILS BELOW FOR YOUR INFORMATION.
Cyprus immovable property tax is paid by every registered owner once a year. It is calculated on the market value of the property as at 1 January 1980. See table below for Cyprus immovable property tax rates with examples.
Local Council Tax in Cyprus
Owners of immovable property also pay other taxes on their property but the amounts involved are relatively small. For example, local council tax or village rates, refuse (rubbish) collection and sewage charges will cost you less than €350 per year. However, hefty charges are being levied for the new, national grid sewage system under construction. We paid around €3,500 for our house over the last four years, still the system has not reached our area, and we live in central Limassol. Government matters take time in Cyprus; it's pretty much the same throughout the whole system.
Cyprus Immovable Property Tax
How much Immovable Property Tax (IPT) will I pay? The amount of tax you pay will be calculated by an Inland Revenue officer and will be based on the total 1980 value of all the properties registered in your name as shown on their Title Deeds - or more correctly the ‘Certificate of Registration of Immovable Property' - in Greek ‘Πιστοποιητικό Εγγραφής Ακίνητης Ιδιοκτησίας'.
For example, if a property is registered in a single name and has a 1980 value of €60,000, its owner will be asked to pay:
On the first €40,000 - 0.6% = €240
On the remaining €20,000 - 0.8% = €160 Total IPT payable = €400
If the same property is registered in joint names (e.g. between a husband and wife) each of their IPT liability will be calculated on half the 1980 value - €30,000 - and each will be asked to pay:
On their half share (€30,000) - 0.6% = €180
Total IPT payable by both joint owners - €360 (€180 each)
Note: Until you have received the title deed for the property in your name, you may be asked to pay immovable property tax by the registered owner (Developer) until the title deed is transferred to you. When you receive your title deed you will be able to claim a refund from the Inland Revenue, a tax rebate as some developers charge you more than they pay the Government. Therefore, you should not pay the developer any money until they show you a receipt from the government demonstrating how much they have actually paid and your percentage should your property be on a development. If you are not sure contact your lawyer in Cyprus.
See Also: Cyprus Property Lawyer | Cyprus Estate Agents | Cyprus Transfer Fees | Cyprus Property VAT | Cyprus Stamp Duty | Cyprus Council of Ministers | Cyprus Property Tax | Cyprus Capital Gains Tax | Bank of Cyprus | Mortgages in Cyprus | Purchase Contract | Cyprus Land Registry | Cyprus Chartered Surveyors | Making a Cyprus Will | Cyprus Title Deeds | Cyprus Certificate Final Approval