10% off your Immovable Property Tax bill

UNDER the provisions of the revised Immovable Property Tax Law (No. 24/1980) all owners of property in Cyprus are now liable to pay an annual tax to the Inland Revenue based on the 1980 value of all the immovable property registered in their name; the minimum payment is €75.

The revised law, which was introduced in May, is designed to achieve one of the bailout conditions that Cyprus agreed with its international lenders, i.e. to ensure that a further €75 million is collected by the state from property taxation.

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 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 €170,000, its owner will be asked to pay:

On the first €40,000 – 0.6% = €240
On the next €80,000 – 0.8% = €640
On the remaining €50,000 – 0.9% = €450 

Total IPT payable = €1,330

If the same property is registered jointly (e.g. between a husband and wife) each of their IPT liability will be calculated on half the 1980 value – €85,000 – and each will be asked to pay:

On the first €40,000 – 0.6% = €240
On the remaining €45,000 – 0.8% = €360

Total IPT payable by each joint owner – €600

Those who pay their IPT by 31st August will enjoy a 10% discount, while those who delay paying until after the 30th September will face a penalty of 10% on the tax they owe.

Read more at: http://www.news.cyprus-property-buyers.com/2013/06/03/money-off-your-immovable-property-tax-bill/id=0014973 Copyright © Cyprus Property News