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Cyprus Government Plans To Amend Property Tax


21/08/2013

The Government of Cyprus has announced plans to amend the country's Immovable Property Tax, exempting the lowest-valued properties but also scrapping a EUR75 minimum payment.

Property tax in Cyprus is currently based on valuations made in 1980, although the amount payable by a taxpayer is determined by their total property value taken together. If the Government’s intentions become law, those whose total property is valued at EUR5,000 or less will no longer have to pay anything. Total property valued at between EUR5,000 and EUR40,000 will now be taxed at 0.6 percent.

A Government spokesperson explained that the move, decided at a cabinet meeting in Troodos, would correct distortions in the tax system and remove an administrative cost.

From next year, the 1980 valuation will be updated to 2013 values. The spokesperson added that it was expected that the re-valuation would return EUR10m to taxpayers.

Property tax in Cyprus is due to be paid by November 15. It was also recently announced that those who pay by October 16 will receive a 10 percent discount, but that those who miss the deadline will be subject to a 10 percent surcharge.

www.lowtax.com

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