TAX INFORMATION 3/2016
Immovable Property Tax
On 14 July 2016, the House of Representatives voted changes to the Immovable Property Tax Law. According to the changes the immovable property tax for year 2016 is reduced to 25% of the total tax arising using the current rates and abolish the immovable property tax as from 1 January 2017.
The immovable property tax calculation will be based on the same scales as last year, on owned property or leased property in Cyprus on 1 January 2016 based on the market value of immovable property as at 1 January 1980.
Immovable property value
€ Rate
(per thousand)
0 – 40.000 6‰ ( (Minimum tax €75)
40.001 – 120.000 8‰
120.001 – 170.000 9‰
170.001 – 300.000 11‰
300.001 – 500.000 13‰
500.001 – 800.000 15‰
800.001 – 3.000.000 17‰
3.000.001 and over 19‰
Immovable property owners with total immovable property value not exceeding €12.500 (1.1.1980 prices) are exempt from immovable property tax. Immovable property owners with total immovable property value of €12.501 and over are subject to immovable property tax on the total value of their property and the exception does not apply.
According to the changes of the Immovable Property Tax Law,
• Taxpayers that settle their immovable property tax for the year 2016 by 31 October 2016, the tax payable will be 25% of the tax calculated based on the above rates (75% discount)
• Taxpayers that settle their immovable property tax for the year 2016 during the period from 1 November 2016 to 31 December 2016, the tax payable will be 27,5% of the tax calculated based on the above rates (72,5% discount)
• In case a person delays to settle the tax obligation by 31 December 2016 will be subject to 10% additional charge, on the 27,5% tax due
• If the immovable property tax liability is less than €10, then the tax is not collectable.
PEK LTD
August 2016
