Cyprus Law Update: Immovable Property Tax (IPT) To Be Abolished In 2017
July 20th, 2016
The Cyprus House of Representatives voted on 14th of July 2016 to reduce immovable property tax 75% for 2016 and to abolish it in 2017.
The legislation passed with the majority of vote of 29 for, 18 against and 5 abstentions.
“Today we took another important step towards tax reform and reducing the tax burden both for households and corporations,” stated the Minister of Finance, Mr Harris Georgiades, following a Council of Ministers meeting.
According to the adjusted legislation property owners can now receive a 75% discount on the amount they paid last year in 2015 as long as the IPT will be paid by 31st of October 2016. It is significant to note that the IPT for the year 2016 will be calculated on the value of the 1980s as found in the land registry.
However, if the property owners continue with payment of their IPT at any tax office in the Republic of Cyprus, through the period of 1st of November 2016 and 31st of December 2016, then the tax discount will be reduced to 72.5% of last year’s taxation. If the IPT will be paid after 31st of December 2016 then there is a provision in the amended bill which enforces a 10% penalty on the 72.5% taxable amount.
The new legislation additionally provides the abolition of the IPT from January 1st 2017 onward.
