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Immovable Property Tax Bands and Rates Amended

Cyprus

In Cyprus, each registered owner whose immovable property value exceeds EUR120, 000 is obliged to present a Declaration of Immovable Property (IR 301 AND IR 302) and is subject to pay the relevant tax every year before September 30th. The bands and rates for Immovable Property Tax for property located in Cyprus have been amended as follows and will have effect from the year 2012. Taxand Cyprus illustrates this on the table below:

Value of property as at 1 January 1980 Rate %
EUR0 - EUR120.000 0
EUR120.001 - EUR170.000 0.4
EUR170.001 - EUR300.000 0.5
EUR300.001 - EUR500.000 0.6
EUR500.001 - EUR800.000 0.7

Over EUR800.001

0.8

Taxand's Take


Despite the value of property bands being reduced and rates being increased, assessments will still continue to be based on 1980 values. Therefore the effect of this change is very minimal. Cyprus has a property buying system where EU citizens are permitted to acquire as many land items as they wish. The wide network of Tax Treaties available in Cyprus and the EU implemented Directives present opportunities for investors looking to structure investments through Cyprus.

Your Taxand contact for further queries is:
Georgia Papa
T. +357 22 699 222
E. Georgia.papa@eurofast.eu

Taxand's Take Author