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New bill for immovable property tax
Immovable property tax is paid according to the total value of the property registered in an individual name or a company, regardless of the existence of a tax residence in Cyprus or not. Taxand Cyprus provides an update on the recent parliamentary debates over this legislation.
Until 2013 the tax was levied on an annual basis according to the market value of the property at 1 January 1980. All owners of property in Cyprus whose 1980 value exceeds €12,500 are liable to pay an annual tax to the Inland Revenue based on the total 1980 value of all immovable property in their name.
On 2nd of July 2014, the government submitted a bill suggesting properties worth up to €200.000 to be excluded from the immovable property tax and also to reduce the tax rated. Is expected that 54% of the property owners will be excluded from paying property tax in contrast with last year 40% property owners which they were excluded from the property tax.
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The matter of immovable property tax in Cyprus has been subject to intense debate in Parliament. It was also suggested that the tax to be levied would be calculated in accordance with today’s market value, but this was strongly objected by a number of political parties. Consequently, on 10 July 2014 the Cyprus Parliament finally passed the new law which once again is based on the 1980 valuations.