The Immovable Property Tax (Amendment) Law of 2013
On 30 April 2013, the Parliament approved a new amendment of the Immovable Property Tax Law (24/1980), as part of the agreement concluded between the Cyprus Government and the Troika (European Commission, European Central Bank, IMF).
In particular, the amendment replaces Section 3 of the basic law, thus modifying the tax rates applicable up to now. As a result, with effect from 1 January 2013, the following tax rates shall be imposed on the market value of properties in the Republic of Cyprus as at 1st January 1980, for each individual owner:
For each euro from € 1 up to € 40000: 6 per thousand (minimum €75)
For each euro from € 40001 up to € 120000: 8 per thousand
For each euro from € 120001 up to € 170000: 9 per thousand
For each euro from € 170001 up to € 300000: 11 per thousand
For each euro from € 300001 up to € 500000:13 per thousand
For each euro from € 500001 up to € 800000: 15 per thousand
For each euro from € 800001 up to € 3000000: 17 per thousand
For each euro over € 3000001: 19 per thousand.
It is noted that there is no tax-free amount under the new provisions of the Law. Furthermore, any person failing to pay the tax due within the deadline provided in Section 17, shall pay a fine equal to the 10% of the tax amount due. However, it is also provided that a discount of 10% on the tax due shall be granted, in cases where a person settles his/her tax obligation 30 calendar days before the end of the deadline provided in Section 17, that is before 30 September of the relevant year.
The law may be again amended in the near future, since all the parties involved in the legislative procedure agreed that the legal framework on immovable property tax needs to be substantially improved in order to be fair enough. However, the amendment of the law at this point was one of the conditions to reach an agreement with Troika.