Under the Cyprus Immovable Property Tax Laws all property owners, are liable to pay an annual tax based on the total value of all the immovable property registered in their name.
Cyprus property tax is calculated on the market value of the property as at 1st of January 1980 and must be paid annually to the Inland Revenue Department.
Individual owners are exempt from this tax if the 1980 value of their property is less than €12,500.
Every registered owner whose immovable property value exceeds €120,000 is required to submit a declaration of Immovable Property (IR301 and IR302) and must pay the respective tax every year before the end of September.
|Assessed 1980 Property Value||Annual Property Tax Rate||Accumulated Tax (Max)|
|€1 to €12,500||Nil||€0|
|€12,501 to €40,000||0.60%||€240|
|€40,001 to €120,000||0.80%||€880|
|€120,001 to €170,000||0.90%||€1,330|
|€170,001 to €300,000||1.10%||€2,760|
|€300,001 to €500,000||1.30%||€5,360|
|€500,001 to €800,000||1.50%||€9,860|
|€800,001 to €3.000,000||1.70%||€47,260|
|More than €3.000,000||1.90%|
Those owning property whose total 1980 value exceeds €12,500 will pay tax on their total 1980 value.
The changes brought about by the final set of amendments for the current tax year:
Remove the minimum IPT payment of €75.
Exempt owners of properties whose total 1980 value is no more than €12,500 from IPT.
Owners of properties whose 1980 value exceeds €12,500 will pay tax on their total 1980 value and will not benefit from the €12,500 exemption.
The amount of tax you pay will be calculated by an Inland Revenue officer and will be based on the total 1980 value of all the properties registered in your name as shown on their Title Deeds – or more correctly the ‘Certificate of Registration of Immovable Property’ – in Greek ‘Πιστοποιητικό Εγγραφής Ακίνητης Ιδιοκτησίας’.
For example, if a property is registered in a single name and has a 1980 value of €60,000, its owner will be asked to pay:
On the first €40,000 – 0.6% = €240
On the remaining €20,000 – 0.8% = €160
Total IPT payable = €400
If the same property is registered in joint names (e.g. between a husband and wife) each of their IPT liability will be calculated on half the 1980 value – €30,000 – and each will be asked to pay:
On their half share (€30,000) – 0.6% = €180
Total IPT payable by both joint owners – €360 (€180 each)