Cyprus Tax Flash - Immovable Property Tax 2016

2016-08-25

   

SUMMARY

Immovable property tax (IPT) is imposed to persons (Legal and individuals) that own immovable property situated in Cyprus at the market values as at 1.1.1980.
Under the latest amendment to the Immovable Property Tax Law, which was published in the Official Government Gazette on 25 July 2016, the immovable property tax for tax year 2016 is reduced by up to 75% and abolished from 2017.


AMENDMENTS TO THE IMMOVABLE PROPERTY TAX LAW

The amended IPT Tax Law provides as follows:

Taxpayers that settle their 2016 IPT tax liability by 31 October 2016, pay only 25% of the IPT due (representing a 75% discount).

  • Taxpayers that settle their 2016 IPT tax liability during the period 1 November 2016 to 31 December 2016, pay only 27.5% of the IPT due (representing a 72.5% discount).
  • Taxpayers that fail to settle their 2016 IPT tax liability by 31 December 2016 (statutory deadline), would be subject to an additional 10% charge, imposed on the 27.5% of the IPT due (i.e. effectively 30.25% of the IPT due, representing a 69.75% discount).
  • In the case that the taxpayer’s 2016 IPT tax liability is below the amount of €10, the tax is not collectable.
  • Last but not least the amended law also provides the abolition of immovable property tax as from 1 January 2017.

For any assistance with the calculation / settlement of the 2016 immovable property tax, please feel free to contact us via info@consulco.com.