Immovable Property Tax is levied on all immovable property which is located in the Republic of Cyprus.
The calculation of tax is based on the rates stated below, on the value of the property of each owner, for each year.
- Owner means the person who is entitled to be registered as the owner of the immovable property, whether he is registered or not.
- Immovable property includes mainly, land and buildings or other structures or projects and trees or privileges and rights of use stated in them.
- Value of the immovable property
For taxation purposes, the value of the immovable property which is located in the Republic of Cyprus, is the market value as per 1st of January 1980 as this is stated on the title deed.
- Factors of Immovable Property Tax
In case the total amount of the value of the immovable property does not exceed the amount of €12,500, taxes are not imposed and shall not be received on the value of the immovable property.
FAQ (FREQUENTLY ASKED QUESTIONS):
- Who is obliged to pay the Immovable Property Tax?
Any physical or legal person who owns immovable property in the Republic of Cyprus.
- Over what value of the immovable property is the tax calculated?
On the market value of the property as per 1st of January 1980 as stated on the title deed.
- If a person during the year proceeds with additions / renovations or subtractions on the property what should he do?
There is an obligation to submit a Supplementary Statement – Form E.Pr.303 (2007), stating any changes made in real property.
- When is a person obliged to submit the relevant documents and pay the tax?
The tax is to paid by 30th of September of each year.
From the year 2013, if the Immovable Property Tax is paid at least 30 days before the 30th of September, a discount of 10% is offered to the taxpayer.
- On which properties is the immovable property tax imposed on 30 September of each year?
On any immovable property possessed by a person on the 1st of January.
e.g. The immovable Property Tax due on 30/09/2013 concerns property held on 01.01.2013.
- If a person has not filled any forms or paid any tax so far, what are his/her obligations?
Must fill the form E.Pr.303 (2007) – Additional Declaration (with reference to the additions / reductions) for each year of non-submission of the relevant declarations. The tax is calculated based on their current tax rates applicable in the period the additions / reductions were made.
- If the title deed has more than one beneficiary, who has the obligation to pay the Immovable Property Tax?
The immovable property tax is divided proportionately to all beneficiaries, based on their ownership share.
- Is a person who is in possession of a property but is either a minor or a non-resident of the Republic of Cyprus, under any obligation to pay the immovable tax?
Yes, if the property is in the Republic of Cyprus the obligation is transferred to the guardian or to the trustee.
- If a person fails to submit a declaration and pay the tax due, would there be any additional charges and penalties?
Yes, the following interest charges and penalties are imposed:
– Non-submission of the declaration – € 100
– Non-payment of the tax due – 5% of monetary charge (lump sum payment) (from 1.7.2011) and 10% (from 1.10.2013) and 4.75% interest valid from 1.1.2013.
The Director of the Department of Inland Revenue is entitled to issue a certificate of assessment of tax at any point.
- If a person owns a property in the occupied territory and / or in the buffer zone, is he obliged to pay the Immovable Property Tax?
No, the properties in the occupied territory and the buffer zone are exempted from the Immovable Property Tax.
- What measure can be taken, if the owner disagrees with the valuation of the property given by the Director?
The owner can file an objection or appeal under the provisions of the Assessment and Collections of Taxes Laws.