Following the amendment of the Immovable Property Tax Law (No. 24/1980) on the 30.04.2013 by Law 33/2013 , all owners of property in Cyprus are now liable to pay an annual tax to the Inland Revenue based on their aggregate property holdings as of the 1st of January each year, on the basis of the assessed valuation as at 1 January 1980.
The tax is payable before the 30th of September of each year. Failure to pay by the deadline will incur a penalty of 10% on the amount of the tax payable.
Conversely, a discount of 10% will be granted if payment is made at least 30 days prior to the tax deadline (by the 30th of August).
The following properties are exempted from immovable property tax:
- public cemeteries, churches and other religious buildings
- public schools, hospitals and other buildings owned by the Government as well as foreign embassies and consulates
- buildings of charitable organizations
- buildings under a preservation order subject to conditions
- agricultural land used for agriculture used by a farmer
- property of a missing person under administration
- immovable property situated in inaccessible or depressed areas
According to the revised section 3 of the Immovable Property Tax Law, the Immovable Property Tax rates for 2013 are as follows:
|1980 Property Value||Annual Property Tax||Accumulated Tax|
|1 – €40.000||0.60% (with €75 minimum)||€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%|
Our firm routinely answers queries from individuals and corporate clients on a wide range of property law matters. If you have a property law query or wish to receive further information, please contact us using [email protected]
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.