Under the Cyprus Immovable Property Tax Laws all property owners, regardless of whether they are resident in Cyprus or not, they 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 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.
Immovable Property Tax Rates are as below :
|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.
How much Immovable Property Tax (IPT) will I pay?
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)
Permanent residents can either wait for their Immovable Property Tax notices to be delivered and then register and pay on-line via the JCC Smart website by clicking on the Inland Revenue icon – or they may visit their local Inland Revenue office, taking with them:
The Title Deeds for all the properties registered in their name – Form No. 131A – earlier version 131. (Note that clear photocopies may be acceptable).
Their ‘Yellow Slip’ – Certificate of Registration – Form No. MEU1.
A completed Form 303.
In some cases a completed Form 302 may be required.
ID Card or passport. (Those who have received their Immovable Property Tax notice may also visit their local Inland Revenue Office or bank and pay using cash or credit card, taking the tax notice and ID Card or passport with them.
The registered owners of property who are not resident in Cyprus and who are unable to visit their local Inland Revenue office may appoint a representative on the island to deal with this matter on their behalf. They should provide their representative with:
Their permanent address and other contact details.
A clear copy of their passport.
A clear copy of the Title Deed for each property registered in their name.
Alternatively, they may send an email to email@example.com stating:
Their name and contact details (permanent address and telephone number)
Details of the property (the title registration number, sheet, plan, block, and plot as shown on its Title Deed) The Inland Revenue will send the forms to complete and return.
Inland Revenue forms 303 and 302