Cyprus immovable property tax has been a long debated issue. Following years of discussion on how unfair the law is with regards to taxing property, a decision today by the Members of Parliament settles the matter once and for all.
It has been decided that the 2016 immovable property tax will be 25% of the 2015 tax, if paid by 31st October 2016. This means if someone paid €1.000 last year, they will only pay €250 for this year. If the obligation is settled between 1st November till 31 December 2016, the tax will be raised to 27,5%, thus raising the obligation to €275 as per our above example.
For those who do not pay their tax until 31 December 2016, an additional penalty of 10% will be imposed.
Abolishment of Immovable Property Tax from 2017
In addition, the Members of Parliament, have voted that the tax will be entirely abolished as of 1st January 2017.
With this decision, they believe that it will give a further boost to the recovering Cyprus economy by making investing in property more attractive. Furthermore, many people from lower income groups, will also be relieved from tax on properties that do not really provide a lot of income to them.