Immovable property tax in Cyprus under review

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What is Immovable property tax?

First of all we should define what exactly “immovable property” is. Immovable property is an immovable object that would have to be destroyed or seriously altered to be moved, it is permanently attached to the earth, such as land or a house. This leads us to the tax part, in some countries taxes are paid on property that is owned, this tax is normally paid at regular times. In Cyprus this tax is due on the 1st of January each year and is based on the value of the property.

Who has to pay Immovable property tax?

As a general rule the person or company that owns the property according to the deed is the one that is obliged to make the payment for any taxes that are due. There are some exceptions to Immovable property tax;

  • Religious buildings,
  • Cemeteries,
  • Schools,
  • Public hospitals,
  • Property owned by foreign embassies, consulates, or the Republic of Cyprus,
  • Property used by farmers for agricultural purposes,
  • Properties used by charitable institutions,
  • Buildings under preservation,
  • Property inaccessible due to Turkish occupation.

How is immovable property tax worked out?

According to the Cyprus Immovable Property Tax Laws 1980 – 2004 all property owners, regardless of whether they are resident in Cyprus or not, are liable to pay an annual tax based on the total value of all the immovable property registered in their name as of the 1st of January 1980. The rates are in Euro’s and are as follows:

Value of the property

Rate in percent %

Amount of tax Cumulative tax

1 – 40.000

0,6% 240

240

40.001 – 120.000

0,8% 640

880

120.001 – 170.000 0,9% 450

1.330

170.001 – 300.000

1,1% 1.430

2.760

300.001 – 500.000

1,3% 2.600 5.360
500.001 – 800.000 1,5% 4.500

9.860

800.001 – 3.000.000

1,7% 37.900 47.260
3.000.001 and over 1,9%

*with minimum tax of €75

For more information on immovable property tax please visit the government website

A review of immovable property tax

There are two points of interest to look at.

Firstly the Government of Cyprus is looking at the values of property, as it goes without saying that the value of a property in 1980 would have risen substantially in the last 3 and a half decades. Now some people would be looking at this and may rightly think that this can only mean a massive jump in the amount of tax paid, however this brings us on to the second point, title deeds.

Most people are aware of the issue surround the possession of title deeds here in Cyprus, but for those who are not aware, it often takes 7 years to receive tittle deeds once you have bought a property in Cyprus. Part of the bailout terms were that the number of pending cases must be reduced to 2000 by the end of the year, which in turn means that the government should start to receive greater amounts, therefore the government will assess the rates of immovable property tax and possible reduce them.

How can we help?

If you are considering moving to Cyprus and would like some advice on purchasing property or maybe some help with immigration, OlieServe has a team of highly experienced professionals ready to help, feel free to contact us. You might also like to view our website to see some of the other services we can offer.