Under the new tax legislation for IPT, the owners of immovable property situated in Cyprus must pay to the Inland Revenue Department (‘IRD’) the relevant taxation for the year 2014 based on the following percentages:
| Estimated value of immovable property according to prices of 1980 | Percentage IPT |
|
€0 - €40.000*
|
0.6% |
| €40.001 - €120.000 | 0.8% |
| €120.001 - €170.000 | 0.9% |
| €170.001 - €300.000 | 1.1% |
| €300.001 - €500.000 | 1.3% |
| €500.001 - €800.000 | 1.5% |
| €800.001 - €3.000.000 | 1.7% |
| €3.000.000 and up | 1.9% |
* Persons whose total immovable property in the Republic shall not exceed € 12.500 for the year 2014 are not subject to tax. The tax is calculated on the whole amount up to € 40,000 for properties with value greater than € 12,500.
Important notes for IPT
- It relates to immovable property which is registered on each taxpayer as at 1 January 2014.
- It is imposed on the total value of immovable property of each taxpayer.
- It is imposed on immovable property for which no title deeds have been issued yet (e.g. apartment in a building for which no separate title deed has been issued yet).
- In case of a miscalculation, there is a set procedure for refund by the IRD.
- In case the taxpayer believes that the valuation of the Department of Lands and Surveys is incorrect there is a set procedure for objections.
- The notice of assessments are expected to arrive by mail to the taxpayers by 15 September 2014.
- The deadline for payment is by 30 November 2014. In case of non-compliance there will be a penalty of 10% plus interest.
- There will be a 15% discount on the amount due, if repaid before 31 October 2014.
Services we can offer:
REANDA Cyprus Limited can provide advice and guidelines on IPT and all related tax services such as management and submission of declarations to the IRD, payment processing and submission of relevant objection.