PROPERTY: Cyprus tax sticks to 1980 base, to be paid by 30/11

The Cyprus government has decided to stick to the 1980 base value for the immovable property tax (IPT) after it failed last month to push through parliament a revised bill that would see levies imposed on current values.

The Tax Department of the Ministry of Finance announced that all companies, organisations and individuals, resident or not, who had immovable property registered in their name in Cyprus as at January 1, 2014, are subject to IPT, if the total value of their property had a 1980-base value of over €12,500.
Initial plans had the government seeking the IPT for properties valued today at more than €200,000, but at a fraction of the tax paid so far, in order to balance the difference.
But disagreement arose over the method of calculation, as owners and politicians said it was unfair for those with properties worth over €200,000 to pay the tax in full and those below to pay nothing. The compromise proposal had been to exempt the first €200,000 from the entire value.
According to the announcement issued by the Tax Department, “in case you don’t receive a tax assessment during August or if you so receive, but not all of your immovable property is included therein, then you are obliged to file a declaration (Τ.Φ. 303) and pay the correct amount of tax. For objections you can fill in the form 2014Τ.Φ. 15ΦΑΙ 2014”.
“In case where the property of a deceased person has not yet been transferred to the legal heirs, the legal heirs have an obligation to pay the correct amount of tax to the Tax Department; by incorporating the value of the share of the property inherited to their declaration”, it is added.
The announcement notes that any objections can be raised by September 30, 2014.
The declaration form ((ÃŽˆντυπο Τ.Φ. 303)2014) is available on the web page http://www.mof.gov.cy/ird .
The Department added that if the IPT is paid in full by 31 October, there is a 15% discount on the tax payable, while any IPT delayed after November 30 will bear a 10% penalty plus interest and any other administrative charges imposed by the law.