Immovable Property Tax rates

Author: N. Pirilides & Associates LLC
Date:2013-08-20
  • Changes in tax bands
  • Reduction in tax free allowance and increase in tax rates
  • Extension of deadline for payment of 2013 tax
 
General Provisions
 
The registered owner (legal or individual person) of the immovable property situated in the Republic is subject to Immovable Property Tax on an annual basis, calculated on the market value of the immovable property, at values as at 1/1/1980.
 
Owners’ Liability
 
Payment of Immovable Property Tax - Every registered owner must submit to the Inland Revenue Department (IRD), returns showing the property owned as at 1st of January in values of 1/1/1980, through the forms 'Declaration of Immovable Property (IR301)' and ‘Immovable Property Information (IR302)'. Also that person has the obligation to pay the relevant tax until 30th of September of that year. If during the particular year there have been any changes in the immovable property (i.e. acquisitions, additions, disposals), the owner is obliged to prepare and submit the ‘Supplementary Declaration of Immovable Property (IR303)’ based on values of 1/1/1980, before the 30th of September of the following year. The values as at 1/1/1980 are usually stated on the registration certificates.
 
If at that time there is no available official estimation by the Land Registry Office, then an assessment on the value should be done by the owner (i.e. by appointing an independent certified Valuer).
 
 
Immovable Property Tax Rates (Decrease of the tax free allowance and increase of the tax rates)
 
Tax rates applicable for the year 2011 
 
 
Values at 1/1/1980 (EUR)            Tax Rates 
1 – 170.860                                0,00% 
170.861 – 427.150                       0,25% 
427.151 – 854.301                       0,35% 
854.302 and over                        0,40% 
 
Tax rates applicable for the year 2012 
 
Values at 1/1/1980 (EUR)        Tax Rates 
1 – 120.000                               0,00% 
120.001 – 170.000                      0,40% 
170.001 – 300.000                      0,50% 
300.001 – 500.000                      0,60% 
500.001 – 800.000                      0,70% 
800.001 and over                       0,80% 
 
 
Tax rates applicable for the year 2013 
 
Values at 1/1/1980 (EUR)         Tax Rates 
 
1 – 40.000 0,60%            (minimum tax €75) 
1 – 40.000                                 0,80% 
120.001 – 170.000                      0,90% 
170.001 – 300.000                      1,10% 
300.001 – 500.000                      1,30% 
500.001 – 800.000                      1,50% 
800.001 – 3.000.000                   1,70% 
3.000.001 and over                     1,90% 
 
 
Valuation of the Immovable Property and the Powers of the Director
 
Where the estimated value of the immovable property of the Director differs from the value declared on the relevant forms submitted by the owner, the Director has the right to revise the value of the immovable property at any time within two years from the date which the tax became payable and notify the registered owner.
 
Where no return of immovable property has been submitted or it has not been properly completed within the time-limit as specified by the law, the Director has the right at any time to estimate the value of the immovable property and notify the registered owner.
 
Tax consequences in cases of a low estimation and overpayment
 
Where the estimate of the owner on the value of the immovable property is less than 75% of the final assessment of the Director, then an additional 10% tax is imposed on the difference between the final tax payable and the amount of tax paid according to the owner’s return.
 
In the event of an overpayment due to higher valuation by the owner, for the excess to be refunded by the Income Tax Office, all payments of tax should be accompanied by a letter stating that such payments are made with reservation, pending the official valuation of the land registry office.
 
Exemptions
 
Exemption from immovable property tax is granted to:
  • buildings of religious significance (churches)
  • public cemeteries
  • schools
  • public hospitals
  • immovable property belonging to foreign embassies, consulates or the Republic
 
An exemption is also granted:
  • on immovable property used by farmers for agricultural purposes
  • premises used by charitable institutions
  • preserved buildings
  • immovable property situated in areas inaccessible due to the Turkish invasion.
 
 
Extension of deadline for payment of 2013 tax
 
The Law has been amended on 26/7/2013 in order to allow the extension of the deadline for payment of the 2013 tax until 15/11/2013.
 
If the tax due is paid at least one month before the deadline, i.e. by 16/10/2013, then a discount of 10% on the tax due is given by the IRD. On the contrary, if the payment is made after 15/11/2013 an additional tax of 10% will be imposed plus interest and any administrative penalties.
 
The IRD is expected to send the assessments by mid-September based on information obtained from the Land Registry Office.

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