IMMOVABLE
PROPERTY TAX 2015 - Payable to the Tax
Authorities in
Paphos
Paphos
The tax will remain the same as last
year, ie based on the 1980 property value, despite the Government
proposal to
base the tax on the new 2013 property valuations.
A 17.5% discount will be given if the tax is paid by 30th November.
In addition, if payment is made via a bank or jccsmart by 30th November, an additional 2.5%
discount will be given.
If payment has not been made by 30th November, penalties will apply.
Anyone who has paid the tax already and only been given a 10% discount will need to resolve the
matter direct with the tax office!
To pay online: https://www.jccsmart.com/
In addition, if payment is made via a bank or jccsmart by 30th November, an additional 2.5%
discount will be given.
If payment has not been made by 30th November, penalties will apply.
Anyone who has paid the tax already and only been given a 10% discount will need to resolve the
matter direct with the tax office!
To pay online: https://www.jccsmart.com/
For those who have not yet received their title deeds [and please read to the end of this notice as there is an update], you will no longer pay the tax to your developer [with the usual add ons for ‘administration’ etc].
This means that you will pay a lower tax
than you would otherwise [as the developer would be paying the
tax at 1.9%].
Property developers are required
to provide the authorities with details of properties they have sold
but which
have yet to be transferred to the purchasers:
· The distinctive features of the sold
unit
· The name and address of the purchaser
or transferee or beneficiary of the unit
· The date of sale or assignment
· The date of completion of the building
· The date of delivery of possession of
the building
This then enables the Land Registry to
assess the 1980 value of the property in question and the
Inland Revenue can
issue an IPT notice to the purchaser.
The law contains provisions that remove
a purchaser’s obligation to pay IPT if their development company
is in
liquidation or if the delay in issue of the title deeds is the fault of the
owner [developer] .
Immovable
Property Tax rates:
Assessed
1980 property value
|
Tax
rate
|
Tax
|
Cumulative
Tax
|
€1 to
€12,500
|
Nil
|
€0
|
€0
|
€12,501
to €40,000
|
0.6%
|
€240*
|
€240*
|
€40,001
to €120,000
|
0.8%
|
€640
|
€880
|
€120,001
to €170,000
|
0.9%
|
€450
|
€1330
|
€170,001
to €300,000
|
1.1%
|
€1,430
|
€2,760
|
€300,001
to €500,000
|
1.3%
|
€2,600
|
€5,360
|
€500,001
to €800,000
|
1.5%
|
€4,500
|
€9,860
|
€800,001
to €3,000,000
|
1.7%
|
€37,400
|
€47,260
|
€3,000,001 onwards
|
1.9%
|
*Those owning property where the total
value is in excess of €12,500 will pay tax on the total 1980 value.
The Inland Revenue will issue notices
during August and September – but please note that non-receipt will
not be
accepted as an excuse for non-payment! If you do not receive a
notice, please go down to the
Tax Office in Paphos to collect it.
Please note that to pay
via jccsmart you will need to quote the reference shown on your 2015 tax notice.
For payment via the banks, you will need
your tax assessment, your identity card [might be an idea to
have your passport
with you as well] and payment.
For those without title deeds:
· Ensure your developer has your correct
postal address and contact details so that the Inland Revenue send your IPT
notice to the correct address.
· Do not pay 2015 IPT to your developer
[nor the 2014 tax if this has still not been paid].
· If you believe the 1980 valuation shown
on your IPT notice is too high you may query this
with the Inland Revenue
· If you believe the IPT has been
incorrectly calculated by the Inland Revenue you may
challenge this
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 Inland Revenue by
incorporating
their share of the property inherited on their tax declaration.
For those without title deeds,
please note that the information shown may be subject to change
as we
understand that there may be a problem extracting the information from the
developers
for people where title deeds have not yet been issued and where the
developer is deemed
responsible for the non-issuance of title deeds – as in the
case of properties sold while
encumbered with a mortgage already taken out on
it. Regrettably, if you don’t have title deeds
and don’t receive a tax
notice in August or September, you will either have to contact your developer or go down to
the Inland Revenue office.
