IMMOVABLE PROPERTY TAX – 2013
The tax will remain the same as last year, despite the
promises that everyone will pay less, however more missing properties have been
added to the register.
A 15% discount will apply if the tax
is paid by 31st October.
Otherwise the tax must be paid by 30th November and a 10%
penalty, interest, administrative fee
and ‘other charges’ will be applied if you have not paid after this date.
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
·
The percentage of the total area of the building
attributable to unsold
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 – but
please note that non-receipt will not be accepted as an excuse for non-payment! Last year the Inland Revenue failed to post
most of the notices and you had to go down to their office and plough through a
large basket full of notices to find yours.
Payment can be made to the tax
department in Paphos, through www.jccsmart.com, or any local bank. Please note that to pay via jccsmart you will need to quote the reference shown on your 2014 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.
Objections can be raised by 30/9/2014 by visiting the Inland Revenue personally, through your agent, or the IPT division of the District Office where your file is kept, by taking your notice. For those currently abroad, you should contact the following office and state clearly the reason[s] for your objection. Paphos - iptpaph@ird.mof.gov.cy.
Objections can be raised by 30/9/2014 by visiting the Inland Revenue personally, through your agent, or the IPT division of the District Office where your file is kept, by taking your notice. For those currently abroad, you should contact the following office and state clearly the reason[s] for your objection. Paphos - iptpaph@ird.mof.gov.cy.
Anyone wishing to telephone the office in Paphos should please contact 26 804342 or 26 804337.
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 2014 IPT to your developer.
·
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 I 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, you will either have to contact your
developer or go down to the Inland Revenue office.
Title deed problems - http://www.news.cyprus-property-buyers.com/2014/07/29/title-deed-fiasco-haunts-ipt-collection/id=0018032
