Recent modifications to property taxes in Cyprus will benefit each those who have bought belongings and people planning to purchase. Here is a summary of the taxes that observe as we enter 2017.

Immovable Property Tax payable to the Tax Department

Immovable Property Tax (IPT) was reduced in 2016 to approximately a quarter of that in the previous year and is abolished in 2017. Belongings Tax payable to communities and Municipalities This ‘local’ properties tax has no longer been abolished and those with assets at the island will preserve to pay this ‘local’ tax, that’s calculated at the Land Registry’s assessment of the 1980 fee of the property.

Property transfer fees

The temporary reductions in property transfer fees that got here into force in 2015 and applied to transfers that happened by using 31 December 2016 was made permanent in July 2016.

(a) If VAT was paid on the purchase price of the property, no Property Transfer Fees are payable

(b) If VAT was not paid on the purchase price of the property, the Property Transfer Fees are reduced by 50%. But if the Director of the Land Registry considers that the rate stated at the contract of sale does not reflect the market value of the property at its date of purchase he may, at his discretion, charge the full Property Transfer Fees based on the Land Registry’s assessment of the market value of the property at its date of sale less the price stated on the contract of sale.

(The department of Lands and Surveys has an on line transfer costs Calculator .)

Capital gains Tax

The Capital Gains Tax concession introduced in mid-2015 that exempted those who purchased property after it came into force and 31 December 2016 from paying Capital Gains Tax regardless of when the property was sold has not been extended. As a consequence those who buy property in 2017 will be liable for Capital Gains Tax when they sell the property.

Stamp Duty

Stamp duty is calculated on the value of the purchase agreement and remains unchanged at the rate of:

€0 to €5,000 – zero

€5,001 to €170,000 – 0.15%

Capped at a maximum of €20,000.