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.
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
· 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
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