Who Pays Immovable Property Tax in Cyprus?

If you are thinking about buying property abroad in Cyprus or even if you have already taken the plunge and purchased some property overseas in Cyprus you may be wondering who has to pay immovable property tax. While there are a few exceptions to the types of property that immovable property tax is assessed on everyone that owns property is required to pay it regardless of Cypriot resident status.

Immovable property tax is an annual tax that is assessed on almost all property in Cyprus. If you are a property owner in Cyprus then there is a almost 100 percent chance that you will have to pay immovable property tax. Unlike the personal income tax where your liability depends on your resident status, the immovable property tax is mandatory for anyone that owns property in Cyprus. This applies to both residents and non residents of Cyprus.

There are a small number of property classifications that are exempt and therefore make the property owners exempt from having to pay immovable property tax. If you are a property owner of any of the following then you are exempt from having to pay immovable property tax on these types of property: public schools, public cemeteries, churches or other religious buildings, public hospitals, foreign embassies, immovable property owned by the Republic, foreign consulates, charity houses, buildings under a preservation order, agricultural land without buildings on it, occupied or inaccessible areas and common use areas.

If you own property that is not on the list above then you are liable for immovable property tax each year. The immovable property tax is based on the value of the property as it was on January 1^st, 1980. This means that if the property you have was put into existence after that date then you owe no immovable property tax as its value as of that date was zero. There are actually a large number of properties that fall under this loophole. You are also exempt from having to pay immovable property tax if the value of the property is below CYP 100,000. Oftentimes property owners actually have nothing to pay when it comes to immovable property tax.

If your property had a value over CYP 100,000 as of January 1^st, 1980 then the amount of tax that you owe will vary depending on the exact worth of the property and where is falls in the property value range for immovable property tax. As stated, if the value of the property is less than CYP 100,000 then you own nothing. If the value of your property falls between CYP 100,001 and CYP 250,000 then your tax rate is two and a half percent with a cumulative tax of CYP 375. If the value of your property falls between CYP 250,001 and CYP 500,000 then your tax rate is three and a half percent and your cumulative tax is CYP 1,250. If the value of your property is over CYP 500,000 then your tax rate is four percent and there is no cumulative tax.

If you are required to pay immovable property tax according to the above information then you will need to make your payment by September 30^th each year. For more information you can contact the local tax authorities in Cyprus.