Taxes

Taxes

Transfer Fees

Real estate transfer-tax fees must be paid in order to transfer freehold ownership into the name of the purchaser.  This can be done as soon as the relevant government authority has issued the title deed and the purchase has been completed.  The transferee is responsible for the tax payment.  The rates are on a graduated scale as below.

Value of Property (Euros)
Transfer fee rate (%)
Up to 85,430
3.0
Between 85,431 and 170,860
5.0
Over 170,860
8.0

Note:  these tiers were originally CYP - Cyprus pounds - 50,000.  They have been converted at the official rate of €1.00:£0.585274.

Local Immovable property tax

The annual immovable property ownership tax is based upon the value of the property as shown in the table below. The bands have been converted at the official rate as above

Market Value (Euros)

Annual Tax per Thousand (%)

Up to 170,860

Exempt

170,861 - 427,150

2.0

427,151 - 854,300

3.0

Over 854,300

3.0

Background:  this tax is both set and collected yearly by the Community Board on the basis of information they receive from the Land Registry.  The proceeds go towards supplementing their income from community charges.   It Thas no connection with a similarly-named levy which is payable to the tax authorities by 30th September each year and levied only on properties with an assessed 1980 valuation (as shown on individual title deeds) of € 170,860 (Cy£ 100,000) and above. No reminder is ever issued for the payment of this tax.

Amount:  the level of payment is set as a percentage of the 1980 deeds-listed valuation, up to a Government controlled ceiling of 1%, in respect of the 12 months from 1st July to 30th June the following year.  The level set for the year now ending (01.07.10/30.06.11) is 0.05%, as it has been since 2001. Thus for a house with a 1980 deeds-listed valuation of €50,000, the owner this year pays €25.   If the house is in joint ownership then each pays €12.50.  The level already set for the forthcoming year, 01.07.11/30.06.12, will remain unchanged at 0.05%.   A receipt given for 2010 payment covers the period from 01.07.10 to 30.06.11.

Who pays:  I.P.T. is payable by title deed holders (legal owners), and based on the 1980 value of the property to which the deeds apply (land only or land and buildings).

When to pay: leaving a margin to ensure that the board have received the relevant information from the Land Registry, payment can be accepted from mid August onward.  Failure to make settlement by 30th June will incur a financial penalty of an additional 25%, i.e. like the Community Charge it can be paid in arrears, but paying after the period of cover attracts a fine.

Commencement of payment of this tax is dependent on the release date of the title deeds.  In some instances where title deeds are already issued, payment of local I.P.T. does not start until the following demand year.

Householders may find it more convenient to settle this tax at the same time as their Community Charges.  Those considering this option should not leave paying until the last minute as this normally leads to an abnormally high work load, thus increased queuing time.  Payment should be accompanied by either the title deeds or the individual registration number shown at the top right-hand side of the inner page thereof (e.g. 0/8550).   This will allow the staff to immediately identify the property and so eliminate the need for having to search through telephone directory style lists, where owners are at best recorded under either their christian or surname.

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