ΝΟΜΙΚΑ ΘΕΜΑΤΑ - LAW UPDATE: IMMOVABLE PROPERTY TAX (IPT) TO BE ABOLISHED IN 2017! PETROS PAPAEVAGOROU.

Despite the criticism which has been witnessed the last weeks between the government and parties with regard to the proposal of Mr. Averof Neofytou, Democratic Rally Leader, however, on the 14th of July the Cyprus Parliament passed by a majority vote the bill of law amending the tax on Immovable Property. According to the amended legislation property owners could now enjoy a 75% discount on the amount paid last year in 2015 provided that they will pay their IPT by 31st of October 2016. It is important to note that the IPT for the year 2016 will be calculated on the value of the 1980s and not on the 2013 price. However, in case the property owners proceed with payment of their IPT at any tax office in the Republic of Cyprus, during the period of 1st of November 2016 and 31st of December 2016, then the tax discount will reduced to 72.5% of last year’s taxation. If payment will be commenced after 31st of December 2016 then there is a provision in the amended bill which imposes a 10% monetary penalty on the 72.5% taxable amount. As a last comment the good news is that the IPT will be abolished as from the 1st of January 2017.

PETROS PAPAEVAGOROU
ADVOCATE & LEGAL CONSULTANT