Cyprus parliament approves property tax rise
The proposed bill, which will increase the country’s Immovable Property Tax, was given the thumbs-up by the majority of the country’s MPs following several weeks of negotiations.
The Change to the IPT will see registered property owners pay a minimum of €75, collecting an estimated €136 million for the country. If passed into the law, the bill will also fine owners 10 per cent of the tax due if they fail to pay the IPT by 30th September each year. The annual tax will be worked out using the Land Registry’s valuation of the property.
The bill is a required step for the island to secure the first part of its €10 billion bailout this month, reports Cyprus Property News.
The authorities “lacked the time to gather sufficient information to prepare a comprehensive bill” the publication explains. Government spokesman Christos Stylianides highlighted Limassol, Nicosia and Larnaca as places where properties existed without registered building permits, leaving them officially classified as building plots - or even agricultural land.