Immovable Property Tax 2015

Immovable Property Tax

Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to the immovable property owned by the taxpayer on 1 January of each year.

This tax is payable on 30 September each year. Physical and legal persons are both liable to Immovable Property Tax.

Owners with property valued (as at 1 January 1980) less than €12.500 are exempt from immovable property tax.

Properties exempt from IPT:

-       Public cemeteries

-       Churches and other religions buildings

-       Public hospitals

-       Schools

-       Properties owns by the Republic, foreign embassies and consulates

-       Building under preservation order (subject to conditions

-       Building of charitable organisations

-       Agricultural land used for agriculture or animal husbandry by a farmer

-       Properties situated in inaccessible areas

-       Property of a missing person under administration

-       Turkish- Cypriot property in the unoccupied area of the Republic leased from the Government Trustee by a refugee for private accommodation

Estate Duty

Estate duty has been abolished as from 1 January 2000.

The executor/administrator of the estate of the deceased is required by the Deceased Person's Estate Law, to submit to the tax authorities a statement of assets and liabilities of the deceased within six months from his/her death.

Immovable Property Transfer Fees

The transfer fees are paid by the acquirer to the Department of Land and Surveys on transfers of immovable property on values estimated by the Department of Land and Surveys.

As from 2 December of 2011 until 31 December of 2016, a transfer relating to properties that are subject to VAT will be exempt from the above transfer fees and a transfer relating to properties that are not subject to VAT will be eligible for 50% exemption from the above transfer fees (subject to conditions).

In the situation of transferring of immovable property to a family company and provided the shareholders remain members of the same family, then after the passing of 5 years the immovable property transfer fees are being refunded.

In the case of property transferred from a company whose shareholders are spouses and/or their children, to one of the two spouses, or their children or to third degree of relation the transfer fees are calculated on the value of the property as follows:

-       transfer is to spouse                   8%

-       transfer is to child                      4%

-       transfer is to a relative               8%

Also the following rates are applicable in the case of free transfers:

-       from parents to children                          0,2%

-       between spouses                                   0,4%

-       between third degree relatives                0,4%

-       to trustees                                              €50

Value in these cases is the one written on the title deed which refers to values of the year 1980

No immovable property transfer fees are payable in the case of reorganization of companies.