We had been anxiously waiting for the voting of the new Law on Immovable Property Tax (I.P.T.) by the Cypriot Parliament which was left to be decided in the last session of Parliament before the summer break. The changes to the Law on the payment of I.P.T. were creating havoc between the parties in Parliament as there did not appear to be consensus to any one proposal.
Finally the decision was made by Parliament last week that the I.P.T. for 2016 will again be calculated on 01/01/1980 values as it was in 2015 and not on the new values of the 01/01/2013.
According to the new Law, those owners who will pay their I.P.T. for 2016 by the 31st of October 2016 shall receive a 75% discount.
Those owners who pay their I.P.T. for 2016 from the 01/11/2016 until the 31/12/2016 shall receive a discount of 72.5%.
Those owners who pay their I.P.T. for 2016 after the 01/01/2017 shall pay a penalty of 10% on the amount due.
Those owners for whom the I.P.T. for 2016 works out to anything up to €10, after the discount has been applied, they will not have to pay the IPT at all.
A lot of owners of immovable property may still not be aware that they need to pay IPT and may expect to receive an invoice from the Inland Revenue. Although this is not unreasonable an expectation as such it is still very likely that owners may not receive an invoice from the Inland Revenue and the burden is on the actual owners to contact the Inland Revenue to obtain.
Immovable Property Tax may be abolished altogether in 2017.
The I.P.T. is not be confused with the property tax which is payable to the local community councils and which also needs to be paid for 2016.