Property Tax Rates in Cyprus Will Change as Municipalities Use 2013 Valuations
As per new legislation, in an attempt to provide a fairer taxation system, going forward, municipalities in Cyprus will now assess the payable tax rate based on 2013 property valuations rather than the 1980 valuations as used to calculate the 2016 property tax calculations. As a result, local property tax rates will change this year for all Cyprus property owners; some will increase while others will decrease.
It is estimated that the majority of house owners will pay similar rates as they did in 2016. However the new assessments may result in substantial tax increases for the following circumstances:
- Properties that were registered as plots of land or fields in 1980 which have subsequently been developed.
- Properties located in planning zones that have been rezoned.
A local newspaper received reports from various taxpayers in the Limassol Municipality of Ayios Athanasios has received a bill of €229 for 2017 compared to €78 for the previous year in 2016. While another in Larnaca has received a bill of €200 this year compared to a bill of €70 from 2016.
It is important to note that each municipality in Cyprus has the option of imposing a blanket tax rate of up to 0.024% on a property’s 2013 valuation. Consequently, the municipalities predict their collections to exceed approximately €20 million in 2017 compared to the €19.1 million that was previously raised in 2016.
As a general guide, the amended property tax rates (per thousand) for each municipality are as follows:
- Larnaca: 0.023%
- Limassol: 0.024%
- Paphos: 0.019%
- Strovolos: 0.015%
- Aradippou: 0.019%
The rate in Paralimni has yet to be established.