Cyprus Property Forum for Buyers, Sellers & Investors

Hi!

From which value is the 1980 value calculated. Is it the market value according to the Land Registry or is it the value in the Deed?

And for the tax on a 45000€ value.

Is it first 0.6% on 40000 € and then 0.8% on 5000 € ?

Regards

Anders Yuran

Vegaanders wrote:Hi!

From which value is the 1980 value calculated. Is it the market value according to the Land Registry or is it the value in the Deed?

And for the tax on a 45000€ value.

Is it first 0.6% on 40000 € and then 0.8% on 5000 € ?

Regards

Anders Yuran

The 1980 value is that which is stated on the actual title deed that was determined by the Land Registry.

You calculation is correct.

Ok Thanks!

I have in my hand the title deed of our house bought 2010 in a mountain village. We bought it for 149000 and if I am right the value 1980 according to the DEED is 307,55 euro. Is this really true.

Αγοραία Αξία σε τιμές 01/01/1980 : €307,55 Εκτιμημένη Αξία : €8,54

Anders,

I believe the figure of €307.55 is the 1980 value of the plot of land excluding the house.

Regards,

Morning Nigel.

We have a property, no deeds and currently pay the developer IPT each year.
I was informed that there is this new IPT tax to pay when we were in Cyprus a few weeks back but no-one else on our complex seemed aware of it.

Do we pay this directly to the lnland Revenue in Cyprus or to our developer to pass on due to the fact we have no deeds at present?

If paying to the Inland Revenue, I guess we'll find out the true cost of the property in 1980? As you know, trying to obtain this information from the developer is a no-go area. If the IR don't advise us of this, how will we know the amount we're paying is correct again?

Kind regards

susiecoo

Hello susiecoo

Until you get the deeds to the property you just need to continue paying your developer each year.

This change doesn't affect you - but as the bands have changed, you may find that the developer asks you for more money.

I recently published an article about the revised tax rates that you can read at Money off your Immovable Property Tax bill (updated).

Also, I suggest you read one of my web pages at Cyprus Immovable Property Tax law - this explains how you can check that the amount the developer is charging you is correct.

Regards,

Dear Nigel

I live on a small complex of 34 apartments in Peyia. I as Committee Secretary have recently had an email from an owner with regards to IPT.

This is the first we have heard of this annual Immovable Property Tax. We were only expecting to pay a property transfer tax when our Deeds become available.

As non of the owners including myself have our deeds at present what is our standing on paying IPT? We don't expect to receive our deeds for another couple of years!!

The properties were built in 2006. Will our developer been sent a tax bill each year for the land on which the apartments were built? Should all owners have been paying their share of the IPT through our developer since 2006?

Where do we stand with the deadline in November for payment of IPT? Will we expect to receive letters from the Inland Revenue in due cause?

Kind Regards
Andrew

Dear Andrew,

As none of you have the Deeds to the properties you purchased you do not own them - and therefore there is no requirement on yourselves to pay IPT to the Inland Revenue Department.

You will only become the owners of the properties once their Deeds have been issued and you have paid the Property Transfer Fees.

Currently, the developer from whom you bought the properties is their owner - and he should have been paying IPT to the Inland Revenue Department annually. Some developers do pay annually as they should do, while others do not and only pay the IPT when the Deeds become available for transfer. Delayed payments result in interest being charged and administrative fines being imposed by the Inland Revenue. (In the past, the Inland Revenue hasn't sent out tax demands and it has been left to the individuals to self-declare. However, this is changing).

The developer should have been billing you annually for the IPT he has paid on your behalf. But from what you say it sounds as if he is one of those who doesn't pay the IPT until the Deeds become available. If this is the case he may try to charge you for the interest and administrative fines that have been imposed on him. You must resist this extortion. For more information please see the following:

Immovable property tax & fraudulent practices

and

Cyprus Immovable Property Tax law (and download a copy of this letter from the Interior Ministry - it may help if the developer tries to extort money from you).

Regards,

Dear Nigel

Thank you for the information that has been most helpful.

Regards

Andrew

Hi Nigel,
We have a small plot of land in the Paphos district. Is this liable for the IPT & if so how do we find out how much?
Thank you.

june wrote:We have a small plot of land in the Paphos district. Is this liable for the IPT & if so how do we find out how much?

Yes, you'll have to pay IPT (assuming you have the deeds).

To see how much, take a look at my article at http://www.news.cyprus-property-buyers. ... id=0014973 where you'll also find information on how to pay and translatio of the form.

Regards,