IPT - Joint Ownership

[Tonto]

My wife and I each hold a half share in our property and the 1/1/80 value for each share is shown on the title deeds as £1800.00. On this basis, am I right in assuming that neither of us has anything to pay in 2013?

[Nigel Howarth]

Hi Tonto and welcome to the forum.

As the law stands today both you and your wife are required to pay the minimum charge of €75 each.

But the Council of Ministers (the cabinet) has agreed a number of changes:

• Remove the minimum tax payment of €75.
  
  Owners of properties whose total 1980 value is no more than €5,000 are exempted from paying IPT.
  
  Owners of properties whose 1980 value exceeds €5,000 will pay tax on their total 1980 value and will not benefit from the €5,000 exemption.

There have been discussions in Parliament, but the changes have yet to be voted on and enshrined in law.

I suspect that these changes will be accepted. Parliament meets on Thursday - it may have been voted on today. But in any case I will publish an article in Cyprus Property News as soon as I have confirmation.

Regards,

[cliffyamo]

Hi Tonto and welcome to the forum.

As the law stands today both you and your wife are required to pay the minimum charge of €75 each.

But the Council of Ministers (the cabinet) has agreed a number of changes:

• Remove the minimum tax payment of €75.
  
  Owners of properties whose total 1980 value is no more than €5,000 are exempted from paying IPT.
  
  Owners of properties whose 1980 value exceeds €5,000 will pay tax on their total 1980 value and will not benefit from the €5,000 exemption.

There have been discussions in Parliament, but the changes have yet to be voted on and enshrined in law.

I suspect that these changes will be accepted. Parliament meets on Thursday - it may have been voted on today. But in any case I will publish an article in Cyprus Property News as soon as I have confirmation.

Regards,

Hi Nigel, A couple living in Peyia that I know went down to pay their IPT today at the Paphos Inland revenue department and were told as the Properties Title Deed was in two names they don't have to pay any IPT even though the value on the title deed exceeds the £12,500.00.
they said an "official" told them they don't have to pay anything because the value divided by two was less than £12,500.00?

I think a bill without the 10% reduction will be on its way!

[Nigel Howarth]

Hi cliffyamo,

That's correct - the law was changed by a slim majority in Parliament yesterday (see http://www.news.cyprus-property-buyers. ... id=0014973 ).

If a property is owned by two people in equal shares that has a 1980 value of €25,000 or less - neither of them is liable for Immovable Property Tax because the 1980 value of their share doesn't exceed €12,500.

Regards,

[cliffyamo]

Hi cliffyamo,

That's correct - the law was changed by a slim majority in Parliament yesterday (see http://www.news.cyprus-property-buyers. ... id=0014973 ).

If a property is owned by two people in equal shares that has a 1980 value of €25,000 or less - neither of them is liable for Immovable Property Tax because the 1980 value of their share doesn't exceed €12,500.

Regards,

Does the calculation go further where someone could have a few family names on the title deeds breaking up the 1980 value into pieces below the threshold? No one would be paying anything!


Personally I have my property in my sole name, but if I added my girlfriend, then I too would be liable to not pay, as it stands my 1980 value is 25,000.00 and I have now paid the tax!

Do you really think that when the re calculation to 2013 property values comes into force that all those sitting on the threshold will not be nudged over
slightly to being over the threshold.

[Nigel Howarth]

Hi cliffyamo

Yes - the calculation does go further - how much you pay depends on the 1980 value of your 'share' of the property - quarter, eighth, etc.

But you need to bear in mind that many Cypriots have inherited shares in a number of properties that they have inherited from their parents, grandparents, etc. A Cypriot cannot disinherit close family members, which follows the principals (to a degree) of Sharia law on inheritance.

Us Brits on the other hand can leave out estate to whomsoever we wish!

The Immovable Property Tax system will be totally revised next year - it's too early to speculate what might happen. But personally I think it unlikely that we will be asked to pay more (quite the opposite in fact as there are currently more than a quarter of a million properties for which the Land Registry doesn't have full addresses and therefore is unable to contact the taxpayer).

Regards,

[nitty59]

Hi Nigel

We have paid our IPT but the new ruling means we do not need to pay, will we get a refund? Would we have to request a refund?

[Nigel Howarth]

Hi nitty59

I don't believe that you'll be able to get a refund - I guess you each paid the €75 minimum? I've had a look at the entry in the Cyprus Gazette (where all the laws are published) but it makes no mention of a refund for those who have already paid.

Regards,

[Pantheman]

Hi nitty59

I don't believe that you'll be able to get a refund - I guess you each paid the €75 minimum? I've had a look at the entry in the Cyprus Gazette (where all the laws are published) but it makes no mention of a refund for those who have already paid.

Regards,

Nigel,

where to you get the Cyprus Gazette from please??

[Nigel Howarth]

Ssush Pan, it's a secret

You'll find it at http://www.mof.gov.cy/mof/gpo/gpo.nsf/A ... TO%20I.pdf

But don't tell anyone.

Cheers,

[kismet]

Hi cliffyamo

Yes - the calculation does go further - how much you pay depends on the 1980 value of your 'share' of the property - quarter, eighth, etc.

But you need to bear in mind that many Cypriots have inherited shares in a number of properties that they have inherited from their parents, grandparents, etc. A Cypriot cannot disinherit close family members, which follows the principals (to a degree) of Sharia law on inheritance.

Us Brits on the other hand can leave out estate to whomsoever we wish!

The Immovable Property Tax system will be totally revised next year - it's too early to speculate what might happen. But personally I think it unlikely that we will be asked to pay more (quite the opposite in fact as there are currently more than a quarter of a million properties for which the Land Registry doesn't have full addresses and therefore is unable to contact the taxpayer).

Regards,

Hi Nigel, I have your excellent translation of the Greek IPT forms for which I thank you. I have one question which relates to column 13 in Form 302. Initially I understood that the Title figure for 1/1/80 goes in this column, which in my case is Euros 58k/2 because our house is jointly owned, however in your additional notes under the heading " Instructions for completing the form 302" para (5) you mention advise" to determine what price our property would bring if sold on 1.1.80 ( it was land then!) and then you continue saying " Be aware that you have a 25% margin to devalue the the property from the value that will ultimately determine without incurring a fine".

Am I correct in my understanding in that you are saying that we can put a figure in column 13 which is 25% below the figure listed on our Title?

Your clarification of this point will be much appreciated.

Thanks in advance
Kismet

[Nigel Howarth]

I have one question which relates to column 13 in Form 302. Initially I understood that the Title figure for 1/1/80 goes in this column, which in my case is Euros 58k/2 because our house is jointly owned,

Column 13 is the 1980 value of the property as shown on the deed.

In Column 10 you put 1/2 to indicate that you have a half share in the property.

Regards,