IPT 1980 value and 318 form

[Joodles]

Hi Nigel

We wonder if you could help us with an IPT query. We have a very small studio (35 sqm) on a complex in Paphos, without title deeds, in joint names. Last year we were advised the 1980 value was €6739.

Pafilia have emailed to say that as Land Owners we should complete and submit Tax Form No. 318 to the Property Tax Department. They have provided the details we need to complete, including the market value for 1980 which they now say is €10822. Is it correct that the 1980 value would increase by €4083 from 2013 to 2014?

I realise this year the IPT is no longer paid to the developer, and from what I've read I'm hoping whichever valuation is taken into account, we will be exempt this year? Either way would you recommend we complete the form 318?

Many thanks.

[Nigel Howarth]

Hi Joodles

Firstly, unless you have paid the Property Transfer Fees for your studio, you are not the Land Owners as Pafilia claim. The studio you purchased will be registered (and therefore owned) by Pafilia.

The 1980 value cannot change unless there has been some additional construction work on your studio and/or the common facilities over the past year that have increased its value - but even this would not account for such a huge rise!

You should complete the Form 318 - available from http://www.news.cyprus-property-buyers. ... 8-2014.pdf - as you bought in joint names you will each need to complete a copy indicating that you own a 50% share in the building - and I suggest you enter the 1980 value you were given last year in the penultimate column.

(Also, if you take your contract of sale to the land registry, as you go through the doors on the right, inside, there are 3 young ladies directly in front of you. Ask one of them to give you a 1980 valuation for IPT for this year.)

Neither of you will be liable for IPT this year.

I should also add that a number of property developers have been making false IPT declarations, presumably in efforts to reduce their own IPT liability. More information at http://www.news.cyprus-property-buyers. ... id=0018199

Regards,

[Joodles]

Dear Nigel

Thank you for your help with this matter, it's excellent to know where we stand on this. We will complete the 318 each, but we are not in Cyprus, so can we post, email or fax these?

Thanks again for your invaluable advice.

Joodles

[Nigel Howarth]

Hi Joodles

Hopefully the Inland Revenue will accept completed Form 318s by email. The email address of the Paphos office is iptpaph@ird.mof.gov.cy

Regards,

[frasermeridies]

Thanks to all for share this information. I also had a doubt regarding same problem but now i cleared my problems. :)