Re: Should IPT be a movable feast?
Posted: 10 May 2011 10:58
Hi fbg52 and welcome to the forum,
There have been several discussions on this problem. According to the law:
"The obligation of every owner of immovable property in the Republic of Cyprus is to pay annually a tax according to the market value of his property as assessed on the 1st January 1980, known as immovable property tax (IPT) governed by the Immovable Property Tax Law, No. 24/80 (the Law) as amended by Laws 60/80, 68/80, 25/81, 10/84, 33/87, 239/91, 120/02 and 147/04."
So your developer, or possibly the company's accountant, will be completing and submitting a tax return annually and will receive an IPT demand from the Inland Revenue. If he fails to submit a return, the Inland Revenue will impose a fine based on a percentage of the tax that he should have paid - and if he fails to pay for several years, that interest will be compounded.
(In one case that I was involved with, a developer tried to charge an 84 year-old lady more than €25,000 for what he claimed was Immovable Property Tax for seventeen years. Her lawyer managed to sort this out eventually and the amount of tax she was liable to pay was €430).
in 2008, the Cyprus Property Action Group sought legal opinion on this matter and produced a guide that you can read at http://www.news.cyprus-property-buyers. ... s/id=00517
I suggest that you also read a page on my website about this issue at http://www.cyprus-property-buyers.com/law/tax.htm
If the developer is proving unreasonable, I suggest that print the letter from the Interior Ministry that you can find at http://www.cyprus-property-buyers.com/f ... -Reply.pdf and present it to him.
Regards,
There have been several discussions on this problem. According to the law:
"The obligation of every owner of immovable property in the Republic of Cyprus is to pay annually a tax according to the market value of his property as assessed on the 1st January 1980, known as immovable property tax (IPT) governed by the Immovable Property Tax Law, No. 24/80 (the Law) as amended by Laws 60/80, 68/80, 25/81, 10/84, 33/87, 239/91, 120/02 and 147/04."
So your developer, or possibly the company's accountant, will be completing and submitting a tax return annually and will receive an IPT demand from the Inland Revenue. If he fails to submit a return, the Inland Revenue will impose a fine based on a percentage of the tax that he should have paid - and if he fails to pay for several years, that interest will be compounded.
(In one case that I was involved with, a developer tried to charge an 84 year-old lady more than €25,000 for what he claimed was Immovable Property Tax for seventeen years. Her lawyer managed to sort this out eventually and the amount of tax she was liable to pay was €430).
in 2008, the Cyprus Property Action Group sought legal opinion on this matter and produced a guide that you can read at http://www.news.cyprus-property-buyers. ... s/id=00517
I suggest that you also read a page on my website about this issue at http://www.cyprus-property-buyers.com/law/tax.htm
If the developer is proving unreasonable, I suggest that print the letter from the Interior Ministry that you can find at http://www.cyprus-property-buyers.com/f ... -Reply.pdf and present it to him.
Regards,