If the Cyprus parliament passes the proposed changes to Immovable Property Tax the government expects to collect €44.4 million from more than 306,000 taxpayers, while some 65,000 taxpayers will be exempt.
MORE than 306,000 taxpayers will be called on to pay Immovable Property Tax worth €65.3 million, if the new 0.05% property tax rate is passed by the House of Representatives. The government expects to collect only €44.4 million of the €65.3 million due, however, due to a promised discount to those who pay their taxes on time, and the fact that only 85% of taxpayers paid their taxes during the past two years. According to data submitted by the Ministry of Finance to the House Finance Committee, the 306,000 taxpayers correspond to 82.5% of the total, who would pay according to the new tax rate and at 2013 valuations. The value of immovable property on the basis of the 2013 valuations is estimated at €130.6 billion. In addition, 65,000 tax payers, or 17.5% of the total, with immovable property valued up to €50,000 in 2013 prices, would be exempt from paying taxes on their property. The value of immovable property that is exempt from the immovable property law is close to €1.1 billion, said the Ministry of Finance. Under the current tax law, immovable property is taxed progressively at 1980 prices. There are nine tax rates, spanning €6 per thousand to €19 per thousand. Immovable property valued up to €12,500 is exempt from taxation. In 2015, 273,052 citizens and companies were taxed. Out of a total €127.5 million owed, the government collected €85.7 million out of 239,000 tax payers.