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Cyprus/July 2014 The Immovable property tax in Cyprus is paid according to the total value of the property registered in an individual name or a company, regardless of the existence of a tax residence in Cyprus or not. Until 2013, the tax was levied on an annual basis according to the market value of the property at 1 January 1980. All owners of property in Cyprus whose 1980 value exceeds €12,500 are liable to pay an annual tax to the Inland Revenue based on the total 1980 value of all immovable property in their name on the 1st day of January. Based on last year changes, one of the measures which were taken was to reform the fiscal framework of real property. Specifically scales were created in order to calculate the tax for each person or company. On 2nd of July 2014, the government submitted a bill suggesting properties worth up to €200.000 to be excluded from the immovable property tax and also to reduce the tax rated. It is expected that 54% of the property owners will be excluded from paying property tax in contrast with last year 40% property owners which they were excluded from the property tax. It was also suggested that the tax to be levied would be calculated in accordance with today’s market value. The matter has been subject to intense debate in Parliament. As of the date of writing, 10 July 14 the Cyprus Parliament has finally passed the new law which once again is based on the 1980 valuations. Various Political parties of Cyprus had strongly objected in using the 2013 valuations. Taxand: New bill for immovable property tax Zoe Kokoni zoe.kokoni@eurofast.eu +357 22 699 222 www.eurofast.eu