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Cyprus/May 2013

Property Tax Bill Approved by Parliament

The property tax in Cyprus for 2013 increases under the new government.

The Immovable Property Tax (IPT) is calculated on the Land Registry’s assessment on the value of the property as at January 1 1980; the new tax bands as follows:

Your Property Value by Year 1980,  € New Tax Rates
1– 12.500 0,6% (€ 75 min)
12.400-40.000 0,6%
40.000 – 120.000 0,8%
120.000 – 170.000 0,9%
170.000 – 300.000 1,10%
300.000 – 500.000 1,30%
500.000 – 800.000 1,50%
800.000  – 3.000.000 1,70%
3.000.000 + 1,90%

The due date for payment of the tax is by September 30th of each year. A penalty of 10% is applicable on the tax due for late payment. In case the tax is paid 30 or more days before the deadline, then a discount of 10% of the tax owed is provided.

The final propose will occur before the parliament before the end of June 2013.

Bank of Cyprus executes depositor bail-in

On Sunday, April 28 2013, the Bank of Cyprus Public Company Limited, as part of the Cyprus negotiations for financial aid, proceeded with recapitalisation through a bail – in of depositors.

Uninsured deposits at the amount of 37%, in accordance of the Decree, were converted to Class A shares of a nominal value of €1 each, and which is described as the “Initial Contribution Amount”.

It must be noted that the uninsured deposits, which is described as the “Excess Amount” (over €100,000) were calculated in accordance with the balance on the accounts as appeared on March 26 2013, while any credit facilities were set off with the total amount of deposits.

It must be noted that:

-22.5% of the “Excess Amount” remains blocked and is subject to total or partial conversion to Class A shares (Supplemental Deposit Contribution Amount)

-30% of the “Excess Amount” remains blocked and is subject to total or partial conversion to deposits.

Bailout 

The Cyprus Parliament, on April 30 2013, secured a loan package worth Euro 10bn from its EU partners and International monetary fund.

Eurofast Taxand
info@eurofast.eu
Tel.+357 22 699 222
www.eurofast.eu