Cyprus saw immovable property tax (IMT) slashed, as approved by the House of Representatives on 14 July and as reported in the Official Government Gazette. The IMT for the tax year 2016 will be reduced by up to 75% and 2017 tax year will mark the abolishment of IPT altogether.
The IMT is an annual tax levy based on the market value (as at 1 January 1980) of immovable property in Cyprus as at 1 January each year.
The amended IMT requires that:
IMP tax liabilities settled by 31 October 2016 will only be required to pay a reduced fee of only 25% of the tax due (a 75% discount).
Taxpayers who settle their IMT tax liability between 1 November, till 31 December 2016 pay 27.5% of the tax due (so a 72.5% discount).
Those however who do not settle their IMT tax liability by the 31 December 2016 will have to pay a penalty of an additional 10% of the 27.5% tax due).
In addition to this if the tax payers IMT liability is less that €10.00 then it is not charged.
As from 1 January 2017 the IMT tax will be abolished.