On July 3rd, a new real estate tax bill has been approved by the Cyprus Government regarding the exemption of Immovable Property Tax (IPT).
The bill allows owners of property with a value less than €200,000 to be exempt from paying IPT. Those with property of a value over €200,000 will be subject to an IPT levy of 0.1%.
Currently, IPT is calculated on the basis of 1980 valuations, subjecting property owners to tax bills between 6% and 19%.
Property valuations have now been revised to reflect 2013 valuations and not older, therefore the Government has decided to adjust tax brackets respectively.
Up to a significant 54% of property owners will be exempted from taxation this year, compared to 40% of the same last year.
Government has, reportedly, managed to reduce tax deficiencies and increase tax-exemption borders without affecting revenue targets for 2013.