Cyprus Tax News 8 August 2014
Please find attached relevant alert in Greek Language
AMENDMENTS TO THE IMMOVABLE PROPERTY TAX LAW
The Immovable Property Tax (Amending) Law was published in the Gazette on 11 July 2014 and its provisions are effective from 1 January 2014. According to the amended Law, the immovable property tax continues to be imposed on an annual basis on all immovable property situated in Cyprus. The tax is imposed on the value of immovable property as at 1 January 1980 owned by each person as at 1 January and the applicable bands and rates remain the same as in tax year 2013. No such tax is imposed on immovable property situated outside Cyprus.
The new amending law provides for the following changes:
Responsibility for paying the tax in case of sale without the issuance of a title deed and/or effective transfer of the property
In case an immovable property has been developed and sold but the corresponding title deeds have not yet been issued or if they were issued, the transfer of ownership to the purchaser has not yet been effected, the existing owner may submit to the Director of Tax on or before 25 August 2014, a statement listing such properties for which a sales contract was in place as at 1 January 2014.
For the purposes of the above provision of the law, the Department of Taxation has prepared a special form (Form Τ.Φ.317 2014) which is currently only available in Greek language on the Department's website. The form should be completed and submitted electronically.
Where the owner completes and submits the abovementioned form within the prescribed due date, the payment obligation of the immovable property tax with respect to such properties will be transferred to the respective purchaser, assignee or beneficiary and the Director should issue the relevant immovable property tax assessment in the name of the purchaser, assignee or beneficiary.
Where a person fails to submit the required form prior to the deadline, he/she remains liable to pay the immovable property tax.
The above provisions of the Law shall not apply in cases where the issue of the title deed was willfully delayed by the owner or in cases where the owner is a legal person under liquidation.
Payment date, discounts and penalties
The immovable property tax for tax year 2014 is payable on or before 30 November 2014.
Every person who settles its tax liability at least one month in advance, i.e. on or before 31 October 2014, will benefit from a 15% discount on the tax due. Every person who settles its tax liability after 30 November 2014 will be subject to an additional charge of 10%, plus interest and penalties.
We are at your disposal to assist you with the preparation and submission of the relevant immovable property tax form and in calculating and administering the payment of the tax due.