ARTICLE · 07 JUNE 2016

Cyprus Immovable Property Tax Reform

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On 1 June 2016, the Cyprus Council of Ministers approved the reduction of immovable property tax rates by 50% from 1 per mille (that had been initially proposed) to 0.5 per mille

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On 1 June 2016, the Cyprus Council of Ministers approved the reduction of immovable property tax rates by 50% from 1 per mille (that had been initially proposed) to 0.5 per mille.

The decision of the reduction of the immovable property tax rate came following the obligation by the EU to charge VAT (at the current rate of 19%) on transactions of properties which constitute a commercial transaction. This VAT will be imposed on commercial transactions and will thus mainly impact land developers. Individuals will only be taxed in cases of purely commercial activity.

The following amendments are included in the proposal:

Reduction of immovable property tax rate to a flat rate of 0.5 per mille

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