Amendments to the law will be considered in the parliament by the end of summer session. The Cyprus government plans to introduce a bill to the Parliament that combines property tax and municipal fees, reports Cyprus Property News.
“It will be done very soon, the government notes, before the end of the summer session”,– said the Minister of Internal Affairs of Cyprus Sokratis Hasikos. He also added that the cost of housing will be recalculated. Already in the first week of June a complete database of overvalued real estate in Cyprus will be ready with new prices.
The volume of tax collection has not yet been discussed, however, according to preliminary estimates it is planned to collect €100 million of tax, plus €13 million municipal fees, which will be integrated into a single tax. The official added that the rate increase is not expected. On the contrary, the Cyprus government will do everything possible to reduce the tax burden. In the framework of anti-crisis agreement with foreign creditors, the government of Cyprus was obliged to count the cost of about half a million of real estate. At the moment it is compiled on the basis of parameters of 1980.
As early as in 2015, the estate tax must be paid from the calculation of new prices. The government has placed in open access a new estimated value of objects. All the owners have to know it and, if necessary, file an appeal before the end of this year. By April 2015, owners of property in Cyprus have already sent 22, 000 appeals to the relevant authorities.