On 14 July 2016, the House of Representatives approved changes to the Immovable Property Tax Law (the “Law”). The amendments, which were published in the Official Government Gazette on 25 July 2016, reduce the immovable property tax burden for tax year 2016 by up to 75% and abolish the immovable property tax as from 2017.
Prior the amendments to the Law took place, the tax was imposed on an annual basis, on the market value (as at 1 January 1980) of the immovable property situated in Cyprus as at 1 January of each year.
The tax was calculated by applying certain rates on the total market value of the immovable property owned by each person (either individual or company irrespective of its tax residency status).
Now the Law provides as follows:
Finally, the IMP tax is abolished as from 1 January 2017.