Cyprus authorities plan to increase property taxes

The government intends to support Cyprus economy by taxes increase. Such changes will also affect property owners.

The government plans to decrease an immovable price of property, which tax is paid off.  If previously homeowners, whose property was worth less than € 170 000 didn’t pay the tax, soon all properties worth higher than € 120 000 will be taxable, Tax News reports.

According to preliminary information, following property tax rates will be fixed on Cyprus.
 

Authorities expect to raise funds by € 24,2 mln due to property prices growth.

Representatives of Cyprus Developers Association wrote to President an open letter, requesting not to increase property taxes. According to specialists, it will lead to the crisis aggravation and unemployment increase, Cyprus property news reports.

Taxes growth is a part of the large taxation reform, developed by Cyprus authorities. The government plans also to increase a value added tax by 2 (up to 17%), to raise income taxes for individuals who earn more than € 60 per year (from 30% up to 35%) and income tax from bank deposits from 10% up to 15%. According to the government, all companies registered on Cyprus should pay annual charge of € 350.