The Council of Ministers of the Republic of Cyprus has approved a bill, according to which the owners of homes valued up to €200,000 (i.e. 54% of owners) will be exempt from property tax, for everyone else this tax will be lowered to 0.1%, writes ee24.com citing news.cyprus-property-buyers.com.
Until recently, the property tax in Cyprus was calculated based on the price level of 1980, when the property was worth by 8-10 times less than today. Now the basis for the calculation of the tax are 2013 prices. All the buildings were revalued as well as a number of previously unrecorded buildings were added into register. These measures allow the government to reduce the tax rates without a harm for the budget.
Innovations will have a positive impact on the demand from foreigners. In the first five months by 20% more homes were sold on the island compared with the same period of 2013. In May, the share of foreigners in the market reached 28%.