On July 14th 2016, the plenary of the House of Representatives voted to reduce Immovable Property Tax (IPT) between 72.5-75.0% for 2016 and to abolish it from 2017 onward.
The new legislation provides that the payable immovable property tax from 2016 will be at 25% of the amount calculated with the existing provisions in place. Additionally, if the tax is completely paid between November 1st and December 31st, the tax will be 27.5% of the taxable amount on the basis of existing provisions in place. If the taxable amount is not settled, there will be applied a penalty of 10% on the 27.5% of it.
It is important to mention that in June 2016, CYPRUS Council of Ministers approved the reduction of the Immovable Property Tax rate by 50% and abolished the Immovable Property Tax collected by municipalities and communities.