Until a revaluation of properties in 2013 had started, about 1\6 of the whole 1.2 mln properties in Cyprus were not accounted.
The issue was discussed by MPs at the interior committee of the Parliament, and its Chair, Eleni Mavrou, informed that the period of 33 years (1980 - 2013) between the property revaluations, has brought several problems to the country, and not only the loss of property taxation. The Committee agreed and as Eleni Mavrou said, starting from this year, revaluations of the country general property will be conducted every three years. This work is going to be fulfilled by the Department of Lands and Surveys, and the owners are obliged to give all the information and data to that body, and she underlined about its right to estimate the property.
After that, the Department of Land and Surveys informed members of Parliament about the methods they use to revaluate properties, including observation of real estate via satellite imagery.
As it was noted, the updated data will be used not only for property taxes’ calculating, but for property transfer fees and municipal sewerage charges, as well.
According to Cyprus’ bailout agreement, signed with international lenders, the government completed the revaluation of about 500 000 real estates in 2014. As a result, IPT (immovable property tax) had to be paid according to up-to-date values (as stated in 2013); anyway, these new rates were not actually levied.
As surveys show, IPT paid in 2015 - 2016 was based on the estate’s market value , as it was stated on the 1st of January in 1980. Sewerage rates are still based on the updated 2013 market value.
Last year, a new law was passed in the Parliament which has slashed IPT payable for 2016 by 75 %. That day law makers voted for scraping IPT thereafter.