Adding Up Immovable Property Tax Savings
Sam Orgill ProACT Partnership Expatriate Advice does the sums on the new IMPT regime for Overseas Property Owners in Cyprus
Immovable Property Tax (IMPT) in Cyprus is abolished in 2017. But it gets better if you do the math. In a dramatic modernisation of the Cyprus Property Tax regime, expats owning overseas property in cyprus will have no taxes to pay for 2016 either.
Retrospectively 2015 IMPT is reduced giving a 25% tax saving. Receipts are being issued with a 25% credit reduction against the 2015 IMPT tax paid. If anyone has not yet paid 2015, not only will there be no penalty for late payment, the 2015 IMPT tax can now be paid until 31/10/2015. After this time penalties will apply for 2015 rising to 10% from 1/1/2017.
That leaves 2016 where a 75% tax saving is introduced retrospectively from the start of 2016. (100% - 75% tax saving = 25% payable). Despite plans to use new, higher, 2013 rateable values, this has been abandoned to stick with the 1980 rateable values, as used in 2015. Meaning the new 2016 IMPT tax due is equal to the discount being credited to the 2015 IMPT already paid.
This can be paid in a number of different ways.
Paying IMPT Tax 2015 - 2016
If you have paid 2015 IMPT, and receive a 25% tax saving credit this will be used to cover the reduced 2016 IMPT due - meaning nothing to pay.
If you haven't paid 2015 yet, the amount you pay before 31/10/16 will only be the amount due for 2015 already, the 25% reduction for 2015 covering the new 2016 IMPT rate.
Some people selling or transferring property, or issuing title deeds may have already paid 2016 IMPT at the full 100% rate. These people will receive a credit paid against other taxes or as a cheque refund.
Look Forward – Plan Ahead
Overseas Property in Cyprus has become a better investment with lower property taxes in Cyprus. ProACT can offer help and guidance about the Movable Property Taxes for Expats . Asset Protection is about looking forward to make tax savings. ProACT expat experts offer tax saving for people living and working and investing abroad. Find out more at our website.
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