Cyprus raised real estate tax

In mid -August, the Cyprus government announced a package of measures to strengthen the economy.
Among other measures to strengthen the economy of Cyprus, the package provides for changes regarding the payment of real estate tax, reports Zagranhaus.ru .

Real estate owners in Cyprus will now be required to pay real estate tax worth from 120 thousand euros (previously, real estate costs from 170 thousand euros), according to the PPROPERTYSHOWROMS portal.

And property owners, the value of which is less than 120 thousand euros, are exempted from taxes.

A sliding scale is provided for calculating real estate tax:

- Real estate owners in Cyprus worth from 120 001 to 170,000 Ervo will pay a tax of 0.4% of its value per year;

- Real estate owners worth from 170,000 to 300,000 euros will pay 0.5%;

- from 300,000 to 500,000 euros - 0.6%;

- from 500,000 to 800 001 euros - 0.7%;

- Real estate owners worth 800 001 euros or more will pay a tax of 0.8% of the value of real estate.

The government expects that these changes in the calculation of real estate tax will increase this article of income to the budget to 24.2 million euros.

Last month, representatives of the Association of Cyprus developers sent an appeal to President Dimitris Christopias not to increase real estate taxes, since this will lead to a further deterioration in the business climate and the growth of unemployment in Cyprus, the aggravation of the already difficult situation in the island real estate industry.

Being one of the main pillars of the economy, the Cyprus real estate market was badly damaged as a result of the global economic crisis, and now needs support from the government.

Other countries have recently also revised their taxation systems to help restore their problematic real estate sectors.

So, for example, in Ireland, the government reduced the coat of arms to 1% by the first 1,000,000 euros and to 2% in the amount of over a million. The Holland government announced its intention to reduce its real estate transfer tax (it is paid at a time by the seller at the time of the sale of real estate) from 6% to 2% of the value of real estate in order to increase its position in the housing market. In Spain, which also experiences economic difficulties in the real estate market, the VAT rate for new houses is reduced to 7%.