Immovable property tax

How it works

Immovable property tax (IPT) was an annual tax under the Immovable Property Tax Law of 1980, collected by the Tax Department from owners of property in Cyprus. It was based on the market value of the property on 1 January 1980, for property owned on 1 January of each year. In July 2016 Parliament cut the 2016 bill by up to 75% and abolished the tax from 2017. According to the Tax Department, the tax applied from 1 January 1980 to 31 December 2016.

Why it matters when you buy

The tax is gone, but the term still comes up in a sale, for three reasons.

• Tax clearance. Before the transfer, the seller gives the Department of Lands and Surveys a tax clearance certificate (Form N313) that covers immovable property tax and capital gains tax. Any IPT left unpaid for 2016 or earlier has to be settled first.
• Old documents and guides. Contracts, valuations and older guides may still list IPT as a cost of owning property. It no longer is one.
• Local charges. Municipalities and communities still charge their own fees, for example for refuse collection, and sewerage boards charge sewerage fees. These are separate from the abolished national tax, and the seller normally shows certificates that they have been paid before the transfer.