Owner Tax and Communal Services ("Village Tax")

[tsadapeter]

Hi, Nigel,

is there a transparent/published way in which the local „Owner Tax and Communal Services“ is calculated by the village authorities?

In my village I have to pay twice as much than the owner /and friend) of a house/property more than twice as large as mine with also two people living in it
Only difference: He is in the village and I am on the fringes.

I am aware there had been a big argument in Kouklia some time back, where the village charged owners in “Ha Potami” (Secret Valley) through the nose
compared to those (mostly native folks) in the village.

Is any court ruling available on such subject?

Many thanks

Peter

[Nigel-Howarth]

Hi Peter

I live in Erimi (Limassol) and my 'local' (Community) property tax is calculated at 0.2% of the property's 1980 value - I paid earlier today. I believe the rate can vary between 0.1% and 0.2%.

The tax is calculated on a share of the property - if it's registered in joint names you will each pay a percentage of the 1980 value of your share. E.g. My property has a 1980 value of €60,000 and my wife and I each pay 0.2% on our half share (€30,000).

I recall the situation with Kouklia - a search through the Cyprus Mail may reveal what happened. As far as I am aware there has been no court ruling on the subject.

Regards,

[tsadapeter]

....'local' (Community) property tax is calculated at 0.2% of the property's 1980 value

Thanks, Nigel,

my bill is for 1.3% of that...

Is there any official rule??

Grateful

Peter

[Nigel-Howarth]

my bill is for 1.3% of that... Is there any official rule??

Not as far as I am aware but you should certainly challenge the figure with the Community Office.

Regards,

[fiona.rob]

I thought village tax had been abolished or at least in Peyia?

[Austin 7]

I thought village tax had been abolished or at least in Peyia?

There was talk of it but it came back when they altered IPT (as far as I am aware!)

[tsadapeter]

The village charges 3 different things:

- Owner Tax and Communal Services
- Rubbish Collection Tax
- Property Tax (not to be confused with IPT)

[fiona.rob]

Rubbish tax I know about
owner and community tax never heard of and the local (not ipt) tax is teh one I was told had been abolished this year and ipt abolished next year,
This is in Peyia.
Can Nigel clarify please or any Peyia resident

[tsadapeter]

...owner and community tax ...

is what appears in English.

I wonder whether Nigel´s Magazin would care to run a poll as to what "owner & community tax" people pay in relation to the 1980 value of their properties.
Such one could see differences between villages and even within... ????

[fiona.rob]

Unless that tax is included with the annual refuse tax or the local IPT I have never paid it in Peyia and I have been here 10 years??

[clive of payia]

Town, or village tax in Peyia is only paid by those who have full title deeds, land and property. It is Euro 24.08 p.a. for each name on the title deeds. No notification is given as to when to pay this tax, but its usually August time. Just go to the Municipality straight through the doors and you see Cashier. Take your title deeds and he will tell you how much to pay.

I think this is the last year this tax will be paid this way as it will be incorporated into the new IPT billing for 2017.

Paid mine last week.

[emgee]

I concur what Clive has written, paid mine a cupla weeks ago for Pegeia.

Alan

[Nigel-Howarth]

I paid my 'local' property tax on-line (JCCSmart) a few days ago. But as there was a problem with the address on the tax demand, I went to my Community Office to correct it.

In Limassol the 'local' property tax demands are generated and sent to the Community Offices by the Tax Department in Limassol. The Community then hands them to the postie. The lass in the office had corrected my address by hand - and I will need to visit the Tax Department in Limassol to have it corrected.

I don't know how the system works in Paphos?

You'll have to wait a long time for the "the new IPT billing for 2017" (Clive of Pegeia) for the simple reason that IPT will be abolished in 2017. But you will still need to pay 'local' property taxes to your Community or Municipality.

"Town, or village tax in Pegeia is only paid by those who have full title deeds, land and property" - that is not strictly true. Virtually all the contracts of sale I've seen make the purchaser responsible for paying these taxes when they take delivery of a property.

Regards,

[clive of payia]

In Peyia the Town Tax is only paid on full title ownership. I bought my villa in 2002 with title deeds but only on the land and no town tax was payable. In 2006 after numerous visits by officials from the Land Registry my solicitor asked to pick up my full title deeds which shows my villa, annexes and swimming pool. So I have only been paying Town Tax since 2006 on production of my full title deeds at the Municipality office.

Peyia Municipality officials told me last week that my payment to them for town tax was the last one and for next year, 2017 I would receive a demand for IPT from Paphos but as my villa was built in 1997 and there are now three names on title deeds I wouldn't be paying anything again. I said you are losing money!! I pay town tax now but not IPT because I am under the threashold. When town tax and IPT are combined I pay nothing. Strange!!!

[Nigel-Howarth]

and for next year, 2017 I would receive a demand for IPT from Paphos

If you read my earlier post you will see that IPT will be abolished in 2017. If you do not believe me, please read the revisions to the law at http://www.cylaw.org/nomoi/arith/2016_1_86.pdf

Article 27 translates as "Subject to all the provisions of this Law on outstanding charging and collection until the year 2016, the obligation under Article 3 concerning the imposition and recovery for each tax year if all real property located the Republic and the obligation deriving respectively under Article 4 for each owner to pay a tax reference APAS to real property that, from 1 January 2017 for the year 2017 and for each subsequent year is repealed."

Furthermore IPT is collected by the Tax Department. Paphos does not have the power raise or collect IPT.

Regards,