CyprusLiving

Hi Nigel, wonder if you could shed some light on a developer statement. We have recently applied to the land registery under the new law for title, however we now know the title is ready and via our lawyer have a statement from the developer showing ipt tax due of 144.80e per year from 2003 til 2011, the same amount each year. Then for 2012 it doubles to 289.60, then for 2013 687.80. We paid ipt tax direct with tax office of 165e for 2014 and similar amount for 2015. Is there a table of how much ipt tax was payable back over the years, as I have refused to pay the developer on just a note from him. I am dubious that from 2003 to 2011 the same amount is required I would have thought it would go up each year. The developer has said the value of our property was 36,200 in 1980, do you know how he would have come about that figure? On top of that he has charged 25e a year for community tax , what that? and then added 8% interest on each year on the ipt tax for a bill he has not sent out! ( I also know he paid ipt tax until 2010 but owes after that)
No good talking to the lawyer as I hear rumour he works for the developer and myself therefore told them to stuff it and await title from the land register.
Many thanks
Alan

Hi Alan

You can find the Immovable Property Tax rates for 1980 onwards at http://www.mof.gov.cy/mof/taxdep.nsf/Al ... enDocument

Your developer would have got the 1980 value of the property from its Title Deed - and assuming he's paying at the top rate of tax here's what he would have paid based on a 1980 value of €36,200:

Year Rate IPT Payable

2003 0.40% € 144.80
2004 0.40% € 144.80
2005 0.40% € 144.80
2006 0.40% € 144.80
2007 0.40% € 144.80
2008 0.40% € 144.80
2009 0.40% € 144.80
2010 0.40% € 144.80
2011 0.40% € 144.80
2012 0.80% € 289.60
2013 1.90% € 687.80

Total: € 2,280.60

The community tax is a tax paid to the local authority - €25/annum is not unreasonable. (I assume you've not been paying this yourself?)

The 8% interest is a fine/penalty imposed by the Tax Office because the developer was either late in submitting his IPT return or late paying. You should not pay this as it's down to his incompetence in running his business.

Before you pay him any IPT he must supply you with records of the amount paid as Immovable Property Tax (IPT) and a certificate showing the rate of IPT applicable to the property. Please refer to this letter from the Interior Ministry.

Also last year he should have submitted a Form T.D. 318A to the Tax Office. (the link is to the English version.) This contains the information you need.

Assuming he provides you with the necessary information you can apply to recover any legitimate IPT overpayments from the Tax Office.

Regards,