In most European countries, property owners, regardless of their nationality, must pay annual property taxes. Cyprus is no exception. In recent years, the authorities of the country, trying to attract capital to the housing sector, are actively reducing taxes.
Immovable Property Tax (IPT)
Until 2017, the main tax that was levied on all property owners in Cyprus was called Immovable Property Tax (IPT). It should have been paid annually, until September 30. IPT was calculated basing on the cadastral value of property in 1980 (and it is much – 5-15 times – below the current market). Since January 1, 2017, IPT has been canceled for owners of all types of housing: apartments, townhouses, and villas.
Local Property Tax
The second fee, which awaits all owners, is called a Municipal Property Tax or a Local Property Tax. These funds are used for cleaning streets, sewerage, and urban lighting. Its size depends on the region where the facility is located, as well as on the cadastral value of the property. For example, in Limassol, rates are 0.024% from every thousand in the cost of housing and in Pafos – 0.019%. Since 2017, Local Property Tax is calculated from the estimate of 2013, not 1980, as it was before. However, these costs are relatively small. As a rule, payment for this tax is € 50-300 per year.
Partnership of Owners
If your property is in urbanization with swimming pools, playgrounds, and other common infrastructure, then you will pay for their maintenance. The amount of contributions to the partnership of owners depends on the area of housing, the quality of the complex and the variety of available infrastructure. For an apartment of about 70 square meters, located in a residential complex of the middle class with a shared pool and recreational area, you will have to pay € 50-100 per month.
The Insurance of the Real Estate
Property owners in Cyprus are not required to ensure the property. If you want, you can do it. On the island there are many insurance companies, you can find specialists who speak Russian. The cost of the policy will depend on many factors: the age of the building, the design features, insurance cases, the amount of coverage, and etc. On average, the insurance for a standard apartment worth € 150,000 is € 200-300 per year.
Find out more about a property in Cyprus here