16/08/2011 07:58
The government decided to double the property taxes, signaling the changes that the price updating will bring to the property taxes.
According to the bill submitted to Parliament, the government intends to absorb €24.2 million per annum from taxing the smaller properties against €10 million that it receives today.
The Interior Ministry’s aim is to rationalize the tax, which is still paid in 1980 prices, although in certain cases prices have increased by 27 times.
To update prices, the Ministry believes that it will take five years. Since this cannot be done immediately, it decided to introduce an increase in the tax paid on the 1980 prices as a transitional solution.
The bill also provides for the reform of the property taxes with the reduction of the untaxed sum, the increase in the tax ratios and the scales in the values of properties.
The government had submitted a similar bill in June 2010 but it was rejected by all parties but AKEL.
However, things have changed this year since the government agreed with the party leaders to promote a series of measures including the increase in property taxes.
With the bill, the property tax will be paid by all those who have properties of €120 thousand and over on the basis of the 1980 prices. The taxable value is reduced from €170 thousand to €120 thousand and the ratios double.
At the current stage, ownerships of up to €170.9 thousand in 1980 prices do not pay property tax (98.74% of the ownerships). According to the bill, tax will not be paid by ownerships of up to €120 thousand, while those with value of €120,001 to €170 thousand will pay a tax of 4 per thousand.
Also, according to the current law, ownerships with value from €170.9 thousand to €427.2 thousand pay tax of 2.5 per thousand. According to the new law, ownerships of value €170,001 to €300 thousand will pay tax of 5 per thousand.
As for the properties of €427.2 thousand to €854.3 thousand, they currently pay tax of 3.5 per thousand while with the new bill properties of €300,001 to €500 thousand they will pay tax of 6 per thousand and from €500,001 to €800 thousand 7 per thousand.
The properties of €854.3 thousand pay tax of 4 per thousand, while according to the new law, the tax for values of €800 thousand and over will be double, reaching 8 per thousand.
According to the Land Registry estimates, in order to carry out a new general estimate of the property values in the areas controlled by the Republic, it will take at least five years.
According to the Land Registry, there are big distortions and the state loses million of euros.
According to the bill submitted to Parliament, the government intends to absorb €24.2 million per annum from taxing the smaller properties against €10 million that it receives today.
The Interior Ministry’s aim is to rationalize the tax, which is still paid in 1980 prices, although in certain cases prices have increased by 27 times.
To update prices, the Ministry believes that it will take five years. Since this cannot be done immediately, it decided to introduce an increase in the tax paid on the 1980 prices as a transitional solution.
The bill also provides for the reform of the property taxes with the reduction of the untaxed sum, the increase in the tax ratios and the scales in the values of properties.
The government had submitted a similar bill in June 2010 but it was rejected by all parties but AKEL.
However, things have changed this year since the government agreed with the party leaders to promote a series of measures including the increase in property taxes.
With the bill, the property tax will be paid by all those who have properties of €120 thousand and over on the basis of the 1980 prices. The taxable value is reduced from €170 thousand to €120 thousand and the ratios double.
At the current stage, ownerships of up to €170.9 thousand in 1980 prices do not pay property tax (98.74% of the ownerships). According to the bill, tax will not be paid by ownerships of up to €120 thousand, while those with value of €120,001 to €170 thousand will pay a tax of 4 per thousand.
Also, according to the current law, ownerships with value from €170.9 thousand to €427.2 thousand pay tax of 2.5 per thousand. According to the new law, ownerships of value €170,001 to €300 thousand will pay tax of 5 per thousand.
As for the properties of €427.2 thousand to €854.3 thousand, they currently pay tax of 3.5 per thousand while with the new bill properties of €300,001 to €500 thousand they will pay tax of 6 per thousand and from €500,001 to €800 thousand 7 per thousand.
The properties of €854.3 thousand pay tax of 4 per thousand, while according to the new law, the tax for values of €800 thousand and over will be double, reaching 8 per thousand.
According to the Land Registry estimates, in order to carry out a new general estimate of the property values in the areas controlled by the Republic, it will take at least five years.
According to the Land Registry, there are big distortions and the state loses million of euros.
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