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Property Tax in Cyprus to Increase

House Sales Cyprus (http://www.housesalescyprus.com/) reports that the Cypriot government looks set to increase property tax in Cyprus in a bid to build on state revenues to help ease the financial difficulties that the recession has caused the country. It is expected to collect an additional 10 million euro to 20 million euro in property tax from approximately 1,800 owners of property in Cyprus initially, with all property owners having to pay increased taxes in time.

The proposed bill, which experts are predicting will be passed by the Cypriot government, has been created with the goal of collecting up to 20 million euro per annum from owners of Cypriot properties. The first stage of the bill will target nearly 2,000 owners but when the Land Registry has re-evaluated all properties, the increased taxes will be rolled out to all owners. According to StockWatch, 'All those who have properties of more than 427,000 euro pay tax of 3.5 euro per thousand and for values of more than 850,000 euro a tax of 4 euro per thousand is paid. However, those values are calculated on the basis of the 1980 prices. The problem with the state coffers is intensified by the fact that many developments are declared as plots or farms.'