When Do I Need To Pay Property Taxes: Complete Guide To Cyprus Property Taxes

Before you buy a property in Cyprus, it’s crucial to understand what taxes you’re liable to pay on the property. 

While the immovable property tax was abolished in Cyprus in 2017, there are still other taxes homeowners need to be aware of. Staying ahead of property taxes is the best way to avoid hefty fines for delayed or missed payments. 

We’ve pulled together all the information you need to know about taxes in Cyprus. In this blog, we’ll cover when property taxes are due, how to pay them, and tips to stay ahead. 

What Taxes Are Due on Property in Cyprus?

When you hear ‘there’s no immovable property tax in Cyprus’, it’s easy to mistake that for there being no property tax at all. However, there are still some annual bills to be aware of. 

If you own a property in Cyprus, whether it’s an apartment, house, or business, you are still expected to pay the following taxes:

• Municipal Taxes: These are paid to your local authority. Municipal taxes cover the cost of street lighting and cleaning throughout your local area. 
• Sewerage Taxes: An annual fee paid to your local Sewerage Board to cover the cost of repairs and development of the sewer and drain systems in your area.
• Refuse Collection Fees: Some authorities include rubbish collection fees in municipal taxes, but it’s more common for them to be separate, known as a refuse collection fee. 

For property owners in Cyprus, these three taxes replaced the original immovable property tax, which was abolished in 2017. 

There are other taxes to be aware of, specifically for when you buy or sell property in Cyprus, though these are one-off payments. 

For example, you may need to pay Capital Gains Tax on property in Cyprus when the profit is over the tax-free allowance of €30,000, a recent increase from the previous €17,086 allowance. Plus, there are VAT rates and stamp duties to consider, too. 

How Much Do Property Taxes Cost in Cyprus?

Most property taxes in Cyprus are nominal, typically not costing homeowners too much upfront. 

Prices can differ depending on the size of your property, value, location, and whether it’s an apartment or a house. However, there are ranges available to help you understand how much you might be expected to pay. 

Use our handy table below to see how much property tax in Cyprus could cost you annually. 

Larger properties should expect to pay towards the higher end of the estimates, while smaller homes typically pay less. Fees are based on a percentage of the property value as of 1 January 2013. 

When Are Property Taxes Due in Cyprus?

Homeowners need to have paid all the relevant property taxes in Cyprus by the end of the year on December 31. 

Regardless of your residency status, if you own property in Cyprus, then you’ll be expected to pay municipal, sewerage, and refuse collection taxes. For renters, property taxes are typically the responsibility of the property owner, meaning you shouldn’t need to pay them. 

However, if you’re unsure whether you or the landlord is responsible for the property taxes on your rental home, your rental agreement should outline this for you. 

How Do I Pay Property Taxes in Cyprus?

Property taxes are paid to your local authority, with several different methods of payment available, to ensure there’s one that works for you.

• Online Portal: Most authorities have user-friendly online systems to pay your taxes via computer, tablet, or phone. 
• TAXISnet: You may be able to use the official national system, TAXISnet, to pay your local tax payments. 
• Direct to the Office: If your local authority office is nearby, it can be easier to head to the office to pay in person. 
• Bank: Most local banks can settle tax payments for you. All you’ll need is the bill and your tax reference number. 

If you’re ever unsure which payment methods are accepted by your local council, it’s best to get in touch with them to discuss. 

Are There Any Property Tax Exemptions in Cyprus?

Yes, there are plenty of Cyprus property tax exemptions available, all designed to make Cyprus property investment and ownership more attractive for residents and foreign investors. 

✓ Rental Income: All homeowners get a tax-free threshold on rental income tax of €19,500. As such, if you earn under that amount, you don’t need to pay rental income tax. 

✓ Capital Gains Tax: You get a lifetime exemption for Capital Gains Tax on property in Cyprus up to €150,000. Keep in mind, this figure is cumulative. 

✓ Re-Sale Transfer Fee: If you buy a resale property in Cyprus, you get 50% off the property transfer fee paid to the Land Registry. 

If you’re ever unsure about whether you need to pay a specific tax or how much you owe, get in touch with your local authority, as they’ll be able to help you. 

How Do I Stay Ahead of Property Taxes in Cyprus?

Paying your Cyprus property taxes on time is crucial to avoid hefty late or missed payment fees from your local council – we know that’s easier said than done.

To help, we’ve got a few tips to make sure you stay ahead of paying your property taxes accurately and on time: 

✓ Know Who’s Responsible: In Cyprus, property taxes are usually the responsibility of the landlord or property owner. However, you may need to pay some yourself. Don’t just assume the owner is responsible. Always check with local authorities on who is responsible. 

✓ Look Out For the Bill: Your local council will send your bill in one of three ways – through the post, in an email, or via the council’s online platforms. Make sure you’re keeping an eye on these, especially as the end-of-year deadline approaches. 

✓ Set Reminders for Deadlines: Life can get busy, and it’s easy for property tax payments to be innocently forgotten. Setting a simple reminder on your phone or laptop a month before the deadline, then again a week before, helps you stay on top of timely payments. 

✓ Stay Ahead of Changes: Occasionally, the government will change or abolish Cyprus property taxes. Look out for any changes announced in the news or via letter or email from your local council. 

DNP Properties Are Experts in Property Development in Cyprus 

If you’re ready to explore the benefits of property investment and ownership in Cyprus, we’ve got luxury apartments ready for you today. 

With over 30 years of experience in property development in Cyprus, you can trust us to show you the right property for your needs. Whether you’re looking for a future home or your first investment property, you can come to us.

Get in touch with us today! You can give us a call on + 357 7000 8188 or click the ‘contact us’ button anywhere on our website to be taken to our contact form.