Annual immovable property tax
🏛️ Basic information
Until 2016, there was a state immovable property tax (Immovable Property Tax – IPT) in Cyprus,
which had to be paid by every property owner based on its value as of January 1, 1980.
From January 1, 2017, this tax was completely abolished.
This means that today, in Southern Cyprus, there is no annual state immovable property tax.
1️⃣ History and abolition of IPT
Until 2016, the rate was progressive (from 0.6 % to 1.9 %).
After a major tax reform and an increase in VAT revenue, the state IPT was abolished.
Since then, property owners have no annual tax obligation to the state for property ownership.
💡 This reform made Cyprus one of the few EU countries where owning property is not taxed.
2️⃣ Local taxes and fees (Local Property Taxes)
Even though the state IPT does not exist, the owner pays smaller local fees to the municipality (Municipality or Community Council) where the property is located.
| Fee type | Amount / year | Collector | Description |
|---|---|---|---|
| Municipal Property Tax / Refuse Tax | 50 – 300 € | City or municipality | Waste collection, street lighting, road maintenance |
| Sewerage Board Tax | 0.05 – 0.3 % of value | Regional sewerage authority | Maintenance and development of sewage system |
| Community Services Fee | 50 – 150 € | Local community | Cleaning, municipal services |
| Common expenses (Service charge) | 30 – 150 € / month | Project manager | Only for apartment complexes, not a tax |
💡 These fees are not property taxes but operational contributions for local services.
3️⃣ How the fees are paid
Most municipalities issue an annual invoice (e.g., in May–June).
Payment can be made in cash, by card, or online via the municipality portal.
If the property is managed by a developer or property manager, the fees are often included in the monthly service charges.
4️⃣ Exceptions and additional taxes
No inheritance or gift tax on property.
No ownership or luxury property tax.
Tax is paid only on transfer (Transfer Fee) or on sale (Capital Gains Tax).
5️⃣ Example of total annual costs
A typical apartment owner in Larnaca or Paphos would pay:
| Item | Estimated amount / year |
|---|---|
| Refuse tax | 100 € |
| Sewerage board tax | 150 € |
| Community services | 80 € |
| Total | approx. 250 – 350 € per year |
