Last year the House of Representatives voted to allow a 75% discount on immovable property tax (IMT) if paid by 31 October 2016. At the same time it was approved to abolish this tax completely from 1 January 2017.
Issues had previously arisen surrounding the Cypriot IMT as 1980’s property valuations were still being used to calculate this which was generally viewed as unfair. However 2014 plans to revaluate properties for the purpose of this tax hit numerous obstacles due to distorted prices caused by a property bubble. The government unable to resolve this eventually moved forward unexpectedly to abolish it completely resulting in criticism that they are serving the interests of the wealthy.