Following the amendment of the Immovable Property Tax Law (No. 24/1980) on the 30.04.2013 by Law 33/2013, all owners of property in Cyprus are now liable to pay an annual tax to the Inland Revenue based on their aggregate property holdings as of the 1st January each year, on the basis of the assessed valuation as at 1st January 1980.
The tax is payable before the 30th of September of each year. Failure to pay by the deadline will incur a penalty of 10% on the amount of the tax payable. Conversely, a discount of 10% will be granted if payment is made at least 30 days prior to the tax deadline (by the 30th of August).
The following properties are exempted from immovable property tax:
- public cemeteries, churches and other religious buildings
- public schools, hospitals and other buildings owned by the Government as well as foreign embassies and consulates
- buildings under a preservation order subject to conditions
- agricultural land used for agriculture used by a farmer
- property of a missing person under administration
- immovable property situated in inaccessible or depressed areas
According to the revised section 3 of the Immovable Property Tax Law, the Immovable Property Law rates for 2013 are as follows:
| 1980 Property Value | Annual Property Tax | Accumulated Tax |
| 1 – €40.000 | 0.60% (with €75 minimum) | €240 |
| €40.001 – €120.000 | 0.80% | €880 |
| €120.001 – €170.000 | 0.90% | €1.330 |
| €170.001 – €300.000 | 1.10% | €2.760 |
| €300.001 – €500.000 | 1.30% | €5.360 |
| €500.001 – €800.000 | 1.50% | €9.860 |
| €800.001 – €3.000.000 | 1.70% | €47.260 |
| More than €3.000.000 | 1.90% |