Around 1,800 Cyprus property owners are expected to face a property tax increase as part of the Cypriot government's attempt to raise a further £17 million in revenue each year.
More Cyprus property home owners are expected to face a similar tax hike when the Land Registry's revaluation of all properties has been finished.
Interior Minister, Neoclis Silikiotis, told StockWatch: “The bill for the taxation of properties is ready and is currently reviewed by the Finance Minister. It will be promoted to the Parliament within the framework of the package of fiscal consolidation measures and not as a supplementary measure as included in the Stability Programme.
Currently, people who own homes in Cyprus valued at over £362,000 pay tax of around £3 per thousand and for values of more than £720,000 they pay a tax of £3.40 per thousand. But current values are out of date, as they are based on 1980 prices.
Silikiotis added: “Since the revaluation of the properties will take up to five years, we decided to take an interim measure in order to correct the distortions and to increase the state revenues in this critical period of recession.