Based on the terms of the bailout agreement, MPs approved legislation in September 2013 to impose property tax at increased rates in order to bring €100 million to state coffers in accordance with the demands of the international lenders.

Despite assertions by Finance Minster Haris Georgiades that the same amount will be collected in 2014, it is anticipated that the taxation this year will be reduced mainly due to the addition of more properties on the Land Registry's register.

This means that the amount of €100m will be collected by more property owners resulting in lower taxation for individual householders across the board.

At the same time, taxation rates are also expected to be reduced through a draft bill that is currently being prepared.

It is noted that according to the legislation voted in September, property valued up to €12,500 based on 1980 prices was exempt from taxation, while anything above is taxed with 0.6%.

By the end of June, the Land Registry will have to re-evaluate approximately 11 million plots and 900,000 properties based on 2013 prices, while the new information is expected to be publicised by June 30 to inform the public.

Source: InCyprus