Cyprus Abolishes Immovable Property Tax and Makes Transfer Fee Reduction Permanent

The Cyprus parliament has adopted changes to the immovable property tax regime, including:

• The progressive property tax rates of 0.6% to 1.9% based on 1 January 1980 market values are abolished effective 1 January 2017, and for 2016, property tax payable is reduced by up to 75% depending on when the tax is settled;
• The 50% reduction in the transfer fee for immovable property introduced in 2015 is made permanent (was scheduled to expire the end of 2016).

A proposed replacement of the 1980-…