Parliament yesterday passed the long-delayed rent-reduction law while there was some good news for home owners as the discount deadline for property tax was extended to November.
For residential rents of up to €300-a-month, there will be a 15% reduction while higher rents will see a 20% decrease but this discount cannot exceed €120.
A 15% discount will apply to commercial properties for rents of up to €600-a-month.
Rents of €600-€2,000 will have a 20% discount but a €250 ceiling. Rents above €2,000 will see a 20% mark down but a maximum discount of €400.
The law comes into effect from November 1 until October 2014, covering contracts signed before September 1, 2012.
Although welcomed by small shopkeepers, the Cyprus Land and Property Owners Organisation (KSIA) and local chapter of the International Real Estate Federation (FIABCI) had expressed concern over the changes.
Thirty-one MPs (Akel, Diko, Edek and Greens) voted in favour, 20 Disy MPs, Diko’s Antonis Antoniou and the European Party’s Nicos Koutsou abstained while independent Zacharias Koulias voted against.
But the Plenum yesterday unanimously passed a bill continuing the 10% discount on the payment of the new Immovable Property Tax (IPT) until November 5.
Disy chairman Averof Neophytou had submitted the bill yesterday, the day after the original discount period ended.
After the discount deadline, property owners still have from November 6-15 to pay without being penalised but will thereafter be subjected to a 10% fine.
Inland Revenue figures show the new tax has already raised €85 million for empty state coffers.