IMPOSITION OF TAXES / DUTIES / LICENSE ISSUANCE FEES

(ESTABLISHMENT OF ENFORCEMENT PROCEDURES IN 2016) License for conducting a business.

Legal entities (companies) that operate any business, craft, profession, or trade within the boundaries of the Community Council are required to obtain a relevant license.

At the beginning of the year, they approach the offices of the Community Council, submitting an application for the acquisition of the license.

Imposition of Fees — Professional License.

According to Article 87 of the Communities Law – 86(I) 1999, the Community Council proceeds with the imposition of such fees in accordance with the provisions of the Regulations for the Administration of Local Affairs (General) operating the Community Council (K.D.P. 440/2002) and the relevant table (Fourth Table) of the Communities Law.

A list of legal entities operating within the boundaries of the Council, engaging in any business, craft, profession, or trade, is prepared/completed, including those establishments that have not applied for the issuance of a license from the Community Council themselves.

Each taxable company is notified of the amount of the imposed professional license issuance fee. A payment period is provided until the end of March, as stipulated in the relevant legislation. After this date, it is lawful for the Community Council to take measures against the non-holder of a professional license.

Objections may be submitted in writing, within a period of 14 days from the date of issuance of the relevant fee, to the District Officer of Paphos.

After December 31st, an additional 10% surcharge is imposed.

License for Operating a Business Establishment.

Any person who maintains any building or covered or uncovered space within the boundaries of the Community Council where any business, craft, trade, profession, or enterprise is conducted must obtain a relevant operating license.

This is done at the beginning of each year by submitting an application for the acquisition of an operating license.

Regarding the issuance of an operating license, the Community Council considers it essential that the owner holds a Town Planning and Building Permit for such use or proceeds to obtain such permits.

For each business establishment that is granted an operating license, the Community Council reserves the right to:

• If deemed necessary, impose such terms or conditions on the granted operating license or even suspend the validity of the granted license for the proper and safe operation of the establishment.

Imposition of Fees — License for Operating a Business Establishment.

According to Article 85A, paragraph (3) of the Communities Law – 86(I) 1999 and Article 228 of the provisions of the Regulations for the Administration of Local Affairs (General) operating the Community Council (K.D.P. 440/2002), the Community Council proceeds to determine the fees for obtaining an operating license for a business establishment, which are established based on the relevant table (Fifth Table) of the Communities Law.

A list of individuals required to obtain an operating license for a business establishment is prepared/completed, including those establishments that have not applied for the issuance of an operating license from the Community Council — simultaneously with the preparation of other tax lists.

Each taxpayer is notified of the amount of the imposed operating license fee. A payment period is provided until the end of March, as stipulated in the relevant legislation. After this date, it is lawful for the Community Council to take measures against the non-holder of an operating license.

Objections may be submitted in writing, within a period of 14 days from the date of issuance of the relevant fee, to the District Officer of Paphos.

After December 31st, an additional 10% surcharge is imposed.

Property Tax.

A tax is imposed on property owners within the boundaries of the Community Council. A list of property owners is obtained from the Department of Lands and Surveys.

The Community Council has set the tax rate at 0.5‰, which is imposed based on the evaluations of the Department of Lands and Surveys of the property — values from 1980.

Each taxpayer is notified of the amount of the imposed property tax. A payment period is provided until the end of the year. After this date, an additional 10% surcharge is imposed.

Objections may be submitted in writing, within a period of 14 days from the date of issuance of the relevant tax, to the District Officer of Paphos.

The Community Council will examine objections for cases of taxation on property owners who can prove that they are not the legal owners.

Refuse Collection Fee – Annual Contribution to Community Services.

A fee is imposed for the collection of household refuse and an annual contribution to Community Services from:

• Holders of establishments / property within the area of the Community Council.

The Community Council has obtained all necessary information regarding the ownership and/or use of movable and/or immovable property for taxation purposes. It has recorded the existence of each parcel of land or its value.

Based on the obtained information and the provisions of the relevant legislation, it has established the following criteria or property categories and proceeds to impose taxation for the annual contribution to Community Services and refuse collection fees.

Residential Establishments. Holders — residential units depending on the type or square meters of the house/apartment.

• Studio apartment:
• Two-bedroom apartment or independent residence.
• Three-bedroom apartment or independent residence.
• Villa with a swimming pool.

Commercial/Professional Establishments.

• Hotel unit.
• Tourist village.
• Small tourist units.
• Holder of a restaurant/snack bar, brewery.
• Holder of a supermarket, mini market, kiosk.
• Holder of a shop, café.
• Holders of residential units/houses/apartments for rent.

Annual Contribution to Community Services.

A fee is imposed for residential establishments:

1. Studio apartment: classified as a type of establishment or designated valuation based on the land registry list of 2013 up to €100,000, annual contribution to Community Services €80.00.

2. Two-bedroom apartment or independent residence: classified as a type of establishment or designated valuation based on the land registry list of 2013 from €100,001 to €250,000, annual contribution to Community Services €85.00.

3. Three-bedroom apartment or independent residence: classified as a type of establishment or designated valuation based on the land registry list of 2013 from €250,001 to €500,000, annual contribution to Community Services €90.00.

4. Independent residence — villa with a pool: classified as a type of establishment or designated valuation based on the land registry list of 2013 over €500,000, annual contribution to Community Services €95.00.

For the remaining establishments, the Community Council proceeds to impose taxation nominally for each one based on the categories established above, e.g., development companies, hotel units, reception centers, restaurants, shops, supermarkets, mini markets, cafés, barbershops/hairdressers, apartment complexes.

In the decision-making process, any other taxes paid by the holder of the establishment are taken into account.

Hotel Unit – Tourist Village

It is established that the calculation and imposition method of the annual contribution to community services is based on the amount of €5.00 per bed for all hotel units.

A significant note is that in no case will a nominal annual contribution to Community Services be imposed on a holder exceeding the amount of €854.00. This binds the Community Council — it cannot impose the annual contribution proportionally.

Small Tourist Units, complexes functioning as a single unit or organized apartments – within the tourist area.

Proportional taxation based on the value or potential of the aforementioned complexes.

• Capacity of 10 beds and above €15.00 for each separate unit.

Holder of a restaurant/snack bar, brewery

Holder of a supermarket, mini market, kiosk

Holder of a shop, café

The amounts have been determined, considering the size/value of the establishment. The annual contributions to Community Services range from €100.00 to €350.00.

For the operation of new establishments, the Community Council takes into account the above and classifies them in a category and imposes the fee.

Land Tax/Open Lots/Agricultural Lots.

In addition to the land tax, the following applies:

• Plots in residential zones: The lowest amount of tax imposed is €35.00 for the holder of one plot (calculated based on an area of 520 m²), €50.00 for 2-3 plots, and this applies to holders of plots within the area of the Community Council who are not taxed for other establishments/houses they own in the community. The amount of the annual contribution increases proportionally for holders of more than three plots.

• For a holder of a plot in the agricultural area of the community, a tax of €50.00 is imposed for small or medium-sized plots (2500 m² to 5000 m²) and €85.00 for larger plots (four to six stremmas — 6000 m² to 9000 m²), and the amount increases proportionally for holders of land of greater extent.

Each taxpayer is notified of the amount of the imposed fee, annual contribution to Community Services. A payment period is provided until the end of the year. After this date, an additional 10% surcharge is imposed.

Objections may be submitted in writing, within a period of 14 days from the date of issuance of the relevant fee, to the District Officer of Paphos.

A significant note is that in no case will a nominal annual contribution to Community Services be imposed on a holder exceeding the amount of €854.00.

Refuse Collection Fee

A fee is imposed for refuse collection at an amount justifying the current cost of service and the compensatory nature of the tax, from:

• Studio apartment — type of establishment €80.00 per year.

• Two-bedroom apartment — type of establishment €85.00 per year.

• Three-bedroom apartment — type of establishment €90.00 per year.

• Independent residence — villa with pool — type of establishment €95.00 per year.

The amounts have been determined considering the size/value of the establishment. The annual contributions to community services range from €80.00 to €95.00.