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Tenants of state land are subject to taxation, the Supreme Court ruled

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    Ο&iota ; μισθωτeς κρατικorς γης υπoκειντ&alpha ;ι σε φορολογΙα αποφΑνθηκε το Ανo&tau ;ατο

    >Tenants of state land are subject to taxation, which corresponds to the value of the right to use the state property, the Supreme Constitutional Court ruled in a unanimous decision on February 21, 2024, answering the legal question of whether the term “owner” also includes the tenant of a long-term lease of state-owned immovable property, which has been registered in the Land Registry and consequently, whether the tenant must pay real estate tax on the state-owned land he has leased.

    Announcement of the General Prosecutor's Office states that according to the decision of the Supreme Constitutional Court, a lessee, who has entered into a long-term land lease with the State for immovable property belonging to the Republic, which was registered in the Land Registry, is considered the “owner” of “immovable property” and is therefore subject to taxation, which corresponds to the value of the right to use the state immovable property, which he leased, and not to the value of the property, as is the case with absolute ownership.

    The Supreme Constitutional Court also concludes in its decision that although no tax is imposed or collected on immovable property belonging to the Republic, nevertheless, a tax is imposed on the lessee in relation to his right to the state land.

    It is noted that the decision was issued following a request submitted by the Attorney General of the Republic for the need for a correct interpretation of the legal issue in question, “so that this legal issue can be brought before the Supreme Constitutional Court in the third and final instance”. The request of the Attorney General of the Republic arose after the different interpretation issued by the Court of Appeal in its decision on the matter, which heard an appeal against the first instance decision of the Administrative Court.

    Both the decision of the Court of Appeal and the first-instance decision of the Administrative Court was set aside and the legality of the imposition of immovable property taxation was validated.

    On behalf of the Attorney General of the Republic, the case was handled by Frosso Sotiriou, Lawyer of the Republic A'.

    Source: cyprustimes.com

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