Under the law, penalties and interest accrued on back taxes before December 31st 2008 can be written off over 5.0 per cent of the total amount due to Inland Revenue.
This amnesty was set to end in March, but was pushed back to October, before being extended once again to December 31st 2013.
For those with property in Cyprus this is good news and the Association of Cyprus Property and Land Developers has welcomed the measure.
In a statement they said: "It is our belief that the beneficial effects of the law for transfer duties are now beginning to emerge in the real estate market, taking into account the reduced funding by financial institutions."
Pantelis Leptos, president of the association, added that he is confident that the move will increase property sales within the country.