The proposals have already been submitted to parliament and will lower the tax-free value of immovable property from €120,000 to €40,000.
According to the finance ministry, it is a "paradox and an anachronism" that a European Union member state still calculates property tax value using standards from the 1980s. They claim this has led to a massive loss in revenue and inequality between property owners.
A quick and effective solution to the problem is now being viewed as paramount to bringing fairness to the property sector.
This change will be even more vital as real estate in Cyprus continues to increase in value. Those looking to buy property in Famagusta can already enjoy the benefits of the ten-fold increase in house prices experienced between 1980 and 2010, while property value in Larnaca has risen nine-fold, according to the Cyprus Mail. This means more will be affected by the immovable property tax reform.