Bridging the Gap: Taxation Dispute Unveils Differences in Kouklia Communities

Taxation Dispute Unveils Differences – Residents of the picturesque Aphrodite Hills and Ha Potami, nestled within the charming Kouklia village in the Paphos district, find themselves caught in a friendly tangle with the local village community council over alleged taxation discrepancies.

Inequality Unveiled

The heart of the matter lies in what residents see as uneven tax burdens between these expatriate-heavy areas and the native Kouklia village. Ray Smith, a member of the Aphrodite Hills Residents Association, shed light on a decade-long struggle, pointing to a legal battle initiated in 2013 by representative residents of Aphrodite Hills and Ha Potami.

Highlighting a 2017 court ruling that deemed the taxation policy unfair and unlawful, Smith emphasized the need for rectification. “The levy of taxation is an administrative decision,” said Smith, echoing sentiments shared by the expatriate communities.

Kouklia’s Three Faces

“Kouklia is effectively three separate areas, and both Ha Potami and Aphrodite Hills are described by the council as ‘tourist areas,'” Smith noted.

The residents’ grievances center on the stark contrast of tax levies. According to Smith, while Kouklia village residents reportedly pay approximately €68,000 yearly, those in Ha Potami and Aphrodite Hills contend with taxes reaching approximately €700,000 per year. Despite meetings and legal intervention, there has been little progress in rectifying the taxation inequity.

Additionally, Smith highlighted the exorbitant water bills faced by the expatriate communities, around €300,000 annually, significantly higher than those incurred by Kouklia village residents.

Property Valuation Differences

Community leader of Kouklia, Michalakis Nicolaou, defended the council’s stance, attributing the tax discrepancy to property valuation differences. He stressed the “substantial disparities in property sizes,” claiming that larger residences with amenities incur higher maintenance costs, justifying higher taxes.

Smith challenged Nicolaou’s assertion, citing owners of mansions in Kouklia worth up to €3 million who pay less taxes than those owning two and three-bedroom properties in Aphrodite Hills and Ha Potami.

District Office’s Perspective

Paphos district officer Mary Lambrou acknowledged the dispute, affirming the district office’s awareness of the 2017 court ruling favoring the expatriate communities. Lambrou revealed numerous complaints, emphasizing the district office’s directive to the Kouklia council to review the tax levies, but tangible outcomes remain elusive.

Despite the district office’s efforts, Lambrou emphasized the imperative need for cooperation from the Kouklia council to resolve the long-standing taxation disparities.

Stalemate and Complexity

The decade-long stalemate encapsulates the complexities of taxation policies, property valuations, and service provision. While residents persist in their pursuit of equity, backed by a court ruling, the Kouklia community council’s stance on differentiated taxation highlights the intricate challenges faced in reconciling these differing perspectives.

For now, the impasse between the expatriate communities and the Kouklia village council continues, emblematic of a nuanced tussle over perceived inequities in taxation affecting the lives of expats and locals alike.

Article credits go to Jonathan Shkurko.