10.12.2023
Residents of Aphrodite Hills and Ha Potami , located in the picturesque village of Kouklia in the Paphos region, has been embroiled in a long-running dispute with the local village community council over alleged tax irregularities.
The crux of the controversy lies in what residents see as an unequal tax burden between these areas with large foreign populations and the home village of Kouklia .
Aphrodite Residents Association Hills Ray Smith revealed the decade-long struggle, citing a legal battle initiated in 2013 by representatives of Aphrodite residents Hills and Ha Potami .
Smith highlighted a 2017 court ruling that the Kouklia community council’s tax policy , and by extension the Paphos district government, was unfair and illegal, highlighting the need for correction.
“Collecting taxes is an administrative decision,” Smith said, echoing the sentiments of expatriate communities.
“ Kouklia is actually three separate districts, and Ha Potami and Aphrodite The Hills are described by the council as “tourist areas.”
The essence of residents’ dissatisfaction lies in the sharp contrast in tax collections. According to Smith, while residents of the village of Kouklia reportedly pay around €68,000 per year, residents of Ha Potami and Aphrodite The Hills face taxes reaching approximately €700,000 per year. Smith argued that despite several meetings and legal interventions, there has been no progress in eliminating tax inequalities.
Additionally, he highlighted the exorbitant water bills faced by expatriate communities, which amount to around €300,000 per year, significantly higher than those of Kouklia residents .
Kouklia Community Leader Michalakis Nicolaou supported the council’s position, saying the tax discrepancy was due to differences in property valuations.
“Property in Aphrodite Hills and Ha Potami is noticeably larger and has different amenities, requiring higher taxes to maintain services,” Nicolaou said . He also highlighted what he considered “significant inequalities in property size”, saying most residences in expatriate areas were larger than 250 square meters, with amenities such as swimming pools that cost more to maintain. Moreover, Nicolaou emphasized the classification of these areas as “tourist areas”. He argued that the council’s tax imposition was commensurate with the value of the property and services provided.
Nicolaou’s claim , questioning the perception of property values between these areas. “There are owners of mansions worth up to €3 million in Kouklia paying less tax than people owning two and three bedroom properties in Aphrodite Hills and Ha Potami ,” Smith countered.
Paphos district official Mary Lambrou acknowledged the dispute, confirming that the district office was aware of the 2017 court ruling in favor of expatriate communities. Lambru said numerous complaints had been received regarding the taxation issue, highlighting the district government’s direction to the Kouklia council to review tax levies, although without tangible results.
“We are doing everything in our power to correct the situation,” Lambrou said . “However, our efforts require the cooperation of the Kouklia Community Council . Responsibility for collecting all taxes falls on the local council. We have communicated with them about this, but we cannot collect taxes for them, despite the court’s decision.”
Lambrou also reported that the district office faced numerous problems in its relationship with the Kouklia council , calling it one of the most difficult entities among the more than 100 villages and communities in the Paphos area.
Despite the district’s efforts to address the issue, Lambrou stressed the urgent need for cooperation from Kouklia council to address long-standing tax inequalities.
This impasse reflects the complexities of tax policy regarding the valuation of property and the provision of services. While the inhabitants of Aphrodite Hills and Ha The Potami’s dogged pursuit of justice, backed by a court ruling in their favour, has seen the Kouklia community council’s position on the need for differential taxation highlight the complex challenges faced in reconciling these differing views.
For now, the impasse between the expatriate communities and the Kouklia village council continues, symbolizing a subtle battle over perceived tax inequalities affecting the lives of both expats and locals.
