Every July, property owners in Cyprus receive their annual sewerage bill—a charge often referred to as the "sewerage tax" or “χαράτσι.” This fee frequently raises questions among homeowners about how it’s calculated, who sets it, and where the money goes. Despite being a recurring charge, its complexity and long-term impact on infrastructure financing remain widely misunderstood.

As Brief writes, sewerage fees are not based on the property's market value, but rather on its assessed (objective) value. For example, in Nicosia in 2025, the sewerage rate is €0.63 per €1,000 of assessed property value. This means that a property valued at €300,000 incurs an annual charge of €189.

This flat rate applies uniformly across all property types, whether residential, commercial, or office spaces. While in the past, different usage categories carried separate rates, standardization has since replaced the previous model following public criticism and disputes.

What the Fees Actually Cover

Contrary to popular belief, sewerage fees cover much more than wastewater removal. They are a critical source of funding for the maintenance, operation, and expansion of sewerage systems. The funds also go toward servicing long-term loans taken out for major infrastructure projects.

Take Nicosia as an example: its sewerage network, fully operational since 2010, was largely financed through loans from the European Investment Bank, with repayments scheduled until 2036.

Notably, property owners must pay the fees even if their property isn’t yet connected to the network, as the fees contribute to ongoing construction and debt repayment.

The History of Sewerage Fee Increases

In 2018, the Nicosia Sewerage Board (SAL) raised fees by 10%, the first increase in years, citing the need to finance new projects. Since then, no formal hikes have occurred, though minor fluctuations have arisen from property reassessments and the inclusion of new areas in the system.

Yet, the financial picture remains strained. SAL reports over €3.4 million in unpaid fees from the Public Works Department alone. Nationwide, non-payment by residents and businesses leads to multi-million euro revenue losses annually, prompting renewed efforts to improve collection efficiency.

Fee Differences by City

Other major cities use varying models to determine sewerage charges:

• Limassol: Rates vary by property usage, with fees reaching up to €3 per €1,000 of assessed value for commercial properties.

• Larnaca: Adopts location- and age-based adjustments, reflecting the maturity and coverage of local sewerage systems.

With debt repayment extending at least through 2036, sewerage fees are expected to remain a part of annual property costs for the foreseeable future.

Implications of Non-Payment

Unpaid sewerage fees have legal and financial implications. For instance, property transfers (sales or purchases) cannot proceed unless all outstanding sewerage charges are settled.

Additionally, persistent non-payment strains the maintenance budget, which can degrade overall service quality and infrastructure reliability.

Why Sewerage Fees Are Increasing

There are several key drivers behind the rise in sewerage charges:

• Rising operational costs: Upgrades and network maintenance require greater financial input.

• Revenue losses: Delayed increases or reductions in rates have limited some Sewerage Boards' income.

• Debt servicing pressures: Growing unpaid debts by both private individuals and public entities have worsened local authorities’ financial health.

As a result, local councils must balance debt repayment, infrastructure expansion, and service quality, all under the weight of growing operational demands.