CYSEC FINALISES THE INVESTMENT-BASED CROWDFUNDING RULES

The Cyprus Securities and Exchange Commission (the “CySEC”) has issued a Policy Statement setting out its finalised rules for investment-based crowdfunding which will be implemented by the way of a CySEC Directive due to be published in the official Gazette imminently.

Crowdfunding may constitute an alternative method to traditional financing via which small and medium enterprises (“SMEs”) can obtain access to financing through the issuance of transferrable securities such as shares or debt instruments. Any potential investors can access these investment opportunities through an internet-based elect...

Setting up an Electronic Money Institution in Cyprus

Licensing and supervision of Electronic Money Institutions

In Cyprus the provision of electronic payment services is regulated by the Provision and Use of Payment Services and Access to Payment Systems Law 31(I)/2018 of 2018 and the Electronic Money Law of 81(I)/2012 (the "Laws") as amended which transposed the EU Directive 2015/2366. The provision of electronic services in Cyprus can be provided by an Electronic Money Institution (the “EMI”) which has been granted an authorisation by the Central Bank of Cyprus (the “CBC”).

Electronic Payment Services:

1. Services enabling cash to be placed on a payment...

Amendments to Cyprus Companies Law, CAP 113

Following recent amendments to the Cyprus Companies Law, Cap. 113 (the “Law”), the Registrar of Companies has now introduced new provisions aiming in further modernising the current legislative framework which shall be effective from 18th December 2019 onward.

A. Late Filing Penalties

1. Annual Return

The Registrar of Companies will now impose an administrative fine for the late submission of the annual returns of each Cyprus of (i) €50; plus (ii) an additional charge of €1 for each day of delay for the first 6 months and thereafter €2 for each day of delay, up to a maximum of €500.

Therefore, all companies which...

MARILOU PAVLOU CHRISTODOULIDES LLC has now been approved as a Nominated Advisor (NOMAD) in listing companies in the Emerging Companies Market of Cyprus Stock Exchange.

We are proud to announce that we are officially authorised to act and assist as a Nominated Adviser (a “NOMAD”) to companies that wish to be listed and traded in the Emerging Companies Market (the “ECM”) of the Cyprus Stock Exchange (the “CSE”). 

The ECM benefits from a simplified regulatory regime specifically designed for small and medium sized companies. It is considered as a Multilateral Trading Facility (MTF) according to Mifid II legislation and offers various advantages to companies...

The Cyprus Tonnage Tax System – a useful tool for ship owners, managers and charterers

With the emergence of Cyprus as a leading maritime centre encompassing the full range of shipping related activities coupled with its attractive tax regime, we would like to remind clients of the benefits and importance of the Tonnage Tax System (the “TTS”) which was approved by the European Commission transposed into national legislation by the Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (the “Law 44(I)/2010”). 

Qualifying owners of Cyprus and foreign ships, charterers and ship managers who opted and are accepted to be taxed under the TTS are subject to...

Kazakhstan - Cyprus Double Tax Treaty

The double tax treaty between Cyprus and Kazakhstan was signed in Nursultan, Kazakhstan on 15th of May 2019 (the “Treaty”).

The Treaty is based on the OECD Model Tax Convention, a model for countries concluding bilateral tax treaties, aiming in removing tax related barriers to cross border trade and investment by implementing provisions for the avoidance of double taxation on income and capital gains tax.

Main Provisions of the Treaty:

1. Dividend Income

If the ultimate beneficial owner of a company is a company – not a partnership (as defined under Cyprus law), and holds a direct shareholding of at least 10% of the iss...

Changes to the Cyprus Citizenship Programme 2019

On the 13th of February 2019, the Council of Ministers of the Republic of Cyprus approved the revised Cyprus Investment Programme (the “CIP”) with the aim to revise and include new due diligence procedures to strengthen the credibility of the CIP taking into account at the same time the concerns raised by the European Union. The new CIP aims to allow foreign high-net worth individuals and their family members to obtain the Cypriot Citizenship within a six month-period.

Changes to the CIP effective from 15th of May 2019:

• The proposed investors will be required to make a mandatory donation of Euro 75,000...

In light of the fast approaching deadline for the legal exit of Britain from the European Union, awe outline below key concerns for expatriates in Cyprus  as well as what you can do to prepare for Brexit. 

Leaving the European Union will affect most UK nationals to varying degrees, but those living in or owning property in Cyprus  will have specific concerns about their future.

The Ministry of Interior of the Republic of Cyprus has issued a document underlying they ways that the Republic of Cyprus intents to implement the Withdrawal Agreement (the ‘Agreement’) to safeguard the residence rights of the UK nationals and their respective families who ha...

The Cyprus Securities and Exchange Commission (the “CySEC”) has completed a review on the quality of the data which has been reported to Trade Repositories in accordance with Article 9(1) of the European Market Infrastructure Regulation (the “EMIR”). 

Article 9(1) of EMIR states that “Counterparties and CCPs shall ensure that the details of any derivative contract they have concluded and of any modification or termination of the contract are reported to a trade repository registered in accordance with Article 55 or recognised in accordance with Article 77. The details shall be reported no later than the working day following the conclusion, modification...

On 1 January 2019, the EU Member States shall initiate the procedure to apply new anti-abuse measures in the areas of corporate tax planning which is practised mostly by large multinational entities. The new EU anti-abuse measures build on the standards developed by the Organisation for Economic Co-operation and Development (OECD) on Base Erosion and Profit Shifting (BEPS) in 2015.

The new EU Rules target corporations which move to low-tax countries where the corporation does not have a genuine economic activity in that Member State. The new measures aim to discourage legal entities from using excessive amount of interest payments to minimise taxes. Fur...