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...
On the 8th of January 2019, the Registrar of Companies, following the opinion of the General Attorney of the Republic of Cyprus, has issued an announcement regarding the Article 90 of Companies Law Cap. 113 (the ‘Cap 113’) in respect of the registration of the charges specified in the Article 90 2(a) with the Registrar of Companies.
The announcement states that the Registrar of Companies will not accept the registration of any charges regarding the pledging of company share certificates, assignment of rights deriving from company shares or any other charge on company share certificates, company shares or rights deriving from shares in companies and any...
The Cyprus House of Representatives passed a Bill which amended Law N.95(i)/2000, imposing Value-Added Tax (VAT) on immovable property to ensure compliance with the EU VAT Directive 2006/112/EC.
1. Activities regarding the lease of an immovable property for business use:
As per the new provisions, any lease of an immovable property to a taxable person within the scope of exercising a business activity attracts the VAT rate of 19%. However, this rate does not apply to an immovable property which it is used solely for residential purposes. This provision is not applicable to the rental agreements or leases which commenced on or after...
On the 2nd of November 2018, the Central Bank of Cyprus (the “CBC”) issued a circular with the purpose of clarifying the definition of “Shell Companies” and how the service providers and banks should classify them.
The revised definition aims to offer clarity and certainty as to the legal requirements underpinning the shell companies.
As per CBC circular, the term “shell company/entity” refers to a limited liability Company or any other legal entity that:
Has no physical presence or operations; “physical presence” includes employees, office space, etc. The presence of a third person providing merely nominee services including company secretary duti...
On June 15th, 2018, and based on the decision numbered 81.292 and 84.068 dated 13/09/2016 and 09/01/2018, the following amendments to the scheme have been decided and approved by the Council of Ministers:
The program of Cyprus Citizenship by Investment programme will be renamed to “Cyprus Investment Programme”;
All applications for the Cyprus Investment Programme should be submitted on behalf of the applicant(s) by natural/legal persons whose name is included in the registry of certified service providers supervised by the newly created Supervisory and Control Committee;
All certified service providers should comply with the newly establi...
On 27 September 2017 the Cabinet of Ministers has approved a new scheme (the ‘Filming Scheme’) with the purpose of attracting individuals, local and overseas companies specialising in the filming production to develop and relocate their business and activities to Cyprus by offering them various attractive tax incentives as detailed further below.
The Filming Scheme was developed by the Unit of administrative Reform of the Presidency in cooperation with the Cyprus Investment Promotion Agency (CIPA) and the Ministry of Finance in accordance with Regulation 651/2014 of the European Commission.
The European Union Fourth Anti-Money Laundering Directive (the “New AML Directive”), enacted on 25 June 2016 which was due to be implemented on 26 June 2017, replaces the previous Third Directive. It is yet to be enacted into local legislation yet but when the national law is transposed its effects will be wide reaching. Below we examine the main provisions and its potential effects for certain sectors:-
The main provisions of the New AML Directive are the following:
Extension of the scope of anti-money laundering legislation requirements by reducing the threshold for cash transactions from €15.000 to €10.000