September 20, 2017

On 14th July 2017 the Cyprus parliament voted for a Cyprus tax law amendment namely the “60 day rule” which will co-exist with the already established
“183-day rule”. The “60 day rule” is a further effort of the Cypriot government to attract foreign investment to Cyprus and bolster Cyprus’ reputation as a European financial hub. 

Under the “183 day rule”, an individual who spends at least 183 days a year in Cyprus is considered a Cyprus tax resident. The “60 day rule” aims to attract a significant number of individuals who do not qualify under the “183 day rule”, (investors, entrepreneurs, digital nomads, artists, sportsmen and other businessmen) who do...

On the 8th May 2018, the finance ministers of Luxembourg and Cyprus signed the Double Taxation Avoidance Agreement between the two countries. The new Agreement is expected to come into force as from 01/01/2018 with the aim to strengthen and expand the commercial ties between the two Member States. 

The Agreement echoes all the required international standards as provided by the Base Erosion and Profit Shifting (“BEP”) recommendations in respect of the exchange of information, providing thus greater level of legal certainty and predictability.

The Agreement provides, inter alia, for the following:

  • Dividends: 0% withholding tax if there is at least 10%...

Three years of unclarity and uncertainty over Cyprus’ position as a notable alternative tax jurisdiction for India, due to the absence of exchange of information between the jurisdictions, has now come to an end.

The new Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Cyprus and India has now become official through the execution of the new treaty by representatives of the two countries. The new treaty is expected to come to effect in April 2017 after it has been sanctioned by the governments and once the treaty is in force, the Indian authorities will withdraw C...

In preparation for the entry into force on 3 January 2018 of the European Securities and Markets Authority’s guidelines for the assessment of knowledge and competence, set out in its publication ESMA/2015/1886 dated 17 December 2015, the Cyprus Securities and Exchange Commission (CySEC) has published circular C-181 assisting Cyprus Investment Firm (“CIFs”) to meet their obligation to act in the best interests of their client when providing information

n concerning the services and instruments offered.

Circular 181 (“the Circular”) applies to anyone, including employees and tied agents of CIFs, who communicates with CIF clients (existing and potential cli...

January 20, 2017

Introduction

Law 97(Ι) of 2016, which was published in the official gazette on 23 September 2016, amends the Companies Law Cap 113 in order to comply with the EU Accounting Directive (2013/34/EU) and also results in amendments to the Auditors and Statutory Audits of Annual and Consolidated Accounts Laws of 2009 and 2013 regarding the new management report. 

One of the most substantial changes is the abolition of the exemption from producing consolidated financial statements that was formerly only available to small or dormant companies.

Furthermore, now there are additional changes in connection with the exemptions from specific accounting disclosure regu...

November 28, 2016

On the 14th of October 2016, the House of Representatives approved legislative provision amendments to the current Income Tax Law whereby the new amendments will correlate the Cyprus IP Box regime (taxation of royalties) with the OECD and are effective as from 30th of June 2016.

The recent tax legislative amendments brings solidity when reckoning taxation on royalties and facilitates investors to more accurately forecast their future tax projections.  Furthermore, the new legislation, under specific circumstances, provides the opportunity for those who are benefiting from the old IP box regime to be able to extend their current structure in order to con...

November 21, 2016

On the 4th of August 2015, after lengthy negotiations, the first double tax agreement between Cyprus and Iran was signed.  As with many of Cyprus' recent double tax agreements, it broadly follows the 2010 Organisation for Economic Cooperation and Development (OECD) Model Tax Convention. The agreement covers taxes on income only; including income tax in Iran and corporate income tax, the special contribution for defence and capital gains tax in Cyprus.

The DTT provides for withholding tax on dividends, interest and royalty payments, at the following rates:

Dividends

The maximum rate of withholding tax that may be imposed on dividends paid to a resident of...

November 21, 2016

Non-EU nationals who buy property in Cyprus for personal occupancy are able to obtain a permanent residence permit, enabling their full or part time stay in Cyprus.

The Cyprus Permanent Residence Permit has been in existence for a number of years and the criteria, as well as the process, have been recently amended to make the procedure simple and attractive for those looking to obtain residency.

The authorities have created a fast-track process which enables the final approval of an application for granting a Permanent Residence Permit to an applicant and his/her family within just two months from the date of filing an application provided the below crit...

November 14, 2016

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Cyprus is becoming more compliant than ever before and as a jurisdiction has done its best to work in parallel with regulatory authorities locally and abroad.

Due to Cyprus being the international financial service hub that it is, it is imperative for those using Cyprus as a part of their business structure to work in collaboration with existing regulatory frameworks.

It's no secret that governments across the globe have struggled to ensure that they are collecting all payable taxes from their tax residents. Today, governments are progressively focused on tax transparency, ensuring that their residents are co...

The Cyprus government has this month revised the requirements for the increasingly popular "Scheme for Naturalization of non-Cypriot investors by exception" whereby through a Euro 2 million investment in Cyprus, a non-Cypriot citizen can legitimately acquire a Cyprus passport for himself and his dependents thus reaping the benefits of European citizenship.

The scheme’s immense success is due to various factors; the fact that it is the quickest procedure in Europe with one being awarded a passport within three months from the date of submission; there is no residency requirement (unlike jurisdictions such as Portugal and the Netherlands) and no donated a...

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