May 6, 2020

Yacht Leasing Scheme Cyprus

Cyprus enjoys a favorable tax system in line with the EU requirements and OECD principles. In order to qualify under the Cyprus Yacht Scheme the applicant must incorporate a Cyprus company and lease out the yacht through that company provided that the applicant satisfies the following requirements, instead of buying the yacht outright and paying the full VAT on the transaction, noting that the current VAT rate in Cyprus is 19%.

Requirements – Cyprus Yacht Scheme

  1. A lease agreement must be concluded between a Cyprus company and an individual or legal person, whereby the lessee is granted the option to purchase the yacht at a...

March 20, 2020

Measures undertaken by the Registrar of Companies to assist Cyprus companies affected by COVID 19

Following the measures taken by the Cyprus government to support companies and businesses affected by the strict measures imposed to limit the spread of COVID-19, the Registrar of Companies announces the following measures:

1. The submission of due Annual Reports:

The publication process at the Official Gazette of the Republic of Cyprus following the three months' notice before the strike off of non-compliant companies is now suspended until January 2021.

2. Payment of the annual levy:

The deadline to pay the annual levy for 2020 is extended until 31st December...

August 23, 2019

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...

July 5, 2019

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...

April 10, 2019

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...

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%...

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...

Please reload

 

The materials contained in this web site are provided for general information purposes only and do not constitute legal or other professional advice. Neither Marilou Pavlou Christodoulides LLC nor any of its partners or employees accept any responsibility for any loss which may arise from reliance on information contained in this site. Permission is given for the downloading and temporary storage of one or more of these pages for the purpose of viewing on a personal computer or monitor. The reproduction, permanent storage, or retransmission of the contents of this web site is prohibited without the prior written consent of Marilou Pavlou Christodoulides LLC. Certain parts of this site link to external internet sites, and other external internet sites may link to this web site. Marilou Pavlou Christodoulides LLC is not responsible for the content of any external internet sites.

 The host server for this web site is located in Nicosia, Cyprus.

 

©2016 Marilou Pavlou Christodoulides LLC Created by Design Lab