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...

December 4, 2018

A. New VAT provisions

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...

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...

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