There is an exemption of 50% of income earned from any office or employment exercised in Cyprus by an individual who was not a resident of Cyprus before the commencement of his employment, for a period of 5 years for employments commencing as from 1 January 2012 if the annual remuneration exceeds €100.000.

Annual financial statements must be prepared and filed with the Registrar of Companies showing the true and fair picture of the affairs of the company and explaining its transactions. The financial statements must be prepared according to International Financial Reporting Standards. Also, based on the results of the financial statements, the annual tax returns must [...]

The House of Representatives on 14 December 2011 passed a series of increases in existing taxes and introduced new taxes as well as measures for the reduction of public spending in order to face the current economic crisis in Cyprus. The principal changes in the legislation are the following. Income tax Law Payroll costs Salaries [...]

According to the new Law all interest and additional charges on pending taxes for all years up to and including the year 2008, in excess of 5%, are written off. The Law enters into force upon its publication in the Official Gazette and expires on 30 March 2012

Cyprus has been removed from the so-called “blacklist” published by the Portuguese tax authorities. Decree 150/2004 of the Portuguese Ministry of Finance set out a list of more than 80 jurisdictions considered to have unduly favourable tax regimes. Residents of countries on the list are denied certain benefits of the Portuguese tax system, and subject [...]

The House of Representatives approved unanimously on Thursday the abolition or reduction of the transfer duties for the period of six months. The proposal provides for a cut in the transfer duties by 50% for the registration of the property title deed when the VAT is not paid as well as its full abolition when [...]

The Government of Cyprus has introduced new regulations for Citizenship, available for investors / foreigners which can be summarised as follows. Direct Investments: The applicant should have direct investments in Cyprus exceeding EURO 10 millions (i.e. real estate, shares etc). Or Entrepreneurial Activities: The applicant should have established in Cyprus a Company/Companies with a total [...]

On the 28th of July 2011, the European Court of Justice (“ECJ”) has issued its decision on the VAT treatment of SWIFT services. Swift services are offered by the Society for Worldwide Interbank Financial Telecommunications (SWIFT SC) are considered as electronic messaging services which are intended to transmit information between financial institutions. SWIFT services are electronic messaging services, used [...]

The Cypriot Government as from 1 October 2011 has introduced a reduced rate of VAT 5% on every acquisition or construction of new residence provided that the residence will be used as the main residence of the purchaser. The new rules apply only to agreements which are concluded from 1 October 2011 onwards. For all [...]

As per our “tax update” dated 31st of August 2011 the government has introduced a levy of EURO 350 payable by all Cyprus Companies. The levy is an annual fee payable as follows: A fixed annual levy of €350 is imposed to all companies that are registered in Cyprus. For Group of Companies the total [...]