UPDATE ON THE CYPRUS ECONOMY

Cyprus reached a €10bn bailout deal with international lenders on Monday (25/03/2013) morning. The deal avoids a levy on bank accounts but will force large losses on big deposits in the island’s two largest lenders Bank of Cyprus and Laiki Bank. What is important is that the European Central Bank will keep its emergency lifeline open to Cypriot banks thus […]

THE CYPRUS PARLIAMENT REJECTED THE DEAL OF DEPOSIT TAX

The decision of the Cyprus Parliament to reject the bailout deal on Tuesday night has proven the trustworthiness of Cyprus as a major financial center sending out the signal that the deposit funds of all depositors are totally safe. Despite threats, unethical attacks and psychological violence that was exercised by the Eurogroup on Cyprus’s political […]

EXCEPTIONAL NATURALIZATION

For the background information on the topic please refer to the article Acquiring Cypriot Citizenship by Direct Investment. What is the applicable law? Law 141(Ι)/2002-2011 (sections 109-113 και 3rd schedule) Appendix “D” of the Treaty of Establishment of the Republic of Cyprus Ministerial Council Decision dated 10.10.2011 1.  Immediate Investments Investment Purchases of immovable property, or businesses/companies […]

ACQUIRING CYPRIOT CITIZENSHIP BY DIRECT INVESTMENT

The Council of Ministers has in recent years announced a policy according to which it will examine favourably applications for citizenship provided certain investment criteria are satisfied. The main pillars of this policy are: Direct Investments: The applicant should have direct investments in Cyprus of more than €25 million), i.e. land, offices, factories etc OR Entrepreneurial […]

WHO DO CYPRUS DIVIDEND TAXES APPLY TO?

In last week’s article, an overview of the Cyprus’s defense tax was given. As briefly outlined before, Cyprus’s defense tax also, in certain cases, applies to dividends. However, whether or not the dividends are taxed depends on if the income is received by a corporate shareholder or an individual. Since Jan. 1, 2003, dividends have […]

CYPRUS DEFENSE TAX GUIDE FOR COMPANIES

Governments have the right to impose any tax they wish. Cyprus, for instance, has a 15 percent defense tax. This levy is due on June 30 and December 31 each year. Defense tax is imposed on certain income earned by Cyprus residents and resident companies. However, this article explains payments and exemptions relevant to resident […]

‘TRUST’ IN CYPRUS WHEN ESTABLISHING AN INTERNATIONAL TRUST

An international trust is a valuable vehicle for preserving family wealth, estate planning, asset protection, confidentiality, tax planning and more. International trusts are domiciled outside of one’s own country of citizenship and benefits grantors/settlors with more favorable laws than are available in other jurisdictions. In 1992, Cyprus enacted The International Trusts Law, making the island […]

ANNUAL LEVY FOR 2012

The annual levy of the Cyprus registered entities for the year 2012 is payable by 30 June 2012. All active companies must pay the fee by that date in order to avoid any unnecessary penalties and charges. Dormant companies are exempt from the levy. However, should file the necessary declaration with the registrar of companies […]

YOUR CYPRUS COMPANY TAX QUESTIONS ANSWERED

If you’re considering registering a Cyprus company, you probably have questions about tax laws. You might wonder if your Cypriot company has to pay tax, and if you’ll be able to benefit from double tax treaties. You might also wonder, in the case of a dispute, in which country will the resolution be handled? Does an Offshore Cyprus […]