2017 | CHRISTOS PARASKEVAS LLC - Cyprus Lawyers

December 2017

December 13, 2017

ESMA Guidelines under MiFID II

CESMA Guidelines under MiFID II The Cyprus Securities and Exchange Commission (“CySEC”) has notified Cyprus Investment Firms, of the guidelines published by the European Securities and Markets Authority on 2 October 2017 under Directive 2014/65/EU (“MiFID II”) and Regulation (EU) No 600/2014 (“MIFIR”). The guidelines apply solely in relation to synchronisation of business clocks pursuant to article 50 of MiFID II and recording of orders and submission of transaction reports pursuant to articles 25 and 26 of MIFIR. They are designed to ensure...

December 12, 2017

Registration of Foreign Court Judgments in Cyprus

Our law firm's managing partner Mr. Christos Paraskevas, has published an article in relation to the Recognition, Registration and Enforcement of Court Judgments issued by foreign courts in Cyprus. The article was puplished to Lawyers in Cyprus, a leading Cyprus portal for Cyprus law. The full article may found here. Extracts are reproduced below. Recognition, Registration and Enforcement of Court Judgments issued by EU Member States’ Courts A judgment including a decree, order, decision or writ of execution given in one EU country is...

December 12, 2017

The EU list of non-cooperative jurisdictions

The EU Economic and Financial Affairs Council, which is made up of the economics and finance ministers of all member states, has approved the EU Commission’s recommendations on a unified EU list of non-cooperative jurisdictions in taxation matters, more familiarly referred to as a blacklist. Inclusion in the list is based on three sets of agreed criteria regarding tax transparency, fairness of taxation and implementation of anti-base erosion and profit shifting measures. The list is intended to be continuously reviewed and...

December 12, 2017

Cyprus International Trusts

A comprehensive definition of "trusts" under Cyprus law does not exist. However, the court, through case law, has deemed that a trust arrangement is a structure whereby the holder of a property (the "trustee") has an obligation to manage that property for the benefit of another (the “beneficiary”). The trust is created by transferring the legal ownership of the trust property from the previous owner (the “settlor”) to the trustee, though the beneficial ownership over that asset belongs to the beneficiary....

December 11, 2017

Cyprus Company Incorporation

Lawyers in Cyprus, a Cyprus portal for Cyprus lawyers published an article of our law firm in relation to the Incorporation of a Cyprus Company. You may read the full article here. Extracts are reproduced below. The incorporation of a Cyprus Company can be effectively utilised by entrepreneurs for International Tax Law Planning purposes and at the same time enjoy the status of being located at a reputable business centre within the European Union. The low Cyprus tax law regime coupled with...

December 11, 2017

Cyprus-India agreement on merchant shipping

The new reciprocal Cyprus-India agreement on merchant shipping between Cyprus and India entered into force on 29 November 2017, replacing an earlier agreement dated 11 February 1997. The most significant provisions of the new agreement are summarised below. Each country will treat the other country’s vessels in the same way as it treats its own vessels engaged in international voyages in respect of free access to ports, use of ports for loading and unloading of cargoes and for embarking and...

December 10, 2017

Cyprus Tax Residency changes

The Parliament of Cyprus has approved on the 14th of July 2017 a bill which grants tax residence status to persons who have spent at least 60 days in Cyprus per year (effective as from the 1st of January 2017) provided that the following conditions are met: Conditions to be fulfilled The individual (i) Remains in the Republic of Cyprus for at least 60 days during the tax year in question and (ii) Is not a tax resident in another state and (iii) Does not...

December 10, 2017

Bank of Cyprus to set up real estate fund

The Bank of Cyprus announced the establishment of a real estate fund which will be the first of its kind in Cyprus. The fund will be regulated by CySEC and will be listed on the Cyprus Stock Exchange. The 190 Million Euros fund will be classified as an Alternative Investment Fund and will seek to obtain a diversified portfolio of high quality income yielding commercial real estate property. The properties offer a gross average rental yield of over 6% per year. The...

December 10, 2017

VAT guidelines for insolvency practitioners

The Cyprus Tax Department has issued guidance to professional bodies and other potential stakeholders about VAT registration issues and procedures affecting insolvency office-holders in companies in receivership, liquidation or other insolvency proceedings, taking account of the prohibition in the Insolvency Advisers Law of 2015 against companies acting as insolvency practitioners, and the fact that many licensed insolvency practitioners are employees of professional service firms rather than independent contractors.

April 2017

April 19, 2017

Intention to abolish minimum profit margins

On 8 February 2017, the Cyprus Tax Department indicated the intention to abolish the current tax legislation which requires minimum profit margins on loan transactions of a Cypriot resident company to and from related companies, in light of international tax developments, such as the OECD/G20 BEPS Project. As of 1 July 2017, all such financing transactions between related companies must be supported by Transfer Pricing Studies, which shall be prepared by independent experts and based on the OECD transfer pricing guidelines....

February 2017

February 25, 2017

Cyprus Investment Firms’ obligations in binary options

Cysec proposed Reforms of Investment firms The Cyprus Securities and Exchange Commission (“CySEC”) has published a consultation paper (CP 2017-01) setting out proposed reforms to the regulatory framework governing the provision of investment services in binary options by Cyprus Investment Firms (“CIFs”). The full text of the consultation paper is available on the CySEC website here . According to CySEC, the proposed reforms aim to enhance the nature, characteristics and trading methodology of binary options offered to retail investors. New proposed standards for...

February 8, 2017

Maintenance of children after divorce

Parents have the obligation to support their child jointly and according to their powers. (article 33 Law No.216/1990). A parent or the Director of the Social Welfare Services may apply to the Court for maintenance, payable to the child (article 36 Law No.216/1990). According to article 37 of the Law, the amount of maintenance is calculated according to the needs of the child taking into consideration the standard of living before the separation and the income generated by the parents. Furthermore, maintenance...

February 8, 2017

Parental care and Custody of the children after divorce

Parental Care According to article 5 (1)a of the Relationships between parents and children law 1990 (216/1990), the exercise of the parental care is considered both as duty and as right of the parents who exercise it together. Parental Care includes the determination of the name, the custody of the person, the administration of property and representation of the child in any matter or legal transaction relating to him/her or his property. (article 5 (1) b law 1990 (216/1990). (2) Where parental...

February 7, 2017

Divorce in Cyprus (Legal Grounds and Reasons)

Which of the spouses might be held responsible for the divorce According to article 27 of the wedding law No.104(I)/2003, a wedding (either civil or religious) may be dissolved if the applicant can prove before the family court “the existence of an irretrievable breakdown of the marriage for reasons attributed to the applicant or to both of the spouses which makes the continuance of the marital relationship intolerable for the applicant. According to article 27 (2) of Law No.104(I)/2003, a) bigamy, b) adultery, c)...

February 7, 2017

Cyprus and India sign revised Double Tax Treaty agreement

On 18 November, 2016 Cyprus and India signed a new Treaty for Avoidance of Double Taxation (Treaty), which will replace the existing treaty signed by two countries in June 1994. The treaty was signed by Ravi Bangar, High Commissioner of India to Cyprus, and Harris Georgiades, Minister of Finance, Cyprus. The provisions of new Treaty will enter into force after the completion of necessary internal procedures in both countries for its ratification and is expected to come into effect on April 1,...

February 7, 2017

European Account Preservation Order

On 18 January 2017, EC Regulation No.655/2014 establishing the ‘European Account Preservation Order’ ("EAPO") came into force. The Regulation introduced a new procedure to facilitate cross-border debt recovery in civil and commercial matters by providing common rules in all European Union Member States relating to jurisdiction, issuance and enforcement of EAPO by national courts and authorities, as well as the measures available to debtors following the issuance of such an order. The EAPO procedure allows for a single order to be...

February 7, 2017

Repayment of overdue taxes in installments

On 27 January 2017, the Cyprus House of Representatives passed legislation affording people the opportunity to repay overdue taxes in monthly instalments. The law concerns debts to: - VAT, - immovable property, - income tax, - temporary defence contribution, - capital gains tax, - inheritance tax, - stamp duty, and - the temporary contribution in the public and private sectors. In particular, overdue taxes under EUR 100,000 can be paid in 54 monthly instalments, whereas those exceeding EUR 100,000 can be paid in 60 monthly instalments. The law also allows the tax commissioner the authority to decide on discounts, interest,...