April 2019

International Cyprus Trusts – Formation and Advantages

A Cyprus International Trust can be defined as a settlement whereby the settlor transfers the property to the trustee in accordance with the trust instrument or the trust settlement. Even though the trustee has legal ownership of the trust property, it does not belong to him. Beneficial ownership of it belongs to the beneficiaries. The Cyprus International Trust Law has undergone major reform and in the 23rd of March 2013 the long awaited reform of the Cyprus International Trusts (Amending) [...]

Alternative Investment Funds in Cyprus

A Cyprus investment fund is a vehicle that allows investors around the world to raise capital through various financial instruments. The passing of the Alternative Investment Funds Law in July 2018, ensures that Cyprus not only remains competitive in the international scene as a funds jurisdiction, but that it also serves in providing even more flexibility to establish Cypriot funds and fund management entities. Cyprus aims to develop a world class fund sector and mark its position as a growing domicile [...]

Protection of Enclaved (trapped) buyers of immovable property in Cyprus

Interview of Managing Partner, Mr. Christos Paraskevas Mr Christos Paraskevas discuss with the reporter Alexia Cafetzi (24H portal), the new provisions of the Immovable Property (Transfer and Mortgage) (Amendment) Law 139(I)/2015. The aim of the said law is to facilitate the transfer of immovable property  in the name of «enclaved» (trapped) buyers, namely buyers of immovable property who although they have fulfilled their contractual obligations under the contract with the seller, the latter is unable or neglects or fails to transfer [...]

Protection of fixed-term employees’ rights – Interview on 24hours

The leading Cyprus portal 24 hours, has recently published an interview of our law firm’s managing partner Mr. Christos Paraskevas, in relation to the protection of fixed-term employees' rights under the Law on Employees with Fixed-Term Work (Prohibition of Less Favourable Treatment) of 2003, Law 98(I) of 2003 (“the Law on Fixed Term Employees”), which transposes Directive 1999/70/EC into the domestic legal order. You may read the full article here. 

Ship arrest in Cyprus

Lawyers in Cyprus, a leading Cyprus portal for Cyprus law and Cyprus lawyers and in-house counsel, recently published an article of our law firm's managing partner Mr. Christos Paraskevas. You may read the full article here. Extracts are reproduced below. Ship arrest in Cyprus According to Rule 50 of the Cypriot Admiralty Jurisdiction Order 1893, the Supreme Court in its admiralty jurisdiction has an absolute right for the issue of an order for the arrest of a vessel, in Cyprus. The Plaintiff desiring [...]

January 2019

Transfer of ownership rights to immovable property

Law 39(I) of 2018 amended the VAT Law to make VAT chargeable on the transfer of the effective right to dispose of real estate or immovable property as owner. With effect from 1 January 2019 a long-term assignment of the right of ownership of immovable property (long-term lease), or the transfer of such a right is deemed to be a taxable supply of goods subject to VAT at the standard rate or at a reduced rate of 5% depending [...]

Non-performing loans drop by €5.6 billion

Non-performing exposures (NPEs) in the Cyprus banking system dropped to €11.02 billion in September 2018 marking a €5.6 billion reduction since end-June 2018 as Hellenic Bank acquired the performing part of the state-owned Cyprus Cooperative Bank, which has been converted to an asset management company. According to data released by the Central Bank of Cyprus, total NPEs dropped from €16.6 billion in end-June to €11.02 billion marking the lowest level since the 2013 financial crisis. From the beginning of 2018 NPEs [...]

December 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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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

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 [...]

February 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 [...]

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, [...]

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 [...]