Christos ParaskevasParental CareAccording 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 [...]
Christos ParaskevasWhich 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, [...]
Christos ParaskevasOn 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 [...]
Christos ParaskevasOn 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 [...]
Christos ParaskevasOn 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, [...]
Christos ParaskevasThe Cyprus parliament has passed a law amending the Income Tax Law to bring its provisions on taxation of income from the use or sale of intangible assets into line with the “modified nexus” approach.This approach, which was agreed by G20 leaders towards the end of 2014 and adopted by the OECD and the EU, allows a taxpayer to benefit from an intellectual property taxation regime, commonly known as an IP box, only to the extent that it can [...]
Christos ParaskevasPermanent Residency in Cyprus for non-E.U nationals There has been a recent increase in the interest of third country nationals obtaining immigration permits in the Republic of Cyprus, as Cyprus is a popular and very appealing destination for third country nationals who would like to obtain a Permanent Residency Permit in an EU country.Non-EU nationals wishing to reside permanently in Cyprus can do so by applying for an Immigration Permit. This Permit is granted for an indefinite duration to non-EU [...]
Christos ParaskevasDivorce is one of the most popular areas of Family Law. According to the statistical service’s demographic report 1 in 4 marriages in Cyprus will end in divorce. The only requirement for a divorce to be dealt with by the Cypriot Courts, is for either of the spouses to have lived in the Republic of Cyprus for at least three months, prior of filing the divorce application. Nationality of the spouses is not a relevant factor.The first matter to [...]
Christos ParaskevasThe new Legislation A. Title Deeds The Cypriot Parliament has recently enacted new legislation with regards to the transfer and issue of separate title deeds of immovable properties purchased in Cyprus and the avoidance or reduction in the payment of transfer fees for the said properties.The law applies to all cases where a contract of sale to purchase a property was deposited at the relevant District Land Registry Office on or before 31st December 2014. However, buyers who failed to deposit [...]
Christos ParaskevasOn 1 April 2015 Cyprus and South Africa signed a Protocol amending their existing double taxation agreement (“DTA”), which was signed in 1997 and has been in force since 8 December 1998.The Protocol amends the 1997 DTA in three areas, namely the definition of residence, withholding taxes on dividends and exchange of information. Importantly, it does not change the existing, highly beneficial, arrangements regarding taxation of capital gains.ResidenceThe Protocol aligns the definition of "resident of a Contracting State" with [...]
Christos ParaskevasThe Republic of Cyprus and the Islamic Republic of Iran have signed an agreement in Nicosia on the avoidance of double taxation and fiscal evasion with respect to taxes on income, after negotiations spanning several years. The agreement was signed on 4 August 2015 by the Cyprus Minister of Finance and the Iranian Deputy Economy Minister and Head of the Islamic Republic of Iran’s Tax Organisation, who was on an official visit to Cyprus.The signature of the agreement is [...]
Christos ParaskevasThe Companies (Amendment) (No 4) Law of 2015, Law 89(I) of 2015, took effect on 19 June 2015. It introduces several changes to the Companies Law, the most important of which are as follows:· a company may be incorporated as a general commercial company with power to carry on any trade or business and to do all such things as are incidental or conducive to this, rather than having a detailed objects clause in its memorandum of association;· where [...]
Christos ParaskevasPermanent residency on a "normal-track basis" (known as a Regulation 5 (f) application)The minimum requirements are as follows: • Minimum annual secured income of approximately EUR 10,000 from sources outside of Cyprus (increased by approximately EUR 5,000 per dependent); • Applicant does not maintain employment in Cyprus; • Income is derived from legal sources abroad; • Income is secure and provides stable support for the applicant and their family in the long run (including supporting evidence that all financial needs of the family [...]
Christos ParaskevasCYPRUS CITIZENSHIP BY INVESTMENTThe government of Cyprus has now implemented a new immigration initiative aimed at facilitating (non EEA) migrant entrepreneurs and investors who, in return for obtaining Cyprus citizenship, are prepared to invest in Cyprus. The new scheme has been established pursuant to amendments to the Cyprus Civil Registry and Migration Law.On the basis of subsection (2) of section 11A of the Civil Registry Laws of 2002-2003, a non-Cypriot citizen, who meets one of the following economic criteria [...]
Christos ParaskevasLegal Framework The Decision of the Council of Ministers dated 19.3.2014 provides for the grant of the Cypriot citizenship to the spouse as well as to the financially dependent adult children (eighteen years old or above) of the investor. Neither the spouse nor the children are obliged to meet any financial criteria.The Decision regulates that adult children of an investor are considered as financially dependent, if they are students up to the age of 28 and are attending an institution [...]
Christos ParaskevasOn 3 April 2015 the government announced the abolition of all the remaining currency controls and restrictions, so that funds are freely transferable as they were prior to the imposition of controls. The final abolition is a welcome confirmation of the progress that has been made in rehabilitating the banking sector and the real economy of Cyprus.
Christos ParaskevasOn 9 March 2015 Cyprus and Bahrain signed a new double taxation agreement which it closely follows the 2010 OECD Model Tax Convention. The agreement applies to taxes on income imposed by either country.It is expected that the new agreement shall boost trade and investment flows between the two countries.
Christos ParaskevasThe Minister of Finance of Cyprus has issued a ministerial decree, which sets the interest percentage which applies on judgments issued by Cyprus Courts at 4%. The decree has been published in the Cyprus Gazette on 23 December 2014 and has come into effect on 1 January 2015. The new 4% rate supersedes the previously applicable rate of 5,5%, which applied since 2008.