Blog

September 2015

The new Protocol to the Cyprus – South Africa double taxation agreement

On 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.
Residence
The Protocol aligns the definition of "resident of a Contracting State" with [...]

New double taxation agreement between Cyprus and Iran

The 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 [...]

Entry into force of the Companies (Amendment) Law of 2015

The 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 [...]

June 2015

PERMANENT RESIDENCY IN CYPRUS

Permanent 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 [...]

Νομική προστασία Δανειοληπτών σε ελβετικά φράγκα

Σε προηγούμενο μας άρθρο είχαμε επισημάνει την απαράδεκτη κατάσταση που έχει δημιουργηθεί εις βάρος μεγάλου αριθμού κύπριων δανειοληπτών που είχαν λάβει δάνεια σε ελβετικό φράγκο και οι οποίοι καλούνται σήμερα να πληρώσουν στις Τράπεζες περί 35%-50% μεγαλύτερο ποσό από αυτό που είχαν πραγματικά δανειστεί.
Η κατάσταση αυτή δημιουργήθηκε λόγω συγκεκριμένων ρητρών που εμπεριέχονται στις εν λόγω δανειακές συμφωνίες, οι οποίες επιτρέπουν στις Τράπεζες να υπολογίζουν το οφειλόμενο ποσό του δανείου βάσει της εκάστοτε συναλλαγματικής ισοτιμίας του ευρώ με το ελβετικό [...]

April 2015

OBTAINING CYPRUS CITIZENSHIP BY INVESTMENT

CYPRUS CITIZENSHIP BY INVESTMENT
The 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 [...]

Obtaining Cyprus citizenship by Investment – family members

Legal 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 [...]

Lifting of all remaining currency controls in Cyprus

On 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.

March 2015

January 2015

Interest from judgments issued by Cyprus Courts set at 4%

The 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.