New VAT Rules Encourage First Time Buyers in Cyprus
New VAT provisions were brought into effect on 8th June 2012 designed to encourage first time buyers in the Republic of Cyprus. Law N73 (I)/2012 amends the VAT Law by offering first time buyers a reduced rate of VAT.
VAT is currently charged on all properties for which the building permission was granted after May 2004. The current full rate of VAT is 17%.
The new law introduces a reduced rate...
Capital Gains Tax in Cyprus
Capital Gains Tax (“CGT”) is a tax imposed on capital gains made by companies and individuals in Cyprus.
Application
It is applied to any gain that is attributable to:
the disposal of immovable property located in the Republic; and
the sale of shares in a company that owns immovable property in the Republic provided that the relevant company is not listed on a recognized stock exchange.
Rate...
An Introduction to Personal and Business Income Tax in Cyprus
In a challenging financial climate, it has never been more important to comprehend the system of taxation in the jurisdictions in which you operate. One needs to be fully aware of the entire picture concerning applicable fiscal provisions and the advantages that one jurisdiction may present over another in order to make informed and correct choices about various venues for undertaking...
Double Tax Treaties in Cyprus
The Cyprus government’s fiscal policy clearly embraces tax incentives for foreigners, which act as a considerable inducement for those wishing to conduct international business on the island. One of the simplest indicators of this intention is the high number of double taxation treaties that Cyprus has executed with other countries.
Double taxation treaties operate as vehicles for...
Advantages of Registration under the Cypriot Flag
Cyprus is a major ship management centre and its flag holds an envious reputation worldwide. The Cypriot Register now ranks 10th
in size internationally and represents the third largest fleet in the EU. Moreover, the Register is growing, with shipping entrepreneurs attracted to the host of benefits offered by registration under the Cyprus flag and the active promotion of ship management...
Cross Border Investment Firm Activity
Activities of all investment firms in Cyprus are governed by CySEC, the Cyprus Securities and Exchange Commission. CySEC is
responsible for authorising investment firms to undertake investment and ancillary services and governs ongoing transactions and compliance with the various applicable regulations.
Investment firms may consider undertaking their activities abroad through establishment of...
Investment Firms in Cyprus
In the Republic of Cyprus (in accordance with EU law) only certain persons and companies are permitted to undertake investment services and activities (for a full list of such regulated activities please refer to the end of this article) and such entities are tightly regulated in order to ensure high standards and full consumer protection. The Cyprus Securities and Exchange Commission...
Cyprus: an advantageous venue for Incorporation
Each year thousands of new companies are registered with the Registrar of Companies in Cyprus. In 2010, 19278 new companies were registered and 2011 looks set to top that figure. Year on year the number of annual registrations on the island increases, taking the total current number of registered companies in Cyprus to over 250.000 companies. Clearly Cyprus holds great attraction as a business...
VAT in Cyprus
Value Added Tax is a tax charged on every taxable supply, by a taxable person, of goods and services within the Republic, other than an exempted supply. It is also charged on goods acquired in Cyprus from other EU countries and on goods imported from outside the EU.
VAT is an indirect taxation which is applied by the VAT registered business acting as agent of the VAT authority by adding VAT to...