Tax Reform in Cyprus – First Proposals and Potential Impact Introduction
Cyprus is preparing to roll out significant tax reforms designed to modernise its tax system while preserving its status as an appealing business destination. The Economics Research Centre (CypERC) has recently released a Tax Reform Proposal after engaging with stakeholders, policymakers, and experts. These reforms aim to improve tax efficiency, stimulate economic growth, and bring […]
Confirmation of Information in the UBO Register
During the period from 1st October to 31st December of each calendar year, every entity in Cyprus must confirm electronically its beneficial owners. The Department of Registrar of Companies and Intellectual Property (DRCIP) announced that all entities incorporated or registered in Cyprus must log into the register of ultimate beneficial owners (UBO) between October 1, […]
50% Expatriate Relief on Employment Income: Guidance
The Cyprus Tax Department issued Circular 4/2024 in July 2024, regarding the exemption from income tax of 50% of the remuneration from employment exercised in Cyprus, as per the amended Article 8(23A) of the Income Tax Law. We were writing about the new expatriate relief (introduced on 30 June 2023) in our article: https://ibccs.tax/50-expatriate-relief-on-employment-income-in-cyprus-new-tax-incentive-law-now-published/ The […]
Blue Card in Cyprus
On 11 July 2024 the Cypriot Parliament approved a new law regarding the implementation of the EU framework for Blue Cards – a work and residence permit for highly qualified third-country nationals. The law is now expected to be published in the Official Gazette of Cyprus. Highly qualified individuals The Blue Card is a […]
Personal Tax Return 2023
The submission of the income tax returns for individuals in Cyprus (form IR1) for the year 2023 is now available via TaxisNet portal. The deadline for submitting tax returns and paying income tax for the tax year 2023 is on 31 July 2024. Why do you need to file IR1? All tax resident in Cyprus […]
UAE Tax Landscape: 9% CIT
The United Arab Emirates is no longer a zero-tax jurisdiction. We were informing about this major shift in our article, back in June 2023: https://ibccs.tax/announcement/uae-corporate-tax/ Certain exemptions apply, however many of the businesses will now pay a corporation tax. On-shore entities, as well as Free Zone entities involved in transactions with on-shore entities, will be subject […]
What’s new in Cyprus in 2024?
We are highlighting 10 changes in laws and regulations that came into force this year or are expected soon. 1. Introduction of 15% Global Minimum Tax At the end 2022, the Council of the EU adopted the Directive ensuring a global minimum level of taxation -15%, for multinational enterprise groups and large-scale domestic groups. […]
Transfer Pricing rules in Cyprus
Transfer pricing is a very important and current topic in tax planning – effective as from January 2022 in Cyprus, with some amendments that have just been announced by the Tax Department. In brief, the concept of transfer pricing is directly connected to the application of the so called “arm’s length principle”. The term means […]
Tax treatment of rental income from online platforms (Airbnb, Booking etc.)
In Cyprus the real estate is booming. We observe a growing number of investments– especially in properties destined for rentals. When owning a rental property, it is crucial to know and understand the tax implications of rental income. The short-term rental market also experiences a significant increase. The Cyprus Tax Department recently clarified that the […]
Citizenship by naturalization for highly skilled professionals in Cyprus
On November 30th 2023, Cyprus Parliament approved important changes on the Article 111 of the Population Register Law of 2002 (141(I)/2002. The amendment allows highly skilled professionals to apply for Cypriot citizenship already after residing in Cyprus for a period of 3 to 4 years (depending on the knowledge of the Greek language). The […]
