Non โ Domicile Regime in Cyprus
๐๐จ๐ฐ ๐ญ๐จ ๐๐จ๐ง๐๐ข๐ซ๐ฆ ๐ฒ๐จ๐ฎ๐ซ ๐๐จ๐ง-๐๐จ๐ฆ ๐ฌ๐ญ๐๐ญ๐ฎ๐ฌ? A person who is a tax resident in Cyprus is liable to pay Cyprus Income Tax (CIT) on their worldwide income, from all sources. Additionally,ย domiciledย residents of Cyprus pay a Special Defense Contribution (SDC) on their passive income derived from dividends, interest, and rentals as per the following rates: Dividends […]
New Immigration Rules for Investment Visa in Cyprus
Onย 2ndย of May 2023, in accordance with the Regulation 6.2 of the Alien and Immigration Regulations, the new requirements for the investment scheme have been officially adopted after the revision by the Council of the Ministers. Category 6.2 (Fast Track Residence) is a permanent residential permit which can be obtained through the investment in the brand […]
First EU Legislation on cryptocurrency: MICA
On 20th of April 2023, the European Parliament has finally voted and adopted the new legislative changes in the European Union concerning cryptocurrency in the form of the Markets in Crypto Assts (MICA) Regulation. Moreover, since MICA is the Regulation, it is directly applicable among the Member States without a need for any additional transposition […]
Legal obligations and current changes in the offshore jurisdictions
The recent changes in the offshore jurisdictions for the companies as well the main legal obligations are important to be analysed for those, who are planning to incorporate a company or already have the company in the offshore jurisdiction. In the corporate context, an offshore entity is the company, which business activity takes place outside […]
Imposition of 0.4% Tax on Cyprus immovable property sales and shares
On 27 October 2022, the law regulating the levying of a 0.4% tax on all sales of immovable property with the proceeds going to financially support Greek Cypriot refugees has been published in the Official Gazette by that amending the provisions of the Central Agency for Equal Distribution of Burdens (Creation, Objects, Responsibilities, and Other […]
Unpaid Annual Levy and possible strike off
On 3 November 2022 the Department of Registrar of Companies and Intellectual Property (โROCโ) announced that it intends to proceed with the ๐๐๐ซ๐๐ ๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ข๐๐ฌ, ๐ข๐ ๐ญ๐ก๐๐ฒ ๐๐๐ข๐ฅ๐๐ ๐ญ๐จ ๐ฌ๐๐ญ๐ญ๐ฅ๐ ๐ญ๐ก๐ ๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ๐ฌ ๐๐จ๐ซ ๐๐ง๐ง๐ฎ๐๐ฅ ๐ฅ๐๐ฏ๐ฒ. The ROC may remove a company from the register if the company fails to pay the annual fee provided for […]
Tax Exemptions on the First Employment: Clarifications
On 01.11.2022 the Tax Department has issued the Circular (ฮฮฟ. 10/2022) for the purposes of clarifying new tax income exemptions for the practical application as well as conceptualizing the term โfirst employmentโ. By virtue of the Circular, it should be noted that the first employment of an individual ceased to exist or never existed in […]
Clarification on Bilateral Agreement between Cyprus and United States
On 13.10.2022 the Cyprus Tax Department notified all legal entities and their official representatives that the Bilateral Competent Authority Arrangement (CAA) for the exchange of Country-by-Country (CbC Reports) between Cyprus and the United States of America for Reporting Fiscal Years will be effective on or after 01.01.2022. As a result, if the Ultimate Parent Entity […]
Provisional Tax Liability by Newly Incorporated Companies
According to the recent interaction between the Commissioner of Taxation and the Tax Compliance Committee of ICPAC (โThe Institute of Certified Public Accountants of Cyprusโ), no penalties or interest should be imposed on the entity which was incorporated within the period from 31.07.2022 (first installment of the provisional tax) to 31.12.2022 ( second installment) in […]
New Non-Domiciled Rules in Cyprus
Forward As part of the overall exertion to improve Cyprusโ attractiveness as an international business and financial center, and in order to remain highly compliant as a traditional jurisdiction, the House of Representatives on 16 July 2015 passed a number of new laws. One of the changes, introduced the new status of a โnon-domicileโ (non-dom) […]
