The revised European Union Markets in Financial Instruments Directive (MiFID II) has been transposed into Cyprus law, as published in the Official Gazette of Cyprus on 7 July 2017. The new law, which will apply in Cyprus from 3 January 2018, introduces significant changes to the Investment Services and Activities and Regulated Markets Law of…

The Double Tax Agreement between Cyprus and Luxembourg has been signed, the first between the two countries.  It will enter into force once it is ratified by Cyprus and Luxemburg.

The Income Tax Law was amended in October 2016, in line with the “modified nexus” approach to the taxation of intellectual property assets.  Transitional arrangements were put in place for intellectual property developed prior to 30 June 2016 with new arrangements being applied for intellectual property developed from 1 July 2016, which follow the modified…

Cyprus signed its first tax treaty with the Kingdom of Bahrain on 9 March 2015. Following the completion of the relevant ratification procedures, the Tax Treaty entered into force on 1st January 2017.

The Cyprus House of Representatives has approved legislation which provides the opportunity to pay overdue taxes in monthly instalments. The new law covers a broad range of taxes including: Value added tax; Immovable property tax; Income tax; Special defence contribution; Capital gains tax; Stamp duty; and Special contribution for employees The new law, which was passed…

The Council of Ministers has approved a decision to amend the Scheme for Naturalisation of Investors in Cyprus by Exception was amended, pursuant to section 111A (2) of the Civil Registry Laws 2002-2015.  Investors can now apply for Cyprus Citizenship by making a stand-alone application (the previous ‘collective investments’ application has been abolished), upon making…

The CySEC has issued a draft circular for consultation with Cyprus Investment Firms (‘CIFs’) and other stakeholders setting out proposed changes to the procedures to be followed by CIFs in order to fulfil their obligations with regard to safeguarding of clients’ funds. The consultation period is until 18 November 2016. CIFs are required to have…

Law 97(Ι) of 2016 was published in the Official Gazette of the Republic on 23 September 2016.  It amends the Companies Law Cap 113 by transposing the EU Accounting Directive (2013/34/EU) into domestic law.  A significant change is the abolition of the exemption from audit that was previously available to small or dormant companies.  Small…

The House of Representatives has approved changes to the Immovable Property Tax Law published in the Official Gazette of the Republic on 25 July 2016.  The changes reduce the immovable property tax burden for tax year 2016 by up to 75% and abolish the immovable property tax as from 2017.

The House of Representatives has enacted long anticipated amendments to Cyprus’ “IP Box regime”, introduced in the Income Tax Law and published in the Official Gazette of the Republic on 27 October 2016. The amendments provide for the gradual phasing out of the current IP Box regime and the introduction of a new IP regime…