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 2007 to 2016. It aims to increase transparency and afford investors greater protection through increased regulation and enhancement of powers of regulators
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 nexus approach.
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.