Tax Law Update: Changes in Cyprus VAT rates

On the 6.12.2012, the House of Representatives passed legislation (Law.167(I)/2012) increasing VAT rates in Cyprus. In accordance with the new law: (a) from the 14.01.2013 until the 12.01.2014, the standard VAT rate increases to 18%; (b) from the 13.01.2014 the standard VAT rate will be 19%; (c) from 01.01.2014 the reduced VAT rate of 8%…

Cyprus Property Law Update: Accelerated procedure for granting Immigration Permit for third country nationals purchasing property in Cyprus

New guidelines have been issued by the Ministry of Interior concerning the accelerated procedure for granting Immigration Permit to applicants who are third country nationals and intend to invest in the Republic of Cyprus.  The relevant parts of the announcement are as follows: 1.      According to the provisions of Regulation 6(2) of the Aliens…

Cyprus Gaming Law Update: New Gambling Law enacted

From independence, the Republic of Cyprus has strictly regulated the engagement in games of chance or chance and skill for money or monetary return. However, following Cyprus’s accession to the EU in 2004, online gambling service providers licensed in other EU Member States began to operate from premises in Cyprus. On  the 11.07.2012 Cyprus` parliament…

Cyprus Employment Law Update: Employees who fall ill whilst on annual leave must be allowed to take leave at a later date

A recent ruling in the Court of Justice of the European Union (CJEU) has clarified that, irrespective of whether the sickness commenced before or during the period of scheduled annual leave, an employee whose illness coincides with their annual leave is entitled to rearrange their annual leave to a later date. In Asociación Nacional de…

Cyprus Tax Law Update: New Cyprus Tax Incentives Introduced

Cyprus parliament has approved a range of tax amendments. These amendmentds form part of a package of measures to improve the attractiveness of Cyprus to foreign investors and foreign businesses. The government hopes that these changes will maintain Cyprus, as the EU member state with the lowest tax rates, business friendly and open to further…

Cyprus Employment Law Update: Parental Leave and Leave on Grounds of Force Majeure Law

The Parental Leave and Leave on Grounds of Force Majeure Law, Law 47(I)/2012, came into force on the 18.05.2012 and repealed and replaced the previous legislation regarding parental leave and force majeure in Cyrpus. It was enacted for the purposes of harmonising Cyprus law with Council Directive 2010/18/EC on the revised framework agreement on parental…

Tax Law Update: Cyprus Double Taxation Agreements

Cyprus has concluded numerous Double Tax Agreements whilst certain other agreements are pending enforcement. The main purpose of these treaties is the avoidance of double taxation on income earned in any of these countries. Under these agreements, a credit is usually allowed against the tax levied by the country in which the taxpayer resides for…

Tax Law Update: Cyprus Tax amnesty law passed

Cyprus Parliament has enacted legislation providing for the partial write-off of interest and penalties on overdue tax, provided that the balance is settled by the 31 March 2012. The newly enacted legislation applies to individuals and companies alike and affords a waiver of interest and penalties in excess of 5% of the principal amount owed.…