Recent legislative developments have significantly affected the VAT treatment of new residential properties in Cyprus. This article examines the expiry of transitional provisions, the current eligibility requirements for the reduced 5% VAT rate, and the additional amendments entering into force during 2026.
The introduction of the National Health Scheme (GeSY) is aimed at upgrading and modernising the healthcare sector. The philosophy of Gesy is based on universality and social solidarity on medical services so that everyone, regardless of age, financial situation and severity of medical condition will have equal access to high-quality healthcare services without any restrictions.…
The Ministry of Finance announced the permanent reduction of transfer fees. The reduction was implemented by the enactment of the Land and Surveys Department (Fees and Rights) (Amendment) (No 2) Law of the 14.07.2016. Consequently the temporary arrangement which provided a reduction of 50 per cent of transfer fees until 31.12.2016 is now made permanent. According to…
Advance tax rulings can be valuable to taxpayers since they provide comfort on how the tax framework applies to a particular transaction. In October 2015 the Tax Department issued a circular setting out a new procedure for obtaining advance tax rulings. Following this, on the 26.04.2016, the Tax Department announced that administrative fees will now…
In order to facilitate and encourage the restructuring of non-performing loans the Cyprus tax laws were amended to temporarily exempt loan restructurings from tax. The amendments are applicable up to 31.12.2017. The amending legislation was published in the Cyprus Government Gazette on 31.12.2015. The amendments affect the Income Tax Law; the Capital Gains Tax Law;…
On the 25.07.2014 Cyprus and Switzerland signed an avoidance of double taxation agreement and relevant protocol. A Finance Ministry press release said, that the new agreement will contribute to further developing trade and financial relations between the two countries as well as with other countries. The ministry further stated that maintaining, updating and signing new…
The Cyprus government announced on the 24.02.2014 the signature of a new double taxation agreement with Norway. A statement issued stated that the text agreed between the finance ministries of the two countries would contribute to the further development of trade and economic relations between Cyprus and Norway, as well as other countries. The statement…
Following the enactment of Law 167(I)/2012 by the Cyprus House of Parliament, as from the 13.01.2014, the standard rate of VAT has increased from 18% to 19%. With regards to reduced rate VAT, this has increased,as from 01.01.2014, from the current rate of 8% to 9%. The reduced rates of 5% and 0% VAT have…
Cyprus tax residents are liable to Special Defence Contribution (SDC) as follows: 1. Dividends Dividends paid by a Cyprus tax resident company to a Cyprus tax resident individual are paid net of 20% withholding SDC. Dividends paid by a Cyprus tax resident company to companies or to individuals who are not Cyprus tax residents are…
Following the amendment to Contract Law, Cap 149 by Law 99(I)/2013, a penalty fee is now imposed on purchasers of immovable property in the event that they delay filing their contract of sale at the District Land Registry Office. Under the provisions of the amending legislation published on the 09.09.2013, purchasers of immovable property who…