A 35% income tax rate has been introduced for taxable income in excess of €60,000. The tax bands and rates are therefore now as follows: ChargeableIncomeEUR € TaxRates% TaxAmountEUR € CumulativeTaxEUR € 0-19.500 0 _ _ 19.501-28.000 20 1.700 1.700 28.001-36.300 25 2.075 3.775 36.301 – €60,000 30 7.110 10.885 over €60,001 35 …
On the 26 August 2011 the House of Representatives approved legislation aimed at stimulating the local property market. The legislation passed provides that eligible persons will be subject to a lower VAT rate of 5% on the purchase or construction of a first residence. The rate will apply for the first 200 square meters of…
On 14.12.2010, following a consultation process, the European Commission published a draft revised (recast) Brussels Regulation. The key areas addressed in the Commission’s legislative proposal are as follows: New rules concerning third state (non-EU) matters and defendants The Brussels Regulation provides jurisdiction rules mainly with respect to defendants domiciled in the EU Member States. The Commission proposes to extend…
On the 19th July 2011, Luxembourg’s Finance Minister Luc Frieden conducted an official visit to Cyprus. According to the Luxembourg government Mr Frieden exchanged views with his Cypriot counterpart Charilaos Stavrakis, on recent developments in their respective financial sectors and on European and national legislation in this area. Within this context, Cyprus and Luxembourg agreed…
The Ministry of Interior issued the following bulletin regarding the Town Planning Amnesty legislation which came into force on April 8 2011. The legislation aims at simplifying and modernising the procedures and legal provisions that eventually lead to the securing of updated title deeds by respective property owners. PLANNING AMNESTY BULLETIN LEGISLATION FOR THE MODERNISATION…
On the 14th of April 2011, the Cyprus Parliament unanimously passed the Bank Levy Legislation. The law establishes an Independent Financial Stability Fund for financial institutions. Provided that the totalamount of the levy does not exceed 20% of the total taxable profits of the financial Institution, as these are assessed by the Director of Inland…
The governor of Cyprus` central bank, Athanasios Orphanides, announced that it will create a financial stability fund worth around 500 million euros. Orphanides, a member of the European Central Bank’s Governing Council, told the finance committee of parliament, that ‘as an initial target, our aim is to build a fund of around 3.0 percent of…
As of the 01.03.2011 the duration of the validity cheques issued has been reduced from the current 6 months to 3 months as of the date of the issue of the cheque. This decision affects cheques issued as of the 01.03.2011 and applies equally to government issued cheques following the 01.08.2011. The decision was taken…
On the 18.02.2011, the Republic of Cyprus and the Federal Republic of Germany executed an updated agreement for the avoidance of double taxation on income and capital. The new agreement replaces the existing tax agreement of 1974. The agreement was signed in Nicosia, by Cyprus Minister of Finance Charilaos Stavrakis and German AmbassadorGottfried Zeitz. The…
JSC LTB Bank of Latvia, exercising its right of the freedom of establishment and in accordance with article 10A(1) of the Banking Law No 66(I) of 1997, as subsequently amended, has informed the Central Bank of Cyprus of its intent to open a branch in Cyprus. JSC LTB Bank operates in Latvia since 1991 and…