Cyprus has become one of the most important jurisdictions for the creation of Collective Investment Schemes (e.g. Mutual funds, UCITS and ICIS),preferred by both institutional and private investors because of its attractive legal and tax framework governing their operations. The legal framework is harmonized with all European Union Directives concerning the operations of Collective Investment Schemes and we will revisit…

The trading profits of a Cyprus resident company are taxed at ten percent (10%), which is the lowest tax rate in Europe.To establish that a company is a Cyprus tax resident its management and control are required to be exercised in Cyprus. Interest income is also taxed at 10%. If the company’s usual operation is the provision of financing, then…

Five additional DTAAs signed by the Republic of Cyprus became effective as of 1 January 2014, a development which further enhances Cyprus positioning as a preferred hub for international investments and tax planning. SpainVisit our earlier publication for details: http://www.reandacyprus.com/index.php/component/k2/item/83-cyprus-and-spain-sign-off-a-double-taxation-avoidance-agreement PortugalVisit our earlier publication for details: http://www.reandacyprus.com/index.php/component/k2/item/79-cyprus-and-portugal-sign-off-a-double-taxation-avoidance-agreement UkraineVisit our earlier publication for details: http://www.reandacyprus.com/index.php/component/k2/item/76-cyprus-signs-off-a-double-taxation-avoidance-agreement-dtaa-with-ukraine EstoniaThe DTAA signed between Cyprus and…

Increase of Standard and Reduced VAT RatesAs from 13 January 2014, the standard and reduced VAT rates in Cyprus will increase from 18% to 19% and from 8% to 9% respectively. Any goods or services falling within the reduced VAT rates of 5% and 0% will remain unaffected by the announced increases. Stock countsTaxable (physical and legal) persons who hold…

Under the new tax legislation for IPT, the owners of immovable property situated in Cyprus must pay to the Inland Revenue Department (‘IRD’) the relevant taxation for the year 2013 based on the following percentages: Estimated value of immovable property according to prices of 1980                                                                                                                                   Percentage IPT                                €0 - €5,000 €0 €5,001 - €40,000* 0,6% €40,001 - €120,000 0,8% €120,001…

Permanent Resident Permit (‘PRP’) In August 2012, Cyprus simplified the procedures for granting Immigration Permits to non-EU applicants, provided that they fulfill the criteria stated below: The applicant along with his wife must prove that they have at their disposal a secured minimum annual income of €30.000 from sources other than employment in Cyprus. The required income of €30.000 could…