Articles

Cyprus Tax Residence status for individuals by the 60 Days Rule

The Parliament of Cyprus has approved by common consent the proposal of amending the rules for determining the tax residency of individuals in Cyprus - 60 days tax residency Cyprus Under the currently existing law, individuals are considered tax residents in Cyprus if they were physically present for at least 183 days per year. Under the new revised conditions an individual is considered a Cyprus Tax Resident if the following three criteria are cumulatively met: 1. They remain in Cyprus for at least 60 days a year of assessment. (60 days tax residency cyprus) 2. They carry out any business in Cyprus; and/or work...

Continue reading

The Cyprus Non-Domiciled Tax Status

An individual enjoys the Cyprus Non-Domiciled Status whether they are a tax resident of Cyprus or have not been a tax resident of Cyprus as per the Income Tax Law for a period of 20 consecutive years prior to the introduction of the law (16 July 2015). An individual is considered a resident for tax purposes of Cyprus if they are physically present in Cyprus for an accumulated period exceeding 183 days during a calendar year or 60 days under the 60-day rule, maintains a permanent residential property (owned or rented), does not reside in another state for an accumulated period...

Continue reading

Cyprus Tax Advantages

The Cyprus Tax Regime is set to provide a business-friendly environment In Cyprus, taxation of business profits is 12,5%. Cyprus is probably the best place to do business in the EU. Because of the business-friendly Cyprus Tax Regime, there are around a thousand companies registered every month in Cyprus. Cyprus dismissed its “offshore” legislation in 2002-2003. A new system of EU-conform tax advantages has been set up and refined daily. The Cyprus Tax Regime: Some of the many tax advantages that Cyprus Companies benefit from: ● differentiation of ‘tax residents’ and ‘non-tax residents’ ● corporate tax is only 12,5 % ● very low tonnage tax for ship-owning and...

Continue reading

An Overview: Cyprus Offshore Company or IBC

Since joining the European Union in 2004, Cyprus is not an offshore jurisdiction or tax haven anymore. All company and entity formations in Cyprus are considered onshore (companies’ tax residences are in Cyprus). Therefore, the term Cyprus IBC (Cyprus International Business Company) or Cyprus Offshore Company is not applicable anymore. The word Offshore Company is commonly associated with ‘tax havens’, being misinterpreted as illegal. Offshore simply means that a company is registered in a low tax/non-tax jurisdiction and is not tax resident in the country where it is registered. Offshore Companies are not allowed to conduct business within the country of...

Continue reading

Cyprus Tax Residency and Place of Business (“Substance”)

Cyprus Tax Residency: Where will my Cyprus Company get taxed? The definition of tax residency of companies varies by country. Generally, companies are liable to pay tax on their taxable profit in the country where they conduct business and generate profit, and/or where management decisions are taken. The following are important points related to Cyprus Tax Residency: Some countries (Cyprus, Malta, and others) are focusing on the place of management in order to determine the tax residency of a company. In said countries, the place of management is generally defined by the residence of the majority of a company’s directors. A company’s tax residency...

Continue reading

Registration of Cyprus Offshore Company or International Business Company (IBC)

A Cyprus International Business Company (IBC) does not manage or control the company in Cyprus as it is offshore. Membership in the European Union (EU) opens doors for doing business with other EU countries and companies. Cyprus IBC’s are separate legal entities resembling a private limited liability company. Registration of International Business Company (IBC) Benefits A Cyprus International Business Company (IBC) has the following benefits: • 100% Foreign Ownership: Foreigners can own all shares. • Limited Liability: A shareholder’s liability is limited to capital investment. • Privacy: Nominee shareholders are allowed anonymous ownership. • No Taxes: However, U.S. taxpayers and everyone obligated to pay income taxes...

Continue reading

E-Residency and Taxation

The term e-residency describes the service offered by the state to citizens of other countries inside or outside the European Union, which enables them to operate in Estonia and reap the benefits of access to the European market. In other words, it is a web portal to the European market for all the citizens of the world. This is achieved through the special edition of the Estonian identity card for e-residency. The benefits for Estonia e-residency come from taxes paid by companies that want to take advantage of access to the European market. The e-residence ID, - does NOT offer free entry into...

Continue reading

The Tax System in Cyprus Corporate Tax

Cyprus offers a range of tax benefits to companies that carry out business in Cyprus. These advantages derive from the favourable tax regime in Cyprus, which is in line with the Organization for Economic Co-operation and Development (OECD) and the European Union, as well as from the extensive network of double taxation conventions. In short, the main corporate tax provisions are: a uniform corporate tax rate of 12.5% ​​the lowest rate in the EU; no taxation of dividends or interest payments to non-residents of Cyprus; no withholding tax on royalties in respect of the use of rights outside Cyprus; Favourable treatment of losses; no taxation...

Continue reading

Road Traffic – Driving Under the Influence of Drugs in Cyprus

Drug Offences

After January 15th 2018, the provisions of the Road Safety Act (Law 174/1986), concerning driving under the influence of drugs came into force. The penalties for the offence of driving or attempting to drive under the influence of drugs as well as for the offence of refusing or preventing a driver from giving a sample of saliva for either a preliminary or a laboratory examination are the following drug offences:   Penalty of imprisonment for a period not exceeding three (3) years or A fine not exceeding three thousand five hundred euros (€ 3,500) or A ban from driving for a...

Continue reading

EUROPEAN ARREST WARRANT

A brief review of the legal culture of the European Union would reasonably conclude that, of all its institutions’ legislative initiatives each year, none is more blurry and controversial than the European Arrest Warrant. The European Arrest Warrant (EAW) was created by Council of Europe Decision 2002/584/ JHA on 13 June 2002 as a means of facilitating the co-operation of courts in criminal matters. As it is clear from the Preamble to the Framework Decision, the EAW is the first case of applying the principle of mutual recognition of judicial decisions by Member States in criminal matters. In practice, the EAW...

Continue reading