Income tax in Cyprus is based on the principle of tax residence. A company is resident in Cyprus for tax purposes if its management and control are exercised in Cyprus. An individual is resident in Cyprus for tax purposes, if he/she resides therein for a period or more which in aggregate exceed 183 days in the same tax year. Cyprus tax residents are liable to tax in respect of worldwide income. Non Cyprus tax residents are liable to tax in respect of Cyprus source income only. Non Cyprus tax residents having a permanent establishment in Cyprus may opt, if it is to their benefit, to be taxed as Cyprus tax residents.
In order to sell, offer to sell, or hold with the purpose to sell alcoholic drinks in the Republic of Cyprus, one needs to obtain the license for the sale of intoxicating liquors (retailer’s licence and dealer’s license) by the Municipality, within which the premises are located, or in any other case by the District Officer of the District, within the boundaries of which the premises are located.
In recent years the seizure of vessels and detention of mariners under inhuman conditions for ransom payment claims on behalf of ship-owners for their release has increased dramatically. The Cyprus Government has followed other jurisdictions in preparing legislation to combat piracy on the high seas, mainly with the provision of specially trained and certified armed guards/escorts on the merchant vessel flying the flag of Cyprus.
On the 01.07.2012, the House of Representatives has passed the Limitation of the Right to Take Action Law of 2012 (hereinafter the Law) which provides the valid period during which the plaintiff has the right to take legal action after the completion of the cause of action.
Permanent residence does not require the applicant to renew his/her residence permit in Cyprus every year, as the name suggests. Furthermore, Schengen countries grant travelling visas with more ease and flexibility once such permit is issued.
The Russian State Duma has recently ratified the Protocol to the Double Tax Treaty between Cyprus and Russia, which shall now come into effect as of 1 January 2013, while particular provisions will come into force as of 1 January 2017.
Permanent residence in Cyprus is available to non-EU nationals under Category F residence permit. Holders of such permit should not work in Cyprus or engage in any kind of business in Cyprus. This kind of permit is also granted to the spouse and children under the age of 18 of the holder under certain circumstances.
It is a common procedure to submit disputes arising out of international contracts to arbitration. Arbitration is a consensual legal technique, which has developed recently in Cyprus as a form of dispute resolution in various industries, which gives the opportunity to parties to resolve issues without the necessity to refer the matter to Court. This article deals with the recognition and enforcement of foreign arbitral awards in Cyprus. Once an arbitral award is granted, the winning/successful party will seek to enforce it in the country in which the losing party has financial assets.
The following information will be required by the District office of each District in order for a permit to be issued for the acquisition of immovable property in Cyprus by aliens.
In Cyprus, a foreigner can easily proceed with the acquisition of immovable property as long as the relevant permit is acquired.
On 16.12.2011, the Immovable Property Acquisition (Aliens) (Amendment) Law No. 161 (1)/2011 has been voted. Therefore, the restriction concerning the acquisition of secondary residence by EU nationals as well as by companies registered under the Laws of an EU member state or a state party to the E.E.A etc under the Immovable Property Acquisition (Aliens) Law, Cap 109 is no longer applicable.
People who wish to have a civil wedding in Cyprus must apply in person or through a lawyer practising in Cyprus to the Department of marriage services in Cyprus, at the Municipality of their choice (in Limassol, Paphos, Larnaca, Nicosia etc) with the following documents:
Under Section 347 of the Companies Law (Cap 113), companies incorporated outside the jurisdiction of the Republic of Cyprus may register a branch in Cyprus. The registration procedure is to a large extent identical with the incorporation of a new company in Cyprus with the major difference being that the registration of a branch in Cyprus does not create a new legal entity in Cyprus. What this essentially means is that the legal entity, which is established under a different jurisdiction, has a branch in the Republic of Cyprus and it may operate through this branch for its international activities.
It is important to explain and differentiate between:
a) Authorised share capital b) Issued or allotted share capital- the total nominal amount actually issued to shareholders at any time c) Paid up share capital- the amount so far paid on shares which have been issued d) Uncalled share capital- the amount which the company is entitled to call on shareholders to contribute
For the purpose of raising revenues and decreasing government spending, the House of Representatives of Cyprus voted on the 26th of August 2011, the following changes in the Tax and Company Legislation.