Under the Central Bank of Cyprus (CBC) Law, 2002 -2007, and the Banking Law, 1997- 2009, the Central Bank of Cyprus is the competent authority for the supervision and licensing of banks. In exercising its supervisory role, the CBC is guided by the recommendations of the Basel Committee on Banking Supervision, the guidelines issued by the European Banking Authority (EBA), and the rules of the EU. In this connection, various directives, circulars and guidelines regarding prudential supervision are issued by the CBC to all banks operating in Cyprus. The supervision of banks incorporated in Cyprus, including both their domestic and foreign subsidiaries and branches, is exercised by the CBC on a consolidated basis.
The general rule is that when a firm provides legal and/or other services to a person outside the EU, these transactions are outside the scope of VAT and therefore VAT is not going to be charged/imposed.
A Cyprus Investment Firm (‘CIF’) may freely provide investment services in a host Member State only if notifies its intention to the Commission, pursuant to Section 79 of the Investment Services and Activities and Regulated Markets Law (the 'Law').
The new record-keeping rules for companies and limited partnerships that were enacted by the BVI in November 2012 to meet OECD requirements have been updated to include a more precise definition of the financial records that must be kept.
The Cyprus government has introduced a levy of €350 payable by all Cyprus Companies. The levy is an annual fee payable as follows:
A fixed annual levy of €350 is imposed to all companies that are registered in Cyprus.
For Group of Companies the total amount cannot exceed the €20.000.
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.