A recent court case in Cyprus has highlighted the risks buyers may face when purchasing real estate in Cyprus. According to a report by Phileleftheros newspaper, a buyer purchased an apartment only to later discover that it had already been sold to someone else. The case highlights the importance of legal due diligence in real
Buying a Property in Cyprus: Role of the Land Registry & Due Diligence Read More »
Pledging shares of a Cyprus Company (Share Pledge) is a very common practice to secure financial or commercial obligations. This article aims to explain what is a Pledge of shares in a Cyprus company, the process for establishing a share pledge, and its popularity as a security mechanism. What is a Share Pledge Agreement? A
Pledging Shares in a Cyprus Company Read More »
As I’m currently working on an interesting transaction for the sale of a well-established business, the question of tax liabilities and how these will be allocated between the Parties came up. With this article, I aim to outline and explain one of the key provisions in agreements for the sale of a business and similar
Buying a Business: Tax Covenants in Sale and Purchase Agreements Read More »
The Tax Department announced a New Application Procedure. As of May 27, 2024, the submission of the affirmation for a Reduced VAT Rate of 5% on the purchase of a residence by first-time home buyers will only be done through the taxpayer portal TFA (Tax For All). Once the examination of the request is completed,
5% VAT for First Time Home Buyers: New Application Procedure Read More »
What is the Non-Dom Status? And why is it so popular? The Cyprus Government introduced the Non-Domiciled, or ‘Non-Dom’ status to make Cyprus more attractive to foreign investors, by granting them significant tax benefits. Individuals who become Cyprus Tax Residents (either under the 183-Day or the 60-Day Rule) and moved their tax residency to Cyprus
How does one become a Cyprus tax resident? An individual who spends 183 or more days in Cyprus during any given tax (i.e. calendar) year is considered a Cyprus Tax Resident. This is often referred to as the ‘183-day’ rule. As an exception to this rule, the ‘60-day’ rule provides that an individual is considered
60/183 Days: Becoming a Cyprus Tax Resident Read More »
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