Reducing a company’s share capital is a strategic decision that companies may undertake for various reasons. In Cyprus, this process is governed by the Companies Law, Cap. 113, and requires court approval, inter alia, to protect the interests of creditors and key stakeholders. What is a Share Capital Reduction? A share capital reduction allows a […]
Reduction of Share Capital of Cyprus Companies Read More »
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
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