Misconceptions About When Cyprus Exit Taxes Apply – What You Need to Know
Background: When and Why Were Cyprus Exit Taxes Introduced Exit taxation rules were introduced in Cyprus on 31 December 2019 through Law N. 116(I)/2019, aligning with the EU Anti-Tax Avoidance Directive (ATAD I & II). These rules were designed to prevent companies from transferring assets outside Cyprus to avoid taxation, ensuring that Cyprus retains the […]
VAT in Cyprus on Purchases of Services from Outside Cyprus & Reverse Charge Principal
The VAT treatment of services purchased from outside Cyprus is an essential consideration for businesses and individuals operating in Cyprus. Understanding how VAT applies to cross-border services can help ensure compliance and avoid unexpected tax liabilities. General VAT Principles for Cross-Border Services In Cyprus, VAT is governed by the Value Added Tax Law (VAT Law […]
VAT in Cyprus: The One Stop Shop (OSS) Scheme for Cross-Border Sales
Introduction to the One Stop Shop (OSS) Scheme The One Stop Shop (OSS) scheme is a VAT simplification mechanism introduced by the European Union (EU) to streamline VAT compliance for businesses engaged in cross-border sales of goods and services to consumers within the EU. For Cyprus-based companies selling to EU consumers, the OSS scheme offers […]
Understanding VAT Exempt Activities in Cyprus
Introduction to VAT Exemptions in Cyprus The Cyprus VAT system, governed by the Value Added Tax Law (N.95(I)/2000), imposes VAT on most goods and services at standard and reduced rates. However, certain activities are VAT-exempt, meaning they do not attract VAT, and businesses engaged in these activities cannot claim input VAT on related expenses. What […]
VAT Implications for Cyprus Companies Trading in Financial Instruments
Introduction Trading in financial instruments in Cyprus presents specific VAT considerations that companies must navigate. While financial transactions involving stocks, bonds, and derivatives are generally exempt from VAT, there are circumstances where companies trading in financial instruments must register for VAT, particularly when buying services from abroad or engaging in mixed trading activities. When Must […]
Why Family Offices Are Increasingly Choosing Cyprus as Their Base
In recent years, Cyprus has emerged as a highly favourable jurisdiction for family offices seeking a secure, tax-efficient, and flexible environment for managing and preserving family wealth. Family offices worldwide are increasingly establishing a presence in Cyprus due to its unique combination of advantageous tax incentives, robust legal frameworks, and privacy protections. Key Advantages for […]
Why More Businesses Are Choosing Cyprus for Company Incorporation
In recent years, Cyprus has emerged as a leading jurisdiction for company incorporation, offering a unique blend of business-friendly policies, a competitive tax regime, and strategic access to European and international markets. In 2024, the appeal of incorporating a company in Cyprus was stronger than ever, thanks to recent regulatory improvements, enhanced compliance standards, and […]
Cyprus Substance Requirements: What Businesses Need to Know
In response to international scrutiny and increasing compliance requirements, Cyprus has implemented rigorous economic substance rules to maintain its status as a reputable jurisdiction. Companies incorporated in Cyprus must demonstrate genuine economic presence and business activity within the country to benefit from its favourable tax regime. Key Aspects of Cyprus Substance Requirements Risks of Non-Compliance […]
Cyprus Tax Regime: The Most Competitive Corporate Tax System in the EU?
Cyprus has long been recognized for its favourable corporate tax system, attracting businesses and high-net-worth individuals (HNWIs) seeking tax efficiency. The country’s tax regime remains one of the most competitive in the EU, offering strategic advantages to companies and individuals alike. Key Features of the Cyprus Tax System Recent Tax Developments and Compliance Conclusion The […]
Cyprus Extends Debt Restructuring Tax Relief Provisions Through 2025
In a strategic move to support economic stability and assist businesses in financial restructuring, Cyprus has extended its debt restructuring tax relief provisions until December 31, 2025. This extension, published in the Cyprus Government Gazette on December 31, 2024, marks the seventh continuation of these beneficial measures since their initial introduction in 2015. The extension […]
