-Land Resgistry Fees -Capital Gains Tax -Special Defense Contribution -Non - domiciled persons -Notional interest deduction on new equity -Upcoming expected changes in Cyprus tax legislation

1. NEW AMENDMENTS TO CYPRUS TAX
LEGISLATION

2. .
Agenda:
• Notional interest deduction
• Real estate incentives
• Introduction of term ‘domiciled’
for tax purposes
• Other amendments
• Proposed/upcoming changes

3. Notional Interest Deduction
• Significant Tax Deductions for new equity Investments
• Definition of “Notional Interest”
• Starting from 1st January 2015 and for a period of 1 year on “new
equity capitals”
• Applicable on maximum of 80% of taxable profit of Cypriot Entity/or
permanent establishment in Cyprus
• Not applicable in loss making scenarios. Only applicable if you
have profit!

4. Real Real-estate incentives
Real Estate IncentivesNew Ground breaking amendment on Capital Gains
Tax:
-100% exemption from capital gains tax
- Provided purchase took place from
July 15th to 31st December 2016
50% Discount on Duties and enhancement of
procedures:
- 50% discount on real estate transfers from
July 9th -31 December 2016
- Fees on property transfers from parent to child
have been abolished
- Procedures offering greater protection to real
estate investors

5. Introducing Domicile for Tax Purposes
-The traditional distinction between
Cypriot and non- Cypriot Tax Residents
(183 days rule)
-The Special Defense Contribution
Requirements for Cypriot Tax Residents
- Introducing for the first time in July
2015 the concept of Domicile for Tax
Purposes

6. Introducing Domicile for Tax Purposes
(continued)
-Domicile under Cypriot Wills and
Succession Laws , determining
which jurisdiction to govern the
succession of a deceased
-The new introduction: Tax resident
of the Republic must also have its
domicile of origin in the Republic
(and not the domicile of Choice!)
- Tax Resident having domicile of
choice shall be exempted from SDC
obligation (provided not a tax
resident in the last 20 years!)

7. Other Other amendments
Discretionary offset of liabilities due to the tax
department
• Article 13 of the Accounting and Financial
Management and Financial Control of the
Republic Law N38(I)/2014
• Accountant General has the discretion in the
course of processing a payment to a physical
entity, to withhold funds which are due to any
Ministry or Department, or Independent
department or other Special Treasure of the
Republic of Cyprus.
Tax rulings
• As of October 2015, any company which wishes
to obtain a tax ruling from the tax authorities
will need to disclose full information about
name of entities involved and full details of
actual case

8. NEW CHANGES COMING SOON
-Tax Exemptions on FX differences
- Limitation of losses in relation to IP activities
- Accelerated depreciation
- Tax allowance on medical insurance
- Group Loss Relief
- New fees

9. NEW CHANGES COMING SOON
Exemptions on personal income tax when
taking up the Cypriot Tax Residency:
• 20% of employment income is exempted
from personal income tax for a period of 5
years to a maximum of EURO 8,550 per
year (valid until 2020)
• 50% of employment income earned in
Cyprus to be exempted from income tax for
a period of 10 years provided that the
employment income earned is more than
EURO 100,000 per year
Possible reduction on SDC on interest income

10. 10
ORGANISATION PROFILE
Eurofast is a regional business advisory organisation employing
over 200 people in South East Europe & East Mediterranean.
Our team of professionals is capable of efficiently addressing all
client needs in one single meeting, using one single language
for all the countries in the Region.

11. Eurofast
in numbers…
Over
200people across South
East Europe and East
Mediterranean
21Offices in SEE and East
Mediterranean
5-35Team members in
every office
1Reference point;
1 meeting handles all!

12. Where can you find usSingle point of Contact,
Many Points of View
▪ Lefkosia
▪ Athens
▪ Thessaloniki
▪ Sofia
▪ Bucharest
▪ Belgrade
▪ Tirana
▪ Skopje
▪ Pristina
▪ Banja Luka/
Sarajevo
▪ Zagreb
▪ Cairo/ Alexandria
▪ Podgorica
▪ Kiev
▪ Moscow
▪ Tbilisi
▪ Beirut
▪ Erbil

13. What we are
good at…Our Services
•International Tax
•Mergers & Acquisitions and Transactional
Advisory
•Transfer pricing
•Accounting services
•Financial services
•Outsourced Payroll and Employment
solutions
•Corporate services
•Citizenship & Residency services
•HR administration
•Banking and Financial services
•Business Restructuring & Insolvency
•IT specialized services
•Tax Planning & Tax Compliance
•Real Estate tax
•Shipping Tax
•Energy Tax
•Intellectual property
•market entry services
Bringing value to clients
with our service
Eurofast is Taxand Cyprus

14. www.eurofast.eu
Find us online

16. Thank you!