tag:blogger.com,1999:blog-83167059532655186132024-02-20T22:09:51.581+02:00Cyplaw Blog NewsCyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.comBlogger26125tag:blogger.com,1999:blog-8316705953265518613.post-40580069194984473922019-04-16T18:48:00.003+03:002019-04-16T18:48:52.930+03:00Blockchain: Cyprus on the doorstep of the new digital age<h2>
<span style="font-weight: normal;"><span style="font-family: inherit;"><span style="font-kerning: none;"><i>Legal support as a prerequisite</i></span><span style="font-kerning: none;"><i>in efforts to develop blockchain technology</i></span></span></span></h2>
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<span style="font-kerning: none;"><i><span style="font-family: inherit; font-weight: normal;">by Antonis Michaelides*</span></i></span></h3>
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<span style="font-kerning: none;"><span style="-webkit-font-kerning: none;"><span style="font-family: inherit;">The hype around bitcoin shone a spotlight on the technology which supports this and similar types of currencies. The much-talked about blockchain technology is expected to play a leading role in the so-called Fourth Industrial Revolution, changing drastically the way that modern societies work at the state and public level as well as at the private level.</span></span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Blockchain can transform the way we exchange information and carry out transactions, so that everything is executed without intermediaries, faster and cheaper. It is essentially a series of transaction-related entries in a public, shared, and decentralised digital ledger. Each device on the blockchain network can keep a copy of this ledger. The blocks are created through a verification process called “proof of work”, during which a complicated mathematical problem is resolved through an algorithm. Each new group of entries (block) is connected with previous groups, thereby creating a blockchain.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">The great potential of this technology lies in its features, since the public access to blockchain ensures information dissemination as well as security and transparency of transactions. As a result, blockchain has been adopted by a quite significant number of businesses, organisations, and governments around the world, who use it in various services, while their number is expected to increase significantly in the near future.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">At the same time, the EU launched a Blockchain Observatory and Forum in the beginning of 2018, with a view to monitor developments and promote blockchain technology, while 26 EU member-states together with Norway signed a Declaration creating the European Blockchain Partnership, committing to cooperate on developing blockchain-based technologies. In October, the European Parliament adopted a resolution on distributed ledger technology (DLT) and blockchain, estimating that it can be a useful tool for companies and organisations, which will ensure legal certainty in various processes of their services. </span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Malta, as an EU member-state, has already established a regulatory framework for companies active in cryptocurrencies, blockchain, and DLT by enacting three new laws. Apart from this, the Maltese government has created a detailed state strategy on blockchain based on six main pillars, which prove a deep understanding of blockchain technology and its evolution. This strategy entails provisions on the transfer of public registers to blockchain as well as on e-residency, digital identities, and smart governance.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Estonia has since 2016 digitised all its citizens’ data (tax, medical, pharmaceutical etc.) as well as almost all of its public services data, adding them to blockchain. At the same time, the adoption and establishment of e-residency attracted more start-up companies active in cryptocurrencies than in any other European country, since ICOs (Initial Coin Offerings) are now being launched only by persons whose backgrounds have been checked and approved by the Estonian government and police, and have been rated as “trusted ICOs”. This gives a sense of security and trust to potential investors towards the persons who launch ICOs.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">On a broader scale, Singapore has been the first Asian country who introduced blockchain to the aviation industry, allowing all interested parties (cabin and ground crews, airport employees, and passengers) to gain access to the continuously updated airport system on arrivals, departures, and delays. In this way, it managed to reduce the risk of contradicting information that users can find online by airlines and/or at the airport website. Singapore airlines have also restructured recently their clients’ payment and reward system by adopting blockchain. Singapore’s Ngee Ann Polytechnic (NP), a higher education institution, has also introduced blockchain to its educational system, as a way of verifying the authenticity of its diploma certificates. By using the blockchain-based student IDs, potential employers are able to retrieve important academic information about the students and their educational background. There are also evident administrative and financial benefits from blockchain adoption, since by using blockchain-based student IDs, universities can retrieve original certificates of their students on their own, thereby reducing the possibility of certificate forgery by the students.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Blockchain can also be used by the land registry department for the registration of property rights, reducing significantly bureaucracy and the possibility of human error, since by registering and validating a title deed through blockchain, title owners can be sure of the accuracy and permanency of their titles. Blockchain ensures that they will never experience what the citizens of Haiti experienced during the deadly earthquake of 2010, when a large amount of state and citizens’ data, documents, and information were destroyed and citizens were left without title deeds. The UK, Georgia, Sweden, and Ukraine have already started working towards this direction. Blockchain is also a useful tool in electoral processes, preventing potential electoral fraud and/or manipulation of results, thereby restoring public confidence in the electoral system. After adding the votes to blockchain, there is no possibility of any kind of manipulation, as this was evidenced in the mid-term elections of 2018 in West Virginia, USA, where this technology was used. </span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">However, as with all kinds of technologies and innovations, blockchain is not a panacea, since it may be risky in many ways and has several disadvantages. The verification process before adding an activity to blockchain requires a huge amount of energy. Another significant disadvantage is that it can be used for illegal transactions and activities, as was the case with “Silk Road” in the USA, an online platform on the “dark web”, where users were carrying out illegal bitcoin transactions and could not be traced. As a result, US regulations today prevent users active in cryptocurrencies from remaining completely anonymous, obliging such online platform owners to collect clients’ information while registering, validate their identity, and confirm that their names are not included in any terrorist group list. Additionally, although this technology is safer and can reduce drastically the possibility of human error and/or information manipulation, the complete exclusion of human intervention will undoubtedly bring about several negative results in both society and economy, which need no further elaboration here.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Without a doubt, blockchain is a new and continuously evolving technology under evaluation, which is not yet sufficiently regulated. As a result, citizens who use blockchain technology usually act outside the law, while others even avoid using it, fearing possible violations of the law. Therefore, the establishment of a progressive and proactive legislation on blockchain will enhance citizens’ confidence in this technology and make it safer and attractive to more people. At a time when citizens’ direct involvement in public service activities through digitisation is becoming more and more common as well as necessary, and when public dissatisfaction with data manipulation and/or hacking is increasing, blockchain is viewed as a necessary evolution in their daily interaction. Of course, any such effort requires full respect for personal data protection, especially in EU countries, where detailed legislations imposing extremely high fines have been established on this issue.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Cyprus, following the above examples and on the basis of a more modern and progressive understanding of global developments, far from practices and ideologies of the past, can also play a leading role in the regulation of certain aspects of blockchain, establishing a framework that the regulatory authorities and users can trust. A regulatory framework based on a sufficient and effective legislation can make Cyprus an attractive destination for investment and the establishment of companies using blockchain. More specifically, the adoption of blockchain technology can contribute positively to different aspects of the society, including economy, education, and health, provided that blockchain legislation will be established and the existing legislation will be updated, to ensure that blockchain technology will not be used for illegal activities. However, such an initiative requires legal advisors specialised in such issues as well as experienced Information Technology professionals, to ensure that legislators sufficiently understand blockchain technology, in order to guide and protect citizens through such legislation. </span></span></div>
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<span style="-webkit-font-kerning: none;"><span style="font-family: inherit;">As this was analysed above and is evidenced by the aforementioned examples, Cyprus is yet in the early stage of blockchain understanding and, even more, of blockchain use. Nevertheless, the adoption of this technology and the establishment of sufficient legislation on several areas of interpersonal relations and everyday life will soon be a necessity instead of a choice. The adoption of innovative and technologically advanced services and applications, as well as of legislation governing such issues, will be the only way for Cyprus to remain a possible destination for such investments in a rapidly developing and chaotic world, which constantly offers new options.</span></span></div>
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<span style="-webkit-font-kerning: none;"><b><span style="font-family: inherit;">*<i>Advocate at Clerides, Anastassiou, Neophytou LLC</i></span></b></span></div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-79527834945752467042019-04-16T18:05:00.002+03:002019-04-16T19:00:48.341+03:00Blockchain: Cyprus on the doorstep of the new digital age<h2>
<span style="font-family: inherit; font-size: large;"><span style="font-weight: normal; text-align: justify;">Legal and technological support as a prerequisite</span><span style="font-weight: normal; text-align: justify;"> </span><span style="font-weight: normal; text-align: justify;">in efforts to develop the country’s technology sector</span></span></h2>
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<span style="font-family: inherit;"><span style="-webkit-text-stroke-width: initial;">The hype around bitcoin shone a spotlight on the technology which supports this and similar types of currencies. The much-talked about blockchain technology is expected to play a leading role in the so-called Fourth Industrial Revolution.</span><span style="font-kerning: none;"></span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Blockchain can transform the way we exchange information and carry out transactions, so that everything is executed without intermediaries, faster and cheaper. It is essentially a series of transaction-related entries in a public, shared, and decentralised digital ledger. Each device on the blockchain network can keep a copy of this ledger. The blocks are created through a verification process called “proof of work”, during which a complicated mathematical problem is resolved through an algorithm. Each new group of entries (block) is connected with previous groups, thereby creating a blockchain.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Due to its great potential, this technology was adopted by many businesses, organisations, and governments around the world, who are using it in various services. At the same time, the EU launched a Blockchain Observatory and Forum in the beginning of 2018, with a view to monitor developments and promote blockchain. Subsequently, EU member-states signed a Declaration creating the European Blockchain Partnership, committing to cooperate on developing blockchain-based technologies. </span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Malta has already established a regulatory framework for companies active in cryptocurrencies and blockchain. Estonia has since 2016 digitised its citizens’ data (tax, medical, pharmaceutical etc.) as well as almost all of its public services data, adding them to blockchain. Singapore has introduced blockchain in the aviation industry, allowing interested parties to gain access to the continuously updated airport system on arrivals, departures, and delays. In this way, it managed to reduce the risk of contradicting information that users can find online. Singapore’s Ngee Ann Polytechnic (NP) has also adopted blockchain as a way of verifying the authenticity of its diploma certificates. By using the blockchain-based student IDs, potential employers are able to retrieve important academic information about the students.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Blockchain can also be used by the land registry department for the registration of property rights, since by registering and validating a title deed through blockchain, the title will be more accurate as well as permanent. Many countries have started working towards this direction. Blockchain is also a useful tool in electoral processes, preventing potential electoral fraud, as this was evidenced in the mid-term elections of 2018 in West Virginia, USA, where this technology was used.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Without a doubt, blockchain is a new, continuously evolving technology under evaluation, which is not yet sufficiently regulated. At a time when citizens’ direct involvement in public service activities through digitisation is becoming more and more necessary and when public dissatisfaction with data manipulation and/or hacking is increasing, blockchain is viewed as a necessary evolution in their daily interaction.</span></span></div>
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<span style="font-kerning: none;"><span style="font-family: inherit;">Cyprus, following the above examples and on the basis of a more modern and progressive understanding of global developments, can proceed to the regulation of certain aspects of blockchain, establishing a framework that the regulatory authorities and users can trust. The regulation of blockchain technology can contribute positively to different aspects of the society (e.g. economy, education, health). However, such an initiative requires experienced legal advisors as well as experienced Information Technology professionals, to ensure that legislators sufficiently understand blockchain technology, in order to guide and protect citizens through such legislation. </span></span></div>
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<span style="-webkit-font-kerning: none;"><b><i><span style="font-family: inherit;">*Advocate at Clerides, Anastassiou, Neophytou LLC</span></i></b></span></div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-49925479476037583082018-04-11T14:55:00.000+03:002018-04-11T14:55:38.219+03:00Mr. Antonis Michaelides, advocate at CLERIDES, ANASTASSIOU, NEOPHYTOU LLC writes on the importance and development of the alternative investment funds in Cyprus<h2>
Alternative Investment Funds: A Tool for Growth</h2>
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<span style="font-family: inherit;">Since the 2013 banking crisis, Cyprus has made a concerted and multi-faceted effort to restore confidence and growth in the financial system. One of the most successful measures was the adoption by the Cypriot parliament in 2014 of the Alternative Investment Funds Law 113(I)/2014, based on relevant EU directives which regulates the establishment and operation of alternative investment funds in the Republic, creating a regime that can offer Cyprus multiple economic benefits and further its reputation as a financial centre.</span><br />
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<strong style="font-family: inherit; font-size: 17px;">Legal framework</strong><br />
Alternative investment funds may be established in the Republic under the Alternative Investment Funds Law 113(I)/2014, (the “AIF Law”), which replaced the International Collective Investment Schemes Law. The Cyprus Securities and Exchange Commission (CYSEC) is the competent regulatory and supervisory authority of AIFs in Cyprus.</div>
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Types and characteristics</h3>
An AIF is a collective investment undertaking, including investment compartments thereof, which raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors. It is not authorised as an Undertaking for Collective Investments in Transferable Securities (“UCITS”) in accordance with section 9 of the Open-Ended Undertakings for Collective Investments Law of 2012 (“UCITS Law”). An AIF may be set up as (i) a mutual fund, (ii) an investment company in the legal form of a limited liability company with shares, or (iii) as a limited liability partnership.</div>
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Benefits and advantages</h3>
Cyprus AIFs are licensed and supervised by CYSEC which strictly follows EU directives and guidelines, thereby offering investors the level of protection and supervision one would expect to enjoy in a EU country. At the same time, Cyprus enjoys a developed system of law supported by a knowledgeable judiciary and an extensive list of agreements for the mutual protection of investments. When it comes to tax treatment, Cyprus AIFs enjoy all the tax benefits the Cyprus tax regime has to offer, including, inter alia, access to its extensive double tax treaty network and relevant EU directives.Importance<br />
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<span style="font-family: inherit;"><span style="font-size: 17px;">With a total estimated growth of approximately 150% since 2014, the ever-increasing establishment of AIFs and the insulation of investments in the country through the vehicle of AIFs, undoubtedly demonstrates that Cyprus retains essential advantages and remains an attractive investment destination. CYSEC expects that the anticipated tapping of a range of financial technologies, innovations and applications such as the application and operation of </span></span><span style="font-size: 17px;">Finch</span><span style="font-family: inherit;"><span style="font-size: 17px;"> blockchain, Robo portfolio management and Robo advice, as well as the establishment of Crowdfunding, will bring new momentum to AIFs in Cyprus.</span></span><br />
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Developments and growth</h3>
Following the examples of other EU countries, the government is currently working on a new bill that aims to modernise and upgrade existing legislation, transforming it to a much more attractive piece of legislation. The new bill shall, inter alia, provide for the establishment and operation of registered alternative investment funds that will be free of the obligation to obtain the authorisation of CYSEC, provided that their manager is a licensed and regulated entity.<div class="content" style="line-height: 1.8em; padding-bottom: 0px;">
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It goes without saying that the government is on the right track as concerns the re-establishment of investors’ trust in the Cyprus economic and financial system. However, there is always more that can be done. A more holistic modification and upgrade of the general legal system for a more efficient and quicker administration of justice in economic and related matters should be examined. Moreover, combatting red tape more robustly so as to reduce procedural delays, would underscore the government’s determination to position Cyprus as a leading regional and international financial centre.</div>
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<span style="color: #666666;"><i>By Antonis Michaelides, Attorney at Clerics, Anastassiou, Neophytou LLC</i></span></div>
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Εναλλακτικά Επενδυτικά Ταμεία: Εργαλείο για την ανάπτυξη</h2>
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Μετά την τραπεζική κρίση του 2013, η Κύπρος προέβη σε μια συντονισμένη και πολύπλευρη προσπάθεια με σκοπό την αποκατάσταση της εμπιστοσύνης και την ανάπτυξη του χρηματοπιστωτικού της συστήματος. Ένα από τα πιο επιτυχημένα μέτρα ήταν η υιοθέτηση από τη Βουλή των Αντιπροσώπων, το 2014, του περί Οργανισμών Εναλλακτικών Επενδύσεων Νόμου 131(I)/2014 με βάση σχετικές οδηγίες της ΕΕ. Ο εν λόγω νόμος ρυθμίζει τη δημιουργία και λειτουργία των ταμείων εναλλακτικών επενδύσεων στη Δημοκρατία, δημιουργώντας ένα καθεστώς που μπορεί να προσφέρει πολλαπλά οικονομικά οφέλη στην Κύπρο και να ενισχύσει περαιτέρω τη φήμη της ως χρηματοοικονομικό κέντρο.<span style="font-family: inherit; font-size: 17px;"><br /> </span><br />
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Νομικό πλαίσιο</h3>
Οι Οργανισμοί Εναλλακτικών Επενδύσεων δύνανται να συσταθούν στη Δημοκρατία δυνάμει του περί Οργανισμών Εναλλακτικών Επενδύσεων Νόμου 113 (Ι)/2014 (ο «Περί ΟΕΕ Νόμος»), ο οποίος αντικατέστησε τον περί Διεθνών Συλλογικών Επενδυτικών Σχεδείων Νόμο. Η Επιτροπή Κεφαλαιαγοράς Κύπρου (η «Επιτροπή») είναι η αρμόδια ρυθμιστική και εποπτική αρχή των ΟΕΕ στην Κύπρο.<span style="font-family: inherit; font-size: 17px;"><br /> </span><br />
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Τύποι και χαρακτηριστικά</h3>
Ο ΟΕΕ είναι οργανισμός συλλογικών επενδύσεων, συμπεριλαμβανομένων των επενδυτικών τμημάτων του, ο οποίος συγκεντρώνει κεφάλαια από αριθμό επενδυτών με σκοπό την επένδυσή τους σύμφωνα με καθορισμένη επενδυτική πολιτική προς όφελος των εν λόγω επενδυτών. Δεν αδειοδοτείται ως Οργανισμός Συλλογικών Επενδύσεων σε Κινητές Αξίες (ΟΣΕΚΑ) σύμφωνα με την πρόνοια 9 του περί του Ανοικτού Τύπου Οργανισμών Συλλογικών Επενδύσεων Νόμου του 2012 (ο «Περί ΟΣΕΚΑ Νόμος»). Ο ΟΕΕ μπορεί να συσταθεί υπό τη μορφή (i) κοινού κεφαλαίου, (ii) εταιρείας επενδύσεων με τη νομική μορφή εταιρείας περιορισμένης ευθύνης με μετοχές, ή (iii) ετερόρρυθμου συνεταιρισμού.<span style="font-family: inherit; font-size: 17px;"><br /> </span><br />
<h3>
Οφέλη και πλεονεκτήματα</h3>
Οι ΟΕΕ στην Κύπρο αδειοδοτούνται και επιβλέπονται από την Επιτροπή, η οποία ακολουθεί αυστηρά τις οδηγίες και τις κατευθυντήριες γραμμές της ΕΕ, προσφέροντας στους επενδυτές το επίπεδο προστασίας και εποπτείας που ένας αναμένει να συναντήσει σε μια χώρα της ΕΕ. Ταυτόχρονα, η Κύπρος διαθέτει ένα ανεπτυγμένο νομικό σύστημα που υποστηρίζεται από μια εξειδικευμένη δικαστική εξουσία και έναν εκτεταμένο κατάλογο συμφωνιών για την αμοιβαία προστασία των επενδύσεων. Όσον αφορά τη φορολογική μεταχείριση, οι ΟΕΕ στην Κύπρο απολαμβάνουν όλα τα φορολογικά οφέλη που προσφέρει το κυπριακό φορολογικό καθεστώς, συμπεριλαμβανομένης, μεταξύ άλλων, της πρόσβασης στο εκτεταμένο δίκτυο συμβάσεων για αποφυγή διπλής φορολογίας και στις σχετικές οδηγίες της ΕΕ.<span style="font-family: inherit; font-size: 17px;"><br /> </span><br />
<h3>
Σημασία</h3>
Με τον συνολικό ρυθμό ανάπτυξης να υπολογίζεται γύρω στο 150% από το 2014, η συνεχώς αυξανόμενη ίδρυση ΟΕΕ και η εισχώρηση επενδύσεων στη χώρα μέσω των ΟΕΕ αποδεικνύει αναμφισβήτητα ότι η Κύπρος διατηρεί ουσιαστικά πλεονεκτήματα και παραμένει ένας ελκυστικός επενδυτικός προορισμός. Η Επιτροπή αναμένει ότι η αξιοποίηση μιας σειράς χρηματοοικονομικών τεχνολογιών, καινοτομιών και εφαρμογών όπως η εφαρμογή και λειτουργία της Fintech, του blockchain, η υπηρεσία διαχείριση χαρτοφυλακίου τύπου Robo και η συμβουλευτική υπηρεσία τύπου Robo, καθώς και η ίδρυση της Crowdfunding, θα δώσουν νέα ώθηση στους ΟΕΕ στην Κύπρο.<span style="font-family: inherit; font-size: 17px;"><br /> </span><br />
<h3>
Εξελίξεις και ανάπτυξη</h3>
Ακολουθώντας τα παραδείγματα άλλων χωρών της ΕΕ, η κυβέρνηση επεξεργάζεται ένα νέο νομοσχέδιο που αποσκοπεί στον εκσυγχρονισμό και την αναβάθμιση της υφιστάμενης νομοθεσίας, μετατρέποντας την σε ένα πολύ πιο ελκυστικό νομοθέτημα. Το νέο νομοσχέδιο προβλέπει, μεταξύ άλλων, τη δημιουργία και τη λειτουργία καταχωρημένων οργανισμών εναλλακτικών επενδύσεων, που θα απαλλάσσονται από την υποχρέωση αδειοδότησης από την Επιτροπή, υπό την προϋπόθεση ότι ο διαχειριστής τους είναι εγκεκριμένη και ρυθμιζόμενη οντότητα.<br /> <br />Είναι αναμφισβήτητο ότι η κυβέρνηση βρίσκεται στον σωστό δρόμο όσον αφορά την αποκατάσταση της εμπιστοσύνης των επενδυτών στο οικονομικό και χρηματοπιστωτικό σύστημα της Κύπρου. Ωστόσο, πάντα υπάρχουν περιθώρια βελτίωσης. Πρέπει να εξεταστεί μια πιο ολιστική τροποποίηση και αναβάθμιση του γενικού νομικού συστήματος για αποτελεσματικότερη και ταχύτερη απονομή της δικαιοσύνης σε οικονομικά και συναφή θέματα. Επιπλέον, η επιτακτική καταπολέμηση της γραφειοκρατίας με σκοπό τη μείωση των χρονοβόρων διαδικασιών, θα ενίσχυε την αποφασιστικότητα της κυβέρνησης να αναδείξει την Κύπρο ως κορυφαίο περιφερειακό και διεθνές χρηματοπιστωτικό κέντρο.<span style="font-family: inherit; font-size: 17px;"><br /> </span><i><span style="color: #666666;">Δικηγόρος στο Κληρίδης, Αναστασίου, Νεοφύτου ΔΕΠΕ.<br /> Αντώνης Μιχαηλίδης </span></i></div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-12242324080458803322017-01-18T17:28:00.001+02:002017-01-18T17:28:21.555+02:00 MRS RODOULLA ACHILLIDOU, ACCREDITED MEDIATOR AND LAWYER AT CLERIDES, ANASTASSIOU, NEOPHYTOU LLC WRITES IN THE PRESS ABOUT THE ADVANTAGES OF MEDIATION. <iframe src="https://drive.google.com/file/d/0B_yveNXRHFX0MFVjSHdmN3NVYU0/preview" width="640" height="480"></iframe>Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-26930891611585193512017-01-18T16:53:00.000+02:002017-01-18T16:53:38.538+02:00 NATURALIZATION OF PERSONS & RESIDENCY PERMIT <div align="center" class="MsoNormal" style="tab-stops: 432.35pt; text-align: center;">
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<b><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Naturalization of Persons<o:p></o:p></span></u></b></div>
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<b><i><span style="font-family: "Cambria","serif"; font-size: 12.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The Republic of Cyprus has
established a scheme for naturalization of investors in Cyprus by exception
(hereinafter the “Scheme”) as part of its policies to encourage foreign direct
investments and attract high net worth individuals to reside and do business in
Cyprus. The Scheme, as revised on the 13<sup>th</sup> of September 2016,
provides for the granting of citizenship to non-Cypriot high-net worth
individuals, investors and entrepreneurs subject to the fulfillment of certain
criteria, terms and conditions as set out below. <o:p></o:p></span></i></b></div>
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<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Who can apply?</span></u></i></b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A non- Cypriot citizen may apply for
naturalization by exception either personally or through a company/companies. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In case of an application through a
company/ies, the applicant must either (a)participate in such company/ies as a
shareholder – in proportion to his holding percentage, or (b) through
investments done by his/her spouse or jointly with the spouse or (c) as a high-ranking senior manager of such company/ies that she/he receives such a
remuneration that generates for Cyprus tax revenues of at least €100,000 over a
three (3) year period and provided that this tax has already been paid or
prepaid. <o:p></o:p></span></div>
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<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Economic Criteria<o:p></o:p></span></u></i></b></div>
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<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></u></i></b></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">According to the Scheme, the applicant shall meet
one of the below economic criteria:<o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Investment in real estate, land development and
infrastructure projects:<o:p></o:p></span></b></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The applicant must have made an investment of
at least €2, 0 million for the purchase or construction of buildings or for the
construction of other land development projects (residential or commercial
developments, developments in the tourism sector) or other infrastructure
projects. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It shall be noted that investment in land
under development is included in this criterion, provided that an investment
plan for the development of the purchased land will be included in the
application. It is understood that investment in land that is situated in a
building zone of zero development, is excluded.<o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Purchase or Establishment or Participation in Cypriot
Companies or Businesses:<o:p></o:p></span></b></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The applicant should have made a purchase or
should have participated in companies or organizations established and
operating in Cyprus with investment costs of at least €2,0 million. The
invested funds shall be channeled towards the financing of the investment
objectives of these companies exclusively in Cyprus, based on a specific
investment plan. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The applications shall be evaluated to verify
that the companies or organizations have proven physical presence in Cyprus,
with significant activity and turnover and employ at least five (5) Cypriot or
citizens of European Union member-states. The minimum number of employees shall
increase, if more than one applicant invests simultaneously or almost
simultaneously in the same business or company. In addition, the employees of
the companies need to have legally and continuously resided in Cyprus during
the five (5) years preceding the application submission date.<o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Investment in Alternative Investment Funds or financial
assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus
Security and Exchange Commission (hereinafter “CySec”)<o:p></o:p></span></b></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The applicant should have bought units of at
least €2,0 million from alternative investment funds (AIF) established in
Cyprus, licensed and supervised by the CySec and whose investments are made
exclusively in Cyprus, in investments that meet the criteria of this Scheme or
in areas approved by the Minister of Finance.<o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> In
order to confirm that the investments that meet the criteria of the current
Scheme will be kept for at least three years, the manager or the auditor of the
Fund shall inform in writing and on an annual basis, the Ministries of Finance
and Interior with reference to the value of the initial investment.<o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The purchase of financial assets of Cypriot
companies or organizations of at least €2,0 million, such as bonds, bills and
securities, issued with the approval of the CySec, by companies that have
proven physical presence and substantial economic activity in Cyprus, and have as a purpose the financing
of the investment plans of these companies or organizations exclusively in
Cyprus, based on an investment plan, fall under this criterion. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Finally, it shall be noted that the purchase
by an AIF of units of other AIFs is not considered eligible.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraph" style="margin-bottom: 10.0pt; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l2 level1 lfo1; tab-stops: 432.35pt; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Combination of the aforementioned investments<o:p></o:p></span></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The applicant may proceed with a combination
of the above investments, provided that the total investment will amount up to
at least €2,0 million. Within this criterion, the applicant may purchase
special government bonds of Cyprus, up to €500.000, which will be issued by the
Public Debt Management Office of the Ministry of Finance, on condition that the
investor will retain these bonds for a three year period. The characteristics
and the terms of these special bonds will be determined by the General and
Special Issue Terms of the Government Bonds of Cyprus. Investments in government
bonds through the secondary market are not considered eligible.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Terms and conditions<o:p></o:p></span></u></i></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></u></i></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 10.0pt; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: 432.35pt; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Clean Criminal Record;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: 432.35pt; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Residence in the Republic of Cyprus: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 35.45pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l4 level1 lfo4; tab-stops: 432.35pt; text-align: justify; text-indent: -14.15pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">the applicant must possess a permanent privately-owned
residence in Cyprus, the purchase price of which must be at least €500.000,
plus V.A.T. ,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 35.45pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l4 level1 lfo4; tab-stops: 432.35pt; text-align: justify; text-indent: -14.15pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">members of the same family, who apply separately, can
collectively acquire a residence, provided that the total value of such
home-property covers the amount of €500.000, plus V.A.T. per each applicant ;
and <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 18.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: 432.35pt; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Residence permit: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 35.45pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l3 level1 lfo5; tab-stops: 432.35pt; text-align: justify; text-indent: -14.15pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">the applicant, prior to his/her naturalization as a Cypriot
citizen must hold a residence permit in Cyprus as below,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 10.0pt; margin-left: 35.45pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l3 level1 lfo5; tab-stops: 432.35pt; text-align: justify; text-indent: -14.15pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">in case the applicant does not already hold a residency
permit, he/ she may apply for one simultaneously with the application of
naturalization. If application for residency permit is solely for
naturalization purposes, there are no other conditions other than the ones
stated in the Scheme. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Submission of documents <o:p></o:p></span></u></i></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></u></i></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Specific documents must be submitted and,
depending on the case, additional documents will be required.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 0cm 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Further to the list provided by
the ministry of interior of Cyprus, additional documentation may be requested
by either the Ministry of Interior or the Ministry of Finance for evaluation
purposes. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="tab-stops: 432.35pt; text-align: justify;">
<!--[if gte vml 1]><v:shape id="Picture_x0020_8"
o:spid="_x0000_i1028" type="#_x0000_t75" alt="banner" style='width:434.25pt;
height:80.25pt;visibility:visible;mso-wrap-style:square'>
<v:imagedata src="file:///C:\Users\user33\AppData\Local\Temp\msohtmlclip1\01\clip_image003.jpg"
o:title="banner"/>
</v:shape><![endif]--><!--[if !vml]--><!--[endif]--><b><i><u><span lang="EL" style="font-family: "Cambria","serif"; mso-ansi-language: EL; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></u></i></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">General notes<o:p></o:p></span></u></i></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<b><i><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></u></i></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 10.0pt; margin-left: 14.2pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -14.2pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">in addition
to the above-listed criteria, terms and conditions, it is required that the necessary investments
should have been made by the applicant during the three (3) years preceding the
date of the application <i><u>and</u></i> the
applicant must retain the said investments for a period of at least three (3)
years as from the date of the naturalization;</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 14.2pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -14.2pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">the Cabinet
of Ministers has absolute discretion in deciding whether or not to grant a
citizenship to the applicant;</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 14.2pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -14.2pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">in the case
where, following a periodic inspection, it has been established that a
criterion, term or condition of the Scheme has been breached, the granted
naturalization may be revoked; and</span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 10.0pt; margin-left: 14.2pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -14.2pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">the Scheme
provides for the grant of the Cypriot citizenship to the spouse or partner of
the applicant, to the parents of the applicant (subject to the requirements set
out therein) and to the financially dependent adult children of the applicant
as well (as these are defined therein). The spouse or partner of the applicant
may acquire the Cypriot citizenship
after filing the relevant application but it is understood that the Council of
Ministers allows for the submission of the spouse’s or partner’s application
along with the applicant’s application so that they will both acquire the Cypriot
citizenship simultaneously. As regards the minor children, the adult children
and the applicant’s parents their application shall be submitted after the
applicant has acquired the Cypriot citizenship. Moreover, it shall be noted
that the adult family members of the applicant prior to their naturalization as
Cypriot citizens must hold a residence permit in Cyprus.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<!--[if gte vml 1]><v:shape
id="Picture_x0020_9" o:spid="_x0000_i1027" type="#_x0000_t75" alt="banner"
style='width:435pt;height:80.25pt;visibility:visible;mso-wrap-style:square'>
<v:imagedata src="file:///C:\Users\user33\AppData\Local\Temp\msohtmlclip1\01\clip_image003.jpg"
o:title="banner"/>
</v:shape><![endif]--><!--[if !vml]--><!--[endif]--><b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="margin-right: 35.65pt; text-align: center;">
<b><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Residency
Permit<o:p></o:p></span></u></b></div>
<div align="center" class="MsoNormal" style="margin-right: 35.65pt; text-align: center;">
<b><u><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></u></b></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A residency permit may be issued to any
person who is a third country nationals (the “Applicant”), provided that such
person fulfills the following criteria:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(a)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"> </span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The
Applicant must prove that he/she has at his/her disposal a secured minimum
annual income of €30,000, from sources other than employment in Cyprus. The
required income of €30,000 could derive from salaries of employment abroad and
not in Cyprus, pensions, stock shares, rents, etc. The necessary minimum annual
income is increased by €5.000 for each dependent person of his/her family
(spouse/partner and children) and by €8.000 for every dependent parent or
parent-in-law.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(b)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">
</span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The
Applicant must submit the application form accompanied with a Title of
ownership or contract of sale, of a property in Cyprus, a house, apartment or
other building, in his/her name and/or the name of his/ her spouse, of a
minimum market value of €300,000 and proof of payment for at least €200,000. The
contract of sale should already have been submitted to the Department of Lands
and Surveys.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"> Further it is noted that the
real estate purchase may be accepted even when made in the name of a legal
person, provided that (i) the applicant and/or his/her spouse are the sole
shareholders or the ultimate beneficial owners of it, and (ii) the legal person
is legally established in the Republic of Cyprus or other member state of the
European Union or European Economic Area. </span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"> </span><span style="font-family: Cambria, serif; text-indent: -36pt;">Also, it shall be noted that the
purchase must be in relation to a property sold for the first time by a
development company.</span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(c)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">
</span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The Applicant
must submit a confirmation letter from a Cypriot Bank stating that he/she has
deposited a minimum capital of €30.000 in an account, which will be pledged at
least for a three year period. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It is noted that the amounts mentioned in
paragraphs (b) and (c) should be proven to have been transferred to Cyprus from
abroad. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(d)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">
</span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The
applicant must submit a Criminal Record Certificate (if the applicant resides
abroad), which must be issued by the Authorities in his country of origin, and
he should not constitute in general any threat against public order or security
in Cyprus.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(e)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">
</span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"> The
applicant should submit a Statement that he does not intent to work or be
engaged in any form of business in Cyprus.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 10.0pt; margin-left: 54.0pt; margin-right: 35.65pt; margin-top: 0cm; mso-add-space: auto; text-align: justify; text-indent: -36.0pt;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">(f)</span><span style="font-family: "Cambria","serif"; font-size: 7.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">
</span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The applicants
should visit Cyprus at least once every two years. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The application should be submitted on the
prescribed form to the relevant authority personally or through post or through
a representative. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It is estimated that when applying the
procedure described above, the period for the examination of the application,
shall not exceed a period of 2 months.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The residency permit issued to an applicant
covers his/her spouse and children under the age of 18. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Note however that the residency permit does
not provide visa-free travel to other EEA Member States.<o:p></o:p></span></div>
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<!--[if gte vml 1]><v:shape
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<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b>For further
information please contact us at:</b><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><span style="color: #3d85c6;"><b>Clerides,
Anastassiou, Neophytou LLC</b></span><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Ergoserve
Building<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Limassol,
Cyprus<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Tel: +357 25
274050<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: #3d85c6; font-family: Cambria, serif;"><u><b>info@cyplaw.com</b></u></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 35.65pt; tab-stops: 432.35pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">This material has been prepared by
professionals of </span><span style="color: #3d85c6; font-family: Cambria, serif;"><b>Clerides, Anastassiou, Neophytou LLC</b></span><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b>.</b> It is intended as a
general guide only, and its application to specific situations will depend on
the particular circumstances involved. Accordingly, we recommend that readers
seek appropriate professional advice regarding any particular problems that
they encounter. This information should not be relied upon as a substitute for
such advice. While all reasonable attempts have been made to ensure that the
information contained herein is accurate, </span><b style="color: #3d85c6; font-family: Cambria, serif;">Clerides, Anastassiou, Neophytou LLC</b><span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> accepts no responsibility for any errors or omission it may contain or any
opinions contained herein whether caused by negligence or otherwise, or for any
losses, however caused, sustained by any person that relies upon it. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><span style="color: #3d85c6;"><b>Clerides, Anastassiou, Neophytou LLC</b></span> provides
corporate and commercial legal services, to public and private international
and local clients spanning multiple industries. Please visit our internet site
at <a href="http://www.cyplaw.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">www.cyplaw.com</span></a> for a full description of
our services and representative transactions.
<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-right: 35.65pt; text-align: justify;">
<span style="font-family: "Cambria","serif"; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">All rights reserved. No part of this
publication may be reproduced or transmitted in any form or by any means
without prior permission of the publisher. <o:p></o:p></span></div>
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</div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-69142003047082202462016-11-18T16:13:00.002+02:002016-11-18T16:16:28.126+02:00International honours for Clerides, Anastassiou, Neophytou LLC<span style="font-family: inherit;">Clerides, Anastassiou, Neophytou LLC has been again selected and ranked by the highly regarded international rating directories for law firms, LEGAL 500 and Chambers and Partners, as among the best law firms in Cyprus for 2016.<br /><br />Specifically, Clerides, Anastassiou, Neophytou LLC achieved a high distinction by LEGAL 500 for its experience and expertise, as well as for the high standard of quality services it offers in three categories of law, namely, Commercial, Corporate and Mergers & Acquisition, Tax, and Banking & Finance.<br /><br />Chambers and Partners also gave high praise to the law firm in its annual evaluation. The law firm excelled in the categories of Commercial and Corporate law , Banking and Finance, as well as in the category of Tax. Chambers and Partners stresses that the firm is well known for its knowledge in the areas of private equity and venture capital funds, capital markets and financial transactions, particularly on a cross-border level. It adds that the firm is also recognised for its experience in the area of corporate bonds and structuring of commercial transactions, thus achieving maximum security for its clients. It also notes the firm’s expertise in a wide range of cross-border matters, such as mergers, restructurings and Initial Public Offerings (IPO).<br /><br />Lawyers Effie Anastassiou, Stavros Clerides and Stephanos Evangelides also received highly honourable personal mentions, regarding their expertise and the high level of quality services they provide.<br /><br />The two international rating agencies base their evaluations on a large sample of independent research work and choose and evaluate the most established law firms globally by area of expertise. It is worth noting that Clerides, Anastassiou, Neophytou LLC has received similar honorary distinctions in previous years from these particular agencies, as well as others.</span>Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-42751282703544247652015-07-29T11:04:00.000+03:002015-08-01T12:52:54.935+03:00THE ALTERNATIVE INVESTMENT FUND MANAGERS REGIME – A NEW ERA FOR THE FUNDS INDUSTRYOn July 5, 2013 Cyprus transposed into law the EU Alternative Investment Fund Managers (AIFM) Directive by introducing the Alternative Investment Fund Managers Law (AIFML). <br /><br />Choosing Cyprus as the place of establishment of an AIFM holds multiple benefits, such as the local favorable tax regime, Cyprus network of double tax treaties, comparably low establishment and maintenance costs and of course taking advantage of the passporting features of the directive itself across the EU.<br /><br />Our firm has already auspiciously assisted in the successful application of a major European Institutional Group for an Alternative Investment Fund Manager licence in Cyprus under the AIFM law, and facilitated with all relevant EU passporting procedures. <br /><br />Moreover, our firm maintains a specialised team of associates, who stand ready to assist you with high-value, cost-efficient services, undertaking all necessary arrangements and steps for the successful application of an AIFM license.<br /><br />To obtain the full brochure on the AIFML, you may email us at: <a href="mailto:info@cyplaw.com">info@cyplaw.com</a> and we shall provide you with the pdf version of this file. Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-80333875046809493992015-07-28T17:36:00.000+03:002015-07-28T17:52:07.598+03:00ALTERNATIVE INVESTMENT FUNDS<div style="text-align: justify;">
You may view below our full brochure on Alternative Investment Funds:<br />
<br />
April 2015</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>History</b></div>
<div style="text-align: justify;">
The Alternative Investment Funds Law of 2014 (the “Law”) came into force in July 2014 replacing and repealing the International Collective Investment Schemes Law of 1999 (the “ICIS Law”) in an effort to bring together under a single supervisory authority, namely the Cyprus Securities and Exchange Commission (“CySec”), all Cyprus investment firms, products and asset managers. The Law adopts relevant EU Directives on asset management and updates the funds’ regime in Cyprus; it applies to Alternative Investment Funds (the “AIFs”) established in Cyprus regulating effectively the responsibility and role of persons involved in the activities of the AIFs (such as directors, custodians, external managers etc.) and provides rules for the ongoing operations of the AIFs, their transparency requirements and supervision. Certain specialised arrangements inter alia insurance business, employee participations schemes and securitisation SPVS (special purpose vehicles) are excluded from the armpit of the Law.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>What is an AIF and how can it be structured?</b></div>
<div style="text-align: justify;">
The purpose of an AIF is a collective investment undertaking to raise external capital from a number of investors with a view of investing such capital in accordance with a defined policy for the benefit of those investors, and which has not been authorised as a UCITS fund. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The Law permits the establishment of <b>two types of AIFs: </b></div>
<br />
<ul>
<li style="text-align: justify;">An AIF for an unlimited number of persons, which can be marketed to (i) the public or (ii) to a well informed and/or professional investor. </li>
<li style="text-align: justify;">An AIF which can be marketed to well informed and/or professional investors, whose number cannot exceed 75 (AIF-LNP). Among these two types of AIF, the AIF-LNP is the most lightly regulated type - it is not subject to minimum capital requirements or investment restrictions.</li>
</ul>
<br />
<div style="text-align: justify;">
<b>A professional investor</b> is an investor who is considered a professional client, under the MiFID (Markets in Financial Instruments Directive) or may on request be treated as such. <b>A well informed investor</b> is an investor who is not a professional investor but is aware of the risks related with the proposed investment and shows that he has the necessary experience and knowledge to be able to evaluate the appropriateness of the investment in the AIF. <b>A retail investor</b> is neither a professional nor a well-informed investor.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>An AIF may be structured in one the following ways: </b></div>
<br />
<ul>
<li style="text-align: justify;">a limited partnership; </li>
<li style="text-align: justify;">a limited liability company with shares which can be either of a fixed or of a variable capital; </li>
<li style="text-align: justify;">a mutual/common fund (only available for AIF with no limited number of investors).</li>
</ul>
<br />
<div style="text-align: justify;">
<b>How can an AIF be used?</b></div>
<div style="text-align: justify;">
The AIF can be used as: </div>
<br />
<ul>
<li style="text-align: justify;">An <b>umbrella fund</b> with multiple investment compartments enabling the management of different pools of assets with distinct investment policies in segregated sub-funds within the AIF. </li>
<li style="text-align: justify;">A <b>mutual/common fund</b> where the investors are all co-owners of the assets of the AIF. </li>
<li style="text-align: justify;">A <b>family</b> or <b>closed pool fund </b>for a limited number of investors.</li>
</ul>
<br />
<div style="text-align: justify;">
Public offerings of the AIF shares/units and listings in stock markets are possible increasing in this way the participation of potential investors and promoting transparency and marketability.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>Custodian</b></div>
<div style="text-align: justify;">
The custodian / depositary is no longer a role to be undertaken strictly and solely by banking or credit institutions, the duties of the custodian / depositary can be undertaken by any investment firm or other similar in nature entity which can be particularly attractive for real estate and private equity funds.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In case the AIF-LNP’s assets are not eligible for custody, the requirement for the appointment of a custodian/depositary may be waived for an AIF-LNP or may be performed (as stated above) pursuant to the provision of clause 23(5) of the Law by “an entity which performs depositary functions within the context of its professional or business activities, for the performance of which is subject to professional registration recognised by legal, regulatory or administrative provisions or by rules of professional conduct and can provide sufficient financial and professional guarantees that it will perform sufficiently its depositary duties and meet the commitments associated with these duties”.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>Other AIF Characteristics </b></div>
<br />
<ul>
<li style="text-align: justify;">Open-ended and Close-ended funds: in <b>open-ended funds</b> the investors have the right to redeem/repurchase their units/shares upon request either at any time or at regular intervals not exceeding one year; in <b>close-ended funds</b> the investors have the right to redeem/repurchase their units/shares upon request either at regular intervals exceeding one year but not exceeding five years or at a specific time as specified in the AIF’s constitutional documentation. </li>
<li style="text-align: justify;">An AIF can be either <b>self-managed </b>provided that the regulations of the Law are complied with, or it can be<b> managed by an external manager</b>, such as an Alternative Investment Fund Manager authorised pursuant to the Alternative Investment Fund Managers Law of 2013, or a UCITS (Undertakings for Collective Investment in Transferable Securities) management company or a Cyprus Investment Firm. An AIF-LNP may also be managed by a management company set up for the exclusive purpose of managing the specific AIF-LNP subject to CySec approval. AIFs with unlimited number of persons are subject to a minimum capital of at least Euro 125.000 or Euro 300.000 in the event such an AIF with unlimited number of persons is self-managed.</li>
</ul>
<br />
<div style="text-align: justify;">
<b>Tax and other Benefits </b></div>
<br />
<ul>
<li style="text-align: justify;">Flat rate of <b>12.5% corporate tax</b> </li>
<li style="text-align: justify;"><b>Profits</b> realised from redemption from holdings in other companies (including AIFs) <b>are not subject to income tax </b></li>
<li style="text-align: justify;"><b>No taxation on capital gains</b> </li>
<li style="text-align: justify;"><b>No withholding tax on dividend distributions</b> received by a non-Cyprus tax resident </li>
<li style="text-align: justify;">The AIF can <b>take advantage of the Cyprus double tax treaty network</b> </li>
<li style="text-align: justify;"><b>Services</b> provided by the investment manager of an AIF <b>are not subject to a VAT charge</b> </li>
<li style="text-align: justify;">The regulatory requirements and <b>timing required</b> for the processing of the licensing application are <b>reasonable</b> </li>
<li style="text-align: justify;"><b>Low set-up and operations costs</b> compared to other jurisdictions.</li>
</ul>
<br />
<div style="text-align: justify;">
<b>What we can do for you: </b></div>
<div style="text-align: justify;">
Advise you on the set up and structure of an AIF. Assist with the incorporation of an entity to be licensed as an AIF, including drafting all constitutional documentation required. Prepare the licensing application package (including all documents and forms required under the legal regime) for CySec and where applicable for the Registrar of Companies in Cyprus, following up with the processing of the application and liaising with CySec and other local authorities until such time as the AIF is fully operative. Provide legal support throughout the AIF’s application process and operation. Provide ongoing administration and legal services for the AIF throughout its life.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>How we can help you:</b></div>
<div style="text-align: justify;">
<b><span style="color: #3d85c6;">Clerides Anastasiou Neophytou</span></b> is a leading law firm in Cyprus specialising in corporate, commercial, and tax law and M&A transactions. We are top ranked in tax law and highly recommended in corporate and M&A by well-known international agencies ranking law firms worldwide. Our associates and staff stand ready to assist you with efficient, high value cost efficient services to help you structure your transactions in Cyprus.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>For further information please contact us at:</b></div>
<div style="text-align: justify;">
<b><span style="color: #3d85c6;">Clerides, Anastassiou, Neophytou LLC</span></b></div>
<div style="text-align: justify;">
Limassol, Cyprus</div>
<div style="text-align: justify;">
Tel: +357 25 274050</div>
<div style="text-align: justify;">
<span style="color: #3d85c6;"><b>info@cyplaw.com</b></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
This material has been prepared by professionals of <b><span style="color: #3d85c6;">Clerides, Anastassiou, Neophytou LLC</span></b>. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, <b><span style="color: #3d85c6;">Clerides, Anastassiou, Neophytou LLC</span></b> accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: #3d85c6;">Clerides, Anastassiou, Neophytou LLC</span><span style="color: #0b5394;"> </span></b>provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at www.cyplaw.com for a full description of our services and representative transactions. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.</div>
Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com1tag:blogger.com,1999:blog-8316705953265518613.post-70478978004207245852015-07-28T16:59:00.000+03:002015-07-28T17:50:07.683+03:00CYPRUS INTERNATIONAL TRUSTS<div style="text-align: justify;">
You may view below our full brochure on Cyprus International Trusts:<br />
<br />
June 2014</div>
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>History</b></div>
<div style="text-align: justify;">
In 1992, Cyprus enacted The International Trusts Law, which complemented and modernised the existing Trustee Law, an action which has proven to be a “successful step” towards rendering Cyprus a favourable jurisdiction attracting foreign investors from all over the world for the creation of international trusts. The 1992 International Trusts Law was further amended in early 2012 to adapt to the changing circumstances of the business world, strengthening in this way even more the position of Cyprus as one of the most attractive trust jurisdictions by providing a flexible, secure and modern legal and taxation framework. The International Trusts Law of 1992 to 2013 now seems to be more easily adaptable to the business needs of today’s ever growing requirements.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>Concept</b></div>
<div style="text-align: justify;">
The Trust is a fiduciary arrangement/agreement whereby an individual (Settlor) either during one’s lifetime or upon death places assets under the control of a third party (Trustee), to hold and manage the assets on behalf and for the benefit of another third party (Beneficiary). It is common but not compulsory for a Trust to have a Protector to whom the Settlor may give the right to restrict the rights and powers of the Trustee, veto the latter’s decisions, or even appoint or terminate the appointment of a Trustee.</div>
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<b>Few words on what constitutes the Cyprus International Trust (CIT) </b></div>
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A CIT can be established if the Settlor and any Beneficiary (with the exception of a charitable organization) are not Cyprus tax residents in the calendar year preceding the year of the creation of the Trust, thus Settlors can now relocate to Cyprus after establishing a CIT and Beneficiaries no longer need to be non-Cyprus tax residents during the life of the Trust. At least one of the Trustee(s) must be a resident of Cyprus. A CIT has no limit as to the period of its duration; a Trust may continue to be valid and enforceable for an indefinite period. A beneficiary can be an individual (including an unborn person) or a legal person. Purpose trusts are allowed and the trustee may have an interest in the trust property. Trustees are permitted to hold, maintain and/or invest in movable and immovable property located in Cyprus and elsewhere, which also includes investing in shares of a company incorporated in Cyprus. The Settlor has the right to reserve many powers, inter alia, revoke or amend the provisions of the Trust, to appoint or remove any Trustee, Inspector, Protector or Beneficiary of the Trust and is able to limit the Trustees’ powers. For a CIT that is governed by Cyprus Law, subject to the terms of the trust document, any inheritance laws of both Cyprus and other jurisdictions cannot interfere with the effect of a CIT thus giving exclusivity to the trust laws of Cyprus as regards CITs by excluding conflict of laws. All matters of the CIT, subject to the terms of the trust document, are determined under Cyprus law while at the same time a CIT may be changed to another foreign law.</div>
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<b>Benefits </b></div>
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The income and gains of a CIT which are earned or deemed to be earned from all sources (in and out of Cyprus) are subject to Cyprus tax only in the event of a beneficiary being a Cyprus tax resident; In the case of a beneficiary who is not a Cyprus tax resident, only income or gains earned or deemed to be earned from Cyprus sources are subject to Cyprus tax; There is no inheritance tax or estate duty in Cyprus; CITs and their bank deposits in Cyprus banks are not subject to exchange control; There are no reporting requirements for CIT; Registration of the CIT is not compulsory, apart from registering the CIT with one of the three authorities in Cyprus supervising and regulating the provision of trustee services by giving some specific information on the CIT such as name, address, date of creation etc. to be in line with EU and local anti-money laundering laws; Anonymity and confidentiality of the individuals creating a CIT and of their beneficiaries are safeguarded by provisions of the law; Asset protection for minors and other family members, against spendthrift beneficiaries or against risks arising in contract or otherwise from transactions entered into by the Settlor, or even against potential liquidation or bankruptcy of the latter; Very low and competitive cost prices for setting up and maintaining a CIT, with a stamp duty payable to the Cyprus authorities not exceeding Euro 450.</div>
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<b>What we can do for you:</b></div>
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Advise you on the creation of a CIT and draft all required legal documentation in relation thereto. Set up and manage trustee companies to offer their trusteeship services to a CIT. Advise you about all issues relating to a CIT, including trustee powers, beneficiary rights etc., and for any other matter that may be of concern to you in relation to the creation of a CIT or of an existing CIT. Review and interpret trust deeds and other trust related documentation. Advise on tax matters relating to the creation and maintenance of a CIT. For further information please contact <b><span style="color: blue;">Dimitra Papadopoulou at <u>d.papadopoulou@cyplaw.com </u></span></b></div>
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<b>How we can help you:</b></div>
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<b>Clerides Anastasiou Neophytou</b> is a leading law firm in Cyprus specialising in corporate, commercial, and tax law and M&A transactions. We are top ranked in tax law and highly recommended in corporate and M&A by well-known international agencies ranking law firms worldwide. Our associates and staff stand ready to assist you with efficient, high-value, cost-efficient services, to help you structure your transactions in Cyprus.</div>
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<b><span style="color: blue;">For further information please contact us at:</span></b></div>
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<b>Clerides, Anastassiou, Neophytou LLC</b></div>
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Limassol, Cyprus</div>
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Tel: +357 25 274050</div>
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<span style="color: blue;"><b><u>info@cyplaw.com </u></b></span></div>
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<br /></div>
<div style="text-align: justify;">
This material has been prepared by professionals of <b>Clerides, Anastassiou, Neophytou LLC.</b> It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, <b>Clerides, Anastassiou, Neophytou LLC</b> accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.</div>
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<b>Clerides, Anastassiou, Neophytou LLC</b> provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <b><span style="color: blue;"><u>www.cyplaw.com</u> </span></b>for a full description of our services and representative transactions. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.</div>
Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-21793324027669600522015-06-30T23:36:00.000+03:002015-07-28T16:18:56.148+03:00An interview by Mr. Stavros Clerides regarding CAN which appeared in Gold Magazine recentlyYou may visit <a href="http://www.goldnews.com.cy/en/professional-services/stavros-clerides--going-the-extra-mile" target="_blank">here</a> the interview delivered by Mr. Stavros Clerides regarding C.A.N. LLC which appeared in Gold Magazine recently.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-82567293969359382622015-04-21T10:00:00.000+03:002015-07-06T23:44:17.582+03:00C.A.N. Press Release as it appeared in Gold News<div style="-webkit-text-stroke-color: rgb(68, 68, 68); -webkit-text-stroke-width: initial; color: #444444;">
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<span style="font-family: inherit;">The latest publication of the Legal 500, one of the world’s largest independent and most distinguished legal referral guides which ranks law firms and lawyers internationally on the basis of merit, has awarded top tier status to Cyprus law firm Clerides Anastassiou Neophytou LLC.</span></div>
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<span style="font-family: inherit;">The Limassol-based law firm has been highly recommended in the practice areas of Corporate and M&A and Banking and Finance for Cyprus. </span></div>
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<span style="font-family: inherit;">The Legal 500 further distinguished and ranked Partner Stavros Clerides as a leading individual in Tax in its elite "Leading lawyers" list of Europe, Middle East & Africa 2015,</span></div>
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<span style="font-family: inherit;">Additionally, several lawyers of the firm were highly recommended and praised for their work, including Effie Anastasiou and Stephanos Evangelides. Lawyers of the firm have been praised by the directory for “going the extra mile and thinking outside the box to provide innovative solutions”. </span></div>
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<span style="font-family: inherit;">With regards its Corporate and M&A work, the institution considered and praised the firm as “one of the best firms in Cyprus”. </span></div>
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<span style="font-family: inherit;">The Legal 500 Series' analysis of law firm capabilities extends to over 100 jurisdictions worldwide, is used by commercial and private clients, corporate counsel, CEOs, CFOs and professional advisers, (as well as by other referrers of work both nationally and internationally) and the series is widely chosen for its definitive judgement of law firm capabilities. </span></div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-8426472721765227852015-01-21T13:30:00.000+02:002015-07-06T23:39:00.371+03:00The Holding Company Regime leaflet<div style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin-bottom: 10px;">
Please download <a href="http://www.cyplaw.com/PDF/Holding-company-regime-leaflet-2015_revised-version.pdf" target="_blank">here</a> the <span style="font-family: -apple-system-font; line-height: 16px;">Holding company regime leaflet 2015 revised version</span></div>
Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-1234709590909785082014-06-15T10:30:00.000+03:002015-07-07T10:56:13.735+03:00The Cyprus IP Regime<div style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin-bottom: 10px; text-align: right;">
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<b>CYPRUS’ INTELLECTUAL PROPERTY (IP) REGIME</b></div>
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In today’s modern world, <b>Intellectual Property</b> is one of the most valuable assets of a business, hence the <b>decision to choose a country to host its IP</b>, is indeed a very <b>important and strategic one</b>. A <b>suitable jurisdiction</b> must have a legal regime affording <b>protection, safety and certainty</b>. Moreover, because of the <b>IP’s mobility</b> to use across various countries, <b>proper planning is crucial</b> to mitigate international tax leakage and optimise its after-tax cash flows.</div>
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Cyprus has a developed legal system employing principles of UK common law. Since 2004 it is a full Member State of the EU, it has adopted all EU Directives and is compliant with the EU Acquis Communautaire. It complies with transparency requirements and features on the White List of the OECD.<span style="-webkit-text-stroke-color: rgb(4, 51, 255); color: #0433ff;"> </span>Furthermore, it has signed a number of <b>bilateral agreements</b> for the protection of investments with many countries and has an impressive network of <b>double taxation treaties covering over 40 countries </b>seeking continually to expand it; The above in combination with the conclusion of international conventions for the protection of IP (inter alia the Paris Convention, WIPO; Bern convention; the Madrid Agreement; the Patent Cooperation Treaty) and modern IP laws ensure protection and certainty for IP companies.</div>
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<b>Since 2012</b>, Cyprus has enacted <b>a very beneficial IP box regime</b>, giving IP owners significant tax benefits, as outlined below:</div>
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<span style="font-kerning: none; text-decoration: underline;"><b>IP box in a nutshell:</b></span></div>
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<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>80% exemption on income from the exploitation of IP (royalties, damages, gains from disposal);</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Gross IP income reduced by direct expenses incurred for the production of such income;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Wide range of qualifying IP rights(see below);</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Qualifying IP can be purchased or developed internally;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>An accelerated amortization period of 5 years instead of amortization over the lifespan of the IP;</li>
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<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Corporate tax liability of 12.5% on net profits;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>No withholding of tax on the payment of royalty income to a third party as long as the IP is not used in Cyprus;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Double tax treaty benefits in foreign countries for tax resident companies on royalty income and unilateral credit in Cyprus on any foreign tax paid in Cyprus;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>The effective tax rate based on the above may be reduced to below 2%.</li>
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<span style="font-kerning: none; text-decoration: underline;"><b>Qualifying IP:</b></span></div>
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The IP regime is applicable to existing and acquired or developed IP after January 1st, 2012 as defined in the following Cyprus laws:</div>
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<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Patent law</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Intellectual Property Law</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px; text-align: justify;"><span style="font-family: Helvetica;"></span>Trademark Law</li>
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The above laws cover inter alia copyrights, patents, trademarks, service marks, software, trade secrets; client/database lists; designs/models; internet domain names; software copyrights; secret formulae, rights related to scientific, literary, dramatic, artistic or scientific works, movies, sound recording, broadcasts; published editions and publications; rights related to industrial or commercial work.</div>
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<span style="font-kerning: none; text-decoration: underline;"><b>How we can help you:</b></span></div>
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<b>Clerides Anastasiou Neophytou LLC</b> is a leading law firm in Cyprus specialising in corporate, commercial, and tax law and M&A transactions. We are top ranked in tax law and highly recommended in corporate and M&A by well-known international agencies ranking law firms worldwide. Our associates and staff shall be pleased to assist you with efficient, high-value cost-efficient services to help you structure your transactions in Cyprus.</div>
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<span style="font-kerning: none; text-decoration: underline;"><b>Our tax team can assist you with:</b></span></div>
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<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>efficient tax structuring;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>Advise as to qualifying IP and expenditure;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>corporate set –up and corporate services;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>Amortisation issues;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>Transfer-pricing issues;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>tax rulings and negotiations;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>tax opinions;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>Transfer of IP and initial set up;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>VAT issues;</li>
<li style="-webkit-text-stroke-color: rgb(0, 0, 0); -webkit-text-stroke-width: initial; font-family: 'Trebuchet MS'; margin: 0px 0px 10px; text-align: justify;"><span style="font-family: Helvetica;"></span>Ongoing corporate support after the initial set up.</li>
</ul>
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For further information please contact us at:</div>
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Clerides, Anastassiou, Neophytou LLC</div>
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Limassol, Cyprus</div>
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Tel: +357 25 274050</div>
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<span style="font-kerning: none; text-decoration: underline;"><a href="mailto:info@cyplaw.com">info@cyplaw.com</a></span></div>
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This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it. </div>
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Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com/"><span style="-webkit-text-stroke-color: rgb(4, 51, 255); color: #0433ff;">www.cyplaw.com</span></a> for a full description of our services and representative transactions. </div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-12664524610096341882014-03-14T00:50:00.000+02:002014-03-14T00:51:06.965+02:00THE 4TH EDITION OF “THE INWARD INVESTMENT AND INTERNATIONAL TAXATION REVIEW”The 4th edition of “The Inward Investment and International Taxation Review” has been recently published by the Law Business Research written by leading tax law firms worldwide giving a summary of the taxation systems for inward investment in key jurisdictions. Our firm has contributed the Cyprus Chapter which gives an overview of the tax and legal regime currently applicable in Cyprus for foreign investors and is a useful tool as a first source of reference for clients wishing to use Cyprus to structure their business holdings. For a free copy of the Cyprus Chapter or to order the complete book please send us an email to <a href="mailto:admin@cyplaw.com">admin@cyplaw.com</a>Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-79924800231646182152014-03-05T13:36:00.001+02:002014-03-05T13:45:52.076+02:00THE ENFORCEMENT OF TEMPORARY RESTRICTIVE MEASURES ON TRANSACTIONS IN CASE OF EMERGENCY TWENTY SEVENTH DECREE OF 2014<div class="MsoNormal" style="background: white; text-align: justify;">
<span lang="EN-GB" style="letter-spacing: -.75pt; mso-ansi-language: EN-GB; mso-bidi-font-weight: bold;"><span style="font-family: inherit;">The Enforcement of Temporary Restrictive Measures on Transactions in case
of Emergency Twenty Seventh Decree of<b> </b>2014.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="letter-spacing: -.75pt; mso-ansi-language: EN-GB; mso-bidi-font-weight: bold;"><span style="font-family: inherit;">The
unofficial translation of the Twenty Seventh Decree is provided in the link below:</span></span><o:p></o:p></div>
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<span lang="EN-GB" style="letter-spacing: -1px;"><a href="http://www.centralbank.gov.cy/media//pdf/27_decree_gov_eng.pdf">http://www.centralbank.gov.cy/media//pdf/27_decree_gov_eng.pdf</a></span></div>
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<span lang="EN-GB" style="color: #444444; font-size: 11.5pt;"><span style="font-family: inherit;">For further information please contact us at +357 25
274050 or info@cyplaw.com<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="color: #444444; font-size: 11.5pt;"><span style="font-family: inherit;">This material has been prepared by professionals of
Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only,
and its application to specific situations will depend on the particular
circumstances involved. Accordingly, we recommend that readers seek appropriate
professional advice regarding any particular problems that they encounter. This
information should not be relied upon as a substitute for such advice. While
all reasonable attempts have been made to ensure that the information contained
herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no
responsibility for any errors or omission it may contain or any opinions
contained herein whether caused by negligence or otherwise, or for any losses,
however caused, sustained by any person that relies upon it.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="color: #444444; font-size: 11.5pt;"><span style="font-family: inherit;">Clerides, Anastassiou, Neophytou LLC provides
corporate and commercial legal services, to public and private international
and local clients spanning multiple industries. Please visit our internet site
at www.cyplaw.com for a full description of our services and representative
transactions.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="color: #444444; font-size: 11.5pt;"><span style="font-family: inherit;">All rights reserved. No part of this publication may
be reproduced or transmitted in any form or by any means without prior
permission of the publisher.</span><span style="font-family: Verdana;"><o:p></o:p></span></span></div>
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Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-77881292129964116102013-01-21T13:00:00.000+02:002013-01-24T16:03:54.368+02:00OVERVIEW OF CYPRUS TAX DEVELOPMENTS DURING THE SECOND HALF OF 2012The following is an overview of some of the most important tax developments in Cyprus during the second half of the year 2012.<br />
<br />
<strong>A. Laws introduced pursuant to the MOU agreed between Troika and the Cyprus government for strengthening the public finances</strong><br />
<br />
Towards the end of the year, the Cyprus parliament voted a number of legislative actions introducing new as well as amending existing laws in order to strengthen public finances and reduce administrative burden. The laws while forming the basis for more stability in the financial sector retain the full benefits that Cyprus offers as an international business centre. We present and analyze below some of the most important amendments made:<br />
<br />
<strong>1. Social Insurance Contributions</strong><br />
<br />
The rate of Social Insurance Contributions increases by 1% for employers and employees who will contribute a total of 7,8% each. The contribution also increases for the self-employed and voluntary contributors who will contribute a total of 13,6%. This change is effective from year 2014.<br />
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<strong>2. Restriction of Carry Forward of Tax Losses</strong><br />
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Persons, who have an obligation to keep accounting records, prepare audited financial statements and submit tax returns will be able to carry tax losses incurred over the five years following the end of the tax year in which they were incurred, to be offset against taxable income (previously such losses could be carried forward indefinitely).<br />
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<strong>3. Value Added Tax (VAT)</strong><br />
<br />
The standard VAT rate increases to 18% (previously 17%) for the period 14 January 2013 until 12 January 2014 and to 19% from 13 January 2014.<br />
In addition, the reduced VAT rate increases from 13 January 2014 to 9% (previously 8%).<br />
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<strong>4. Annual Government Levy of €350</strong><br />
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The annual levy/license fee of €350, introduced in 2011, from 2013 and onwards becomes payable for all companies. All exemptions previously available (such as dormant companies or companies having no assets or having property in the Turkish occupied areas) are now abolished. The upper ceiling of €20.000 for group companies is also abolished. Further the annual fee is now payable from the year that a new company is registered.<br />
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<strong>5. Special Contribution on Salaries of Employees & Self Employed in the Private Sector</strong><br />
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The provisions of the special contribution law for employees, pensioners and self-employed in the private sector to contribute a percentage of their gross monthly salaries/pensions is extended for an additional period of 3 years (until 31 December 2016). Effective from 1 January 2014, the relevant ranges and contributions of the special contribution change as follows:<br />
<br />
<strong>Special Contribution 2014- 2016</strong><br />
<br />
Monthly Salary or Pension % of Special Contribution<br />
<br />
€0-€1.500 0%<br />
€1.501 -€2.500 2,5%<br />
€2.501 -€3.500 3,0%<br />
€3.501 and above 3,5%<br />
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The payment of special contribution for employees is divided equally between the employee and the employer.<br />
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<strong>6. Bank Levy payable by Financial Institutions</strong><br />
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From 2013, the bank levy tax rate introduced in 2011 imposed on banks on their total deposits (domestic and foreign), excluding interbank deposits, increases from 0,095% to 0,11% and the provisions of this law are extended indefinitely. Further, with retrospective effect from 2011, the provision that the levy paid would not exceed 20% of total taxable income as well as the provision for refund of the excess levy paid are abolished.<br />
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<strong>7. Regulations for the Provision of Fiduciary and other Corporate Services</strong><br />
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The provision of fiduciary and other corporate services is now regulated by the Cyprus Securities and Exchange Commission and the regulation applies to eligible persons providing such services to or from the Republic of Cyprus (excluded from the scope are lawyers and auditors that are already regulated by their respective regulatory bodies and subsidiary entities of lawyers and auditors). Transitory provisions exist for firms already operating in this field.<br />
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<strong>8. Exchange of Information</strong><br />
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Directive 2011/16/EU on administrative cooperation in the field of taxation which regulates exchange of information between member states on tax matters has been transposed into national law. The Assessment and Collection of Taxes Law has been amended to allow Cyprus to provide information to the competent authorities of another state based on agreements for the exchange of information or the Directive 2011/16/EE of the Council of European Communities of 15 February 2011 on administrative cooperation in the field of taxation. The Director of Inland Revenue may not inform the person for whom the information is requested, if the information could hinder the investigation being conducted.<br />
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<strong>9. Tax administrative measures</strong><br />
<ul><br />
<li><em>Filing obligations for non-resident companies</em>: Companies established in Cyprus but are not tax resident in Cyprus, are obliged to submit a tax return until 31 December of the year following the tax year (or March 31 in case of electronic submission) to which it relates to.</li>
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<li><em>Employers’ returns</em>: Starting 2013 these must be filed electronically.</li>
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<li><em>Temporary Tax returns</em>: Returns for the provision of temporary tax should now be filed before July 31st instead of August 1st. Installments for the payment of temporary tax is reduced now to two installments instead of three previously and are due on July 31st and December 31st.</li>
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<li><em>Trusts</em>: Trusts now need to keep accounting records.</li>
</ul>
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<em>Document Retention Period</em>: Companies should keep their accounting records for six years after the end of the calendar year to which they relate to (previously seven).<br />
<br />
<strong>10. Other laws that were voted</strong><br />
A number of other laws have been voted such as laws reducing or eliminating various subsidies (e.g. child, mother and student), introduction of taxation on winnings from betting on government lotteries and OPAP games and increases in excise duties on tobacco, alcohol and petrol. Further, significant changes have been introduced in relation to the government payroll such as reduction in government employee emoluments and freezing of automatic salary increases, changes in the working hours of the government employees, extension of the special contribution payable by government employees for a further two years to 2016 and changes in the government pension plan.<br />
<br />
<strong>B. Russian “Black List”</strong><br />
Cyprus has now been officially removed from the so called Russian Black List. As a result the restrictions that normally apply to payments to companies in jurisdictions included in the Black List would not apply with regards to Cyprus companies. A more important consequence is that dividends paid by Cyprus companies to their Russian parent will now be exempt from taxation in Russia.<br />
<br />
<strong>C. Cyprus International Tax Treaty News</strong><br />
Tax treaty with Ukraine: A new double tax treaty has been signed with Ukraine and the treaty shall be effective on January of the year in which the parties exchange notices of ratification. Although the new treaty is significantly different than the one currently used (the old USSR treaty), it still maintains Cyprus attractiveness for channeling inbound investment into Ukraine. The new treaty establishes a 5% withholding tax rate on dividends when the capital of the dividend paying company is at least Euro100.000 and 15% in other cases. The basic withholding rate on interest payment has been set to a very low 2%, for royalties 5% or 10% depending on the type of IP. More importantly, jurisdiction for taxing capital gains from the disposal of shares is allocated to the country where the alienator is resident irrespective of the underlying asset.<br />
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<strong>D. Stamp Duty Law</strong><br />
An amendment of the stamp duty law converted the amounts expressed therein from the old Cyprus currency (Cyprus pounds) to Euro. With effect from March 1st, 2013 the bands applicable for the assessment of stamp duty applicable to documents that are subject to stamp duty are as follows:Up to Euro 5.000: Nil<br />
From Euro 5.001-170.000: 0,15%<br />
From amounts exceeding Euro 170.001: 0,20%<br />
<br />
Further, the stamp duty payable on documents that are subject to stamp duty has been capped to Euro 20.000.<br />
________________________________________________________________<br />
<br />
For further information please contact us at:<br />
<br />
Clerides, Anastassiou, Neophytou LLC<br />
Ergoserve Building<br />
Limassol, Cyprus<br />
Tel: +357 25 274050<br />
<a href="mailto:info@cyplaw.com">info@cyplaw.com</a><br />
<br />
This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.<br />
<br />
Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com/">www.cyplaw.com</a> for a full description of our services and representative transactions.<br />
<br />
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-20604599822690107982012-05-14T17:08:00.000+03:002013-01-24T00:14:51.971+02:00REFORM OF THE INTERNATIONAL TRUST LAWS<strong>Introduction - </strong>The Cyprus International Trusts Law of 1992 (the “Law”) has finally been amended by the Cyprus International Trusts (Amending) Law of 2012 (hereinafter the “Amended Law”). The recent amendments to the Law aim to strengthen the position of Cyprus as one of the most attractive trust jurisdictions by providing a flexible, secure and modern legal and taxation framework.<br/><br/>These amendments have effectively removed any ambiguities and uncertainties which were inherent to the provisions governing international trusts in Cyprus, since they were first enacted in 1992, and inadvertently allow for more flexibility as regards the workings of international trusts whilst at the same time embrace more beneficial provisions regarding inter alia the taxation regime. The Amended Law now seems to be more easily adaptable to the business needs of today’s ever growing requirements.<br/><br/>We set out below an outline of the key changes brought about by the Amended Law:<br/><br/><strong>Definition of an ‘International Trust’ (Settlor - Trustee – Beneficiary)</strong><br/><br/>The Amended Law incorporates a new definition of what an international trust must consist of in order to be established by removing any difficulties that may have existed in the past as regards the residency of the settlor and the beneficiaries. The Amended Law now provides that an international trust can be established if the settlor and any beneficiary are not Cyprus tax residents in the calendar year preceding the year of the creation of the trust, thus settlors can now relocate to Cyprus after establishing an international trust and beneficiaries no longer need to be non Cyprus tax residents during the life of the trust. The definition of an international trust in the Law used to be more rigid, specifying that both settlors and beneficiaries should not be Cyprus tax residents, without defining however a time-limit to this restriction and excluding thus any flexibility for settlors and beneficiaries wishing ultimately to relocate to Cyprus.<br/><br/><strong>Validity of an international trust and exclusion of any foreign law</strong><br/><br/>All issues arising in connection to the international trusts or any disposition of property to a trust are determined, subject to the terms of the trust, in accordance with the laws of Cyprus, without reference to the laws of any other jurisdiction, for example the powers and duties of the trustees and questions arising in relation to the validity and administration of international trusts and their effect are governed by the laws of Cyprus. It is further provided by the Amended Law that inheritance laws of both Cyprus and other jurisdictions do not interfere in any way with the effect of an international trust thus giving exclusivity to the trust laws of Cyprus as regards Cyprus international trusts by excluding in effect any relevant foreign laws. These provisions aim to surround the workings of an international trust with an iron clad asset protection framework.<br/><br/><strong>Settlor’s Reserved Powers and Interests</strong><br/><br/>The Amended Law stipulates that the maintenance of or grant to the Settlors of rights or interests over the trust property or reserved powers (irrespective of whether such powers are exercised in their capacity as protectors/nominators or enforcers of the trust) do not affect the validity of the trust. A settlor now may have reserved powers to, inter alia, revoke or amend the provisions of the trust, to appoint or remove any trustee, enforcer, protector/nominator or beneficiary of the trust and is able to limit the trustees’ powers which can be exercised only with the consent of the settlor or any other person which is expressly referred to in the terms which govern the trust.<br/><br/><strong>No limit for the duration of an international trust</strong><br/><br/>An international trust that is created on or after the Amended Law coming into force and subject to the terms of the trust has no limit as to the period of its duration, at which time a trust may continue to be valid and enforceable for an indefinite period. This differs greatly from the Law that was in force as regards international trusts, which restricted the duration of a trust to 100 years from the date on which the trust came into force. According to the Law such an indefinite duration was possible only for charitable or purposes trusts.<br/><br/><strong>Approved Investments</strong><br/><br/>The Amended Law gives the trustee of an international trust investment powers to invest all or part of the capital of the trust as if the trustee was himself the absolute owner of the trust property. Such investment powers of the trustee have now been extended so as to allow the trustees to hold, maintain and/or invest in movable and immovable property located in Cyprus and elsewhere, which also includes investing in shares of a company incorporated in Cyprus.<br/><br/><strong>Taxation of International Trusts</strong><br/><br/>As regards the provisions for taxation of international trusts they have also been amended by the Amended Law and now provide that in the case of a beneficiary who is a resident of Cyprus the income and profits of an international trust derived from sources either within or outside Cyprus shall be taxed in Cyprus. In cases where the beneficiary is a non Cyprus resident the income and profits derived from sources within Cyprus shall be taxed in Cyprus; thus the Amended Law still remains favorable as regards the taxation on international trusts.<br/><br/><strong>Choice of Law</strong><br/><br/>The Amended Law provides that a trust is governed by the law chosen by the settlor, which is expressed or implied by the terms of the document comprising the trust. When the applicable law is not chosen by the settlor or when the chosen law does not have any trust provisions, the trust is governed by the law which is most closely connected to. In this respect a list of conditions need to be considered, i.e. the country that the trust is administered from, the country in which the trust property is located, the country of residence of the trustee, the purposes of the trust and the country in which these shall be materialized. Further, the Amended Law stipulates that where an international trust contains a choice of law clause in favor of the laws of Cyprus, the provisions of the Amended Law shall apply as a matter of public policy notwithstanding other provisions on conflict of laws which apply in Cyprus. The Amended Law provides in certain cases also exclusive jurisdiction to the Cyprus courts, subject to the terms of the trust.<br/><br/><strong>Other Amendments</strong><br/><br/>Other provisions have also been amended by the Amended Law, to include a clearer image of what is deemed to qualify as a ‘charitable purpose’ in order to be considered as a charitable institution under the Amended Law whereby the purposes of such charitable institutions have been extended to widen the definition of such institutions; the concept of a ‘protector/nominator’ of an international trust has been introduced by the Amended Law which has been defined as a person other than the Trustee to whom powers of any kind are assigned to by the Trust, including the power to advise the Trustee as to his duties or his right for approval or for veto, including its power for the appointment or cancellation of the appointment of the Trustee. In general a more detailed definitions list is introduced by the Amended Law to clarify and expand on the legal framework of international trusts in the interest of more certainty.<br/><br/>For further information please contact us at:<br/><br/>Clerides, Anastassiou, Neophytou LLC<br/><br/>Ergoserve Building<br/><br/>Limassol, Cyprus<br/><br/>Tel: +357 25 274050<br/><br/><a href="mailto:info@cyplaw.com">info@cyplaw.com</a><br/><br/>This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.<br/><br/>Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com">www.cyplaw.com</a> for a full description of our services and representative transactions.<br/><br/>All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-63095338935034937492012-05-05T18:41:00.000+03:002013-01-24T00:14:51.989+02:00CLERIDES, ANASTASSIOU, NEOPHYTOU LLC COMES HIGHLY RECOMMENDED BY LEGAL
RANKING AGENCIESIt gives us great pleasure to inform our esteemed clientele and associates that the recent editions of Legal 500 and Chambers and Partners highly praised our firm for the quality and responsiveness of service reflecting the firm’s in-depth expertise with cross border transactions and exemplary value added service.<br/><br/><strong>LEGAL 500</strong><br/><br/><strong>TAX</strong><br/><br/>The recent edition of Legal 500 reports our firm’s team as “highly qualified professionals” with “in-depth experience”. <strong>Stavros Clerides</strong>, the firm’s tax partner <strong>is</strong> <strong>awarded the “Leading Individual” recognition</strong>, <strong>the </strong><strong>only</strong><strong> individual</strong> or lawyer awarded by Legal 500 in this field in Cyprus whereas the firm achieved an overall Tier 2 ranking. Legal 500 reports that Stavros Clerides’ “solid grasp of international tax law combined with his knowledge of Cyprus law makes him unique in the marketplace”.<br/><br/><strong>CORPORATE AND M&A</strong><br/><br/>The current edition reports that the firm provides appropriate and <strong>skilful advice and an extremely good level of service</strong>. The practice head, Effie Anastasiou is reported as very thorough and providing accurate legal advice.<br/><br/><strong>BANKING AND FINANCE</strong><br/><br/>The edition acknowledges the heavy referral work received by international firms. Practice head Effie Anastasiou comes highly recommended.<br/><br/><strong>CHAMBERS AND PARTNERS</strong><br/><br/>The current edition highly recommends the firm and practice heads for their responsiveness, quality of service, value for money services and technical knowledge.<br/><br/>For <strong>Tax</strong>, practice head <strong>Stavros Clerides</strong> has achieved a <strong>Tier 1</strong> ranking whereas the firm achieved an overall Tier 2 ranking.<br/><br/>Within Corporate and Commercial, clients recommended the firm for <strong>strong corporate and commercial know-how and the firm’s excellent value for money and round the clock service</strong>. Practice head Effie Anastasiou was praised as very thorough and an excellent negotiator whereas Chambers and Partners commented on Stavros Clerides “that he <strong>inspires complete confidence</strong> and always makes valuable comments and innovative suggestions”.<br/><br/>We shall continue to provide you with high level of services and offer innovative, value added solutions in our core practice areas, that is Corporate and Commercial, Tax, Private Equity, M&A and Capital Markets.<br/><br/>For further information please contact us at:<br/><br/>Clerides, Anastassiou, Neophytou LLC<br/><br/>Ergoserve Building<br/><br/>Limassol, Cyprus<br/><br/>Tel: +357 25 274050<br/><br/><a href="mailto:info@cyplaw.com">info@cyplaw.com</a><br/><br/>This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.<br/><br/>Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com">www.cyplaw.com</a> for a full description of our services and representative transactions.<br/><br/>All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-49339426548638047422011-12-08T15:05:00.000+02:002013-01-24T00:14:51.985+02:00SEMINAR ON PICISA conference has been organised with great success in Warsaw by our office at the Intercontinentale Hotel jointly with a major law firm in Poland and a Cypriot bank about the important advantages Cyprus is offering as a centre for international business activities and more specifically the advantages offered by the Cypriot Collective Investment Schemes for investors doing business in Poland. The seminar covered the tax and legal regime of PICIS in Cyprus as well as the legal and tax framework of collective schemes in Poland and the comparative advantages offered by various jurisdictions. Stavros Clerides, a partner in our office was among one of the key speakers on the seminar.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-32572244238466575322011-11-10T11:00:00.000+02:002013-01-24T00:14:51.976+02:00AMENDMENTS TO THE CYPRUS COMPANIES LAWSVarious amendments were made in 2011 to the companies legislation aimed at, among others, simplifying and modernizing certain formal procedures, reducing administrative burdens on companies, providing more flexibility in certain areas and imposing an annual levy on existing companies. Please send us an e-mail to: <a href="mailto:info@cyplaw.com">info@cyplaw.com</a> for our newsletter analyzing these changes.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-14457178949918823102011-09-07T16:05:00.000+03:002013-01-24T00:14:51.969+02:00AMENDMENTS TO THE CYPRUS TAX AND COMPANY LAWSAmendments to the Cyprus tax and company laws have been made in an effort to improve government finances. The changes consisted of increasing various taxes, introducing an annual levy for all companies incorporated in Cyprus, and measures in relation to the public sector For more information please contact us at <a href="mailto:info@cyplaw.com">info@cyplaw.com</a>. <a href="http://www.cyplaw.com/docs/TAX%20ALERTAug2011.doc">Tax alert Eng</a>.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-57725532429113117862010-11-30T16:34:00.000+02:002013-01-24T00:14:51.987+02:00AMENDMENTS TO THE CYPRUS COMPANIES ACTThe year 2010 saw the House of Representatives of the Republic introducing several amendments to the Cyprus Companies Act (the ‘Law’) aiming predominantly at harmonizing the Law with EU Directive 2007/36/EC on the exercise of certain rights of shareholders in Cyprus companies whose shares are admitted to trading in a regulated market in an EU member state (hereinafter “Listed Company/ies”).<br/><br/>The main amendments in the Cyprus Companies Act were introduced by Law 60(I) of 2010 which to begin with, imposed an obligation on Listed Companies to ensure equal treatment for all shareholders who are in the same position with regard to participation and exercise of voting rights in the general meeting.<br/><br/>The legislator introduced provisions aimed at enhancing the rights of shareholders of Listed Companies throughout the community, through mainly the provision of specific information prior to the general meeting by the Listed Company including by electronic means, the right of certain shareholders to put items on the agenda and to table draft resolutions, the participation of the shareholders in the general meeting by electronic means and the right to ask questions and receive answers and other related provisions. Other amendments introduced by Law 42(I) and Law 88(I) are also briefly discussed.<br/><br/><strong>Law 60(I) of 2010</strong><br/><br/>Information prior to the general meeting<br/><br/>Law 60(I) introduced provisions to regulate the notice of the general meeting which must be issued by the Listed Company without any specific cost, in a manner ensuring fast access to it on a non-discriminatory basis and using such media as may reasonably be relied upon for the effective dissemination of information to the public throughout the community. The information to be provided includes, among others, matters such as the time, place, agenda and procedures to be followed by a shareholder and rights for participation and voting (including electronically) regarding the general meeting, including the right of shareholders to put items on the agenda and to table draft resolutions, the date of record, the right to ask questions and appoint a proxy holder. It must also be indicated where and how the full documents and draft resolutions may be obtained, and on which web site the information referred to above will be made available.<br/><br/>The information to be included on such web site is also specified by the Law, and such must be available for a continuous period beginning not later than 21 days before the general meeting. Such information or documents include, among others, the notice of the general meeting, copies of the draft resolutions, the number of shares and votes in force at the date of such notice, the documents to be submitted to the general meeting and the forms to be used to vote by proxy and to vote by correspondence. Draft resolutions tabled by shareholders shall be added to the web site as soon as practicable.<br/><br/>Right to put items on the agenda of the general meeting and to table draft resolutions<br/><br/>New provisions now confer the right to put items on the agenda of the general meeting and to table draft resolutions (at least 42 days prior to the general meeting) to a shareholder or shareholders holding at least 5 % of the issued share capital representing at least 5% of the total voting rights of all the shareholders which have a right to vote at the general meeting. In order to better enable a member to benefit from the above provisions of the Law, the Listed Company must ensure that the date of the next annual general meeting is published on its web site at least 45 days prior to the date of such meeting or the end of the previous financial year, whichever is earlier.<br/><br/>Requirements for participation and voting in the general meeting<br/><br/>The Law also ensures that the rights of a shareholder to participate in a general meeting and to vote in respect of his shares are not subject to any requirement that his shares be deposited with, or transferred to, or registered in the name of, another person before the general meeting. Further, a shareholder is free to sell or otherwise transfer his shares anytime during the period between the record date, and the date of the relevant general meeting, so long as the right to sell would not be subject to any restriction to which it is not subject to at other times. A person may be registered in the register of members the latest until the record date so that it may be able to exercise its right to participate and vote in general meeting and any subsequent changes/entries in such register are not taken into account for determining a person’s right to vote.<br/><br/>Participation in the general meeting by electronic means<br/><br/>An important new provision enables Listed Companies to offer to their shareholders participation in the general meeting by electronic means and may be subject only to such requirements and constraints as are necessary mainly to ensure the identification of the persons participating and the security and accuracy of the electronic communication. Such means include real-time transmission of the general meeting, real-time two-way communication enabling shareholders to address the general meeting from a remote location and a mechanism for casting votes, whether before or during the general meeting, without such shareholder being physically present at the meeting, or the need to appoint a proxy holder who is physically present at the meeting.<br/><br/>Right to ask questions<br/><br/>Another important provision gives the right to every shareholder to ask questions related to items on the agenda of the general meeting and receive answers provided such answer has not been already given on the company’s web site, subject to the measures which the Listed Company may take to ensure the identification of shareholders and matters relating to interference with the preparation and order of the general meetings or questions infringing the confidentiality, or the business interests of the company.<br/><br/>Proxy voting<br/><br/>The existing provisions of the Law were specifically extended to Listed Companies and introduced the use of electronic means. It is possible therefore, for a proxy holder to be appointed by electronic means at the given address, and such notification of appointment must be accepted by the Listed Company, and may be made subject only to such procedural requirements and constraints as are necessary to ensure the identification of shareholder of the proxy holders or the content of the voting instructions. The Listed Company must offer a shareholder at least one effective method of notification by electronic means.<br/><br/>The amended provisions also state that anything in the Articles of the Listed Company, apart from the requirement that the proxy holder possess legal capacity, shall be void to the extent that it affects the eligibility of persons to be appointed as proxy holders.<br/><br/>Removal of certain impediments to the effective exercise of voting rights.<br/><br/>Provisions were added in the Law for the more effective exercise of voting rights allowing a shareholder in a poll voting in a general or class meeting not to have to use all his votes or cast all the votes to be used in the same manner, and further allowing a Listed<br/><br/>Company in case of such voting, to include a vote cast before the meeting by correspondence. However, a Listed Company is only obligated to count the votes cast before the meeting by correspondence as above which were received before the prescribed date and time, on condition that such date and time do not exceed 24 hours before the vote.<br/><br/>Voting results<br/><br/>Further provisions were enacted regarding the information which must be announced by a Listed Company regarding the results of voting. Further, the Listed Company shall ensure that it shall announce on its web site the voting results as prescribed by the Law, not later than the end of the 14th day after the date of the meeting.<br/><br/>Requirement to convene extraordinary general meeting and length of notice period<br/><br/>The directors of a Listed Company have now the obligation to immediately convene an extra ordinary general meeting pursuant to the requisition of shareholders of the company which hold at the date of the requisition not less than the one twentieth (1/20) of the paid up capital of the company which carries voting rights at general meetings. The length of the notice period required for calling general meetings in the case of Listed Companies is prescribed by the Law.<br/><br/>Equal treatment of members<br/><br/>A general provision has been introduced on Listed Companies to ensure the equal treatment of members having the same position in relation to the exercise of voting and participation rights in general meetings.<br/><br/>Amendments introduced by Law 88(I) and Law 42 (I) of 2010<br/><br/>Provisions have been introduced by Law 88 (I) elaborating on the liability of directors for failing to comply with their obligations for ensuring that the financial statements and the directors’ report are prepared and published in accordance with the provisions of the Law. Further the financial thresholds for a group to qualify as a “small sized group” have been increased.<br/><br/>Amendments introduced by Law 42(I) were in relation to provisions of the Law giving rights to certain persons to request and receive certain financial information in electronic or printed form without charge.<br/><br/>For further information please contact us at +357 25 274050 or <a href="mailto:info@cyplaw.com">info@cyplaw.com</a>.<br/><br/>This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.<br/><br/>Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com">www.cyplaw.com</a> for a full description of our services and representative transactions.<br/><br/>All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-12979363187428586212009-10-08T16:06:00.000+03:002013-01-24T00:14:51.967+02:00AMENDMENTS TO THE CYPRUS TAX LAWSAmendments to the Cyprus tax laws have been made aimed to improve the attractiveness of Cyprus as a jurisdiction to establish portfolio investment companies and Hedge Funds. For more information please contact us at <a href="mailto:info@cyplaw.com"><span style="text-decoration:underline;">info@cyplaw.com</span></a>.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-4463877330940744702009-07-30T16:07:00.000+03:002013-01-24T00:14:51.981+02:00UPDATE ON COMPANY LAW CHANGES IN 2009Significant changes were implemented into the Companies` Act with a view of simplifying certain aspects of the legislation and enriching Cyprus’ profile as a viable jurisdiction for international clients. Please contact us at <a href="mailto:info@cyplaw.com"><span style="text-decoration:underline;">info@cyplaw.com</span></a> for a summary and analysis of the changes made.Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0tag:blogger.com,1999:blog-8316705953265518613.post-69265087894731816042009-07-01T19:16:00.000+03:002013-01-24T01:25:41.246+02:00NEW DOUBLE TAX TREATY WITH RUSSIA<div dir="ltr" style="text-align: left;" trbidi="on">
In April 2009 after intensive negotiations at a high level a new protocol to the Cyprus-Russia Double Tax Treaty (“protocol”) has been signed between the two counties. As it was stated in the protocol its aim was to address speedily and effectively the issue of most concern to both countries mainly:<br />
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<strong>For Cyprus</strong><br />
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- the removal of Cyprus from the list of countries with preferential tax regimes in the Russian Federation. Although by many the inclusion of Cyprus in the so called Russian black tax list is symbolic since it is estimated that 90% of the Cyprus – Russia business is inbound into Russia and therefore is not effected from the black list it was feared by Cyprus officials that it would lead to similar moves by other countries and therefore it was in the high interest of Cyprus that the matter be resolved speedily.<br />
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<strong>For Russia</strong><br />
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- the exchange of information as per the latest OECD model tax convention, limitation of benefits and the disposal of shares relating to immovable property.<br />
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Overall the protocol is viewed by the financial community to be very beneficial to international business and one that should foster further the economic relations between the two countries by removing the uncertainty surrounding the future of the treaty which lasted over almost 1 year and clarifying certain matters in the existing treaty. As a result it is viewed that Cyprus shall remain as one of the most favorable routes for investments into the Russian Federation. Below we list a summary of some of the most important changes introduced by the protocol.<br />
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<strong>Dividends, Interest, Royalties:- Generally unchanged </strong><br />
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The existing withholding taxes for dividends, interest and royalties have remained the same; the only change is the condition for eligibility for the lower 5% withholding tax rate for dividends which is now changed to Euro 100.000 from USD100.000. The nil withholding tax rates on interest and royalties remain the same.<br />
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The dividends and interest definition have been changed to align them with the latest OECD model treaty definitions. The definition of dividends now include income even paid in the form of interest and payments on shares of mutual investment funds and similar collective vehicles, as well as depositary receipts over shares.<br />
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It is perceived that the new definitions will enable the Russian tax authorities to tax excessive interest payments by reclassifying them to dividends under domestic thin capitalizations rules and tax them at source albeit at the reduced dividend treaty tax rates not previously possible as interest is subject to nil withholding tax rates.<br />
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<strong>Gains from the sale of shares: - An important change </strong><br />
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This is one of the most important changes introduced by the protocol as a result of which gains from the sale of shares deriving more than 50% of their value from immovable property situating in the other contracting country (for example Russia) may be taxed in the country where the immovable property is situated (i.e. Russia). This amendment of course is of course of most concern to Cypriot companies selling shares in Russian property rich companies. There are certain exemptions to this new rule which include pension funds, provident funds, listed companies, corporate reorganizations and the Government of a contracting state.<br />
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Although this is a negative development for Cyprus the good news are that, as provided in the protocol, this amendment is not expected to apply until January 1<sup>st</sup> 2014.<br />
<strong>Limitation of benefits: – of limited effect</strong><br />
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The newly introduced limitations of benefits articles is aimed to dis-apply the benefits of the treaty in certain situations.<br />
Although on a first reading the article appears to be very disadvantageous, the way the article has been drafted, it appears that the limitation of benefits would not apply in practice for the cases were the relevant companies seeking the benefits are incorporated or registered companies either in Russia or Cyprus i.e. the preponderance of the cases.<br />
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Further, even in the cases the article does seem to apply, its application shall not be automatic, but rather, it offers a mechanism to attack perceived treaty abuses and only as a result of prior consultations between the tax authorities.<br />
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In any event it is perceived that the limitation of benefits would apply mostly to companies incorporated outside Cyprus but which are tax resident in Cyprus because their management and control is exercised from within Cyprus and therefore we feel shall have a limited effect.<br />
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<strong>Other changes</strong><br />
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<strong>Ship and aircraft profits</strong><br />
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The Russian proposal to replace the residence test with the place of effective management is not unusual. Many other Cyprus bilateral treaties adopt the place of effective management. The residence test is much easier to prove. The place of effective management, if disputed, will have to be resolved through the Mutual Agreement Procedures.<br />
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<strong>Mutual Agreement Procedures</strong><br />
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These changes (substitution of paragraphs 1 and 4) may not really affect foreign investments.<br />
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<strong>Exchange of information </strong><br />
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This is based on the 2005 OECD update of the Model Tax Convention. Cyprus has already taken legislative steps to be in a position to be able to satisfy the Russian side in the field of the supply of information. By taking theses steps, Cyprus has been put in the list of countries which are in line with the exchange of information requirements of the OECD. On the other hand, both the protocol and Cyprus domestic legislation provide certain safeguards for the correct application of the exchange of information.<br />
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<strong>Assistance in Collection </strong><br />
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This is an OECD Article. The Cyprus side agreed to take steps in enacting the necessary legislation in order to enable the competent authority to provide assistance in the collection of taxes.<br />
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<strong>Duel resident companies</strong><br />
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Under the existing treaty, for the purpose of the definition of “resident” (other than an individual), residence is determined by the entity’s place of effective management. A new paragraph is added by the Protocol with the objective of making the ‘tie-breaker test’ more effective so that where the place of effective management of such a person cannot be determined, the Russian and Cypriot tax authorities shall endeavor to determine this by mutual agreement.<br />
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<strong>Permanent establishment</strong><br />
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The meaning of permanent establishment is extended to allow for the taxation of profits from services performed in one country by an entity of the other country through and individual or individuals present in the other country for more than 183 days in a 12-month period in certain circumstances.<br />
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For further information please contact us at +357 25 274050 or <a href="mailto:info@cyplaw.com">info@cyplaw.com</a>.<br />
<br />
This material has been prepared by professionals of Clerides, Anastassiou, Neophytou LLC. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Clerides, Anastassiou, Neophytou LLC accepts no responsibility for any errors or omission it may contain or any opinions contained herein whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.<br />
<br />
Clerides, Anastassiou, Neophytou LLC provides corporate and commercial legal services, to public and private international and local clients spanning multiple industries. Please visit our internet site at <a href="http://www.cyplaw.com/">www.cyplaw.com</a> for a full description of our services and representative transactions.<br />
<br />
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission of the publisher.</div>
Cyplawhttp://www.blogger.com/profile/09118995767127680285noreply@blogger.com0