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What changes have occurred in the tax sistem in Cyprus
A decisive event connected with Cyprusreal estate market occurred on November 3, 2011 when all the members of Parliament voted for a New Regulation designed to exempt owners from paying Property Transfer Fees if the VAT is paid on the purchase of a property. For VAT- exempt properties the transfer fees were reduced by 50%. The law amendment has been officially dated December 2, 2011.This approved law amendment makes it possible to minimize costs concerning tax payments and remove one of the largest and most common among Russians expenses. The most vivid example is saving from 9.000 to 13.000 euro when buying an apartment costing roughly 250.000 evro in Cyprus Investors and customers have been recently active in part due to the fact the above benefits shall only apply for contracts of sale executed and completed within a six-month period thereafter.
Any person resident inCyprusfor more than 183 days per tax year 1st January to 31st December is liable to pay tax there on their worldwide income. Non-residents are taxed only on income earned inCyprus.
The foreigner and citizen of the Republic have been abolished as taxation terms and the distinction is now resident and non-resident.
There are no longer exchange controls or restrictions on importing and exporting money. Financial and banking institutions are slowly being liberalized in line with EU regulations.
Cyprus tax law has now been harmonies with that of other EU countries, but its tax rates are still low. If you qualify or choose to be a tax resident inCyprus, as opposed to your home country, you may save a considerable amount in taxes, depending on your circumstances and it’s imperative to take expert professional advice.
If you live permanently in Cyprus, you will have to pay Cypriot income tax on your worldwide earnings. However, the good news is that tax rates are some of the lowest in Europe, especially for those who choose to retire there. Cyprus also has double-taxation treaties with many countries, which are designed to ensure that income that has already been taxed in one country isn’t taxed again in another. Other advantages of living in Cyprus are that there are no inheritance, gift or wealth taxes.