CYPRUS: Parliament approve number of key tax reforms

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The House in Cyprus approved a number of tax reform bills last week, aimed at restructuring taxation and encouraging investment in Cyprus.
The reforms will allow for a reduction of transfer fees on real estate transactions by 50% until the end of 2016. Another amendment will effectively exempt capital gains tax from the sale of land with construction being carried out on it, providing that the land was acquired between the establishment date of this legislation and December 31st, 2016.

However those selling land that was acquired as a result of foreclosure proceedings are not exempt from capital gains tax. The updated law extends the timeframe for tax relaxations (up to half of the income) for persons who were not living in Cyprus prior to their employment, or whose income exceeds €100,000 annually.

As well, a new non-domicile status is being introduced in the hopes of attracting Business Owners or high net worth inndividuals to Cyprus, excusing such persons from paying certain tax obligations which previously would have been an additional charge to investors.