Taxation in Cyprus

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Cyprus Central Bank wants to prevent firms from using EU single market freedom-of-establishment rules to set up letter-box companies for tax benefits in the country.

The updated UK-Cyprus Double Taxation Agreement (DTA) signed on March 22 this year in Nicosia will have major ramifications for UK nationals residing on the island.

The Commission decided today to send letters of formal notice to Cyprus, Greece and Malta for not levying the correct amount of Value-Added Tax (VAT) on the provision of yachts.

In a step forward, Cyprus has said it is “very close” to revising its bilateral tax treaty with India as the island nation has accepted “in principle” proposals made by the Indian side on taxing capital gains.

Income tax revenues dropped year on year by 6.7% in the second quarter, pointing to a still weak employment market.

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