Since Cyprus’ accession to the EU, VAT is charged on all new property provided the initial application for a building permit was made after the 1/05/2004. All buildings that received the building permit prior to this date will have no VAT charge. Also all second-hand property including houses, apartments etc, have no VAT charge. Building plots/land are also exempt from VAT.
The shareholders of a company, prior to incorporation of the company, may enter into an agreement between themselves relating to the participation in the management of the business, sharing profits and the arrangements for buying each other out. Alternatively, the company may by contract confer rights on individual shareholders on matters such as the composition of the board, the payment of dividends etc.
Modern economic societies involve transactions and financing by corporations and consequently, securities are often required by the creditors for such transactions. One form of a security is a pledge over shares in a company, which by its nature is a possessory security interest and thus involves the delivery of possession, actual or constructive. In simple words, a pledge is a method of security in order to assure the repayment of a debt or the performance of an act under a contract.
In Cyprus, protection is afforded against unfair dismissal to all employees, under the Termination of Employment Law 24/67 as amended.
The legislation covers all employees, whether in private sector or public sector, including apprentices.
A Company Limited by Guarantee is ‘a company having the liability of its members limited by the memorandum to such amount as the members agree may respectively thereby undertake to contribute to the assets of the company in the event of it being wound up.’ Therefore, the members of the company do not have to pay anything unless the company is wound up and the amount is limited to the amount agreed on the memorandum.
The information provided relates as a basic guideline for British passport holders only. Non-British passport holders or clients with documentation issued outside of the United Kingdom should contact their own consulate or embassy.
There are two types of tenancy in Cyprus. The “contractual” and the “statutory” tenancy. It is essential to identify the type of the tenancy which exists in a given case in order to ascertain which Court has jurisdiction to decide on the matter.
When property is acquired in Cyprus, the purchaser is liable to pay transfer fees, when the property is registered in his/her name at the Lands Registry Office.
Cyprus Companies Law provides that every private company must have at least one director and every public company must have at least two directors (s.170).
Cyprus registered companies offering administrative services to other Cypriot registered companies need to be authorised by the Cyprus Securities and Exchange Commission (hereinafter called the ‘Commission’).
Cyprus is an ideal place for the establishment of a medical centre, due to its fine climate (combination of health care and holidays in Cyprus), the known Cypriot hospitality, the professionalism of the workforce and due to its distinctive and unique location.
The Companies Law has been amended by Law 90(Ι)/2013 published in the Official Gazette on 26 July 2013. The amendment effected is the following: Keeping books of account
Under the 1992 law, in order to prevent tax avoidance, permanent residents of Cyprus were prohibited from establishing international trusts. The concept of permanent residence was not defined in the 1992 law or elsewhere. It was unclear whether settlors could relocate to Cyprus after establishing a Cyprus International Trust, and the resulting doubt discouraged many from doing so.
