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Why Russians prefer Cyprus
At a recent survey carried out by the Cyprus-Russian Business Society the questions were asked as to why
Russians choose Cyprus instead of other destinations for their investments and carrying out their business. The main
results are as follows:
1. A steady and friendly taxation system
2. A corporate tax rate of 12,50% which is very reasonable allowing the business to expand
3. A very professional administrative personnel which in a large number of cases speak the Russian language
4. A large number of double taxation treaties which Cyprus has in place enabling the smooth operation of their businesses
5. Membership of Cyprus in the European Community
6. High level of professional services offered in Cyprus especially the legal, accounting and taxation services
Fitch upgrades Cyprus Long Term Foreign Currency from BB- to BB
The Fitch Ratings Agency has upgraded the Cyprus Long Term Foreign Currency Issuer Default Rating (IDR) from BB- to BB as the economic recovery of Cyprus continues. This is as a result of the following factors:
1. An estimated 3,5% growth of the island's GDP in the years 2017 and 2018
2. A steady improvement of the island's public finances
3. A decline of the island's unemployment rate in 2017 to 10,6% from 16% a few years' back
4. The major banks restructuring has led them to an improved liquidity position
Electronic transfers of VAT payments
The Cyprus tax department has recently announced that taxpayers are now able to pay their VAT liabilities
through online banking. At present an arrangement has been reached with the Bank of Cyprus, Hellenic Bank, Coop and Ancoria Bank. Other banks are expected to implement this option soon.
Cyprus credit rating by Standard & Poor
During the month of September 2017 the Standard & Poor's global ratings revised Cyprus credit
ratings from stable to positive i.e. from BB to BB+ as a result of a faster than expected GDP growth
and loan restructuring. Their estimates show that Cyprus GDP growth will approximate 3% between 2017
and 2020. The continued recovery of the economy will allow the reduction of debt in the public and
Cyprus citizenship most attractive in the EU
In the recent Financial Times Professional Wealth Management Group's report, it highlights the increasing
popularity of the Cyprus citizenship by investment scheme, especially for people who are interested in the
benefits of a citizenship from an EU country as opposed to those offered by countries from the Caribbean.
The report based its findings on rankings which included freedom of movement, standard of living, minimum
investment outlay and others. Cyprus ranked 7th out of 12 countries way ahead of Malta, Bulgaria and Austria. It scored the highest points on the movement of freedom factor as the Cyprus citizenship allows a visa free travel to more than 160 countries worldwide.
Cyprus company registration
In accordance with the Registrar of Companies and Official Receiver in Cyprus, the number of company
registration applications increased in July 2017 numbering 1.304. The number of company registration
applications in the first seven months of 2017 was 7.750, showing an increase of 1,2% in the same period
last year. The current number of registered companies in Cyprus stands at 214.323.
The number of company registrations is an indicator of the performance of the business service sector.
Deputy Shipping Ministry
The Parliament of the Republic of Cyprus has recently passed a bill which establishes a shipping ministry. The Deputy Ministry of Shipping will handle all shipping issues fast as well as improving the state services,
the promotion of the Cypriot flag and the strengthening of cooperation with the private parties involved, with
a view to strengthening Cypriot shipping and its consolidation as a modern and global shipping service center.
The Deputy Ministry helps strengthen the Cypriot economy, as shipping is estimated to contribute around 7% of the island's GDP.
Naturalisation of Investors in Cyprus
On 13th September 2016 the Cyprus Council of Ministers has approved the amendments to the
Scheme for Naturalisation of Investors in Cyprus by Exception. These are in line with the strategy
of the Cyprus Government to further attract Foreign Direct Investment and encourage the use of
Cyprus by High Net worth Individuals.
Filings with the Registrar of Companies
Any companies who have outstanding filings regarding the annual returns and audited financial
statements up to 31 December 2016 will be striked off from the Register of Companies.
Double Tax Treaties
The following Double Tax Treaties have been signed by the Cyprus government and will become effective as follows:–
1. Switzerland (signed in 2014 – effective 1 January 2016)
2. Iran (signed in 2015 – effective 1 January 2016)
3. Guernsey (signed in 2014 – effective 1 January 2016)
4. Georgia (signed in 2015 – effective 1 January 2016)
5. Ethiopia (Signed in 2015 – effective 1 January 2017)
Common Reporting Standard (CRS)
In an effort to improve global tax transparency, the Cyprus government has adopted the standard of automatic exchange of information developed by the Organization for Economic Co-Operation and Development (OECD) known as Common Reporting Standard (CRS).
Starting from 1 January 2016, the Cyprus Tax Authorities require financial institutions to confirm their
clients' jurisdiction of tax residence and respective tax identification number.
FATCA (Foreign Account Tax compliance Act)
On 2 December 2014 the Republic of Cyprus has signed the FATCA Intergovernmental Agreement
with the United States of America which aims at fighting the tax evasion of persons who are tax liable in the USA and use bank accounts and investments in securities held outside the USA.
As from 6 April 2015 all capital controls and restrictions on the transfer of money by individuals or companies out of Cyprus have been lifted.
All companies registered in Cyprus must file their annual returns with the Registrar of Companies
up to and inclusive the year 2013 immediately. Failure to do so will result to the striking off
the company from the register.
The standard VAT rate is increased from 18% to 19% as from 13 January 2014.
It has been announced by the Cyprus Registrar of Companies that any company which is registered between 1 July 2013 and 30 June 2014 the annual fee payable is €350.
On 1st of June 2013, Interquick Limited launched a website in order to promote the
company's services as well as to provide easier access in finding information regarding the company
registration procedures and the tax advantages in Cyprus.
During the following months, Interquick Limited will continue to improve the website with additional
information as needed, improve the technical support offered and in general, the ease of use. These
and other potential improvements are a direct response to the feedback received from our high profile
Corporate Tax Rises
The rate of corporation tax has increased from 10% to 12,50% as from 1 January 2013.