News

New improved team

We’re excited to inform our clients of our recent improvements of our capabilities to offer our clients an even better and more personalized service.

To better serve every client’s unique needs, we have reorganized into three specialized client team, each team comprising of:

1. Client Account Manager

2. Accountant

3. Business Support

Our teams are dedicated to providing our clients with more tailored and efficient assistance.

Opening hours Easter

The office remains closed the following days during Greek Orthodox Easter:

Friday 14th of April

Monday 17th of April

Tuesday 18th of April

Suspension of access to the Beneficial Owner register

The Registrar of Companies has announced that, following the landmark ruling of the Court of Justice of the European Union, access to the Beneficial Owner register for the general public is suspended as of 23rd of November 2022.

The Court argued that the 5th AML directive giving access to the information on the beneficial ownership of legal entities to any member of the general public is invalid and constitutes interference with the fundamental rights of respect for private life and to the protection of personal data. As a result only, competent authorities may now access the register.

Tax incentives –  up to 50% tax exemption on remuneration from employment in Cyprus

In the 26th of July 2022 Cyprus amended the Income Tax Law and introduced tax exemptions of 50% or 20% on remuneration for individuals relocating to take up employment in Cyprus.

This new scheme has been introduced as facilitating the headquartering of foreign businesses to Cyprus and the relocation of talented, high-skilled employees and their families to Cyprus,

The tax exemptions for taking up employment in Cyprus is 50% or 20% on the remuneration based on certain criteria:

  • 50% tax exemption on remuneration for the first employment in Cyprus for an individual that:
    • was resident outside Cyprus for ten consecutive years prior to taking up employment in Cyprus
    • was employed in Cyprus after 1st of January 2022
    • the remunerations from employment exceeds EUR 55,000 each tax year.

The tax exemption is granted for a period of 17 years.

  • 20% tax exemption, or EUR 8,550, whichever is the lower, for remuneration for the first employment in Cyprus for an individual that:
    • was resident outside Cyprus for three consecutive years prior to taking up employment in Cyprus
    • was employed in Cyprus after 26th of July 2022 and before the 31st of December 2027.

The tax exemption is granted for a period of 7 years.

Cyprus has amended the Income Tax Law and the amendments will be implemented as from 31 December 2022.

  1. Additional Cyprus corporate tax residency test

Currently only companies that are “managed and controlled” from Cyprus are considered tax residents of Cyprus as per the Income Tax Law (ITL). The new amendment does not change this rule.

The change relates to companies incorporated  or registered in Cyprus and “managed and controlled” from outside of Cyprus. With the amendment they will also be considered tax resident in Cyprus provided they are not tax residents of any other jurisdiction.

The amendment eliminates the possibility for a Cyprus incorporated/registered company to be considered non-tax resident in Cyprus, whilst not being tax resident in any other jurisdiction. The change does not affect our clients as their companies are all tax resident in Cyprus.

2. Withholding tax is introduced for payments to companies in EU blacklisted jurisdictions.

Up to now any outbound payment of dividend, interest and royalty payment made by a Cyprus tax resident company to a recipient in a foreign jurisdiction was not subject to withholding tax (WHT) deductions in Cyprus.

With the amendment of the ITL a Withholding tax (WHT) will be introduced when the direct recipient of the dividends, interest and royalties is a company registered or tax resident in an EU-blacklisted jurisdiction.

A WHT of 17% (Special Defence Contribution) is introduced for dividends paid by Cyprus tax resident companies to companies in EU blacklisted jurisdiction where the direct recipient holds directly more than 50% of the capital, votes or entitlement to profit.

A WHT of 10% on royalties and a WHT of 30% for passive interest payments is further introduced for payments to companies in EU blacklisted jurisdictions.

The EU black list consists of American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu so the above change does not affect our clients with shareholders that are mainly resident in EU countries.

Ultimate Beneficial Owner register is being implemented in Cyprus

Cyprus is implementing a register of Ultimate Beneficial Owners (UBOs) as required by the European Union’s Fourth Anti-Money Laundering Directive. The Directive requires every EU member state to implement a central register containing details of the UBOs of companies and other legal entities. The purpose is to enhance transparency in order to prevent money laundering and terrorist financing.

It is the Registrar of Companies that will keep the register and the companies have up to the 16th of September 2021 to submit the information of the UBOs.  

The UBO register will contain name, date of birth, nationality, passport number, address, nature and percentage of beneficial ownership and when she/he became a UBO. Nordic Finance will in accordance with the above be obliged to provide the Registrar of Companies with the UBO information for all of the companies under its administration.

General Data Protection Regulation
Information about handling of personal data according to GDRP, General Data Protection Regulation: Personal Information Policy

Administrative Service Provider 25/196
Under the supervision of Cyprus Securities and Exchange Commission

www.cysec.gov.cy

Members of the Cyprus Fiduciary Association

www.cyfa.org.cy

This website uses cookies to improve your experience. Read our Cookie Policy