Tax Legislation amendments in Cyprus

In an effort to accelerate growth and attract foreign investment, the Government of Cyprus proposed a major tax reform. The changes proposed are very positive for the international investors who do business through Cyprus and create a new dynamic for the island.

The main changes introduced by the tax reform include:

  • The introduction of a notional interest tax deduction on qualifying equity, making the investment of own capital extremely tax efficient.

  • The introduction of the “Resident but not-Domicile” tax status for individuals and their full exemption from Special Defence Tax Law, putting Cyprus into the map of jurisdictions where HNWI can relocate and become tax residents.

  • Various incentives to boost the real estate sector.