An interesting quick read with respect to the Cyprus property market post-CIP. What the authors do not stress, and is evident on the ground, is the fact that when an investment migration program is artificially structured towards real property to the detriment of everything else, FDI is artificial as well. Invariably, any change to such a program immediately creates a negative externality. This effect is not only for developers and their financing banks, but also for real estate purchasers entered…
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Cyprus has made some changes to its permanent residency by investment program. Quite a good step in the right direction. However, in order to be competitive, Cyprus must align its offering with that of Portugal or the new Bulgarian fast track programme. Permanent residency is quite limited in Cyprus because the island is physically cutoff from Europe and is not part of Schengen. A very good synopsis on the program can be found at IMI Daily.
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As of November 1st, Cyprus will suspend its existing citizenship by investment programme. Although the benefits of such a programme are beyond question – FDI into the local economy and providing an opportunity for people and their families – the problem has been the misfeasance on the part of a few bad apples. What is certain is that on November 2nd all real estate in Cyprus associated with the citizenship programme will essentially be worth zero and real estate prices…
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Very nice to have my article featured in IMI Daily. My supposition is that the Cypriot economy cannot be so heavily real property focused, as it leads to not only stratification of wealth but also over exposure to a single economy. As such, real property in Cyprus is now set to collapse with the closure of the country’s CIP. Read More.
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IMI Daily today requested my feedback to the Al Jazeera investigation of the Cyprus citizenship-by-investment program and related corruption. Although there have been significant problems in the past, today the Cyprus CIP is one of the most onerous and well managed programmes in the world. We are most pleased to be part of this program that provides opportunity and hope to many. Read More.
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Epidemics are related to population mobility. COVID-19 is special in that today’s global economy is intrinsically linked to unprecedentedly prevalent and frequent population mobility. Today, a virus can spread unabated. Free-traders have always argued that the global circulation of goods, services and labour is more important than factory assembly lines when it comes to sustaining growth. They are uninterested in social disruption; only wealth enhancement. The COVID-19 epidemic and the subsequent national responses are particularly stark because they have abruptly…
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The Republic of Cyprus has recently amended its Naturalization by Exception Programme. The changes become effective as of 15 May 2019. Highlights include: A minimum investment of € 2.5m +VAT, compared to € 2m + VAT with current status under some conditions. The holding of relevant real property for a minimum of 5 years, compared to 3 years under the current status. An additional contribution of € 150k into donations and start-ups. The holding of a Schengen Visa before applying….
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Cyprus has brought its domestic law inline with EU directive on mandatory automatic exchange of tax information. Cyprus has recently introduced Law 33(I)/2018 in furtherance of EU Directive 2016/881/EU. The changes concern EU wide administrative cooperation in the field of taxation. The definition of ‘automatic exchange’ has been changed; and there are new provisions requiring ultimate parent entities of multinational enterprises resident in Cyprus for tax purposes to file country-by-country reports within 12 months of the end of each fiscal…
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Greece has abolished and replaced its “National Cadastre and Mapping Agency S.A.” with a new public entity entitled the “Hellenic Cadastre” (“Elliniko Ktimatologio”). The new agency shall be based in Athens and is supervised by the Minister of Environment and Energy. In addition, seventeen (17) cadastral offices shall be established, one in each region (except for the Attica region where three (3) offices shall be established and Central Macedonia region where two (2) offices… shall be established) and other sixty…
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When it comes to M&A in Cyprus, there are a number of major laws one should be aware of, as follows: 1. Companies Law Cap. 113 (a) Sections 198-201 of Companies Law regulate mergers, divisions, partial divisions, transfers of assets and exchange of shares in two or more companies intending to merge together. (b) Sections 201A – H of Companies Law as amended by Law 70(I) of 2003 regulate mergers of public companies in line with European practices. (c) Sections…
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An important amendment to the Assessment and Collection of Taxes Law (N.4/1978) in Cyprus is currently under consideration by the Council of Ministers regarding automatic exchange of information. More specifically, the proposed amendment aims at regulating the conditions under which the Cypriot Tax Commissioner may disclose information on any person with a view to complying with agreements for automatic exchange of information between Cyprus and other countries (both EU and non-EU countries). While the notion of automatic exchange of information…
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Complete bank secrecy is fast becoming a matter of the past. The Automatic Exchange of Information (AEOI) portal provides a comprehensive overview of the work the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes in the area of the automatic exchange of information, in particular with respect to the Common Reporting Standard. That is why your account provider (bank, building society, insurance or investment firm) may ask you to provide certain information about yourself…
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