This article is an update to our earlier article entitled: UBO Register in the Republic of Cyprus: Final deadline extended.

The EU Intellectual Property Office (EUIPO), in a continuous effort to empower SMEs to invest in their Intellectual Property (IP) assets has today re-opened applications for the SME Fund 2024’s Vouchers 1-3 that were temporarily unavailable to new applicants.

With the ever-increasing role of Artificial Intelligence (AI) into our daily lives, the EU has earlier this summer adopted Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence (known as the “AI Act”). The AI Act is the first-ever, robust legal framework on AI which addresses the risks involved in AI and sets clear rules on AI system requirements and uses.

The Tax Department of the Republic of Cyprus has recently announced that the deadline for the Return for Withheld Taxes & Contributions (TD7) for the year 2023 has been extended to 31 October 2024.

The Council of Ministers of the Republic of Cyprus, through Regulatory Administrative Act RAA 209/2024, has issued a Decree by which the deadline for the submission of the 2023 Personal Income Tax returns (TD1) has been extended to 23:59 hours on 31 October 2024.

The Companies Act (Cap. 113) in the Republic of Cyprus has recently been further amended to terminate the obligation of companies’ annual levy contribution for the year 2024 onwards. In addition, based on the aforesaid amendment, the annual levy contribution obligation for the years 2011 to 2023 (inclusive) is not affected and continues to burden entities subjected to such contribution.

EXTENSION OF COMPANY INCOME TAX RETURN (TD4) SUBMISSION FOR THE YEAR 2022 FOR TAXPAYERS WITH RELATED PARTY TRANSACTIONS

This article is an update to our earlier article entitled: UBO Register in the Republic of Cyprus: Deadline extended for Interim Solution-compliant companies.

The Ideas Powered for Business SME Fund 2023 is a €27.1 million grant scheme implemented by the European Commission and the EU Intellectual Property Office (EUIPO) designed to encourage European small and medium sized enterprises (SME) to protect their Intellectual Property (IP) rights and develop an IP Strategy.

This article is an update to our earlier article entitled: UBO Register in the Republic of Cyprus: Implementation of Final Solution.

In preparing your Cypriot business’ budget for 2024, account needs to be taken for increases in Social Insurance contributions effective 1 January 2024.

This article is an update to our earlier article entitled: UBO Register in the Republic of Cyprus: Registrar of Companies Imposes Deadline for Compliance & Updates on Final Solution.

The Department of Registrar of Companies and Intellectual Property (DRCIP) of the Republic of Cyprus has issued an important announcement relating to the Ultimate Beneficial Ownership (UBO) Register in terms of the final deadline for compliance, as well as the implementation of the Final Solution, which will run on a permanent basis.

This article is an update to our earlier newsletter entitled Cyprus Tax Updates: Personal Income Tax Returns (TD1) deadline extended.

On 10 July 2023, the European Commission has adopted a new Adequacy Decision for the EU-US Data Privacy Framework. This important legal development in the sphere of the EU General Data Protection Regulation (GDPR) stems from the Judgment of the Court of Justice of the European Union (CJEU) in the Schrems II case back in 2020. In that case, the CJEU found that the then EU-US Privacy Shield did not provide adequate safeguards for the transfer of personal data from the EU to the USA.

The deadline for the first instalment of the Temporary Tax Assessment for the year 2023 in Cyprus is approaching and it is recommended that businesses contact their tax advisors to ensure tax compliance.

The Council of Ministers of the Republic of Cyprus, through Regulatory Administrative Act RAA 183/2023, has issued a Decree by which the deadline for the submission of the 2022 Personal Income Tax returns (TD1) has been extended to 23:59 hours on 2 October 2023.

A prestigious international magazine has ranked ServPRO amongst the Top 10 Best Corporate Service Providers in the Middle East. ServPRO is a leading provider of high-quality business and corporate services. The recognition demonstrates the firm’s unwavering dedication to excellence and its capacity to provide exceptional service to its clients.

ServPRO is proud to be joining Forbes Middle East Women’s Summit 2023 – a prestigious event taking place in the vibrant capital of Saudi Arabia, Riyadh, between 21-23 May 2023.

Companies registered with the Department of Registrar of Companies and Intellectual Property (DRCIP) of the Republic of Cyprus have an obligation to pay an annual fee (frequently referred to as annual levy) of €350 by 30th June each year, throughout their lifecycle.

At ServPRO, our mission is two-fold and includes the provision of world-class professional services that exceed client expectations. In this endeavour, we strive to ensure our clients get the best possible service and provide new services to enable them to focus on achieving sustainable success and profitability growth.

Powered by the Tax Department of the Republic of Cyprus, TFA is the new Integrated Tax Administration System (ITAS) for all taxpayers.

Our team at ServPRO has decided to kickstart 2023 with 23 highlights for your business in Cyprus, the European Union (EU) and the wider world:

The obligation for a lawyer to inform other intermediaries is unnecessary and infringes the right to respect for lawyer-client communications

Following the landmark ruling by the Court of Justice of the European Union (CJEU), the Department of Registrar of Companies and IP (DRCIP) of the Republic of Cyprus has issued an announcement on 28 November 2022, stating that the general public’s access to the UBO Register is suspended as of 23 November 2022.

Following the landmark ruling by the Court of Justice of the European Union (CJEU), the Department of Registrar of Companies and IP (DRCIP) of the Republic of Cyprus has issued an announcement on 28 November 2022, stating that the general public’s access to the UBO Register is suspended as of 23 November 2022.

On 22 November 2022 the Court of Justice of the European Union (CJEU) has issued a landmark ruling regarding the implementation of Ultimate Beneficial Ownership (UBO) Registers across the European Union (EU).

ServPRO is proud to join the Cyprus Chamber of Commerce and Industry (CCCI) in a business delegation organised under the auspices of the Ministry of Energy, Commerce and Industry of the Republic of Cyprus, which will take place today, 10 November 2022, in the capital of Israel, Tel Aviv.

A year has now passed since the Government’s Press Conference launching the Republic of Cyprus’ Action Plan for Attracting Companies to Operate and Expand their Activities in Cyprus, making a notable development of the promotion of Cyprus as an international business centre and a headquartering destination. The actions envisioned by the Action Plan comprise of:

The Department of Registrar of Companies and Intellectual Property of the Republic of Cyprus (DRCIP), represented by Minister of Energy, Commerce and Industry HE Natasa Pilides, supported by the Deputy Minister of Research, Innovation and Digital Policy, HE Kyriakos Kokkinos, have finalised the signature of the Government Contract providing for the development and installation of an Integrated Registry Management Platform (IRMP) to digitally transform the DRCIP – a €14million project awarded to prominent IT company, NetU Consultants.

The Council of Ministers of the Republic of Cyprus, through Regulatory Administrative Act RAA 373/2022, has issued a Decree relating to the exemption of certain physical persons from the obligation to submit a Tax Declaration (TD1) for the year 2022. In particular, every physical person who, during 2022, has had a gross income of not exceeding €19,500 is exempt from the obligation to submit a Personal Income Tax Return for the year 2022.

ServPRO is proud to participate and present “Cyprus: a Destination for Business Relocation & Investment” at the International Exhibition CODEWAY EXPO 2022 held in Rome, Italy, between 18-20 May 2022.    

On 24 March 2022 the House of Representatives (Parliament) of the Republic of Cyprus has approved an extension to the deadline for the electronic submission of the Corporate Income Tax Return (TD4) and the Personal Income Tax Return (TD1A) for individuals who prepare audited financial statements (FS) for the year 2020.

The Convention between the Republic of Cyprus and the Hashemite Kingdom of Jordan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (known as the Double Tax Treaty (DTT) between Cyprus and Jordan) was signed on 17 December 2021 and published in the Official Gazette of the Republic of Cyprus on 31 December 2021.

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a permanent monitoring body of the Council of Europe, which assesses States’ compliance with principal international standards to counter money laundering and terrorist financing.

Following a Decree by the Minister of Energy, Commerce and Industry, the Department of Registrar of Companies and Intellectual Property (DRCIP) has recently announced that the deadline for payment of the Annual Company Levy for the year 2021 has been extended to 31 March 2022.

On 26 June 2021 the new prudential framework for investment firms in the EU (including for Cyprus Investment Firms (CIFs)) has entered into force.

The Tax Department of the Republic of Cyprus has announced an extension to the imposition of administrative fines for overdue submission of information subject to EU Directive 2018/822 (“known as DAC6”).

The IMD World Competitiveness Ranking is a worldwide reference point on the competitiveness of countries measured against a set of factors, including economic performance, Government efficiency, business efficiency, and infrastructure. In the rankings for 2021, Cyprus has positioned 33rd overall, with a notable 13th place in economic performance.

On 15 October 2021, the Minister of Finance of the Republic of Cyprus, Mr. Konstantinos Petridis, has given a Press Conference which marked the launch of the Action Plan for Attracting Companies to Operate and Expand their Activities in Cyprus.

On 6 August 2021 the Seychelles introduced amendments to the legal framework governing International Business Companies (IBC) with the IBC (Amendment) Act 2021 (Act 32 of 2021). This newsletter article summarises a few, noteworthy changes relating to the dissolution of companies, the Register of Directors, accounting records, annual financial summary, additional amendments introduced, and how ServPRO can help you and your Seychellois IBC comply with the revised legislative framework.

This newsletter article is an update to our earlier article entitled: DAC6: Cyprus Tax Department extends reporting deadlines.

According to a recent announcement by Moody’s Investors Service (“Moody’s”), Moody’s has upgraded the Government of the Republic of Cyprus long-term issuer and senior unsecured ratings to Ba1 from Ba2.

The Amending Law to the Assessment and Collection of Taxes Law (L.126(I)/2020) has introduced an obligation on all taxpayers to submit a personal income tax return, irrespective of their income.

At the most recent Plenary session of the House of Representatives of the Republic of Cyprus yesterday, the House of Representatives has unanimously approved an amendment to the Companies Act (Cap. 113) in order to extend the deadline for the payment of the annual levy for the year 2021 for Cypriot companies until 31st December 2021.

The Convention between the Republic of Cyprus and the Kingdom of the Netherlands for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (known as the Double Tax Treaty (DTT) between Cyprus and the Netherlands) was signed on 1 June and published in the Official Gazette of the Republic of Cyprus on 4 June 2021.

This newsletter article is an update to our earlier article entitled: Cyprus transposes DAC6 into national law.

With EU’s implementation of the OSS portal, you enjoy simplicity and variety All-in-One

3 Foreign Business Leaders Share their Experiences in Establishing Substance in Cyprus

This newsletter article is an update to our earlier article entitled: Empowering Businesses: EU IPO offers funding for SME in trademark and design applications.

The Government of the Republic of Cyprus has officially transposed the provisions of the EU Directive 2018/822(“known as DAC6”) and EU Directive 2020/876 into its national legal order, through the enactment of the Administrative Cooperation in the field of Taxation (Amending) Law of 2021 (L.41(I)/2021).

The Minister of Energy, Commerce and Industry, Mrs Natasa Pilides, has addressed the establishment of a UBO Register for companies in Cyprus as an important tool for strengthening transparency, prevention and combating the use of companies and other legal entities for money laundering and terrorist financing activities, in harmonisation with the provisions of European Union (EU) law.

The Minister of Interior of the Republic of Cyprus has issued a decision on 24 March 2021 revising the criteria for issuing Immigration Permits to third country nationals-applicants through a fast track procedure for qualifying investments made in Cyprus.

The Interim Solution providing for the establishment of an ultimate beneficial ownership (UBO) Register for Cypriot entities has launched on 16 March 2021 and is in operation. The obligation to identify and record all relevant information of the beneficial owner(s) who own or control entities burdens all Cypriot entities, including companies incorporated or registered under the Companies Act (Cap.113) and European public limited liability companies. Moreover, the Registrar of Companies has also announced that the final solution will be established following the conclusion of this Interim Solution and the collection of all UBO information.

The Agreement between the Republic of Cyprus and the Arab Republic of Egypt for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (known as the Double Tax Treaty (DTT) between Cyprus and Egypt) has entered into force on 31 July 2020, while the preceding DTT between the two States done on 18 December 1993 has been terminated.

Additional Extension of DAC6 Reporting Deadlines in Cyprus

On 18 February 2021, the House of Representatives (Parliament) voted for The Prevention and Suppression of Money Laundering and Terrorist Financing (Amending) Law of 2021; an amending law intended to harmonise the provisions of the Anti-Money Laundering Directive (EU) 2018/843 (AMLD V) and Directive (EU) 2019/2177, to make the implementation of certain provisions of Regulation (EU) 2018/1805 concerning the mutual recognition of freezing and confiscation orders more effective, as well as to amend existing provisions within the Law in an attempt to improve their practical implementation.

In light of the end of the transition period for the UK’s Withdrawal Agreement from the EU, the Tax Department of the Republic of Cyprus has made the following announcements in relation to movement of goods between Cyprus and the UK and VAT refunds:

In light of the end of the transition period for the UK’s Withdrawal Agreement from the EU, the Tax Department of the Republic of Cyprus has made the following announcements in relation to VIES and INTRASTAT Declarations:

The Tax Department of the Republic of Cyprus has announced that DAC6 (which is the Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements) is expected to be transposed into national law within February 2021.

The European Commission and the EU Intellectual Property Office (EU IPO) have recently announced the implementation of the Ideas Powered for Business SME Fund, a €20million grant scheme created to encourage European small and medium sized enterprises (SME) to protect their Intellectual Property (IP) rights.

Following an official announcement by the Department of Registrar of Companies and Official Receiver of the Republic of Cyprus, the starting date for the collection of the relevant information from companies and other legal entities has been revised to start on 22 February 2021. The information collection process will last for a period of 6 months (i.e., until 22 August 2021).

In light of frequent enquiries made by our clientele and prospective clients with regard to the closing of Companies, we have asked our team to contribute by simplifying the two main routes for closing down a Company.

On 7 October 2020 the Council of Ministers of the Republic of Cyprus revised the framework relating to the issuance of temporary residence and employment permits to employees of existing and new companies of foreign interests registered in the Republic of Cyprus, as well as companies that have joined the Fast-Track Business Activation Mechanism.

The Tax Department in Cyprus has recently released a guide on the amendments to the Assessment and Collection of Taxes Law (L.4/1978) in relation to tax registration and reporting, filing of income tax returns and employer’s returns, capital statements, auditing obligations, tax payments and compliance, card payments and tax lottery.

Five months have elapsed since the entry into force of the Trademarks (Amending) Law of 2020 (L. 63(I)/2020) and the Trademarks Regulations of 2020 (Κ.Δ.Π. 259/2020), replacing the majority of the previous legal provisions governing trademark protection in Cyprus. The revised legal framework transposes the Trademarks Directive (EU) 2015/2436 and the EU Trademark Regulation (EU) 2017/1001into Cyprus’ national legal order and aims to modernise the trademarks framework in Cyprus.

The Global Innovation Index (GII) is an annual report which details and ranks the innovation performance among 131 countries and economies. It is divided into 2 main pillars: (a) the Innovation Input Sub-Index, which includes institutions, human capital and research, infrastructure, market sophistication and business sophistication; and (b) Innovation Output Sub-Index, which includes knowledge and technology outputs and creative outputs.

The Value Added Tax (VAT) Law of 2000 (L.95(I)/2000) in Cyprus has recently been amended.

With the constant strengthening of AML regulation and enhancing transparency around the globe, the Seychelles has already enacted the Beneficial Ownership (BO) Act 2020, which entered into force on 28 August 2020, along with the BO Regulations 2020. The purpose of the Act is threefold: to provide for the identification and verification of beneficial ownership of legal persons and legal arrangements, to establish and maintain up-to-date registers of beneficial owners and a centralised database, and related matters.

This week’s newsletter offers a glimpse of the most frequent joint ventures, mergers and acquisitions (M&A) transactions involving Cypriot entities, followed by a link to the relevant content on our website, which addresses each transaction in greater detail.

The founding members of the East Mediterranean Gas Forum (EMGF): Cyprus, Egypt, Greece, Israel, Italy, Jordan and the Palestinian Authority, signed the statute establishing the body as a regional intergovernmental forum based in Cairo, during an online ceremony on Tuesday 22 September 2020.

Energy Minister of Cyprus, Natasa Pilides, in a recent statement stated that the Eastern Mediterranean Gas Forum (EMGF) is a very important initiative by Egypt, following a Cabinet meeting approving the Forum’s Charter.

Redomiciling a company’s seat of incorporation to the Republic of Cyprus offers businesses with an abundance of opportunities, given the island’s long established development as a significant business and financial hub and an ideal investment gateway to the European Union. Cyprus offers significant tax and other benefits, including a simplified and transparent tax regime, an importantly low-level corporate tax rate, and an extensive network of Double Tax Treaties. Click here for a deeper insight into the reasons for choosing Cyprus as your business’ seat : Why Cyprus?

The Cyprus Investment Promotion Agency is currently focused on the emergence of Cyprus as the main choice for international technology companies looking to relocate within the European market.

Following marathon talks in Brussels since Friday morning that lasted four days, 27 European Union (EU) governments have reached a breakthrough agreement over the new fiscal stimulus.

Cyprus recently spent 500 million euros to safeguard jobs and boost liquidity amid the coronavirus crisis. In its efforts to combat unemployment in Cyprus, the government is considering incentive schemes for companies that hire jobless persons.

Cyprus recently announced its intention to tap two existing bonds maturing in 2024 and 2040 for a minimum amount of €500 million in a bid to replace more expensive debt (expiring by end-2020) with cheaper debt.

The Double Tax Treaty (DTT) between Kazakhstan and Cyprus was ratified on January 17th, 2020. The DTT Convention on income tax will enter into full force from 1st January 2021 and the main amendments of the Convention cover the taxation of dividends, interest, capital gains and royalties. These provisions aim to create unique opportunities for both countries’ businesses and entrepreneurs in the long-term.

During a teleconference with his European counterparts last Friday, President Nicos Anastasiades underlined the need for a timely adoption of the new EU budget in the framework of the European Council. The President elaborated on the major challenges of the Cypriot economy in the aftermath of the pandemic and kindly requested further EU support.

The European Commission has recently launched ‘Re-open EU’, a web platform to support a safe relaunch of travelling and tourism across Europe. It provides real-time information on borders and available means of transport and tourism services in EU Member States.

As of yesterday, Cyprus moved on to activate phase 3 of the government’s strategy to lift restrictive measures imposed due to Covid19. Due to Cyprus’ excellent epidemiology record thus far, phase 3 will end on June 24, and the complete lifting of measures is scheduled to end on July 14, 2020.

On Monday May 18th 2020, Deputy Minister for Tourism Savvas Perdios reported to Cyprus News Agency (CNA) that he is in serious and constant talks with Cyprus Tourism offshore partners to get a clear picture of the tourism sector by the end of May 2020.

The Cyprus Committee of Finance convened this past Monday to discuss the new support package, approved last week by the Council of Ministers. The new package aims to mitigate the negative economic impact to the real economy, caused by the covid-19 pandemic.

With the partial lifting of the restrictive measures imposed in March to combat the spread of COVID-19 in Cyprus, a number of businesses resumed operations this Monday.

Fitch rating agency maintains Cyprus’s long-term credit rating to BBB- changing the outlook from positive to stable. According to the Ministry of Finance, the agency highlighted the government’s responsible management both of the economy and the public finances under the present conditions due to the coronavirus pandemic.

Deferral of VAT payable – Measures announced by the Government of the Republic of Cyprus following the coronavirus Covid-19 outbreak.

Amid the coronavirus outbreak in Cyprus, the government is discussing a plan with local banks to provide state guarantees of up to 2 billion euros aiming to unlock credit to self-employed, small and medium-sized enterprises (SMEs) and large corporations, affected by the coronavirus lockdown.

Finance Minister of Cyprus, Constantinos Petrides, said on Wednesday that a financial stimulus package is on its way to help businesses tackle the economic damage caused by the coronavirus, which had a big and negative impact on Cyprus’s tourism and travel sector.

According to a recent report published by the US State Department’s Anti-Money Laundering (AML) unit, Cyprus continues to upgrade its established AML legal framework, while authorities convicted 26 persons for money laundering offences in 2018.

Invest Cyprus is an organisation tasked with attracting foreign direct investment. It has recently created a special unit, “Tour Invest Cyprus” to help the National Tourist Strategy reach the goal of attracting 5 million tourists by the year 2030.

The Mutual Evaluation Report of Cyprus was published last week by the MONEYVAL Committee of the Council of Europe, following 18 months of work.

After losing the “Halloumi” trademark last May (failing to act on a cancellation application in a British court filed by a British company), Cypriot Minister of Energy, Commerce and Industry Yiorgos Lakkotrypis announced early this week that Cyprus has successfully registered the “Halloumi” trademark in the UK Intellectual Property Office, correcting a very big mistake made by the Ministry.

Rating agency Moody’s considers as credit positive the fact that Cyprus’ Central Bank Governor, Constantinos Herodotou, expects two of the largest banks on the island to sell a significant portion of problem (non-performing) loans.

Cyprus’s latest double bond issuance has clearly shown that investors come from a wide geographical spectrum as over 85% of the bids for both types of bonds came from foreign investors.

According to Cyprus News Agency’s (CNA) recent report, President of Cyprus Nicos Anastasiades stated that the momentum in real estate market will continue to a greater extent fostered by a large number of local and foreign investment recorded in the island.

Addressing the annual meeting of the Cyprus Chamber of Commerce and Industry (CCCI), President of Cyprus Nicos Anastasiades outlined the government’s eleven reform proposals which “would yield new prospects and new momentum to the business activity.” He assured that the government policy to provide tax breaks and economic incentives will continue.

Addressing the 16th Pancyprian Conference of OEKDY – SEK Trade Union, last Friday, Cyprus’ Finance Minister Harris Georgiades said that through collective effort, the Cypriot economy got a second chance and “it is everyone’s collective responsibility to ensure that there is no return to past bad practices”. As one of his last acts as Finance Minister, Georgiades said it was his privilege to express his appreciation for the union, its leadership, its officials and the workers it represents. He had announced earlier in March that he will step down by the end of year 2019.

The Netherlands has finally been added to the long list of countries Cyprus has signed a Double Tax Treaty (DTT) with, as Cyprus has signed a DTT with the Netherlands last week.

According to a recent article by the Financial Times (FT) titled: “Five reasons to live in Cyprus”, there are 5 main reasons for Britons to relocate and live in Cyprus, provided they have the financial means to do so.

The Cyprus Investment Funds (CIF) sector and its significant progress up to this date, was the highlight of the two-day International Funds Summit which began on Monday 11 November 2019, in Nicosia, Cyprus.

As of October 30th 2019, the parliament of Ukraine passed a draft law endorsing the amending Double Tax Treaty Protocol, signed on December 11th 2015, to the Cyprus – Ukraine Income Tax Treaty. Consequently, the amending protocol is now in operation and will come into full effect by 1st January, 2020.

Anne-Charlotte Bournoville, Head of International Relations and Enlargement Unit of the European Union Commission’s DG Energy described natural gas discoveries in the region as “a game-changer” for Cyprus, Israel and Egypt.

Slovenian Foreign Minister Miro Cerar recently visited Cyprus aiming to enhance economic cooperation between Cyprus and Slovenia.

According to Cyprus’s Minister of Finance Haris Georgiades, Cyprus and Greece are currently working towards creating an economy cooperation and coordination mechanism on matters concerning both their economies and European Union’s agenda.

Focus on research, scientific excellence and innovation is what will help Cyprus become an even more competitive economy, said Finance Minister Harris Georgiades addressing “Researcher’s Night” event, organised by the Research and Innovation Foundation.

Moody’s Rating Agency changed its Cyprus economy outlook from stable to positive due to reduction of sovereign exposure to event risks coming from the banking sector, as well as improving economic strength surpassing previous expectations.

The Government of Cyprus is preparing to submit a new bill, which aims to resolve the problems currently faced by the investment sector.

According to a recent publication by the Cyprus News Agency (CNA), Cyprus is thinking of updating its tonnage tax system and pricing policy for the registration of ships, aiming to activate specific measures in order to reinforce the competitiveness of the shipping industry.

The Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Act) of BVI which came into effect on 1 January 2019 and was supplemented by the issuance of the draft International Tax Authority Economic Substance Code that was issued on 22 April 2019, requires some legal entities carrying on the activities mentioned below, to demonstrate adequate economic substance in the BVI and further introduces reporting obligations for these entities.

According to Eurostat’s latest publication regarding Cyprus Citizenship, Cyprus granted a total of 5,517 citizenships to 1,315 Russians, 502 Britons and 481 Ukrainians, during the year 2017.

The Cyprus Parliament approved on Friday regulations that allow the government to extend the licenses of companies exploring hydrocarbons inside the island’s exclusive economic zone under certain conditions.

Last week, the 4th International Investors Summit organised by Invest Cyprus took place in Limassol, and the list of attendees included over 150 foreign entrepreneurs and investors,representatives from audit and law firms and banks and government officials, amongst others the President of Cyprus, Mr. Nicos Anastasiadis and Finance Minister, Mr. Haris Georgiades.

Cyprus companies, active or start-ups, now have the opportunity to raise funding from three new programs, aiming to boost innovative entrepreneurship and help globalize innovative products and services.

On 24 May 2019, Cyprus ratified the double taxation treaty it had signed with Kazakhstan earlier this year which is expected to enter into force on the 1st of January following the year that all steps are taken by the two countries to give effect to the treaty.

Recently addressing a ceremony held for the conclusion of the first phase of investments by Eurogate at Limassol port, President of Cyprus Mr. Nicos Anastasiades, said: “the Limassol port is one of the most advanced ports in the Eastern Mediterranean region and constitutes an important source of revenue for Cyprus.”

Chairman of International Chamber of Shipping (ICS) Esben Poulsson, has praised the Cyprus Shipping Chamber (CSC) as a “model member. Mr. Poulsson will attend the Cyprus Shipping Chamber’s annual meeting and 30th anniversary on May 30th 2019.

The rating agency DBRS has confirmed Cyprus’ Long-Term Foreign and Local Currency – Issuer Rating at BBB (low) and Cyprus’ Short-Term Foreign and Local Currency – Issuer Rating at R-2 (middle).

Minister of Foreign Affairs, Mr. George Lakkotripis recently reported to the Cyprus News Agency (CNA), that significant progress has been made in the discussions regarding licensing energy field no. 7 to the TOTAL-ENI consortium. He added however, that some legal issues are pending for final settlement.

Last week, the Minister of Energy, Mr. Yiorgos Lakkotrypis said that Cyprus expects the initial natural gas production from the Aphrodite field between 2024 and 2025.

Last week, during talks held in Beirut between the Cyprus Foreign Minister, Mr. Nicos Christodoulides and Energy Minister, Mr. Yiorgos Lakkotrypis and their Lebanese counterparts Mr. Gebran Bassil and Mr. Nada Boustani it was agreed that the two countries will commence negotiations on the exploitation of natural gas reserves in their exclusive economic zones (EEZ).

Britain’s eventual exit (Brexit) from the European Union (EU) will consequently impact Cyprus and its economy due to their close financial relations. UK is one of Cyprus’ main supplier of goods and services. Also, Cyprus’ exports to the United Kingdom (UK) exceed 10% of its total. Moreover, Cyprus’ financial services collaborate closely with the City of London and most importantly, Britain has always been Cyprus’ main source for tourism.

In March 2019, the credit rating agency Fitch upgraded Hellenic Bank’s Long – Term Issuer Default Rating from B to B+ as a result of the the completion of the acquisition of certain good assets and liabilities from the Cyprus Cooperative Bank Ltd (CCB) as well as the €150m capital increase which the Bank carried out.

In a written statement, Government Spokesman Prodromos Prodromou said that important conclusions can be drawn from the 6th Post-Programme Surveillance (PPS) assessment report which refers to the huge progress of the Cypriot economy. “As it is noted, despite some signs of fatigue in the international economic environment, Cyprus stands out in 2019 with a strong growth of 4%”.

Finance Minister, Mr. Harris Georgiades mentioned earlier this week that the government is currently undergoing discussions with the European Investment Bank (EIB) for obtaining finance for Cyprus’ natural gas infrastructure.

According to the new statistical data, the trade deficit dropped to €4.9bn in 2018, down from €5.3bn in 2017.

A bill to establish a national investment fund was approved by the Parliament of Cyprus past Friday. The fund aims to manage future revenues from hydrocarbons, with political parties also agreeing to disconnect gas revenues from the nation’s public debt.

ExxonMobil, a US based oil giant, announced on Thursday, 28 February 2019, a colossal gas discovery located at reservoir “Glaucus-1” in Block 10, located southwest of Cyprus in the Eastern Mediterranean region.

According to several online news sources, ExxonMobil is allegedly about to announce a significant natural gas find off Cyprus’ southern coast.

According to a recent article published by the Cyprus News Agency (CNA) in regards to Cyprus Natural Gas, Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla, told CNA that the intergovernmental agreement between Cyprus and Egypt for the “Aphrodite” gas field resulted to great interest from International Oil Companies, down streamers and financial institutions.

The new statistics of the Cyprus Registrar of Companies and Official Receiver show that the total number of registered companies in Cyprus in 2018 reached 216,572, compared to 217,588 in 2017.

Moody’s rating agency, stated that there was a decline by €5.6 billion in non-performing exposures (NPEs) stemming from the resolution of the co-operative bank (CCB) and the transfer of its NPEs to an asset management company. The rating agency stated that the decline is is a credit positive for the Cypriot banking system because it reduces asset quality risks and supports depositor confidence.

Non-Performing Loans (NPLs) in the Cyprus banking system marked a €5.6 billion reduction since the end of June 2018. NPLs dropped from a total of €16.6 billion to €11.02 billion in September 2018, as Hellenic Bank acquired the performing part of the Cyprus Cooperative Bank, converting it to an asset management company.

The results of a Pan-European survey carried out by the Cyprus Chamber of Commerce at the end of 2018 showed that businesses in Cyprus are optimistic about the new year with regards to prospects for growth but remain concerned over red tape and energy prices.

According to recently published data of the Statistical Service of Cyprus, trade deficit declined by €182.3 million from January to September of 2018. Cyprus’ trade deficit dropped to €3,049.5 million in January-September 2018 from €3,231.8 million in the corresponding period of 2017.

A research done by the Economic Research Centre University of Cyprus highlights that economic sentiment improved in Cyprus in November; specifically, the economic sentiment indicator rose by 2.6% compared with the previous month, reaching 115.2 units.

The Stena Icemax drillship leased by ExxonMobil, arrived last week in Cyprus and began drilling in Cyprus’ offshore block 10, named by ExxonMobil as ‘Delphine’ after the Greek mythology dolphin-shaped sea daemon that was in the service of Poseidon.

On Monday, November 20th 2017, President of Egypt Abdel Fattah el-Sisi arrived to Cyprus, a day ahead of the Trilateral Meeting among Cyprus, Greece and Egypt which takes place in Nicosia, with the participation of Anastasiades and Sisi, as well as Greek Prime Minister Alexis Tsipras.

The IMD World Competitiveness Center in Switzerland has recently published the IMD World Competitiveness Yearbook of 2017, in which Cyprus is ranked 37th out of 63 countries in terms of the competitiveness of its economy.

The Cypriot Finance Ministry announced on Monday, 8th of May, 2017, that Cyprus and Luxembourg signed a double tax avoidance and prevention of tax evasion treaty, based on the model convention of the Organisation for Economic Cooperation and Development.

According to a recent report of TheMoveChannel.com, Cyprus ranks 6th in the top 10 most popular destinations for property purchases.

It seems to be a record year for Cyprus tourism, as the month of March 2017 had the highest volume of tourist arrivals ever recorded in Cyprus during the specific month.

The IMF’s mission visited Nicosia during March 27–31 for the first post-program monitoring (PPM) discussions since Cyprus exited the bailout scheme last year. The PPM forms part of the IMF’s regular monitoring process of countries with significant outstanding IMF credit, focusing on the ability of the said countries to repay the Fund.

The Invest in Cyprus Forum, which took place last Wednesday, March 22nd 2017, in New York, was attended by dozens of business people and investors from Cyprus, Greece, the US and other countries. Speaking at the event, President Nicos Anastasiades said that the island is well on its way of re-establishing full confidence in Cyprus by the international investor community.

On Friday, 17 March 2017, Standard Poor upgraded the Cyprus long-term credit rating to BB+ from BB marking the second consecutive upgrade since September 2016. The upgrade confirms the Cypriot economy`s growth prospects as well asthe stable and sustainable fiscal path and reaffirms the government`s commitment to a balanced budget policy.

The third licensing round of the exploration of Cyprus’ exclusive economic zone (EEZ) was successfully completed, the Cabinet announced after a meeting on Tuesday, the 7th of March, 2017.

On 1 March 2017, the Bank of Cyprus announced the Preliminary Group Financial Results for the year ended 31 December 2016, recording a profit after tax of €64 million for 2016 marking the Bank’s first profitable year after the 2013 economic crisis.

According to a recent Moody’s report entitled: "Banking System Outlook– Cyprus; Stronger Funding And Gradual Improvements In Asset Quality Drive Our Positive Outlook," Moody's Investors Service maintains its positive outlook on the Cypriot banking system, a fact that shows their anticipation for the evolution of the bank’s creditworthiness over the next year and further funding and loan quality improvements.

The Council of Ministers of Cyprus approved on Wednesday, 15 February 2017 the Cypriot startup visa scheme with the aim of attracting investment from foreign investors in the area of innovation and research.

According to data released by the Statistical Service of Cyprus last Friday, Cyprus has recorded a surplus of 9.1 million euros in the year 2016.

Moody’s Credit Outlook which was issued on Thursday, 2 February 2017, highlighted the fact that the increase in deposits in the Cypriot banks has as a result the overall improvement of the banks’ funding structure.

The number of company registration applications in Cyprus have continued to increase for the 3rd consecutive year according to data released by the Department of the Registrar of Companies and Official Receiver (D.R.C.O.R.) of the Republic of Cyprus.

The government of the Republic of Cyprus is about to introduce a new legislation which “will introduce an improved and more credible, effective and competitive framework in collective investments,” said Minister of Finance Mr. Harris Georgiades during his speech at the Cyprus Investment Funds Agency (CIFA) annual general meeting.

On the 18 November 2016, Cyprus and India signed a revised double tax agreement to replace the one which was signed between the two countries in 1994.

On the 14th of October 2016, the amendments to the Income Tax Law of Cyprus as to the new IP regime have been passed by the House of Representatives and subsequently, the amendments were published in the Official Gazette on the 27th of October 2016.