Firm Profile > Patrikios Pavlou & Associates LLC > Limassol, Cyprus

Patrikios Pavlou & Associates LLC
PATRICIAN CHAMBERS
332 AGIOU ANDREOU STR.
3035 LIMASSOL
Cyprus

Email firm Visit website 357 25 87 15 99 357 25 34 45 48

Cyprus > Dispute resolution Tier 1

Patrikios Pavlou & Associates LLC has a versatile team that successfully handles all aspects of dispute resolution including the arbitration of international and domestic disputes. Clients range from public and private companies to multinational corporations, banks, financial institutions and entrepreneurs as well as individual clients from Cyprus and abroad. Senior partner Stavros Pavlou is a prominent arbitrator locally and internationally and is also recognised for his litigation skills. He co-leads the team with Chrysostomos Nicolaou and Stella Louka Pavlou. The team's wide ranging expertise spans the handling of challenging shareholder disputes to obtaining ancillary relief in the context of foreign litigation and arbitration.

Hall of Fame

Stavros Pavlou - Patrikios Pavlou & Associates LLC

Next Generation Partners

Eleana Christofi - Patrikios Pavlou & Associates LLC

Practice head(s):

Stavros Pavlou; Chrysostomos Nicolaou; Stella Louka Pavlou

Other key lawyers:

Eleana Christofi

Testimonials

‘Strong personalities, with different approaches and capacities, but making a great team ’.

‘Efficient, responsive, experienced and reliable. What else do we need? ’.

‘I worked mostly with Stavros Pavlou. He has a personal charisma and can be very persuasive’.

‘The services provided are of the highest standards, effective and efficient, providing best advice and solutions. The lawyers bring a pragmatic and focused approach to dispute resolution and other issues and aim to offer value to the client. The firm has a composite group of lawyers with relevant diversified knowledge, experience and specialisation. The partners and all the lawyers together contribute to providing a first-class service. The firm is continually taking steps for further development’.

‘The firm is headed by Mr. Stavros Pavlou, its senior and managing partner, who I recommend without any reservation. He is one of the 2-3 best Cypriot litigators with an international reach and a true master of strategic thinking’.

‘Chrysostomos Nikolaou is an enormously experienced litigator and ably heads the litigation department. Stella Louka Pavlou is a very respected banking litigation expert handling with her team hundreds of cases for local and international banks. Eleana Christophi is probably the best litigator of her generation in Cyprus and has an enormous work ethic‘.

Key clients

Gazprombank JSC

VTB Bank OAO

Bank of Moscow

Alpha Bank Cyprus Ltd

Alpha Bank Greece

Promsvyazbank

Several HNWI

Bank of Cyprus PLC

Eurasian Bank

Osborne Clarke

Foley Hoag

Monastyrsky, Zyuba, Stepanov & Partners

Rybalkin, Gortsunyan & Partners

Ivanyan and Partners

Cyprus > Tax Tier 1

Patrikios Pavlou & Associates LLC has ‘very extensive experience in all aspects of business and tax laws’. It is well-equipped to deal with a broad range of tax disputes as well as having considerable prowess in advising on cross-border transactions and agreements. The group is renowned for its strength in advising on the establishment of efficient tax planning structures and is a known name for its specialist tax advice on M&As, corporate restructurings and re-organisations. Senior and managing partner Stavros Pavlou along with Stella Strati jointly head the team.

Leading individuals

Stavros Pavlou - Patrikios Pavlou & Associates LLC

Next Generation Partners

Stella Strati - Patrikios Pavlou & Associates LLC

Practice head(s):

Stavros Pavlou; Stella Strati

Testimonials

‘It has proved that it has proper experience and knowledge to deliver tax advice in complex cross border projects. Stella Strati is a good listener and focuses on providing precise legal advice tailored to individual circumstances’.

‘Stavros Pavlou – I would consult Stavros on any legal issue worldwide. One of the most bright lawyers I have the honour to know’.

‘Stella Strati is extremely helpful and responsive on trust and private client matters in general. Stella is helpful and easy to deal with’.

‘Stella Strati is a hardworking younger partner who has made a name for herself for her diligence and responsiveness as well as her practical and precise tax advice’.

‘Strong work ethic culture stems from the founder of the company and I believe the clients are impressed with the informed and detailed solutions provided to them by the firm’.

‘Stavros Pavlou is following in the footsteps of his father and he is the heart and soul of the company. He is a dynamic character who is respected by his colleagues but also by clients and associates. The partners who surround him have different qualities and areas of expertise which makes for a great team’.

‘As tax advisors ourselves we can vouch for the fact that Patrikios Pavlou & Associates LLC is one of the very few law firms in Cyprus that has a clear understanding of tax law and can provide legal support on any complex tax questions including cross-border matters. The lawyers are particularly notable for their expertise on the workings of the complex network of the Double Tax Treaties of the Cyprus Republic with various countries and can provide practical and valuable advice on questions of ‘substance’.

‘Stavros Pavlou has justifiably established himself as a very experienced international tax advisor at the forefront of the practice. I know that he regularly advises international clients regarding their legitimate tax structures. The fact that he is also an expert trust practitioner often providing lectures and seminars on the use of the Cyprus International Trust allows him to have a rounded view of all aspects of efficient tax structuring across multiple jurisdictions’.

Key clients

Gazprombank JSC

Alpha Bank Cyprus Ltd

Delo Group

TMK OAO

White & Case

Cyprus > Banking and finance Tier 2

Patrikios Pavlou & Associates LLC advises a variety of banking and financial institutions, and is renowned for its experience in structuring security packages and enforcing securities out of court. The team also specialises in cross-border ship and aircraft financing and has strong capabilities in other industry sectors such as energy, mining and metals, retail, and telecommunications. Stavros Pavlou and Lia Iordanou Theodoulou head the 'experienced and stable' team, specialising in cross-border securities and listings, and work with major banks and financial institutions respectively. Angeliki Epaminonda was promoted to the partnership in 2020.

Leading individuals

Lia Iordanou Theodoulou - Patrikios Pavlou & Associates LLC

Practice head(s):

Stavros Pavlou; Lia Iordanou Theodoulou

Other key lawyers:

Stella Strati; Angeliki Epaminonda; Angelos Onisiforou

Testimonials

‘Patrikios Pavlou is particularly strong in M&A, banking and litigation. It has enormous experience working on transactions involving CIS clients and counterparties (such transactions frequently include unorthodox legal structures and require innovative legal thinking)’.

‘Lia Iordanou is extremely responsive and reliable, and can think “outside of the box”. Stavros Pavlou assists the transactional team on most complex Cypriot law issues’.

‘Stella Strati is my primary point of reference. I value her 360 awareness of all legal matters, instant availability, willingness to work within available budgets and no compromise to quality’.

‘It’s always a pleasure to work with Patrikios Pavlou (the PPA) since compared to some other firms the team is always attentive to details, always available for the client, and if there is a need to get a clarification, the banking and finance practice always returns with a detailed and constructive answer. PPA is sensitive to client’s needs and may offer a solution that would satisfy them to the fullest’.

‘Angeliki Epaminonda always acts as a professional to the highest standards; she is cooperative, client-orientated, her legal services are useful, coherent and sufficient. Angelos Onisiforou is always there for the client, ready to provide timely legal assistance. He demonstrates deep knowledge of financial and corporate law, and it is also enjoyable to work with him as with a person’.

‘Dedication to results. When we contacted the firm we specifically requested result oriented approach and this is what we received ’.

‘The team is very strong and is on top of legal developments. The lawyers always deliver on time and are very responsive. With this law firm on board, we know that our clients are in safe hands and the relevant legal points will be considered and dealt with. ’

‘Lia Iordanou is very efficient and gets to the crux of the matter. She has excellent relationships with other law firms in the market and, as a result, manages to sort out any differences and issues quickly and efficiently. She is a pleasure to deal with. Her scrupulous approach to the problem gave an opportunity to structure the deal with the most effect for all the participants’.

Key clients

Gazprombank JSC

Gazprombank International SA

VTB Bank OAO

Ivanyan & Partners

Bank of America Merill Lynch

Bank of Cyprus PLC

Sberbank

Commerzbank

Alpha Bank Cyprus Ltd

Freshfields Bruckhaus Deringer LLP

Deutsche Bank AG

Orsingher Ortu Avvocati

Cyprus > Commercial, corporate and M&A Tier 2

Patrikios Pavlou & Associates LLC is renowned for its advice on local and international corporate and commercial matters such as handling key cross-border mergers and acquisitions, re-domiciliation in and out of Cyprus and company liquidations. It is also skilled at handling complex corporate governance matters and IP issues. It has recently been active advising major corporate stakeholders on share purchases/sales, regulatory matters and re-domiciliation to Russia. Stavros Pavlou and Lia Iordanou Theodoulou head the department that recently promoted Angeliki Epaminonda to the partnership. Stella Strati is also well-regarded. The 'very knowledgeable and responsive' team is ‘very professional, time efficient and result oriented’.

Leading individuals

Stella Strati - Patrikios Pavlou & Associates LLC

Practice head(s):

Stavros Pavlou; Lia Iordanou Theodoulou

Other key lawyers:

Stella Strati; Angeliki Epaminonda; Angelos Onisiforou; Stylianos Trillides; Zoe Potsi

Testimonials

‘The firm provided an excellent service in a cross-border merger project and assisted with the resolution of a shareholders’ dispute. Both partners and associates are easily available, the firm provided clear project planning. Its advice was invaluable for the proper planning of multiple actions in various jurisdictions, and people in the firm worked hard to implement the project properly and on time. ’

‘Angelos Onisiforou is responsive and a sharp lawyer, his knowledge of corporate law helped to defend client’s interests vis a vis other shareholders. Angeliki Epaminonda is great at planning complex projects and knows exactly what challenges might arise during the implementation of these projects. Stella Strati perfectly managed the complex cross-jurisdictional project and was always focused on the client’s needs’.

‘Very competent, efficient, client-oriented and a commercially aware team. Partners Lia Iordanou, Stella Strati, Angeliki Epaminonda’.

‘Excellent knowledge of the legal aspects. Quick in response including in the preparation of documents that were needed. Patience and excellent negotiation skills. Stavros Pavlou, Lia Iordanou, Stella Strati, Stylianos Trillides, Zoe Potsi and Angeliki Epaminonda ’.

‘Very knowledgeable and responsive’ team is ‘very professional, time efficient and result oriented’.

‘The team is very prompt at replying to requests and can handle pending issues efficiently. The team members are also very knowledgeable and can advise on a wide spectrum of matters, while retaining their specialisation. The individual members are very punctual and very precise. Accuracy is key to success in this profession. Also, the team members are consistent in the quality of service they offer, in the sense that they can deliver the same level of service every single time’.

‘I have been working with Mrs Lia Iordanou for almost 15 years. She is a very professional and helpful partner, always listens carefully and suggests best options, very prompt and reachable’.

‘Excellent cooperation with Lia Iordanou that is main lawyer handling our cases. Mr. Pavlou’s wisdom and knowledge are always useful and we can rely on him when needed. An exceptional team who know how to get the job done’.

‘Lia Iordanou and Stella Strati are amongst the most accomplished practitioners in Cyprus. Lia Iordanou is an absolute star who knows what matters to clients and how to get transactions completed quickly, efficiently and in a manner which best protects her clients’ interests. Stella Strati is an exceptional lawyer and a delight to work with and has been instrumental in navigating some of the most challenging transactions. Stella is dedicated to delivering first- class results for her clients’.

Key clients

Gazprombank JSC

Gazprombank International S.A.

EN+ Group

LSR Group

Nefaso Ltd

Raifaisen Informatik GmbH

Newtech Services Holding Ltd

Orsingher Ortu Avvocati

Ivanyan & Partners

TMK Group

VTB OAO

Cyprus > Real estate and construction Tier 2

Patrikios Pavlou & Associates LLC has a versatile team that advises on the full range of matters from the setting up of Cyprus international trusts structures for real estate assets to handling property litigation. With Stavros Pavlou and Stella Strati at the helm the practice is renowned for its work with a variety of project developers and high-net-worth individuals on a whole host of issues including debt to asset swaps and all forms of agreements for real estate developments and on property finance matters.

Next Generation Partners

Stella Strati - Patrikios Pavlou & Associates LLC

Practice head(s):

Stavros Pavlou; Stella Strati

Key clients

Alpha Bank (Cyprus) Ltd

Private clients

Local and foreign investors and construction companies

Patrikios Pavlou & Associates LLC is a leading, highly recommended and multi-awarded law firm based in Cyprus. With nearly 60 years of experience in the local and international legal market, the firm is renowned for its involvement in some of the largest cross-border transactions and complex litigation and arbitration matters and for its exceptional client service in Cyprus and abroad.

Located in Limassol, one of the most attractive international business centres and rapidly developing cities in Europe, the firm is committed to providing its clients with top professional legal services, covering the full range of their business activities. A team of over 30 qualified professional associates and legal consultants advise multinational corporations, banks, financial institutions and HNWIs on their high-profile and complex matters in multiple practice areas:

Dispute resolution & ADR
Corporate, commercial and M&A
Banking and finance
Restructuring and insolvency
Capital markets
International tax planning
Real estate, trusts and asset protection
Ship registration and ship finance

Through a multi-disciplinary approach in delivering our services, together with our dedication to cross-border work, and our ongoing commitment to building long-lasting relationships, Patrikios Pavlou & Associates LLC has managed to establish a strong presence in the international legal market. The firm’s international profile comprises of strong alliances with reputable worldwide law firms, particularly in Europe, Asia, USA, Russia and the rest of the CIS countries, as well as membership of various professional organisations globally, enhancing further the team’s ability to swiftly and efficiently respond to its clients’ ever-changing requests.

Patrikios Pavlou & Associates LLC offers comprehensive corporate services through Pagecorp Group, a group of companies associated through common ownership. With almost 30 years’ experience, the Group comprises of lawyers, legal consultants, company administrators, accountants and secretarial staff, who advise major organizations, start-ups and entrepreneurs on International Tax Planning, Cyprus International Trusts, Foreign Investment and Citizenship, and Accounting and Financial reporting, in order to establish their business in a low tax, transparent and regulated environment.

Since 1963, Patrikios Pavlou & Associates LLC has been acting for leading organizations and individuals with persistent commitment to excellence. Our determination is reinforced through our extended partnerships with companies around the globe that share the same philosophy, culture and values: invest for the future. We are confident that through strong belief in our core values and responsible actions, we will continue to provide top quality legal services with diligence, integrity and professionalism.

Department	Name	Email	Telephone
Dispute Resolution and ADR, Corporate, Commercial and M&A, Banking & Finance, Capital Markets, International Tax Planning, Real estate, Trusts and Asset Protection	Stavros Pavlou	spavlou@pavlaw.com	+357 25 871599
Dispute resolution and ADR	Chrysostomos Nicolaou	cnicolaou@pavlaw.com	+357 25 871599
Dispute resolution and ADR, Banking Litigation, Matrimonial & Family Law	Stella Louka Pavlou	slpavlou@pavlaw.com	+357 25 871599
Corporate, Commercial and M&A, Banking & Finance, Capital Markets,Restructuring & Insolvency, Ship & Aircraft Finance	Lia Iordanou Theodoulou	liordanou@pavlaw.com	+357 25 871599
Dispute Resolution, Litigation, Administrative & Constitutional, Matrimonial & Family Law	Ioanna Stavroulia	istavroulia@pavlaw.com	+357 25 871599
Corporate, Commercial and M&A, Banking & Finance, Capital Markets Restructuring & Insolvency, Real Estate, Trusts & Asset Protection, International Tax Planning, Corporate Management Services	Stella Strati	stella.strati@pavlaw.com	+357 25 871599
Dispute Resolution & ADR, Corporate Litigation	Eleana Christofi	echristofi@pavlaw.com	+357 25 871599
Corporate, Commercial and M&A, Banking & Finance, Capital Markets, Restructuring & Insolvency,	Angeliki Epaminonda	aepaminonda@pavlaw.com	+357 25 871599
Dispute Resolution	Katerina Philippidou	kphilippidou@pavlaw.com	+357 25 871599
Dispute Resolution	Theodoros Symeonides	tsymeonides@pavlaw.com	+357 25 871599

Name	Position	Profile
Miss Eleana Christofi	Eleana Christofi is a Partner in the Dispute Resolution Department of the…	View Profile
Miss Angeliki Epaminonda	Partner	View Profile
Elena Georgiou	Senior Associate	View Profile
Mrs Lia Iordanou Theodoulou	Lia Iordanou Theodoulou is the Partner-Head of Corporate Finance of the firm.…	View Profile
Mrs Stella Louka Pavlou	Stella Louka Pavlou is the Partner – Head of Banking Litigation department…	View Profile
Mr Chrysostomos Nicolaou	Chrysostomos Nicolaou is the Partner – Head of Litigation Department of the…	View Profile
Angelos Onisiforou	Senior Associate	View Profile
Nasia Papakonstantinou	Senior Associate	View Profile
Mr Stavros Pavlou	Stavros Pavlou is the Senior & Managing Partner of the firm. His…	View Profile
Mr Patrikios Pavlou	Patrikios Pavlou is the Senior Internal Consultant of the firm. His areas…	View Profile
Mrs Katerina Philippidou	Partner \| Dispute Resolution	View Profile
Mrs Ioanna Stavroulia	Ioanna Stavroulia is a Partner in the Litigation department. Her practice areas…	View Profile
Mrs Stella Strati	Stella Strati is a Partner in the Corporate Finance department of the…	View Profile
Mr Theodoros Symeonides	Partner – Dispute Resolution	View Profile
Stylianos Trillides	Senior Associate	View Profile

Number of lawyers : 30

English
French
Georgian
German
Greek
Italian
Russian
Slovak

Cyprus Bar Association
International Bar Association
Cyprus-Russian Business Association
Society of Trust and Estate Practitioners
Chartered Institute of Arbitrators
Russian Arbitration Association
International Tax Planning Association
Association of International Tax Consultants
International Law Association
LCIA (London Court of International Arbitration)
International Council for Commercial Arbitration

Mr : Stavros Pavlou

Dispute Resolution & ADR

Extensively advising and representing a well-known private investment group of companies in Russia, involved in the development of real estate and finance assets, in a dispute between the group of companies and a Russian commercial bank, claiming damages in the amount of EUR 600 million.
Representing a high-net worth individual based in Scotland in a cross-border dispute arising out of a joint venture for the exploitation of immovable property value of EUR 20 million in the Russian Federation.
Representing a Russian government-owned development bank in a litigation initiated in Cyprus against the bank and third parties for the amount of USD 119 million on the basis of alleged breaches of contractual obligations by third parties.

Corporate Law, Commercial Law, and M&A:

Advising a leading real-estate company of China, in relation to the acquisition of a large investment group operating in the Russian commercial real-estate market, owing properties of more than USD 4 billion.
Provided legal advice on the re-structuring of the shareholding of a group of companies, in preparation for its acquisition by a Strategic Investor, and the setting up of special purpose vehicles under Belize law and Cyprus law for the purposes of the acquisition amounting EUR 110 million.
Advising and assisting, along with a major Russian bank, a private equity investments international group, with headquarters in China, managing assets of more than EUR 1.5 million, with the establishment of an international investment group and with setting up of a Cyprus company to act as the investment manager to a fund to facilitate investments in Asia.

Banking & Finance, Capital Markets:

Advising a multinational investment and financial services provider on a new margin loan to a Cyprus borrower in the amount of USD 800 million secured inter alia by a pledge of shares of a foreign jurisdiction public listed company.
Acted as the advisors of a major Russian bank, in relation to a facility of more than USD 320 million provided by the bank to an Austrian energy company trading in oil and oil-related products within the EU market.
Advising an Asian development bank, proposing to provide a reputable supplier of quality fuel with a direct loan in the amount of up to USD 4.1 million.

International Tax Planning:

Advising a trustee of a Bermudan trust in relation to the re-domiciliation of the trustee and subsequently of the trust in the Republic of Cyprus for the purposes of taking advantage of the Cyprus International Trusts Law and the applicable tax regime.
Providing specific tax and corporate advice to a Cyprus start-up company, in relation to the optimization of its corporate structure and the establishment of its business in the field of fiscal representation; the projects involves one of the world’s largest online marketplaces and services provider and multi-jurisdictional tax aspects within the EU.
Providing corporate and tax advice in relation to the cross-border re-organization of one of the largest insurance companies in the world, involving Cyprus entities and entities from five other European and international jurisdictions.

Real Estate, Trusts & Asset Protection:

Advising one of the leading property developers in the Eastern Mediterranean on the development, planning and licencing on their landmark projects, considered to be among the largest private real estate investment opportunities in Cyprus.
Advising one of the major banking institutions of Cyprus, in relation to all loan restructurings performed by them pursuant to an amendment of the Cyprus tax legislation, according to which certain loan restructurings are temporarily exempt from tax, where such restructurings include the transfer of immovable property to the creditor/financial institution in exchange for the repayment of debt.
Advising a number of high-net-worth individuals from Russia, Asia and other non-EU countries on the purchase of premium commercial and residential properties, which qualify for the Cyprus Citizenship by Investment Programme.

For us, at Patrikios Pavlou & Associates LLC, being responsible towards all stakeholders has always been a high priority and an essential corporate determinant for value creation. The firm has a long and deeply rooted tradition of being an active advocate of ethical, honest and responsible practices towards the community with whom it interacts. We are committed in providing top level legal services with the utmost ethical standards, acknowledging that our activities and actions reflect on our society and the environment in which we operate.

As one of the leading law firms in Cyprus, we are active promoters and supporters of local economic growth by:

applying environmental-friendly practices and minimizing our ecological impact, through recycling, using renewable energy sources and reusable materials, and investing to ‘greener’ supply chains;
protecting the rights and safety of our employees and respecting internationally declared human rights and employing local and foreign workers, considering, at the same time, diversity as a strength. We value all perspectives, creative ideas and connections that arise from bringing people with different backgrounds together and we place value on such differences to further add to the strength of our legal and professional support team;
raising money for local charities and non-profit organizations and sponsoring local events; our donations have increased substantially and we seek to provide assistance to those who are in need;
implementing ethical marketing that respects our clients without eventual manipulations or false advertisement.

With more than 55 years’ experience, Patrikios Pavlou & Associates LLC knows how to be viable in the long-run and the importance of responsible actions. Our socially responsible belief is only reinforced through our extended partnerships with companies around the globe that share the same philosophy, culture and values: invest for the future. We aim to achieve the same levels of expertise in the cases in which our lawyers are involved and in community work, as in further growing our portfolio of clients and associates. We are confident that through our strong belief in our core values and responsible actions, we will continue to provide top quality legal services with diligence, integrity and professionalism.

Stavros Pavlou, Senior and Managing Partner

Stavros Pavlou, Senior and Managing Partner of Patrikios Pavlou & Associates LLC discusses the law firm’s services and shares his views and experiences with clients.

What do you see as the main points that differentiate Patrikios Pavlou & Associates LLC from your competitors?

For more than 55 years, Patrikios Pavlou & Associates LLC has been has been acting for leading organizations and individuals with persistent commitment to excellence. Since 1963, our firm has been focusing on value creation for our clients and operating with the same core principles: the development of the team’s expertise and the provision of high quality services with respect, integrity and professionalism. A team of over 30 qualified and talented professional associates and legal consultants advise multinational corporations, banks, financial institutions and HNWIs on their high-profile and complex matters, attentively listening to their requests and allowing them to see solutions they didn’t think were possible. The law firm evolved to be a multi-awarded and highly respected law firm in Cyprus also due to the in depth knowledge of its strengths, the confidence in taking large projects and the ability to plan, learn, coordinate and persevere. We aim to further grow our portfolio of clients and associates, expand our international profile and our long-standing client base and strengthen our prominent relationships with respectable international law firms and associations.

Which practices do you see growing in the next 12 months? What are the drivers behind that?

Patrikios Pavlou & Associates LLC is located in Limassol, Cyprus, one of the most attractive international business centres and rapidly growing economies in the EU, with a remarkable 3.8% GDP growth rate (Q4 2018). The Cypriot government undertook a set of measures which aim in attracting and protecting investors’ interests and therefore, the real estate, banking, construction, financial services, company registrations and immigration sectors are currently experiencing important growth. As a result, our firm receives continuous requests with regards to matters involving corporate restructurings, banking transactions and litigation, dispute resolution through arbitration, legal assistance on citizenship by investment programmes, property contracts and negotiations, and company formations.

What’s the main change you’ve made in the firm that will benefit clients?

Continuous training, practice specialization, reorganisation and constant updating, selection and development of our IT systems, aim in advancing our reliability, productivity and responsiveness for optimum performance results. By securing an additional 660m² of office space, which aimed in accommodating the rising client requests in the banking, finance and corporate departments, the working environment and operational efficiency improved enormously. Additionally, the firm invests continuously in the training of its key professionals through courses, conferences and seminars, while I am a Fellow of the Chartered Institute of Arbitrators and also the Honorary Secretary of the CIArb Cyprus Branch. This year, internal restructurings included the promotion of a Senior Associate to Partner, the promotion of 2 Advocates into Senior Associates and the additional recruitment of administrative and supportive staff to further improve our client service. Furthermore, the affiliated Pagecorp Group also undertook internal restructurings including a new General Manager and Data Protection Officer, to guarantee a strong presence in the Cyprus corporate services sector.

Is technology changing the way you interact with your clients, and the services you can provide them?

Absolutely! As a firm we believe that it is extremely important to keep pace with the latest technological developments in order to run our operations more effectively and efficiently, improve our services and clearly and precisely communicate with our clients. Our everyday activities involve the use of a wealth of legal information and databases aiming in the increase of accuracy, swift communication with clients and secure promotion of our services on our website and on social media, always conforming to the EU Data Protection Laws. Our experienced in-house IT team handles all of our online and offline technological operations, and mobile technology allows our teams to be in secure contact with clients even when out of office. Patrikios Pavlou & Associates LLC therefore, embraces the use of technology for the highest productivity and responsiveness, ensuring accuracy, confidentiality and high quality of professional services.

Can you give us a practical example of how you have helped a client to add value to their business?

We consistently provide legal advice and offer transaction support and judicial protection to multinational organizations, banks, financial institutions, corporations and entrepreneurs from Europe, Asia, Russia and other CIS countries, and therefore the examples where clients added value to their business are numerous. These include the restructuring of many client groups and the renegotiation and optimisation of their credit facilities, ensuring their continued survival and profitability. In the Dispute Resolution field we have successfully defended clients from malicious attacks on their assets in many high profile cases.

Are clients looking for stability and strategic direction from their law firms – where do you see the firm in three years’ time?

More than ever, clients need personalised services, stability and a long-term approach to their requests. Since 1963, our firm developed into a trustworthy, results-oriented, professional, and well respected law firm that offers strategic advice, consistency and care towards clients’ matters. We have been watching the development of the local services industry, including legal services, from the beginning of the creation of the Republic of Cyprus showing appreciation to all our client relationships and evolving with regards to their needs. We are committed in providing top level legal services with the utmost ethical standards acknowledging that our actions reflect on our society and the environment in which we operate. We strongly believe that the firm will continue the significant expansion it has enjoyed since its foundation, and we will continue to develop the knowledge and skills of our people. We look forward to the future and the challenges it will bring and we are confident that with persistent commitment to our principles, we will continue to provide top quality legal services with diligence, integrity and professionalism for many years to come.

DISPUTE RESOLUTION

Our Top Tier Dispute Resolution practice is the largest and most experienced department of the firm. As one of the leading departments in Cyprus, it is renowned for delivering exceptional service to clients. Senior & Managing Partner, Stavros Pavlou is an Elite Leading Individual in Cyprus and praised for his “very deep knowledge of the law”.

With a 56-year experience in the local and international legal market, the team successfully handles cases in conventional and alternative forms of litigation, including arbitration of international and domestic disputes, and mediation. The department’s transnational capabilities are substantial since lawyers have arbitrated commercial disputes in arbitration courts on a global level, including the London Court of International Arbitration, the Stockholm Arbitration Court, the Austrian Arbitration Centre, etc.

Headed by four partners, the dispute resolution team handles a wide range of claims and disputes, both locally and internationally, in respect of general civil, corporate and criminal litigation as well as administrative recourses to the Supreme Court of Cyprus including:

Corporate and shareholders’ disputes
Banking and finance disputes
Negligence, incl. medical malpractice
Bankruptcy, insolvency and receivership
Landlord and tenant disputes
Employment disputes
Matrimonial law
Defamation, libel and slander claims
Breach of contracts
Personal injury claims
Road traffic accidents
Insurance claims
Admiralty claims

A sample of recent cases and projects handled includes the following:

Representing companies which own an oil refinery in the Russian Federation, in shareholders’ disputes for the amount of USD 200 million for alleged breaches of shareholders’ agreement, misrepresentation and fraud.
Handling over 50 cases, with an approximate total aggregate amount of USD 3 billion, relating to the registration, recognition and enforcement of Russian judgments and arbitral awards obtained by one of the leading and largest banks of Russia against various companies and individuals.
For four and a half years, we have been representing a leading Russian bank in significant arbitration proceedings before a Cypriot tribunal, in a USD 40 million claim relating to the performance of certain bank guarantees; the Final Award has recently been received in the favour of our client pursuant to which the multimillion-claim of the claimants is dismissed.
Representing high-net worth individuals in a multi-million dispute arising out of a joint venture for the construction of residential properties in Moscow.
Advising before the London Court of International Arbitration (LCIA) on the enforcement of a Sale and Purchase Agreement for the sale of issued share capital through complex corporate structures (claim amount USD 800 million).
Representing one of Cyprus’s biggest banks in relation to a recent amendment on Immovable Property (Transfer and Mortgage) Law No. 9/1965. We promoted applications/appeals with the District Courts, requesting that several provisions of article 44 of the Law, as amended, are unconstitutional; the Court agreed and declared certain articles of the Law unconstitutional, as breaching articles 23 and 26 of the Constitution.
Advising India’s largest real estate construction company, which is also a key player in real estate investments, on matters relating to the enforcement and execution of an LCIA Arbitration Award; worth approximately GBP 350 million.
Representing a major Russian financial institution on the recovery of over USD 1.5 billion in assets, by a leading Russian group of companies, through liquidation and other out of Court enforcement measures in order to ensure asset recoveries for debt repayment.
Representing a large Russian bank in litigation proceedings in Cyprus, initiated against the bank and third parties (amount USD 119 million) on the basis of alleged breaches of contractual obligations by third parties for which, allegedly, the bank is responsible in tort under Russian law, as being their ultimate mother company.

CORPORATE & M&A

The corporate and M&A team at Patrikios Pavlou & Associates LLC is ranked in the top tier for Cyprus for providing professional, high-quality consultancy services to clients. The team effectively handles complicated cross-border transactions, including mergers and acquisitions, and assists large groups of companies and prestigious international law firms on Cyprus corporate law issues.

Clients of the corporate and M&A department include public and private companies and major international groups of companies operating in various industry sectors such as oil & gas, energy, metals production, automobile and engineering, IT, construction, financial services, aviation, transport and other.

Headed by three partners, the corporate team provides professional legal advice and guidance to clients in the following areas:

Company formation and company administration
Partnership formation and dissolution
Corporate management, with full domiciliation services
Corporate reorganization, reconstruction, restructuring and optimization of business structures
Company liquidation and winding up
Shareholder agreements and corporate governance
Loan, agency and distributorship agreements
Lease and hire-purchase agreements
Share sale and purchase agreements
Local and cross border mergers, acquisitions and amalgamations
Joint ventures and cross border transactions
International tax planning
Legal and corporate due diligence
Corporate finance, with a particular focus on takeovers, restructurings, mergers and acquisitions
Trust Settlement and trust administration

A sample of recent cases and projects handled includes the following:

Advising one of the world’s largest providers of products and services to the energy industry on its proposed acquisition (value of USD 975 million) of a Cyprus holding company and its subsidiaries.
Engaged for the 4th consecutive year by a major corporate shareholder, wishing to sell a further 25% stake in a Cyprus holding company; the project involved several complicated share transfers and sale of loans in the form of shareholder financings (value EUR 420 million).
Provided a complex legal memorandum to a major media and advertising services provider on the liquidation of one of its member companies, a Cyprus investment management company, which was also involved in litigation proceedings in the Supreme Court of the State of New York, USA.
Providing detailed analysis of corporate governance matters in relation to two Cyprus holding companies, part of a very complicated legal structure with ultimate beneficial owners of various nationalities, BVI shareholders, shares held on trust by funds and Russian subsidiaries involved in the production and sale of steel, pipes and gas tanks.
Advising a major Russian bank in relation to a complicated reorganization of an international corporate group operating in the oilfield sector, including Russian, Jersey and Cyprus companies.
Engaged by a high calibre Greek entrepreneur to provide detailed legal assistance with the setting up of a Cyprus company involved in the online travel industry. Furthermore, we comprehensively assisted with all company incorporation procedures and we also provided serviced office space to accommodate his initial operational needs.
Acted as the legal advisor to one of the largest Russian companies offering railway infrastructure construction services, on whether the entry into a particular pledge agreement, which constituted part to a larger financing transaction, would potentially be in breach of the Cyprus Companies Law provisions relating to the prohibition of the cross holding of shares.
Having gained extensive expertise, we have successfully handled and completed numerous re-domiciliation procedures from Jersey, Panama and the BVI to Cyprus.
Extensively reviewed and advised on the proposed website documentation such as sales paths, e-mail templates and the travel insurance policy relating to the provision of insurance by one of the world’s leading insurance companies.

BANKING AND FINANCE

The Banking and Finance team at Patrikios Pavlou & Associates LLC is ranked in the top tier for Cyprus, duly acknowledged for delivering outstanding legal services to its clients. With extensive experience in the legal market and the international culture, the lawyers and legal consultants of the Firm successfully handle challenging cross-border corporate finance transactions and banking projects.

The Firm’s clients include public and private companies, large multinational corporations that have their regional hub in Cyprus, entrepreneurs as well as a host of individual clients from Cyprus and abroad. In the banking and finance sector, the Firm provides ongoing advice to a large number of local and international banks and financial institutions.

Over the last years, Patrikios Pavlou & Associates LLC has been receiving increasing banking and finance work and thus, the department has expanded to meet the clients’ requests effectively and timely. Headed by three partners, the team provides professional legal advice and guidance to clients in the following areas:

Corporate finance
Structured finance
Project finance
Acquisition finance
Equity and debt finance
Ship finance
Equity investment
Restructurings and reorganisations
Derivative and securities lending transactions
Repurchase agreements [REPOs]
General banking
Recovery of loans
Lease and hire-purchase agreements
Letters of credit and bank guarantees
Offerings and listings in international stock exchanges

A sample of recent cases and projects handled includes the following:

- Advised for 6 consecutive years, a major Russian Bank on several facility agreements, amounting up to USD 7 billion to an international chemical group.
- Advising a leading global investment banking, securities and investment management firm in relation to a number of issues concerning the Financial Collateral Arrangement Law and providing a legal opinion on financial collateral assistance matters arising out of certain Master Confirmations for pre-paid share forward transactions for shares issued by the largest international crude oil tanker company worldwide.
- Advising one of the largest banks in Russia on a financing project of over USD 1 billion regarding a trade and exhibition centre in Moscow, Russian Federation.
- Advising a leading Switzerland-based multinational financial services group in relation to the entry into a collar transaction with a Cyprus company (value of EUR 200 million) with regards to shares in an integrated global energy company based in Spain.
- Advising a major Russian bank in relation to a EUR 700 million facility agreement for the largest scale high-tech project in the Russian mining industry.
- Engaged by an Asian development bank to advice from a Cyprus law perspective on the provision of a loan amounting USD 4.1 million for a construction of petroleum facilities in Tajikistan.
- Advising on the financing of a 75-metre yacht amounting USD 50 million provided by a large Swiss Bank.

Represented one of the world’s most preeminent financial service firms in relation to a cross currency swap transaction, supplementing an ISDA Master Agreement, with one of the biggest investment firms in Cyprus.
Providing legal advice to a German global banking and financial services company on the transfer of a Cypriot secured property it held by way of Cyprus pledges in respect of two facility agreements of USD 265 million to a new security agent.
Advising a major Russian bank on the financing aspect of a major restructuring of the largest industrial construction group in Russia in order to fund the purchase price of the deal in the aggregate amount of approximately EUR ½ billion.
Advised the corporate and investment banking division of the leading financial institution of the US in relation to a transaction of the amendment and restatement of a USD 250 million facility agreement due to the change of the custodian of shares of a DIFC entity.

Leading legal experts in Europe, Middle East & Africa

23rd April 2021

Our firm’s “first-class services” are therefore delivered by outstanding heads of departments and a highly qualified and talented team of associates and legal consultants. Thank you to our clients and associates for their extraordinary comments. We will continue providing top tier legal services, managing complexity “with out of the box and innovative legal thinking”.

A TOP TIER law firm by The Legal 500! Again!

23rd April 2021 The Legal 500, EMEA 2021 edition once again recommends our law firm as a TOP TIER firm in Dispute Resolution and Tax and ranks our Banking & Finance, Commercial, Corporate and M&A, and Real Estate and Construction practice areas amongst the best in the Cyprus legal market.

Cyprus Bar Association exams: Trainee Lawyer Nicholas Yiasemis FIRST nationally

23rd April 2021 We are extremely proud of our trainee lawyer Nicholas Yiasemis for having successfully passed all his Cyprus Bar Association examinations with a very high score. He is the top of his class, ranked FIRST nationally! We wish him every success in his new journey in the legal profession!

Highly Ranked in Chambers & Partners Global

3rd March 2021 Our “widely respected team” is once more highly ranked in the Global edition by Chambers & Partners, one of the world’s leading providers of ratings and recommendation of legal firms.

Stavros Pavlou registered as a DIFC practitioner

7th January 2021 We are very proud that, following the registration of our firm with the DIFC Courts in Dubai, now our Senior & Managing Partner, Mr Stavros Pavlou, has been registered as a DIFC practitioner, and obtained full Rights of Audience before the DIFC Courts. From the available records, Mr Pavlou is the first Cypriot lawyer to be registered as a practitioner with this very busy International Commercial Court.We are very proud that, following the registration of our firm with the DIFC Courts in Dubai, now our Senior & Managing Partner, Mr Stavros Pavlou, has been registered as a DIFC practitioner, and obtained full Rights of Audience before the DIFC Courts. From the available records, Mr Pavlou is the first Cypriot lawyer to be registered as a practitioner with this very busy International Commercial Court.

Our lawyers have been appointed in Committees of the Cyprus Bar Association

7th January 2021 With professional skills to provide top quality legal services and a range of backgrounds and interests, eight lawyers of our team have been selected among many candidates and appointed in various committees of the Cyprus Bar Association and the Limassol Bar Association.With professional skills to provide top quality legal services and a range of backgrounds and interests, eight lawyers of our team have been selected among many candidates and appointed in various committees of the Cyprus Bar Association and the Limassol Bar Association.

Katerina Philippidou and Theodoros Symeonides have been promoted to Partners

7th January 2021 Reflecting our firm’s commitment to investing in the future and the depth of our team’s talent, Patrikios Pavlou & Associates LLC promoted Katerina Philippidou and Theodoros Symeonides to Partners, with effect from 1 January 2021.Reflecting our firm’s commitment to investing in the future and the depth of our team’s talent, Patrikios Pavlou & Associates LLC promoted Katerina Philippidou and Theodoros Symeonides to Partners, with effect from 1 January 2021.

Cyprus and the “new normal”, reasons to invest

22nd May 2020 As the world is seeking ways to achieve the new normal in their daily lives and business activities, Cyprus is also confidently restarting its economy as the country has been praised as one of the countries to successfully manage the COVID-19 epidemic.

Podcast ‘Alternative Dispute Resolution: The Road to the Future’

22nd May 2020 Our Senior & Managing Partner, Stavros Pavlou, FCIArb gave a podcast interview to LegalMatters, and provided a clear and structured opinion on the steps that Cyprus should follow with regards to Dispute Resolution. He analysed the reasons why he believes that the current Court system of administration of justice in Cyprus is at a dead-end, and that the only immediately available escape route is to embrace Alternative Dispute Resolution and implement a new Arbitration Law.

Transforming General Meetings: Covid-19 and other viruses

29th April 2020 Cyprus companies are faced with the challenge of finding the new normal in a changing climate, along with the need to facilitate the running of their business. The introduction of strict measures imposed on human social conduct all over the world due to the Covid-19 outbreak, including lockdowns, restrictions on travel, public gatherings and social interactions, are serious obstacles for companies that need to uphold their obligations with regards to general meetings.

Leading legal experts in Europe, Middle East & Africa

29th April 2020 Our “strategic” Senior and Managing Partner, Stavros Pavlou, is a Leading Lawyer in the Dispute Resolution and Tax areas, recommended for being “a chess master who maps a strategy several steps ahead” and for finding a way to cut through complexity. He is also highly recommended as a primary contact in Corporate, Commercial and M&A, Banking and Finance and Real Estate & Construction.

A MULTI-TOP TIER law firm for The Legal 500 once more

29th April 2020 We are very proud that The Legal 500, EMEA 2020 edition once again recommends our law firm as a TOP TIER firm in Dispute Resolution and Tax and ranks our Banking & Finance, Commercial, Corporate and M&A, and Real Estate and Construction practice areas amongst the best in the Cyprus legal market.

Top Tier in Dispute Resolution

6th March 2020 We are thrilled that Chambers & Partners Global, one of the world’s leading legal directories, recommends our Firm as a Top Tier firm in Dispute Resolution for its capability of “acting on complex, high-value international and Cypriot disputes involving construction companies, financial institutions and private clients” and its “strength covering debt recovery, international arbitration and fraud claims”.

CAMS certificate – Milto Charalambous

18th February 2020 Our Assistant Compliance Officer, Milto Charalambous, has successfully completed the CAMS (Anti-Money Laundering Specialist) certificate. She now has the core competencies and essential knowledge in the Anti-Money Laundering field.

Angeliki Epaminonda has been promoted to Partner

21st January 2020 Congratulations to Angeliki Epaminonda for her promotion to Partner! Angeliki joined our firm for her legal training in 2009, and she has since proven to be a highly committed individual. She stood out for her professionalism, dedication and integrity, and exceptional legal skills. Angeliki’s promotion strengthens our commitment to diversity, as 6 in 8 partners at Patrikios Pavlou & Associates LLC are women...

Highly Regarded Lawyers – IFLR1000 Financial & Corporate

13th November 2019 We are excited that IFLR 1000, the only international legal directory dedicated to financial and corporate transactional work, has ranked our firm among the top law firms in Cyprus in this field and recommends our law firm as a “strong Financial and Corporate firm with strong cross-border capabilities”.

Certified Continuing Professional Development Center

18th April 2019

Patrikios Pavlou & Associates LLC has been certified by the Cyprus Bar Association as a Continuing Professional Development Training Centre.

Internal Lawyers Seminar

6th April 2018

Our firm organized an exciting retreat weekend for the legal team that aimed in encouraging the lawyers to enforce internal ties, discuss internal matters, develop their skills further and have fun with the colleagues. The retreat weekend took place on the 24th and 25th February 2018 in Elysium Hotel in Paphos.

A comparison of Cyprus and BVI corporate structures in the light of recent global tax reforms

22nd March 2018

The recent revelations in the Panama and Paradise Papers illustrated the need for companies to make a shift towards more responsible fiscal behaviour and tax responsibilities. International guidelines such as the OECD guidelines and the 4th EU AML Directive clarify that evasive fiscal practices will be disclosed. This article analyses the implications on some of the most established corporate structure vehicles, British Virgin Islands (BVI) business companies and Cyprus companies, by outlining their key characteristics and evaluating how each jurisdiction is adhering to stricter international compliance standards.

Cyprus VAT on Land – Updates by the Tax Department

13th March 2018

In November 2017, the Cyprus parliament voted an important amendment to the Cyprus VAT Legislation, which amends the main VAT Law N.95(I)/2000 concerning taxation of building land, in order to align it with the provisions of EU VAT Directive 2006/112/EC. The amendment has entered into force on 2 January 2018.

Prometheus Award for Mr Stavros Pavlou

13th February 2018

On Monday 11th December 2017, our Senior and Managing Partner, Mr Stavros Pavlou was awarded the Prometheus prize in Moscow for his invaluable contribution towards the protection of Russian business interests in Cyprus and abroad.

Double Tax Treaty for between Cyprus and Saudi Arabia

11th January 2018

The Cyprus Ministry of Finance has announced that Cyprus has entered into a double tax agreement with Saudi Arabia for the avoidance of double taxation (‘DTT’), which aims to prevent tax evasion.

Key Speakers at the Cyprus Fiduciary Association seminar

20th December 2017

Once again, The Cyprus Fiduciary Association (CFA) selected our law firm to present another specialised and highly demanded seminar, the “Advanced Directors’ Workshop”, which took place on 30th November and 1st December 2017 in Nicosia and Limassol respectively.

Contributing to local and international conferences and seminars

26th October 2017

The Cyprus Fiduciary Association (CFA) organised a valuable and practical seminar titled “Rights of Settlor and Beneficiaries under a Trust” on 28 and 29 September 2017 in Nicosia and Limassol respectively.

Successful representation at the 2nd English-Cypriot Law Day conference and developing further the A

5th October 2017

The Cyprus Bar Association and the English Bar Council successfully organised the 2nd EnglishCypriot Law Day conference, which was held in Limassol, Cyprus on the 8th September 2017.... As a leading law firm, Patrikios Pavlou & Associates LLC was one of the main contributors to the event.

ILA Conference Cyprus

11th August 2017

The Cypriot, French and Hellenic branches of the International Law Association (ILA) organised a successful conference on International Arbitration in Larnaca, Cyprus on 30th June and 1st July 2017.

Top-Tier Law Firm & Leading Lawyers recognitions from one of the world’s leading legal directories

26th April 2017

Legal 500, the world’s legal guide to the leading law firms and outstanding lawyers in over 100 jurisdictions, has recently released tiered rankings for the EMEA region for 2017. We are extremely proud that our law Firm is placed in the TOP tier rankings for Cyprus.

Sustainable success through leading rankings, new membership and continuous development

7th April 2017

We are very proud that Patrikios Pavlou & Associates LLC is ranked once more as a leading law firm in Cyprus by Chambers & Partners Global.

Cyprus introduces rules to implement Country by Country reporting requirements

13th February 2017

The Cyprus Minister of Finance issued a Decree on 30 December 2016, introducing a mandatory Country by Country (CBC) reporting requirement for multinational enterprise groups generating consolidated annual turnover exceeding €750m (MNE Group).

citizenship by investment programmes

7th February 2017

The Cypriot passport ranks among the strongest in the world, as holders are able to travel to 146 countries without a visa, Cyprus Business Mail reports on 29th December 2016...

Delivering a proficient seminar on The Duties & Liabilities of Trustees

15th November 2016

The Cyprus Fiduciary Association (CFA) organised an interesting, two-day seminar on “The Duties and Liabilities of Trustees” which took place on 19th and 20th October 2016, at St Raphael Hotel Limassol and the Filoxenia Conference Center Nicosia, respectively.

Project Finance 2022 – Cyprus – LexGTDT

5th November 2021

Types of collateral

What types of collateral and security interests are available?

A wide range of types of collateral and security are available under Cyprus law. Collateral and security arrangements can be given over movable or immovable property. Such types include, among others, security over immovable property whose main type is a mortgage, pledges over shares or share certificates, bank account pledges, fixed and floating charges over any assets belonging to a person, and security assignments.

Collateral perfecting

How is a security interest in each type of collateral perfected and how is its priority established? Are any fees, taxes or other charges payable to perfect a security interest and, if so, are there lawful techniques to minimise them? May a corporate entity, in the capacity of agent or trustee, hold collateral on behalf of the project lenders as the secured party? Is it necessary for the security agent and trustee to hold any licences to hold or enforce such security?

A security agreement creating a charge is registrable with the Cyprus Registrar of Companies (ROC) against the Cypriot company chargor, pursuant to section 90 of the Cyprus Companies Law, Cap. 113 (the Companies Law) to be valid against such company’s liquidator or any creditor thereof. It must be registered within 21 calendar days (if executed in Cyprus) or within 21 days after the date on which the same could have been received in Cyprus (if executed abroad). The ROC has as a rule of practice allowed the registration of charges created abroad to take place within 42 days from their execution. Furthermore, section 99 of the Companies Law provides that a security agreement must be entered into the register of charges or mortgages of the company, accordingly. A mortgage must be registered with the land registry department of the district where the land is located to be valid. The mortgagee should also be registered with the land registry for the purposes of accepting a mortgage. If a mortgage is given by a Cypriot company, it must also be filed with the ROC for registration and be entered into the company’s register of mortgages. The Companies Law specifically exempts from registration pledges of shares in Cypriot companies given by Cypriot company pledgors. Nevertheless, a pledge over shares in a Cypriot company must be perfected in accordance with the provisions of the Cyprus Contract Law, Cap. 149. The formalities to be fulfilled include the following:

the pledge must be evidenced by a written contract, signed by the pledgor and the pledgee in the presence of two witnesses;
notice of the pledge must be given by the pledgee to the company whose shares are being pledged;
a memorandum of pledge must be entered into the register of members of the company whose shares are being pledged; and
the company secretary must issue and deliver to the pledgee a certificate confirming that a memorandum of pledge has been entered in the register of members in favour of the pledgee.

Cypriot Stamp Duty Law subjects to ad valorem stamp duty all documents (including contracts) concerning property situated in Cyprus or concerning matters to be executed or take place in Cyprus, subject to certain exceptions, irrespective of where the same are signed. For contracts valued between €5.001 and €170,000, the current rate of stamp duty is €1.50 for each €1,000 or part thereof; for contracts valued over €170,000, the current rate of stamp duty is €2 for every €1,000 or part thereof, with a ceiling of €20,000. This maximum amount of stamp duty is payable on any document or on any transaction that has several documents; in a transaction having several documents, the parties may designate the main document, which will be subject to the full stamp duty; the other transaction documents may be stamped as secondary documents, in the amount of €2 each, provided they are dated the same day as, or very close to, the main transaction document. Paying the stamp duty late will result in penalties, which vary according to the period that elapsed between the date the stamp duty arose and the date of submitting the documents for stamping. To determine whether a document is subject to stamp duty in Cyprus, the documents can be submitted to the Stamp Duty Commissioner for a ruling. The Stamp Duty Law also provides that any document drafted outside Cyprus and that is subject to stamp duty pursuant to the provisions of the Stamp Duty Law will not be considered as being drafted or having effect in Cyprus until the applicable stamp duty is paid. However, any document that was signed abroad and is subject to stamp duty in Cyprus will be considered as having being signed in Cyprus on the date on which it was received in Cyprus, and in such a case the document may be stamped within 30 days from its receipt in Cyprus. Therefore, if a document that attracts stamp duty under Cyprus Law is signed and kept abroad, the stamp duty will not need to be paid until the same is brought into Cyprus. Not paying the stamp duty is a regulatory penal offence, which does not render a document void but merely requires in the future that the applicable stamp duty plus a penalty be paid; further, in the case of court proceedings, the court will not recognise the document as evidence unless it is stamped. Therefore, even if the document is not stamped because of executing it outside Cyprus and keeping it there, if proceedings need to be issued in Cyprus it will need to be stamped to be recognised. The registration of a charge with the ROC is subject to the payment of a nominal fee, while the fees for registration of a mortgage on immovable property are calculated on the secured amount and constitute 1 per cent thereof. In Cyprus, it is possible for a security trustee or agent to be used for the purposes of enforcing security. In such cases, the relevant security is granted to the security trustee or agent in favour of all or some of the lenders. The underlying documents would usually specify the powers of such security trustee or agent. Where a security trustee is involved, the relevant security agreement is registered with the ROC as a charge over the assets of the Cypriot company (chargor) in favour of such security trustee or agent. No licences are required for the purposes of holding or enforcing security.

Assuring absence of liens

How can a creditor assure itself as to the absence of liens with priority to the creditor’s lien?

In relation to charges against a Cypriot company an electronic search can be performed through the webpage of the ROC, which will indicate whether any charges or mortgages have been registered against such company. An application can also be made to the ROC for the purposes of obtaining a certificate of freedom of charges or a statement of registered or deleted charges. With regard to immovable property, a possibility of a search through the land registry department with which the immovable property is registered exists; however, legitimate interest should be evidenced for the purposes of carrying out such a search. Moreover, pursuant to the Companies Law, it is possible to carry out an inspection of the internal registers of a Cypriot company (namely, the registers of charges, mortgages and members), usually kept at the registered office, for the purposes of ensuring absence of liens.

Enforcing collateral rights

Outside the context of a bankruptcy proceeding, what steps should a project lender take to enforce its rights as a secured party over the collateral?

Out-of-court enforcement is possible on some occasions. Assets may be seized with out-of-court pledge enforcement, where the company is obliged to deliver the pledged assets to the pledgor in the event of default, as prescribed by the terms of the relevant security document. An alternative process, whereby assets of a company may be seized out-of-court, is when a receiver is appointed in a company under a contractual obligation to seize assets and then resign once these assets have been sold for the benefit of the security holder. Following receivership, a company may continue its business operations. A judicial sale is not necessary and there are no requirements for a public auction following enforcement of security. A public or private sale is permissible provided that this is included in the security documentation. Project lenders may participate as buyers and they may even appropriate the secured property (subject to the terms of the agreement). The consideration of such sales may be in foreign currency.

Enforcing collateral rights following bankruptcy

How does a bankruptcy proceeding in respect of the project company affect the ability of a project lender to enforce its rights as a secured party over the collateral? Are there any preference periods, clawback rights or other preferential creditors’ rights with respect to the collateral? What entities are excluded from bankruptcy proceedings and what legislation applies to them? What processes other than court proceedings are available to seize the assets of the project company in an enforcement?

Certain transactions can be declared void due to fraudulent preference if entered within six months before the commencement of the winding-up. Any floating charges created within 12 months of the commencement of the winding-up may be considered invalid. For a charge or security to be valid against the liquidator of a Cypriot company it must be duly registered with the ROC. Therefore, a project lender will be able to enforce its rights if the security has been properly registered or perfected. Where there is a fixed charge, the net proceeds from the sale of the secured assets will primarily be used for the settlement of amounts secured thereby. Preferential creditors will not have any right or priority with respect to the proceeds from the sale of secured assets that will be used for the settlement of the amounts secured by the charge, but they will nevertheless have a right of priority with respect to any balance thereto. If there is a surplus from the sale of such secured assets subject to the charge, the surplus becomes part of the general pool of assets and is distributed as set out below. If, however, there is a shortfall, namely the proceeds from the sale are not sufficient to cover the secured amount, then the secured creditor concerned will be deemed to be an unsecured creditor only with respect to such shortfall and will thus rank after the costs of the winding-up, preferential debts and any floating charge holders (ie, pari passu with all the other unsecured creditors). The preferential debts are as follows:

the costs and expenses of the winding-up; and
the following preferential debts:
- rates and taxes, including all local rates and all government taxes, due from the company at the relevant date, and having become due and payable within 12 months immediately before that date; in the case of assessed taxes, not exceeding in the whole one year’s assessment;
- any salary owed to an employee and any sum withheld by the employer from the employee’s salary for the payment of any obligations of the employee or otherwise that the employer has not paid; and any other sum or benefit of the employee that arises as a result of an agreement or employment relationship, including any sum owed to a recognised union that arises from the employment relationship between the employer and the employee or otherwise that the employer has not paid;
- every amount of compensation that the company is obliged to pay to an employee, on account of bodily harm suffered by him or her as a result of an accident caused by his or her employment and during his or her employment. An employee of a private company who is a shareholder thereof is exempted, unless the company is voluntarily wound up or wound up for reconstruction or merger purposes; and
- every amount due to the employee, excluding an employee of a private company who is a shareholder thereof, concerning the leave that such employee is entitled to from his or her employment in the company for an employment period of only one year.

The above shall rank equally among themselves and be paid in full unless the assets are insufficient to meet them, in which case they shall abate in equal proportions; and so far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge. If any amounts remain available, they will be used to cover any amount secured by floating charges and finally the unsecured creditors. Any transaction made by a company (including payments, deliveries of goods, mortgages and conveyancing, as well as executions or other acts relating to property) made or done by or against a company within six months before the commencement of its winding-up may be considered to be a fraudulent preference against its creditors and be rendered void. On the question of fraudulent preference, the court will look into the intentions behind the transaction. The onus is on those who claim to avoid the transaction (whether creditors or liquidator) to establish that the actual intention was to make a preference among creditors. Floating charges are valid up to the extent of any cash paid to the company at the time of the creation of the charge. In any case where a company is being wound up, a floating charge on the undertaking or the property of the company created within 12 months of the commencement of the winding-up shall be invalid, unless it is proven that the charge was made while the company was solvent. Under the laws of Cyprus, there is no exclusion of any entity, corporate or personal, from insolvency proceedings, other than the Central Bank of Cyprus, which is constitutionally established. Assets may be seized with out-of-court pledge enforcement. An alternative process whereby assets of a company may be seized out-of-court is when a receiver is appointed in a company under a contractual obligation.

Foreign exchange and withholding tax issues

Restrictions, controls, fees and taxes

What are the restrictions, controls, fees, taxes or other charges on foreign currency exchange?

There are currently no capital restrictions in Cyprus. As with other EU countries, travellers to Cyprus must declare cash sums greater than €10,000 upon arrival.

Investment returns

What are the restrictions, controls, fees and taxes on remittances of investment returns (dividends and capital) or payments of principal, interest or premiums on loans or bonds to parties in other jurisdictions?

There are no restrictions on payment of dividends or interest to parties in other jurisdictions. However, distribution of dividends of a Cypriot company should be made only out of realised profits. Cyprus does not apply any withholding tax on dividends or interest paid to non-residents. A 10 per cent withholding tax is only applied on royalties earned on rights used within Cyprus. Also, in relation to dividend, interest and royalty payments in entities incorporated in other EU member states, the provisions of the relevant European directives apply.

Foreign earnings

Must project companies repatriate foreign earnings? If so, must they be converted to local currency and what further restrictions exist over their use?

There are no restrictions in relation to the repatriation of foreign earnings.

May project companies establish and maintain foreign currency accounts in other jurisdictions and locally?

There are no restrictions on maintaining foreign currency accounts in Cyprus or operating through offshore accounts based in other jurisdictions, provided that the relevant anti-money laundering requirements and know-your-client procedures set out by the Central Bank of Cyprus are fulfilled.

Foreign investment issues

Investment restrictions

What restrictions, fees and taxes exist on foreign investment in or ownership of a project and related companies? Do the restrictions also apply to foreign investors or creditors in the event of foreclosure on the project and related companies? Are there any bilateral investment treaties with key nation states or other international treaties that may afford relief from such restrictions? Would such activities require registration with any government authority?

Generally, there are no restrictions on foreign ownership of the shares of a Cypriot company. On the contrary, non-Cypriot residents shareholders (or non-domiciled) enjoy certain tax exemptions. In relation to property investment, there are no restrictions on Cypriot and EU nationals. However, nationals of non-EU countries must first seek the approval of the Council of Ministers to register real estate in their names. A company whose majority of directors and shareholders is comprised of EU nationals is not considered to be a foreign company for the purposes of owning immovable property in Cyprus. Cyprus has entered into bilateral investment treaties with more than 27 countries, which offer protection for investor rights.

Insurance restrictions

What restrictions, fees and taxes exist on insurance policies over project assets provided or guaranteed by foreign insurance companies? May such policies be payable to foreign secured creditors?

There are no restrictions, controls, fees or taxes for foreign insurance companies operating in Cyprus as long as they have obtained proper licensing from the Insurance Companies Control Service, the local regulator. EU member state companies must comply with the general good requirements that are issued by the local regulator to freely offer services in other member states. Such policies may be payable to foreign secured creditors, provided that such creditors are insured by the insurance company.

Worker restrictions

What restrictions exist on bringing in foreign workers, technicians or executives to work on a project?

As per EU law, there is no restriction on the freedom of movement of individuals to Cyprus from all EU and EEA member states. There are no restrictions on third country nationals, however, the appropriate work permits or business visas will need to be obtained by the project company. In addition, in accordance with the EU-UK withdrawal agreement certain rights of UK citizens who had been resident in Cyprus are safeguarded.

Equipment restrictions

What restrictions exist on the importation of project equipment?

There are no special restrictions, controls, fees or taxes on importing any equipment used by construction contractors other than customs fees and import taxes that would be incurred from importing goods. Any goods imported from EU and EEA countries are imported within the EU customs union and no taxes or customs fees apply. All machinery and equipment imported into the EU must comply with minimum EU certifications and guidelines for health and safety.

Nationalisation laws

What laws exist regarding the nationalisation or expropriation of project companies and assets? Are any forms of investment specially protected (from nationalisation or expropriation)?

Cyprus is a full EU member and therefore nationalisation, expropriation, transfer and currency restrictions are regulated under EU law and EU policy. Furthermore, article 23 of the Constitution of Cyprus safeguards the right to acquire, own, possess, enjoy or dispose of any movable or immovable property. No deprivation or restriction or limitation is allowed, except for restrictions or limitations that are absolutely necessary in the interest of public safety, public health or public morals, town and country planning, or the development and utilisation of any property to the promotion of the public benefit, or the protection of the rights of others, and only if imposed by law. Just compensation must be paid for any such restrictions or limitations that materially decrease the economic value of such property. Such compensation, if not agreed, is determined by the courts. In certain cases, nationalisations of financial institutions such as the Cyprus Central Cooperative Bank have been pursued by the government as a form of state intervention to assist with stability and liquidity.

Fiscal treatment of foreign investment

Incentives

What tax incentives or other incentives are provided preferentially to foreign investors or creditors? What taxes apply to foreign investments, loans, mortgages or other security documents, either for the purposes of effectiveness or registration?

All Cypriot tax residents are taxed on their worldwide income. Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus. The applicable corporate tax rate is 12.5 per cent. For non-domiciled individuals residing in Cyprus or for non-Cypriot tax residents, there is a range of tax benefits. Namely, there is no withholding tax on dividends, and no tax on interest income or gains arising from disposal of investments (including shares and securities). The Special Defence Contribution tax is not applicable to non-domiciled residents or non-tax residents. Moreover, a foreign individual relocating to Cyprus and taking employment there enjoys a 50 per cent tax exemption on the emoluments arising out of employment exercised in Cyprus. The exemption applies for a period of 10 years beginning from the first year of employment, provided that the employment income exceeds €100,000 per year. Also, a 20 per cent exemption applies if the emoluments are lower than €100,000 per year; however, this exemption is only available until 2020. In relation to project financing, a 5 per cent withholding tax on gross income derived from within Cyprus (by non-residents without a Cypriot permanent establishment) relating to the extraction, exploration or use of the continental shelf, subsoil or natural resources, as well as the installation and exploitation of pipelines and other installations on the ground, seabed and on the surface of the sea is levied.

Government authorities

Relevant authorities

What are the relevant government agencies or departments with authority over projects in the typical project sectors? What is the nature and extent of their authority? What is the history of state ownership in these sectors?

Depending on the project, there are several government agencies that might exercise authority or supervise operations. For example, in matters relating to the exploration, prospection and exploration of hydrocarbons, the Hydrocarbon Service of the Ministry of Energy, Commerce, Industry and Tourism will be licensing the participating entities. Any construction project should be licensed by the Town Planning Service and possibly by the local authority that may request environmental impact assessments. Tourism sector projects will require licensing by the Cyprus Tourism Organisation (recently reorganised into the Deputy Ministry of Tourism), while specialised large-scale projects like the integrated casino resort currently under construction will be regulated by the National Betting Authority (in matters relating to its casino operations). Construction projects will also need to comply with the Department of Labour Inspection guidelines for health and safety requirements. Certain typical project infrastructure sectors, such as electricity are dominated by the state-owned Electricity Authority of Cyprus (EAC), which owns both the powers plants and the supply network. The Cyprus Energy Regulatory Authority currently aims to license additional electricity suppliers under the Regulation of the Electricity Market Laws. To provide an example, EAC was set up by the British colonial government of Cyprus, and following the establishment of the Republic of Cyprus, it has the status of a semi-state-owned government entity by special legislation and the majority of its share capital is owned by the state. Most utilities follow this model, such as the Cyprus Telecommunications Authority. Under EU regulation, these entities now provide access to the free market to new entities that are privately owned to create competition.

Regulation of natural resources

Titles

Who has title to natural resources? What rights may private parties acquire to these resources and what obligations does the holder have? May foreign parties acquire such rights?

In relation to natural resources, specific legislation exists for each type thereof. For example, in relation to mining, which historically has been a major industry in Cyprus, the Mining Service of Cyprus will need to license any exploration and exploitation of minerals as per the Mines and Quarries Law Cap. 270 (as amended). A more recent addition, due to the recent offshore hydrocarbon findings, is the Hydrocarbon (Prospection, Exploration and Exploitation) Laws of 2007 to 2015. The provisions of the EU Directive on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons have been incorporated into Cypriot law. Typically, such exploitation and exploration agreements will grant licences to entities to exploit natural resources and share revenues with the Republic of Cyprus. Depending on the project or industry, legislation requires a number of conditions to be met prior to commencing operations. For example, the Town and Country Planning Law 90/72 (as amended) and the more recently enacted Estimation of Repercussions on the Environment for Specific Construction Work Law, require the issue of certain licences relating to town planning. Construction methods and environmental impact of the project will need to be met. This applies to larger projects that may have an adverse environmental impact (ie, hotel resorts, golf courses, marinas). There are no restrictions on foreign entities applying for such licences. No specially recognised indigenous groups exist in Cyprus that may be affected by the exercise of the above rights.

Royalties and taxes

What royalties and taxes are payable on the extraction of natural resources, and are they revenue- or profit-based?

Hydrocarbon exploration and exploitation activities in Cyprus and its exclusive economic zone are governed by the Hydrocarbon (Prospection, Exploration and Production) Law (4(I)/2007), which transposed into national law Directive 94/22/EC on the conditions for using authorisations for the prospection, exploration and production of hydrocarbons. The Hydrocarbon Law and the Hydrocarbon (Prospection, Exploration and Production) Regulations together set out the licensing framework for prospecting, exploration and extraction activities. Successful applicants for a licence are required to enter into an Exploration and Production Sharing Contract (EPSC), with the Ministry of Energy, Commerce, Industry and Tourism, which is the relevant authority. The model EPSC includes a tax clause requiring the contractor to comply with the applicable tax laws and regulations of Cyprus and the EU but there is no specific taxation regime in relation to oil and gas companies operating in Cyprus.

Export restrictions

What restrictions, fees or taxes exist on the export of natural resources?

A 5 per cent withholding tax on gross income derived from within Cyprus (by non-residents without a Cyprus permanent establishment) relating to the extraction, exploration or use of the continental shelf, subsoil or natural resources, as well as the installation and exploitation of pipelines and other installations on the ground, seabed and on the surface of the sea is levied.

Legal issues of general application

Government permission

What government approvals are required for typical project finance transactions? What fees and other charges apply?

Depending on the project, there are various government departments that might exercise authority or supervise operations. In relation to the exploration, prospection and exploration of hydrocarbons, the Hydrocarbon Service of the Ministry of Energy, Commerce, Industry and Tourism will be responsible for licensing. Construction projects are licensed by the Town Planning Service and sometimes by the local authority who may request environmental impact assessments. The Cyprus Tourism Organisation is involved with tourist industry projects while the National Betting Authority acted as the licensing authority in relation to matters relating to the casino operations of the integrated casino resort.

Registration of financing

Must any of the financing or project documents be registered or filed with any government authority or otherwise comply with legal formalities to be valid or enforceable?

There are no formal registration requirements with any governmental authority, except those that pertain to the issuing of government licences relating to the operations of the project (ie, environmental, health and safety). Finance documents might be subject to stamp duty. Security documents may also need to be registered with the ROC, as already explained.

Arbitration awards

How are international arbitration contractual provisions and awards recognised by local courts? Is the jurisdiction a member of the ICSID Convention or other prominent dispute resolution conventions? Are any types of disputes not arbitrable? Are any types of disputes subject to automatic domestic arbitration?

Cypriot courts do recognise contractual provisions requiring submission of disputes to international arbitration, as well as awards by arbitration bodies. Domestic arbitration is governed by the Arbitration Law, Cap. 4; while international commercial disputes are governed by the International Arbitration in Commercial Matters Law of 1987. All the mandatory provisions contained in the UNICTRAL Model Law were adopted by the local legislation, regulating only international commercial arbitrations. Cyprus is a signatory to the Convention on Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the New York Convention), which has been ratified and implemented in Cyprus. Cyprus is also a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. Matters relating to criminal law, family law or that may have public policy implications are considered to be non-arbitrable. Public policy issues may include foreign commercial contracts that would otherwise be considered illegal under Cyprus law. Also, Cap. 4 provides that when fraud is raised by one of the parties, Cypriot courts have the competence to decide on such matters and to terminate the effects of any arbitration clause included in the agreement of the parties. There are no types of disputes subject to mandatory domestic arbitration proceedings.

Law governing agreements

Which jurisdiction’s law typically governs project agreements? Which jurisdiction’s law typically governs financing agreements? Which matters are governed by domestic law?

This will mostly depend on the jurisdiction of the lender. Usually, international banking institutions prefer for the law of their jurisdiction to govern the relevant financing agreements. There are no specific rules that subject agreements to any particular choice of law. The parties are free to agree upon governing law. Even when a security agreement is governed by a foreign law, mandatory Cyprus law provisions will in any case apply, for example, in relation to the registration of charges or perfection of pledges. Typically, security agreements over assets situated in Cyprus are governed by domestic law.

Submission to foreign jurisdiction

Is a submission to a foreign jurisdiction and a waiver of immunity effective and enforceable?

A foreign party’s submission to the jurisdiction of Cypriot courts, either through a contractual agreement or by the party’s appearance in court proceedings, will be binding and enforceable. Generally, state immunity is recognised and respected by Cypriot courts, provided that such immunity is not consensually waived and that a state is not acting under private or commercial capacity. A judgment obtained as a result of a party’s submission to a foreign jurisdiction will be legally binding and enforceable in Cyprus, provided that the conditions for the recognition and enforcement of judgments are fulfilled. In particular, civil and commercial judgments of EU member states’ courts are enforceable under the Brussels Regulations (EU Regulation 44/2001 in relation to proceedings instituted before 10 January 2015, EU Recast 1215/2012 in relation to proceedings instated on or after 10 January 2015). Civil and commercial judgments of Iceland, Norway and Switzerland will be enforceable pursuant to the Lugano Convention. Foreign judgments from uncontested claims can also be enforceable pursuant to the provisions of Regulation 805/2004. If a bilateral treaty on recognition and enforcement has been concluded between Cyprus and another state, then the procedure of the Law on Foreign Courts Judgments must be followed in seeking recognition and enforcement of a foreign judgment. Foreign judgments issued by courts of a commonwealth country will be enforceable under the Foreign Judgments Law 1935, Cap.10.

Environmental, health and safety laws

Applicable regulations

What laws or regulations apply to typical project sectors? What regulatory bodies administer those laws?

There are a number of local regulations and laws that may affect the total cost, operating overheads and by extension the financing and sustainability of certain projects. For example, the Safety and Health at Work Law of 1996 affects any construction works relating to any building constructed in Cyprus. Similar provisions apply for factories and heavy industry installations, as well as any workplace (where minimum safety requirements must be met).

Project companies

Principal business structures

What are the principal business structures of project companies? What are the principal sources of financing available to project companies?

The principal business structure usually followed for projects in Cyprus, is that a consortium of contractors, investors, plant and system operators will form a private company to act as a special purpose vehicle that will construct the project, operate it for a fixed number of years and then transfer it back to the sponsoring authority. Financing usually comes from multilateral or bilateral agencies as well as guarantees. In most cases, the sponsoring authority will retain ownership of the land and lease it to the parties for a fixed number of years (this is common with the Ayia Napa and Limassol Marina projects).

Public-private partnership legislation

Applicable legislation

Has PPP-enabling legislation been enacted and, if so, at what level of government and is the legislation industry-specific?

Although PPP has been widely in use in Cyprus since 1996 with the development of the first desalination plants in Cyprus, there is no specific PPP-enabling legislation currently in force. The Fiscal Responsibility and Public Finances Framework Law of 2014 (Law 20(I)/2014) was enacted for the purpose of setting minimum public sector standards when procuring PPP projects. For example, it defines what constitutes a significant project (where PPP may be applicable), evaluation principles and other applicable standards and tests that the public sector must conduct when evaluating PPP offers. Despite the relatively recent legislation, major projects such as the airports of Larnaca and Paphos have already been operating under a PPP since 2006, while several government buildings and the Limassol Port cargo and passenger operations are also PPP projects. Given the importance of PPP for the Cypriot economy, the Cyprus National Reform Programme, issued in April 2018 by the Presidency’s Unit for Administrative Reform, mentions that a specific PPP unit will be set up within the Public Works Department, but this has not been completed yet. The directorate general for European programmes, coordination and development has noted that the policy that will govern the implementation of PPPs in Cyprus is currently being prepared and that at this stage the procedures for designing, negotiating and contracting PPPs are performed though ad hoc arrangements with the appropriate departments and authorities. The Law regulating Public Procurement Procedures 73(I)/2006 (as amended) is the principal legislation governing public procurement contracts in Cyprus. It transposes EU Procurement Directives 17/2004 and 18/2004 into Cypriot legislation and provides for the coordination of procedures for the award of public works contracts, public supply contracts, public service contracts and related matters.

PPP – limitations

Legal limitations

What, if any, are the practical and legal limitations on PPP transactions?

There is no specific PPP-enabling legislation in force yet other than the fiscal responsibility framework and any limitations may depend on the industry and the appropriate regulators relevant to the project. However, in line with the EU, Cyprus is a free market economy and, therefore, there are practically no legal restrictions in contracting out certain services or utilities to private entities.

PPP – transactions

Significant transactions

What have been the most significant PPP transactions completed to date in your jurisdiction?

The Limassol Marina, the Ayia Napa Marina, the Larnaca Marina and the Limassol Port, as well as the operation of the Paphos and Larnaca airports are significant build-operate-transfer examples that have either been completed and are operating or are currently in the construction phase. These projects will be transferred to the ownership of the Republic of Cyprus after a fixed time period. In addition, the discovery of gas fields in the Cyprus exclusive economic zone has initiated the government’s planning for a liquefied natural gas plant that will enable international exports. Aimed at the management and utilisation of the findings, and recent private investments in a major oil terminal by VTTI in the Vasilikos area, despite the economic turmoil caused by covid-19, the government’s goal remains to create a master plan for the area that will involve most hydrocarbon-related infrastructure. In line with the EU’s post-covid-19 recovery strategy for investing in a digital and green transformation, additional projects in green energy and sustainability are expected to be promoted in the near future, and the participation of the private sector should be expected.

UPDATE & TRENDS

Key developments of the past year

In addition to the above, are there any emerging trends or ‘hot topics’ in project finance in your jurisdiction?

The covid-19 pandemic affected project finance transactions, as the measures introduced by the Republic of Cyprus to tackle the spread of the virus resulted in the suspension of work throughout a number of industries during several lockdown periods. The relevant governmental authorities issued health and safety guidance for the implementation of specific preventive and protective measures (organisational and technical) for the effective management of the risk of covid-19 infection while working at construction sites. In any case, the discovery of natural gas and potential oil deposits in Cyprus’s exclusive economic zone in the Mediterranean Sea has confirmed substantial natural gas reserves. This has attracted international energy heavyweights, such as Total, Eni, Kogas, Qatar Petroleum and Exxon Mobil, who have obtained licences and are planning infrastructure projects to exploit the findings commercially. These discoveries have initiated government planning for a liquefied natural gas conversion plant, along with neighbouring countries, that will enable international exports. Several marina destinations in Limassol, Ayia Napa and Paphos are currently in the pipeline with a number of them either being completed or constructed while the integrated casino resort is currently developed in Limassol (with the first temporary casino in Limassol and certain satellite casinos open within the past year). We see that PPP is a major driving force in the economy as it has been in use since 1996, with most projects being considered successful. Accordingly, the government seeks to formalise the procedures and legislation concerning PPP, as so far it has been in use ad hoc. Apart from the domestic aspect, a number of international finance projects are structured, negotiated and documented through Cyprus, although the underlying project is located elsewhere. Corporate structures in project financing including Cypriot special purpose vehicles are also being increasingly used by leading airlines to finance or lease commercial aircraft, or both.

Coronavirus

What emergency legislation, relief programmes and other initiatives specific to your practice area has your state implemented to address the pandemic? Have any existing government programmes, laws or regulations been amended to address these concerns? What best practices are advisable for clients?

The government and authorities of Cyprus continue to implement a series of measures, albeit more specific, in the hospitality and retail industry that were affected heavily during the pandemic. Such measures are intended to provide financial relief to entities and businesses whose operations in Cyprus were affected during the pandemic, and to a large extent they have been lauded as successful. In addition, during the past year, the Central Bank of Cyprus by special decree provided the ability to suspend loan payments, whereby qualifying individuals and businesses could easily apply to suspend their loan payments and interest until the end of 2020. Additional measures are in place for qualifying industries that were heavily affected. It is expected that these initiatives will become even more targeted to allow for the hardest-hit industries to recover (ie, transport, tourism and hospitality). For example, a government grant is given to hotels to reopen and welcome local residents ahead of the summer peak season, as visitor numbers remain uncertain for summer 2021. Perhaps the most important initiative is the European Recovery and Resilience Facility, a multi-billion temporary recovery instrument scheme introduced by the EU to help repair the immediate economic and social damage brought about by the coronavirus pandemic and assist with the digital transformation. As Cyprus is one of the smallest economies in the EU, the impact of this package is expected to be significant for the economy. According to media reports, Cyprus has requested €1 billion in grants and €227 million in loans under this scheme. The plan includes measures to modernise the healthcare sector, increase the energy efficiency of buildings, promote sustainable transport and upgrade the digital infrastructure, as well as fostering upskilling and reskilling opportunities. From the tax perspective, deadlines for the payment of income tax, corporate tax and VAT have been delayed to allow businesses and individuals to cope. Similar extensions have been implemented by social security as well as most utilities and government organisations. As these initiatives and schemes are constantly re-evaluated, clients are advised to check regularly for initiatives that may be helpful.

International Arbitration 2021 – Cyprus – Chambers Practice Guides

5th November 2021

1. General

1.1 Prevalence of Arbitration

Arbitration is usually used in Cyprus for construction disputes, shareholder disputes, banking disputes between debtors and co-op institutions, and commercial disputes. Despite the fact that international arbitration has become increasingly popular over the last few years, litigation is clearly the most favoured method of resolving disputes in Cyprus. However, there is a growing trend to resort to arbitration, given the inefficiency of the court system to resolve disputes quickly.

Enforcement of Judgments – Chambers Global Guides

5th November 2021 The new Enforcement of Judgments guide features 29 jurisdictions. The guide provides the latest legal information on the identification of another party’s asset position, the costs and time involved in the enforcement of domestic and foreign judgments, challenges to enforcement, and the process of enforcing arbitral awards.

Alternative Investment Funds – ICLG – 2021

5th November 2021 The new edition of ICLG’s Alternative Investment Funds 2021 covers regulatory frameworks, fund structures, investments, reforms and taxation. Angeliki Epaminonda and Angelos Onisiforou contribute the Cyprus Chapter.

Will the “Black Swan” fly over to Cyprus?

4th November 2021 As widely reported, on 4 October 2021, the Judicial Committee of the Privy Council issued its much anticipated decision in Broad Idea International Limited v. Convoy Collateral [2021] UKPC 24. With its judgement, the Privy Council effectively upheld the Black Swan jurisdiction, which is derived from the BVI judgement in the case Black Swan Investment ISA v Harvest View Ltd (BVIHCV 2009/399) (unreported) 23 March 2010 and is expected to have drastic effects in broadening the traditionally conceived limits of the powers of common law Courts to issue freezing injunctions in aid of international creditors.

BEING A DIGITAL NOMAD IN CYPRUS

4th November 2021 The outspread of the covid-19 pandemic left people worldwide with no other choice but to find ways to adjust to the new normal. While two years ago the concept of being a digital nomad could sound to most of us, more like a concept coming out from a science fiction film, it is not implausible to say that covid-19 has put “flesh on the bones” of this concept. But what does the term “digital nomad” mean?

Family Offices: Current Challenges and Trends

23rd April 2021 The outbreak of the COVID-19 pandemic has affected not only public health and the well being of humanity, but also a number of economies, businesses and industries worldwide. Family offices have not remained unaffected; not only by Coronavirus but also by the ever-shifting global economic environment. New trends that have arisen during the COVID era, including remote working and the demand for greater connectivity, as well as novel strategic and operational risks, are forcing family offices to rethink the way they have been traditionally doing business.

The number of arbitrators and a preliminary award in a multi-party arbitration in Cyprus

23rd April 2021 One of the main issues in the constitution of an arbitral tribunal is the number of arbitrators. Most of the times, either the arbitration agreement itself or the default rule of the national laws or the applicable institutional rules provide the number of arbitrators. Nevertheless, the constitution of the arbitral tribunal became one of the greatest challenges in a recent Cypriot arbitration involving multiple parties because the parties had not expressly agreed on the number of arbitrators.

Litigation and Enforcement in Cyprus: An Overview

23rd April 2021 A Q&A guide to dispute resolution law in Cyprus.

Arbitration Procedures and practice in Cyprus: Overview

3rd March 2021 A Q&A guide to arbitration law and practice in Cyprus.

The Complex Commercial Litigation Review

3rd February 2021 Cyprus is a common law jurisdiction country and its justice system is based on the adversarial model. Most of Cypriot law has been modelled after the English Common Law and Equity, the basic principles of which are directly applied by Cyprus courts, under Section 29 of the Courts of Justice Law.

Lending & Taking Security in Cyprus: overview

3rd February 2021 A Q&A guide to lending and taking security in Cyprus. The Q&A gives a high level overview of the lending market, forms of security over assets, special purpose vehicles in secured lending, quasi-security, guarantees, and loan agreements. It covers creation and registration requirements for security interests; problem assets over which security is difficult to grant; risk areas for lenders; structuring the priority of debt; debt trading and transfer mechanisms; agent and trust concepts; enforcement of security interests and borrower insolvency; cross-border issues on loans; taxes; and proposals for reform. https://uk.practicallaw.thomsonreuters.com/w-008-0390?transitionType=Default&contextData=(sc.Default)&firstPage=true

LEx_GTDT Private Client

7th January 2021 Given the international mobility of wealthy individuals and their families, it is vital that they and their local advisers have a resource to guide them through the often significantly different legal frameworks they may face in other jurisdictions in which they choose to live, do business and invest. Stella Strati and Nikoleta Christofidi contribute the Cyprus chapter in the Private Client guide, which seeks to draw together the main issues of importance to a private client in this situation covering: rules in relation to tax, succession, the holding and management of property and immigration.

Chambers Global Guide to International Arbitration 2020

20th October 2020 Chambers & Partners' International Arbitration 2020 practice guide features 47 jurisdictions. Stavros Pavlou, Eleana Christofi, Theodoros Symeonides, and Athina Patsalidou provide expert legal commentary on tribunals, preliminary and interim relief, collection and submission of evidence, confidentiality, types of remedies, class actions, and grounds for appeal and enforcement in Cyprus. Click below to read the Cyprus chapter.

Chambers Global Guide to the Enforcement of Judgments 2020

20th October 2020 The new edition of Chambers’ Global Practice Guide to the Enforcement of Judgments discusses identifying assets, domestic judgments, foreign judgments and arbitral awards in 24 jurisdictions. Eleana Christofi and Theodoros Symeonides contribute the Cyprus chapter and provide expert legal commentary on the key issues and latest developments in the enforcement landscape in Cyprus.

All about Nexus: Link your IP asset to Cyprus

10th September 2020 The Cyprus IP regime gives considerable benefits to IP companies wishing to transfer their offices and personnel in Cyprus. Apart from such tax benefits, other advantages also exist rendering Cyprus an attractive jurisdiction for the establishment of fully-fledged offices. In light of this, Stella Strati provides an overview of the new Cyprus IP regime and the Nexus approach.

Lexology GTDT Project Finance 2021

27th August 2020 The new Project Finance edition in the Getting the Deal Through series provides a comparative guide to the most important issues related to project finance regulation across jurisdictions worldwide.

Covid-19: Legal Reflections on Virtual Closings

2nd July 2020 There is no doubt that Covid-19 represents a new challenge in all sectors of the economy, let alone the legal world. In light of this, the issue of distant or virtual closings in corporate finance transactions is revisited by Elena Georgiou, who provides practical guidelines as to how to structure the closing of a deal around the “virtual” table.

Chilidescu v. Gheorghiu: Exercising Jurisdiction over Foreign Defendants

24th May 2020 The aim of this article is to present that jurisdiction of Cyprus Courts cannot be established and Interim Orders cannot be issued against foreign defendants when the basis of the claim is not really connected with Cyprus and there isn’t a sufficient jurisdictional ground in relation to the Cypriot defendants. In doing so, it outlines, briefly, the gateways for exercising jurisdiction over foreign defendants as prescribed by Order 6 of the Civil Procedure Rules and the provisions of the Regulation (EU) 1215/2012 on jurisdiction in civil and commercial matters (Recast Brussels Regulation). It concludes with an analysis of the above-mentioned case.

Potential Implications of the Quarantining to Tax Residency

31st March 2020 Containment of the spread of the COVID-19 pandemic has prudently become a top priority for governments around the world. For this reason, quarantines, lockdowns, self-isolation measures and travel restrictions have been widely and strictly imposed on billions of people. Amidst this new state of affairs, it would be worth considering the potential implications that quarantining could have on an individual’s taxable residency status.

Legal implications of the COVID-19 epidemic on contractual obligations under Cyprus law

31st March 2020 The recent outbreak of COVID-19 epidemic is currently affecting Cyprus, Europe and is becoming an emergency in most other regions of the globe. Naturally the primary focus of any business will be on ensuring the health and wellbeing of their staff. Containment measures, including lockdowns, closures of public services, disruption in travel due to restrictions and cancellations of global events are having unprecedented impact on businesses and the economy affecting global supply chains.

The validity of electronic signatures under Cyprus Law – Covid19

31st March 2020 t is widely expected that the COVID-19 (widely referred to as the coronavirus) epidemic will cause unprecedented disruption to the global economy and inevitably eventually reshape the way we conduct business. It has become evident that whilst the disruption in certain industries is widespread and chaotic, in other industries the effects can be mitigated through the use of technology.

Regulatory Update Alert AIFs and UCITS: New Depositary Safekeeping Rules

31st March 2020

The Alternative Investment Fund Managers Directive (“AIFMD”) has been widely regarded by European regulators and industry players alike, as a very powerful and proficient tool, responsible for the establishment of a coherent and integrated legislative framework amongst Member States in the European Union.

The Inward Investment & International Taxation Review

6th March 2020 Cyprus has a very advantageous environment for inward investment. Different incentives exist, able to encourage non-residents to set up a business in, or invest through, Cyprus. In a nutshell, no restrictions on foreign share ownership exist, there are no withholding taxes on dividends or interest, the sale of shares and other titles is exempt from tax, the corporate tax rate is one of the lowest in the European Union (EU), while non-Cyprus tax residents (or non-domiciled) enjoy a number of tax exemptions. These, and other characteristics of the Cyprus tax system, shall be further analysed below.

Arbitration Procedures and practice in Cyprus: overview

11th February 2020

A Q&A guide to arbitration law and practice in Cyprus.

Litigation and Enforcement in Cyprus: overview

11th February 2020 A Q&A guide to dispute resolution law in Cyprus.

The Complex Commercial Litigation Review

7th January 2020 Our Senior & Managing Partner, Stavros Pavlou, Senior Associates Katerina Philippidou and Andria Antoniou, and Athina Patsalidou, Associate, contribute the exclusive Cyprus chapter in Complex Commercial Litigation Review's 2nd edition, in which expert practitioners from 23 jurisdictions provide their overview on litigation and arbitration of commercial disputes, contract formations and negotiations, fraud, misrepresentations and other claims. Click to read the Cyprus chapter, published by The Law Reviews.

The Guide to Insolvency

7th January 2020 Chambers’ 2020 Insolvency Global Practice Guide provides an overview of the differing legal regimes that apply to business restructurings, reorganisations, rehabilitations, insolvencies and liquidations in 48 jurisdictions. Senior Associates Nasia Papakonstantinou and Christos Ioannou contribute the Cyprus chapter, providing all-important professional insights into current trends and developments in the local market, including a concise and high-level summary of specific debtor and creditor rights and legal alternatives for the restructuring and resolution of financially distressed and insolvent businesses.

ADIT & Blockchain Professionals

23rd September 2019 At Patrikios Pavlou & Associates LLC, we continuously invest in our team’s professional expertise to keep track with the latest developments and ever-growing demands. We are also very proud of our team’s persistent success...

Events 2019

23rd September 2019 This month, our team will be attending highly regarded international conferences...

Cyprus Implements ATAD

21st August 2019 In light of EU Anti-Tax Avoidance Directive (ATAD), the Cyprus House of Representatives on April 5, 2019 voted into law (applicable from January 1, 2019) the partial implementation of legally-anti-abusive measures. These measures include the ‘interest limitation’ rule, the ‘general anti-abuse’ rule, and the ‘controlled foreign companies’ rule. The rest two measures stipulated by the EU ATAD (exit taxes and rules to tackle hybrid mismatches) are expected to be implemented in Cyprus by 2020.

Double Tax Treaty between Cyprus and Kazakhstan

9th July 2019

A DTT between Cyprus and Kazakhstan has been signed and ratified by Cyprus on the 15th of May 2019. The DTT is expected to “enter into force’ as from the 1st of January 2020, provided that the various legal procedures involved are finalized. Kazakhstan currently has the largest and strongest performing economy in Central Asia.

Is “Substance” the current Buzzword?

9th July 2019 It seems that one of the latest buzzwords in the field of international tax planning is “substance”. The term “substance” is frequently used to indicate real/physical presence of legal entities in their country of tax residence, as opposed to the use of the so called “shell” or “conduit” companies for obtaining certain tax, or double tax treaty, benefits.

Licensed Insolvency Practitioners

13th June 2019

Two of our Senior Associates, Mrs Nasia Papakonstantinou and Mr Christos Ioannou, successfully passed their Insolvency Practitioners examinations and are now officially included in the Cyprus Insolvency Service (ISC).

Takeover Law: An overview

4th June 2019 The primary source of legislation relating to public M&A transactions in the Republic of Cyprus is the Law to Make Provision for Public Takeover Bids for the Acquisition of Securities of Companies and Related Matters, Law 41(I)/2009 (“Takeover Law”).

Litigation and enforcement in Cyprus overview

23rd May 2019

A Q&A guide to dispute resolution law in Cyprus, providing a structured overview of the key practical issues concerning dispute resolution, including court procedures; fees and funding; interim remedies (including attachment orders); disclosure; expert evidence; appeals; class actions; enforcement; cross-border issues; the use of ADR; and any reform proposals.

Arbitration Procedures and Practice in Cyprus overview:

18th April 2019

This country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in Cyprus, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim.

Top-Tier Law Firm & Leading Lawyers

18th April 2019

Patrikios Pavlou & Associates LLC is led by exceptional heads of departments who possess great knowledge and expertise. Our firm is a Top Tier Firm in 4 practice areas for the Legal 500...

M&A opportunities in Cyprus post Brexit

28th February 2019

Cyprus has reclaimed its status as a country with a developed and well-trusted economy, having overcome the challenges of recent years with a gross domestic product growth of 3.9% in 2018. There has been a noticeable rise in foreign investments in the local market, with an upswing in mergers, acquisitions and joint ventures.

Mergers and Reorganizations – An Overview

24th January 2019

Cyprus boasts an attractive merger and reorganisation regime not only locally, but also at an EU level. Mrs Lia Iordanou Theodoulou, our firm's Partner-Head of Corporate Finance, shares an overview of the procedures to carry out a local and a cross-border merger, providing essential legal and tax information.

Supporting local and international charitable organizations

15th January 2019

As one of the leading law firms in Cyprus, we are active promoters and supporters of local economic growth by sponsoring local events, applying environmental-friendly practices, minimizing our ecological impact, and most importantly, by raising money for local charities and non-profit organizations.

The ‘dark’ side of the data room: disclosure dangers in M&A and finance transactions

13th November 2018

Given the corporate environment's ever-changing nature and business needs and the importance of data protection at the EU level, the topic of due diligence in M&A and financial transactions warrants examination. The disclosure, transfer and processing of data raises concerns at several stages of the due diligence process during a transaction and undoubtedly makes things more complicated.

Registered alternative investment funds – an overview

13th November 2018

Cyprus is fast becoming an international fund hub and a well-respected player in both the European and international fund industries.

Cyprus Shipping: casting a long shadow over the International Maritime Industry

13th November 2018

Cyprus's maritime industry has been established as one of the three largest merchant fleets in Europe and one of the largest in the world. Given its attractive environment and fast developments, Cyprus is likely to cast a long shadow over the international shipping sector...

Project Finance 2018

10th October 2018

Mrs Stella Strati, Partner-Corporate Finance, and Mr Stylianos Trillides, Senior Associate, contributed the exclusive Cyprus chapter to the 7th edition of the International Comparative Legal Guide to Project Finance 2018.

A call for specifying the “Pre-Marketing” concept within the AIFMD

10th October 2018

On the 12th of March 2018, the EU Commission via an explanatory memorandum (“Explanatory Memorandum”), adopted a package of further measures intended to deepen, unify and further integrate the capital markets sector of the 28 EU Member States.

Cyprus: Force Majeure

Published: July 2021

Authors: Eleana Christofi Stylianos Trillides

This country-specific Q&A provides an overview to Force Majeure laws and regulations that may occur in Cyprus.

Dispute resolution
Tax

Banking and finance
Commercial, corporate and M&A
Real estate and construction

Firm Profile > Patrikios Pavlou & Associates LLC > Limassol, Cyprus

Patrikios Pavlou & Associates LLC Offices

Patrikios Pavlou & Associates LLC > The Legal 500 Rankings

Cyprus > Dispute resolution Tier 1

Practice head(s):

Other key lawyers:

Testimonials

Key clients

Cyprus > Tax Tier 1

Practice head(s):

Testimonials

Key clients

Cyprus > Banking and finance Tier 2

Practice head(s):

Other key lawyers:

Testimonials

Key clients

Cyprus > Commercial, corporate and M&A Tier 2

Practice head(s):

Other key lawyers:

Testimonials

Key clients

Cyprus > Real estate and construction Tier 2

Practice head(s):

Key clients

Patrikios Pavlou & Associates LLC > Firm Profile

Main Contacts

Lawyer Profiles

Staff Figures

Languages

Memberships

Other

Notable cases

Diversity/Community

Interviews

Stavros Pavlou, Senior and Managing Partner

What do you see as the main points that differentiate Patrikios Pavlou & Associates LLC from your competitors?

Which practices do you see growing in the next 12 months? What are the drivers behind that?

What’s the main change you’ve made in the firm that will benefit clients?

Is technology changing the way you interact with your clients, and the services you can provide them?

Can you give us a practical example of how you have helped a client to add value to their business?

Are clients looking for stability and strategic direction from their law firms – where do you see the firm in three years’ time?

Spotlights

DISPUTE RESOLUTION

CORPORATE & M&A

BANKING AND FINANCE

Press Releases

Legal Developments

Types of collateral

What types of collateral and security interests are available?

Collateral perfecting

Assuring absence of liens

How can a creditor assure itself as to the absence of liens with priority to the creditor’s lien?

Enforcing collateral rights

Outside the context of a bankruptcy proceeding, what steps should a project lender take to enforce its rights as a secured party over the collateral?

Enforcing collateral rights following bankruptcy

Foreign exchange and withholding tax issues

Restrictions, controls, fees and taxes

What are the restrictions, controls, fees, taxes or other charges on foreign currency exchange?

Investment returns

What are the restrictions, controls, fees and taxes on remittances of investment returns (dividends and capital) or payments of principal, interest or premiums on loans or bonds to parties in other jurisdictions?

Foreign earnings

Must project companies repatriate foreign earnings? If so, must they be converted to local currency and what further restrictions exist over their use?

May project companies establish and maintain foreign currency accounts in other jurisdictions and locally?

Foreign investment issues

Investment restrictions

Insurance restrictions

What restrictions, fees and taxes exist on insurance policies over project assets provided or guaranteed by foreign insurance companies? May such policies be payable to foreign secured creditors?

Worker restrictions

What restrictions exist on bringing in foreign workers, technicians or executives to work on a project?

Equipment restrictions

What restrictions exist on the importation of project equipment?

Nationalisation laws

What laws exist regarding the nationalisation or expropriation of project companies and assets? Are any forms of investment specially protected (from nationalisation or expropriation)?

Fiscal treatment of foreign investment

Incentives

What tax incentives or other incentives are provided preferentially to foreign investors or creditors? What taxes apply to foreign investments, loans, mortgages or other security documents, either for the purposes of effectiveness or registration?

Government authorities

Relevant authorities

What are the relevant government agencies or departments with authority over projects in the typical project sectors? What is the nature and extent of their authority? What is the history of state ownership in these sectors?