Tax Law Amendment Regarding Debt Restructurings

On 10 July 2018, the House of Representatives voted for amending the provisions of the tax legislation regarding bank debt restructurings involving immovable property in Cyprus.

The already applicable provisions facilitated tax free debt restructurings effected by 31 December 2019 involving the transfer of immovable property in Cyprus by borrowers, debtors, guarantors to credit institutions (including their subsidiaries).

With the amendment voted by parliament, the provisions facilitating the tax free transfer of immovable property in the context of debt restructurings have been extended to be also applicable to the following qualifying lenders:

• credit acquiring companies and their subsidiaries, and