Extension Of FATCA Reporting

Welcome to our 5 minute tax update broadcasted monthly. The aim of our tax webcasts is to provide a brief summary of local and international tax events impacting Cyprus.

The Cyprus Tax Department has announced that the 2023 Income Tax return (IR1) for Individuals can now be submitted via the TaxisNet system.

Cyprus corporate tax changed materially on 1 January 2026. The headline change is the corporate tax rate, which rose from 12.5% to 15%. But the reform package went further, touching loss carry-forward..

Cyprus has raised its corporate income tax rate from 12.5% to 15%, but the total tax burden on distributed profits has actually fallen by more than eight percentage points for Cyprus-domiciled shareholders due to a dramatic cut in the Special Contribution for Defence on dividends. However, non-domiciled residents and foreign shareholders now face higher effective rates, fundamentally reshaping the island's tax competitiveness for different investor categories.

Cyprus removed a key barrier to its 60-day tax residency rule in January 2026, allowing applicants to qualify even if another country still claims them as tax resident. The change shifts the resolution of competing residency claims from domestic statute to double tax treaty tie-breaker provisions, fundamentally altering how internationally mobile business owners and executives can establish Cyprus tax residency.

Cyprus has increasingly positioned itself as a jurisdiction of interest for entrepreneurs, international business owners, remote professionals and high-net-worth individuals seeking an EU base with a modern...

Cyprus approved a comprehensive tax reform package on 22 December 2025, marking the first major overhaul of the tax system in more than twenty years.

The Cypriot tax landscape has undergone a significant recalibration following the entry into force of a broad package of fiscal reforms, effective as from the 1st of January, 2026.

A Cyprus resident company holding a portfolio of listed securities, funds, or bonds can generate capital gains and dividend income entirely free of corporation tax.

Cyprus tax residency has become the subject of intense interest among internationally mobile business owners and entrepreneurs. The reason is straightforward: Cyprus offers a legal, transparent, and well-tested framework...

The OECD's November 2025 updated Commentary on Article 5 of the Model Tax Convention introduces groundbreaking guidance on when cross-border remote working arrangements and home offices may create permanent...

Law 5303/2026 fundamentally reforms Greek inheritance law, introducing modern provisions for forced heirship, inheritance agreements, and estate planning. How will these changes affect property owners, families with complex structures, and cross-border succession arrangements?

The Court of Justice of the European Union has established new evidential standards for determining when an undertaking is controlled by persons subject to EU sanctions.

It has been seven years since the General Data Protection Regulation (GDPR) came into force, setting in motion the European Union's commitment that it will not compromise when it comes to the protection...

Through the enactment of Regulation 269/2014 (the "Regulation"), the European Union imposed restrictive measures in response to Russia's actions which undermine Ukraine's sovereignty.

Artificial intelligence has revolutionized brand creation, enabling businesses to generate names, logos, and slogans within minutes. However, speed and convenience don't guarantee legal protection, raising critical questions about trademark ownership, registration eligibility, and the protection of AI-generated brands in an era where technology outpaces traditional intellectual property frameworks.

The EU has updated its FAQs relating to the sanctions against Russia and Belarus, with the addition of a new question which focuses on Article 5n of Council Regulation (EU) No 833/2014.

Greece has introduced significant restrictions on short-term property rentals, particularly affecting properties in central Athens municipal districts. Understanding the registration requirements, administrative penalties, and recent regulatory changes is crucial for anyone considering investment in Greek real estate for short-term rental purposes.

The Cyprus Tax Department has issued new guidance strengthening due diligence requirements for financial institutions under DAC2/CRS, specifically targeting potential misuse of Citizenship by Investment and Residence by Investment schemes. Financial institutions must now implement enhanced verification procedures to ensure accurate reporting of account holders' tax residency, with immediate application to new clients and a six-month compliance window for existing accounts.

The Financial Action Task Force has released a comprehensive report examining how the gaming and gambling industry's evolution into online, cross-border platforms has created new vulnerabilities for money laundering, terrorist financing, and proliferation financing. The report identifies critical gaps in international regulatory frameworks and provides strategic recommendations for jurisdictions to strengthen their oversight of this increasingly interconnected digital ecosystem.