With the demise of Greece, the interwoven Cyprus economy has
taken a beating. Following the footsteps of other Euro members, the
Cypriot government has asked the EU for a bailout. Of course it
would be foolish for them not to try, since the European Commission
seems so keen in handing out billions of Euro's.
At the same time the Cyprus government has amended some tax laws,
not to raise revenue, but to make the EU member state with the
lowest tax rates even more business friendly.
The most important change is the 80% tax exemption on capital
gains arising from the sale of intellectual property after all
relevant costs have been deducted. Acquisition of IP rights can be
amortized over a period of 5 years. The amendment reaffirms
Cyprus' positions as top holding jurisdiction for intellectual
property. Where else can you find such a highly respected nation
that effectively taxes IP rights at 2%, has a vast tax treaty
network, and can access the entire European Union
