Digest REVERA Cyprus №5
Cyprus is on the way to new minimum tax rate
The European Commission announced in December that it has officially adopted the application of a minimum tax rate throughout its territory starting in 2024. As a result, the Cyprus shall follow this decision and make relevant amendments to legislation during this year to minimum increase corporate tax rate to 15%, instead of 12.5%, which is relevant today.
Over EUR 48 million grants under “Cyprus tomorrow” plan
According to Government Spokesperson Marios Pelekanos, in the first quarter of 2023 Cyprus will launch projects involving grants and subsidies worth over EUR 48 million for households and businesses via the “Cyprus Tomorrow“ plan. The plan includes 58 reforms and 75 investments which are estimated to attract a further EUR 1.4 billion in private investments.
Cyprus property will face challenges this year
The President of the Council for the Registration of Real Estate Agents, Marinos Kineyirou, stated that the organization has taken important steps to address critical issues concerning both real estate agents and the general public in 2022. At the same time, he noted that "in the coming months of the new year, problems are expected, such as high inflation, rising lending rates, increased raw material prices, which may ultimately affect demand and the growth rate of the real estate sector". As a result, these indicators will lead to an increase in real estate prices, which, accordingly, will lead to a decrease in demand in the sector.
Cyprus ranked #16 in new edition of The Henley Passport Index
The latest results from the Henley Passport Index provide insights into the relationship between passport power and economic mobility. This Index compares the visa-free access of 199 different passports to 227 travel destinations. The Cypriot passport was in place 16, granting visa-free access to 177 countries.
M&A activity will be encouraged in Cyprus
The Cyprus Economy and Competitiveness Council noted that 92.9% of businesses in Cyprus are classified as "very small", and this does not allow to fully follow the strategy for the sustainable development of Cyprus. In order to increase the number of larger enterprises, the Council made a number of recommendations to encourage the M&A sector, in particular: the creation of a special office, the modernization of the legal framework, the provision of tax incentives for transactions, and financing of businesses by government.