Cyprus - An international business centre
 
TRANSFER OF PROPERTY IN CASE OF REORGANISATION:

New provisions enacted, considers that under any reorganisation scheme, there is no Capital Gain until the ultimate new/recipient body disposes of the underlying Immovable property.

SOCIAL COHESION FUND LAW No.124 (I) 2002.

IMMOVABLE PROPERTY TAXES
Up-to 31.12.02 from 1.1.03
To 100.000 Nil Nil
100k-250k 2% 2.5%
250k-500k 3% 3.5%
Over 500k 3.5% 4%
1. DEFINITION - Emoluments for the purpose of this Law includes any cash or other benefit in kind, as a result of the exercise of any office or the rendering of any employment and any amount payable by way of thirteenth salary or otherwise in excess of the usual remuneration compensation for each specified period but excluding any other grant or retirement benefit or other sums payable by an approved Provident Fund.


2. PROVISIONS: - All employers will contribute to the fund at the rate of 2% on the employees gross emoluments, except on the emoluments of foreign employees employed in Cyprus by:

• Foreign Governments
• International Organizations
• Ship-owing Companies. (Cyprus Ship owner)
• International Business Companies, which have opted to be taxed at 4.25% until the year 2005.