The green light was given by the Cypriot Parliament to the new legislation amending the VAT price on the primary residence. The European Commission found that the previous provisions were incompatible with the EU regulation, hence the new amendments are now moving forward. Following the approval by the Commission, Cyprus will be again in compliance with the EU regulation.

How to avoid penalties and fines for your Cyprus Company

Is not just about tax liabilities. Keeping your penalties and fine bills down for your Cyprus company could also be an issue which really, it is simple to tackle!

We summarise below what we believe are the easiest ways to get rid of penalties and fines for your company!!!

Cyprus main VAT rate is 19% close to other European countries albeit slightly lower. 

Cyprus also has the following VAT rates: 

• 9% reduced for hotel accommodation, transportation, restaurants amongst others 

• 5% reduced for certain goods such as books, newspapers and magazines, hairdressers 

• 0% for exports of goods, aircraft repairs, direct services to sea vessels and aircrafts etc. 

• Exempt / outside the scope such as rental income for non-business purposes, insurance, dividends etc.