Evagoras Loizou

May 17, 2022

We would like to inform our prestigious clientele that the deadline for submission of personal income tax returns is 31st July 2022.

Physical persons who earn a gross income over €19.500 within the fiscal year 2021, have a compulsory obligation to submit personal tax return (T.D.1) until 31st of July 2022.

This is applicable to: employees, pensioners, self-employed individuals and any other individual who is tax resident in Cyprus or has income derived from sources in Cyprus.

Self-employed individuals whose annual income exceeds €70.000 should prepare audited Financial Statements and submit their T.D.1 in respect of the fiscal year 2021 until 31st of March 2023.

Please do not hesitate to contact our offices to book an appointment with Maria Georgiou, the Chief Financial Officer, who will gladly assist you with submitting your Returns. She will explain to you what needs to be provided, based on your specific affairs.



July 16, 2021

We are seeking to recruit an Accountant for our Paphos office.

Job requirements:

  • University Degree in the accounting field
  • Qualified or partially qualified ACCA or ACA
  • At least 3 years’ relevant experience in an accounting department
  • Excellent knowledge of English and Greek, both verbal and written
  • Very good knowledge of accounting software
  • Excellent knowledge of Caseware software
  • Able to work independently or as a part of a team
  • Willing to learn and develop his/her skills further

Main responsibilities:

  • Performance of book-keeping/accounting records for local and international clients.
  • Preparation of VAT and VIES reporting
  • Preparation of payroll and social insurance payments
  • Correspondence and communication with clients
  • Participation in other accounting/tax related duties
  • Any other duties relevant to the daily operation of the department

An attractive remuneration package will be offered based on experience and qualifications.

Interested candidates must send their CV to:  maria.georgiou@kyprianou.com

Successful candidates will be called for an interview.


November 16, 2020

Cyprus is considered as an ideal place for the establishment of an Intellectual Property (IP) holding and development company.

The Cyprus IP tax rate and the legal protection (by EU Member States) are the main reasons for choosing Cyprus as the country where the IP shall be centralized and managed.

 Provisions of the new IP tax regime 

 The new Cyprus IP Box, which gives an 80% deduction on qualifying IP profits, is fully aligned with the OECD/G20 Base Erosion and Profit Shifting (BEPS) Action 5 report.

Under the provisions of the new IP tax regime, the ‘Nexus approach’ is followed, whereas in order for an intangible asset to qualify for the benefits of the regime, there needs to be a direct correlation with the qualifying income and the own qualifying expenses contributing to that income.

The ‘Nexus approach’ is used to determine the amount of qualifying profits that will give the relevant deduction to the taxpayer.

80% of the qualifying profits earned from qualifying intangible assets will be allowed as a tax-deductible expense, resulting in an effective tax rate as low as 2.5%.

Qualifying IP Assets  

Intangible assets qualify as IP assets if they were acquired, developed or exploited by a person within the course of carrying out his business (except IPs used for marketing of the business, eg. brand, image right, etc.).

These IP assets are the result of research and development and where there is existence of economic ownership. I.e. patents, copyrighted software programs, utility models and other intangible assets that are non-obvious, useful and novel.

The qualifying IP assets need to be legally and/or economically owned.

Qualifying persons

 Qualifying persons include Cyprus tax residents, tax resident permanent establishments (PEs) of non-tax resident persons, as well as foreign PEs that are subject to tax in Cyprus.

Persons claiming benefits under the new regime are obliged to maintain proper accounting records, including income and expenses records of each IP.

Cumulative Nexus fraction  

The ‘Nexus approach’ is an additive approach: the calculation requires both that QE includes all qualifying expenditures incurred by the taxpayer over the life of the IP asset and that OE includes all overall expenditures incurred over the life of the IP asset. (Explanation of terms follows):



OI: the “overall income derived from the QA”

QE: the “qualifying expenditure on the QA”

UE: the “uplift expenditure on the QA” and

OE: the “overall expenditure on the QA”

Overall Income (OI) = Gross income – direct expenses (and capital allowances of IP asset).

Overall income includes, but is not limited to, royalties received for the use of the IP, trading income from the disposal of qualifying IP, licence income earned from the operation of IP and embedded income earned from the qualifying IP.

Capital Gains arising from the disposal of an IP are not included in the overall income and are fully exempt from tax.

Qualifying Expenditure (QE) = Salary and wages, direct costs, general expenses associated with R&D activities and R&D expenditure outsourced to non-related parties.

Uplift Expenditure (UE) = The lower of: 

-30% of the QE and

-the total acquisition cost of the QA and any R&D costs outsourced to related parties.

Overall Expenditure (OE) = Total of:

-the qualifying expenditure and

-the total acquisition costs of the QA and any R&D costs outsourced to related parties incurred in any tax year.


Revenue                                                                            100.000

Less: Direct expenditure from IP asset                     – 60.000

Overall income (OI)                                                          40.000

Assume nexus fraction of 90%

Qualifying profits: 90% (nexus fraction) of OI             36.000

Less: 80% exemption on qualifying profits                -28.800

Taxable qualifying profits                                                    7.200

Remaining OI (10% of OI) (Note 1)                                  4.000

Total taxable profit                                                              11.200

Tax @ 12.5%                                                                           1.400

Effective tax rate (Note 2)                                                       3.5%


Note 1: The remaining overall income is added to the taxable qualifying profits and the total is subject to tax at the corporate tax rate of 12.5%.

Note 2: The effective tax rate can be reduced to 2.5% with a nexus fraction of 100%.

Losses from the qualifying assets  

Where the calculation of qualifying profits results in a loss, only 20% of this loss may be carried forward or group relieved.

Non-qualifying assets for the IP regime  

Expenses incurred for the acquisition of an intangible asset do not qualify for the transitional provisions, while the intangible assets that are used for business purposes of the company can be amortized over its useful life for a maximum of 20 years. In case the asset is disposed, similar treatment is followed as in the case of disposal of fixed assets. Goodwill does not qualify for amortization.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute advice. We recommend that you seek professional advice on your specific matter before acting on any information provided.

For further information or advice, please contact Maria Georgiou, at maria.georgiou@kyprianou.com

June 24, 2019

On the strength of the parliamentary resolution of the Cyprus House of Representatives, on the 14th July 2017, the rule of 183 days, as regards the determination of tax residency of individual persons in Cyprus, was amended by adding a supplementary rule.

June 24, 2019

I am sure many of us have been closely following the political events taking place in the United Kingdom over the past few days, following the political process and the draft agreement regarding Brexit and the relationship between the UK and the EU.

June 24, 2019

The scheme for Naturalisation of Investors in Cyprus by exception has proven to be very attractive and popular among high-net-worth-individuals and entrepreneurs from all over the world. The program has introduced specific terms and conditions along with a straightforward procedure for applicants who wish to obtain the Cyprus citizenship.

June 24, 2019

On 30/11/2017 the House of Representatives in Cyprus and in accordance with the EU Value Added Tax (VAT) Directive voted a new VAT Law which amends principle VAT Law N.95 (1)/2000. The new bill imposing Value Added Tax (VAT) on building land was set in motion on the 2nd of January 2018.

June 24, 2019

Cyprus tax system is one of the most favorable in Europe, offering a variety of tax benefits to physical persons who have tax residence in Cyprus.

A physical person is considered to be a tax resident in Cyprus for a calendar year, if the criteria of the 183- or 60-day rule are met.