Dear Friends,
Happy New Year 2025! May you have strong health, high spirit, joy and those people next to you, who make you more happy!
At the beginning of each year we briefly remind you of key tax and legal developments of 2024 in Cyprus. See below a summary of updates on key changes in business and regulatory environment in Cyprus in 2024, as well as expectations for 2025. Some EU key developments that could affect Cyprus are mentioned as well.
2024 KEY TAX AND REGULATORY DEVELOPMENTS FOR INTERNATIONAL BUSINESS IN CYPRUS AND EU
Cyprus Tax & Legal
Cyprus introduced several important regulatory and tax developments in 2024 affecting international business.
- The EU Public CbC Reporting Directive was transposed into Cyprus domestic law
- Cyprus implemented the EU Pillar 2 Directive, introducing a global minimum tax of 15% for multinational corporations with revenues exceeding €750 million.
- The country also aligned with the EU’s Markets in Crypto-Assets (MiCA) regulations.
- After 12 years, the €350 Annual Fee imposed on companies in Cyprus in 2011 was abolished to reduce administrative burdens.
- As to Transfer Pricing key developments, Cyprus raised thresholds for transfer pricing documentation from EUR 750 K to EUR 5 mln for financial transactions and from EUR 750 K to 1 mln for other transactions.
- Another important development is that Cyprus is intended to join the Schengen Area in 2025, contingent on resolving territorial issues.
- The government of Cyprus revoked «Golden» Passports for about 80 Foreign Investors .
Cyprus Tax Compliance
- The deadlines for related-party transactions’ tax filings — Summary of Information Table — for 2022 were established and extended to 20 November 2024.
- The compliance developments included mandatory annual confirmation of Ultimate Beneficial Owners (UBOs) details for 2024 in the Register of UBOs by December 2024.
These and other developments reflect Cyprus’ efforts to align with EU standards and improved business transparency.
The EU some developments affecting Cyprus
- The EU adopted the Corporate Sustainability Due Diligence Directive (CSDDD)
- The Court Decision on Apple’s «Illegal State Aid» case resulted in EUR 13 billion fine.
IN MORE DETAILS
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