What is the importance of the proper implementation of Anti-Money Laundering guidelines for CIFs?

Money launderers can potentially exploit the services provided by any CIF in the normal course of its business. Invariably, when a CIF becomes an unwilling participant in money laundering however, the implications of such practices may potentially have adverse effects on a CIF’s reputation, and can result in the imposition of harsh sanctions, ranging from monetary fines to even imprisonment of the firms’ officials. Therefore, CIFs are encouraged to be proactive, in establishing a well-balanced Anti-Money Laundering (“AML”) policy, which is both compliant with the Cypriot regulatory framework, and can be practically implemented within a CIF’s normal course of business.

Published in Tax

Money Laundering

Wednesday, 12 December 2012 14:54


Money laundering is an international problem and requires the active assistance of a number of professionals and institutions to address it and suppress it. Money Laundering is the process of converting illegal proceeds into assets by hiding their true criminal origin and rendering those assets untraceable as to their origin by providing a legal cover on their source; usually by transferring those proceeds and/or mixing them with legitimate funds or by reinvesting the same. Certain professionals, who are described as “sensitive professionals”, with high risk of being involved or being aware of money laundering activities, are being used, either unknowingly or knowingly, at some stage of the process of money laundering. International and domestic legislation, regulations and professional ethics are society’s weapons against Money Laundering.

Published in Tax

What is the CIBC?

The CIBC is the legal entity whose beneficial owner is a foreigner and which is being used for his/her local and international business activities and investments.

Is the CIBC an offshore company?

No, definitely not. As Cyprus is a full member of the EU, the CIBC is a prestigious European company acceptable worldwide. On the contrary, the offshore companies are not allowed to make business or investments in the country of their jurisdiction and their corporate tax rate is zero.

Who is considered as a non – tax resident of the Republic of Cyprus?

As non – tax resident of the Republic of Cyprus is considered the individual who is present in the Republic for a period less than 183 days in a tax year, while a tax resident is considered the individual who is present in the Republic for a period exceeding 183 days in a tax year.

Published in Tax

Taxation Of Cyprus International Trusts

Wednesday, 12 December 2012 14:26

What is the law governing Cyprus International Trusts?

When it was introduced in 1992 the International Trusts Law gave Cyprus a “state of the art” international trusts regime, with excellent tax mitigation and asset protection features. Over the ensuing 20 years it became clear that although the basic structure provided by the International Trusts Law remained sound, extensive modernisation was required to adapt it to the changed circumstances of the twenty-first century.The InternationalTrust (Amending) Law of 2012 returnsthe Cyprus trust regime to the“cutting edge”internationally. It strengthens the already impressive asset-protection benefits of Cyprus international trusts, widens trustees’ investment powers to those of an absolute owner, provides greater flexibility and control for settlors and removes limits on the lifetime of trusts. Cyprus international trusts now provide an extremely effective and flexible wealth-holding structure with formidable asset protection features that are likely to attract high net worth individuals from around the world.

Published in Tax


Wednesday, 12 December 2012 13:48

What are the taxes imposed to natural and legal persons in Cyprus? 

The Cyprus taxation system provides for the lowest tax regime in the European Union. An overview of the Cyprus legislation is provided below:


An individual that is a Cyprus tax resident will be taxed on income (subject to certain exemptions) which is derived/accrued from all sources in Cyprus and abroad. An individual will be considered as a tax resident in Cyprus if he /she spends more than 183 days in any one calendar year in Cyprus.

If the individual is not considered a Cyprus tax resident then he /she will be taxed only on certain income which is derived/accrued from sources in Cyprus.

Published in Tax



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