Cyprus: automatic exchange of tax data, new property tax rates
According to a notice published on the OECD's web site, in 2014 Cyprus and 43 other jurisdictions (including Malta, the Netherlands, Great Britain, the Isle of Man and the islands of Guernsey and Jersey) confirmed that the first automatic transfer of tax information, in accordance with the standards proposed by the OECD, would take place in September 2017. It is expected that this group is likely to increase in number as the above countries are joined by other countries willing to support the automatic exchange of tax information.
In 2014, new property tax rates were established, and these entered into effect on January 1, 2015. Properties with a value up to €100 000 will be liable to an annual tax of €37.50, properties with a value between €100 001 and €500 000 - an annual tax of € 75, properties with a value between €500 001 and €1 000 000 - an annual tax of €150, and properties with a value over € 1 000 000 - an annual tax of €357.
Cyprus has entered into a double taxation treaty with Finland, Estonia, Portugal, and Spain, and this came into effect on January 1, 2014. In addition, a revised double taxation treaty between Cyprus and Ukraine came into effect at the beginning of 2014. Cyprus has also signed a double taxation treaty with Switzerland, which is likely to enter into effect this year.
Double taxation treaty between Malta and Russia
On January 1, 2015, a double taxation treaty between Malta and Russia began to be applied. The Treaty was signed on April 24, 2013, entered into effect on May 22, 2014 and establishes certain criteria relating to the participatory interest in a company and the size of the investments. If these criteria are met, then the applicable rate of tax on the dividends transferred from Russia to the Maltese company will be 5%.
In 2014, Malta, together with Cyprus and 42 other states confirmed that the first automatic exchange of tax data in accordance with the standards proposed by the OECD would take place in September 2017.