Andrey Narutskiy

Private client accounting in Cyprus goes far beyond preparing an annual tax return. For internationally mobile individuals, entrepreneurs and investors, the real challenge is ensuring that foreign income, investments, company transactions and supporting documentation are properly classified and reconciled throughout the year. In our latest article, we look at the key areas that require particular attention, including: ✅ foreign dividends and interest ✅ investment portfolios and multi-currency accounts ✅ overseas rental income and pensions ✅ foreign tax credits ✅ Non-Dom, SDC and GHS considerations ✅ transactions with connected companies ✅ trusts, foundations and family structures ✅ source-of-wealth and source-of-funds documentation Well-maintained records do more than support annual compliance. They create a clear and defensible reporting position and provide a stronger foundation for future tax planning. Read the full article: https://lnkd.in/dEDgFvrv #CyprusTax #PrivateClients #InternationalTax #TaxCompliance #Accounting #TaxPlanning

3

Cyprus has presented its most extensive tax reform in over two decades, with Finance Minister Makis Keravnos outlining measures aimed at improving fairness, competitiveness, and fiscal sustainability. The package raises the individual tax-free threshold to €20,500 and introduces new deductions for families, housing costs, and green investments. The reform also aligns Cyprus with international standards by setting the corporate tax rate at 15%, while removing several levies and simplifying parts of the system. Reactions remain mixed. Business groups broadly welcome the direction, while trade unions argue that the benefits for low earners are limited. Political parties indicate they will seek amendments ahead of the next committee session on 17 November. As Parliament begins its review, the reform is positioned to reshape household finances and business activity from the start of 2026 onwards.

2

In 2026, Northern Cyprus (TRNC) remains one of the most attractive jurisdictions for high-yield investors (HNWIs) seeking tax optimization combined with high rental yields and the possibility of obtaining a residence permit. The tax regime here combines low rates, significant benefits for foreigners and flexibility in the structuring of ownership, which allows the net yield to rise to 7-10% even after all expenses and taxes. Taxation in the TRNC for non-residents (residence for less than 183 days per year) applies only to income from sources in Northern Cyprus. This makes the jurisdiction extremely profitable for passive investors. Basic taxes: ☑️ The rental income tax (Gelir Vergisi) is progressively 10-37% for residents, but for non-residents it is often 0-10% due to benefits and deductions. ☑️ Capital gain tax (Değer Artış Kazancı Vergisi) - 0-3% withholding for >2-3 years, often fully exempt. ☑️ The property tax (Emlak Vergisi) is 0.1-0.3% of the cadastral value annually, the base is low. ☑️ VAT (KDV) on purchase is 5% for residential real estate, 16% for commercial, but is often offset when income is exported. ☑️ Corporate tax - 15% (reduction to 10-0% in investment zones). ☑️ Inheritance tax is not available for foreigners with the right structure. Key tax benefits and schemes for HNWIs in 2026 ✅ Benefit 1: Full exemption from capital gain tax withholding >3 years ✅ Benefit 2: Low or zero tax on rental income for non-residents ✅ Benefit 3: Corporate structure to reduce rates ✅ Benefit 4: Investment zones and special regimes ✅ Benefit 5: Double taxation - agreements with 30+ countries 💡The right structure (personal ownership for simplicity or corporate ownership for optimization) turns an asset into an effective capital protection tool. Umbrella Real Estate provides full tax audit, structuring and annual support so that you pay only what is really necessary. 🖋️Contact us for a personal tax scheme for your portfolio.

2

Cyprus returned to the bond markets with a successful 𝗘𝗨𝗥 𝟭𝗯𝗻 𝟭𝟬-𝘆𝗲𝗮𝗿 𝗶𝘀𝘀𝘂𝗮𝗻𝗰𝗲, marking its first market transaction since June 2024. The bond, maturing on 28 January 2036, was priced at a yield of 𝟯.𝟯𝟯𝟵% (𝗠𝗦 +𝟰𝟰𝗯𝗽𝘀) after strong investor demand drove spreads tighter from the initial guidance of 𝗠𝗦 +𝟱𝟮𝗯𝗽𝘀. Demand was robust, with the final order book exceeding 𝗘𝗨𝗥 𝟭𝟲.𝟱𝗯𝗻, underscoring strong investor confidence in Cyprus’s 𝗰𝗿𝗲𝗱𝗶𝘁 𝗽𝗿𝗼𝗳𝗶𝗹𝗲 and 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗰𝗰𝗲𝘀𝘀. #markets #bond #cyprus

119