AN EXTRACT OF THE 2024 ACTION PLAN AS PART OF A STRATEGY TO ATTRACT COMPANIES TO ACTIVATE AND/OR EXPAND THEIR ACTIVITIES IN CYPRUS
- Implementation of the Blue Card Directive
PAYMENT OF FINES ISSUED AFTER FIXING TRAFFIC VIOLATIONS BY TRAFFIC CAMERAS
You can pay the fine through the website www.jccsmart.com (the user will need to enter the serial number of the fine notice and vehicle registration number, and then proceed to pay by entering their bank card information).
AN EXTRACT OF THE 2024 ACTION PLAN AS PART OF A STRATEGY TO ATTRACT COMPANIES TO ACTIVATE AND/OR EXPAND THEIR ACTIVITIES IN CYPRUS: (Continuation)
MEASURES TO INCREASE HOUSING SUPPLY BASED ON THE “BUILD TO RENT” PRINCIPLE
Conditions:
(i) provision of real estate units (for example, top floor apartments), completed as a result of increasing the building ratio, for rent at an affordable price for a period of at least 6 years.
(ii) provision of 20% of the real estate units of the current development rate for rent at market rent for a period of at least 6 years.
(iii) the possibility of selling the remaining 80% of the applicable construction ratio of apartments on the open market.
The above benefit is accompanied by the following tax benefits:
-Income from such “affordable” rentals will be exempt from income tax at a rate of 100% for the period while the rental income remains “affordable.”
-Additional exemption from the 3% emergency defence levy for all properties included in the plan.
-Increased capital allowances for the period they remain in the affordable rent scheme (5% instead of the 3% currently applied) on capital expenditure.
- In addition, capital discounts for the purchase of equipment have been increased - 15% instead of the current 10%.
A review of urban planning incentives to increase construction and development rates.
(a) up to 45% of the applicable rate for residential zones with a development ratio of more than 1.00:1 and a minimum net area of 1000 sq.m.
(b) up to 25% of the applicable rate for residential zones with a development ratio equal to or less than 1.00:1. and with a minimum net area of 4000 sq.m.
For the purposes of using the Benefit Plan, other
New rules for permanent residency status, more in the pipeline
As from May 2, 2023, new rules came into effect for any third-country nationals who wish to obtain an expedient permanent residence because of their investments in Cyprus.
Increasing the amount of the social contribution from the beginning of 2024
From January 1, 2024, the rate of contributions to the social insurance fund has increased in Cyprus.
Revised VAT Reduction Scheme for Purchasing or Building New Houses in Cyprus
The real estate market in Cyprus has recently witnessed significant changes to the Value Added Tax (VAT) reduction scheme for individuals interested in purchasing or building new houses. The goal is to increase income and provide benefits only to those who cannot afford to purchase real estate due to its high cost.