Latest tax incentives are aimed to attract rich foreigners

According to Cyprus Property News, a 50 per cent cut in Property Transfer Fees and other tax incentives have been announced by the Cyprus President in efforts designed to attract high-net-worth foreign investors to the island.

The President of Cyprus, Nicos Anastasiades on Wednesday announced tax incentives, including a 50 per cent cut in property transfer fees, to boost economic activity as Cyprus moves to attract rich foreign nationals.

Speaking at the 54th AGM of the Institute of Certified Public Accountants, the president said the cabinet had made decisions that made the island’s tax framework fairer and more competitive, and most importantly, limited the tax burden, offering incentives for economic activity. “Our clear and explicit goal is to become the first government in the history of the Republic of Cyprus to reduce public debt and reduce the tax burden at the same time,” Anastasiades said.

Heavy taxation cripples people and businesses and suffocate the economy, he added. The basic reforms include tax breaks to encourage the flow of new capital in businesses, and extension of increased capital allowances on equipment and buildings until the end of 2016.