Amendments to the tax laws to facilitate loan restructuring

The package of legislative measures passed by the Cyprus parliament on 8 July aimed at encouraging the resolution of non-performing loans included an extension of the current tax exemptions in connection with transfers of immovable property from a borrower to the lender in the course of loan restructuring to borrowers who dispose of the property themselves in the open market for the purpose of restructuring debt. Both sets of exemptions will be available until the end of 2019.

Law 96(I) of 2018 amends the Income Tax Law, Law 98 (I) of 2018 amends the Special Contribution for Defence Law and Law 100 (I) of 2018 amends the Capital Gains Tax Law to implement the amendments, all with effect from 17 July 2018.

For further information please contact Constantinos Christofi or your usual contact at Elias Neocleous & Co LLC.