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A foreign company establishing a permanent presence in Cyprus will usually consider either registering a branch or incorporating a Cyprus subsidiary. Both structures permit business to be carried on from Cyprus, but they are legally different. A branch remains part of the foreign company, while a subsidiary is a separate Cyprus company even if the foreign parent owns all of its shares.

Cyprus has repealed its 2017 guidance on Administrative Service Providers under FATCA and CRS, effective immediately with no transitional period. The new interpretation under paragraph 10ter of the Consolidated CRS means that entities like corporate trustees and nominee companies must now count all remuneration for their services in gross income tests, even when fees are paid to other entities in the structure rather than directly to them.

Cyprus is set to revolutionize money transfers through a new instant payments initiative that will allow customers to send funds using only mobile phone numbers, eliminating the need for IBAN details in everyday transactions. The system, a collaboration between JCC payment, the Association of Cyprus banks, and Greek company Interbank Systems (DIAS), aims to launch in 2027 but faces important questions around transaction limits, security measures, and fraud prevention.