ARTICLE
16 August 2018

Amendments To Tax Laws To Facilitate Loan Restructuring

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Elias Neocleous & Co LLC

Contributor

Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
Parliament passed a package of legislative measures on 8 July 2018 that aims to encourage the resolution of non-performing loans.
Cyprus Insolvency/Bankruptcy/Re-Structuring

Parliament passed a package of legislative measures on 8 July 2018 that aims to encourage the resolution of non-performing loans. The legislative measures included an extension of the current tax exemptions on transfers of immovable property from a borrower to a lender in the course of a loan restructuring to borrowers that dispose of the property themselves in the open market in order to restructure debt. Both sets of exemptions will be available until the end of 2019.

With effect from 17 July 2018, Law 96(I)/2018 has amended the Income Tax Law,1 Law 98 (I)/2018 has amended the Special Contribution for Defence Law2 and Law 100 (I)/2018 has amended the Capital Gains Tax Law3 in order to implement the amendments.

Footnotes

1 Law 118(I)/2002.

2 Law 117(I)/2002.

3 Law 52/1980.

Originally published in International Law Office

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