Cyprus Government has proceeded to extend, ad of the end of November 2021, the regulations relating to the granting of tax relief on loan restructurings. Persons can benefit from this scheme due to the extension which is now valid until the 31st December 2022.
The exemptions and incentives granted are:
- No payment of stamp duty arising from the restructuring of loans up to the amount of existing debts;
- No imposition of capital gains tax;
- No payment of land transfer fees, in case of transfer of real estate in the name of the lender;
- No imposition of special defence contribution for the Republic, in case of accounting profit and/or deemed dividend distribution;
- Transfer of memo, in case of acquisition of property by the lender in the context of a loan restructuring, upon transfer of the property from the borrower to the lender; and
- Exemption from the calculation of taxable income of any benefit, surplus, profit or loss of a person that arises in the context of a loan restructuring.
For any further guidance regarding this procedure or if you require an initial consultation, please do not hesitate to contact our Law Firm at [email protected], +357 22 251 777 or +357 25 261 777 or please visit our office in Nicosia or Limassol.