Unknown amount of Cyprus tax takings from passports

The amount of government revenue generated by the Cyprus Investment Program (CIP) cannot be calculated and linked to the individuals covered by the CIP, Cypriot Finance Minister Constantinos Petrides has stated.

In response to a parliamentary question regarding the revenue from investment tax, Petrides notified the House of Representatives that it cannot be calculated because different types of taxes are involved, and, depending on the type of tax, it can be paid by the applicant or someone else.

Where real estate is purchased or an investment is made through the purchase of shares in a company that directly or indirectly owns real estate, the seller is liable to pay capital gains tax under the current legislation.

Petrides also stressed that when a reduced VAT rate approval is granted for the purchase or construction of a house, a compliance campaign is under way, which includes auditing the reporting persons. He concluded that, in accordance with the program’s criteria, when the Tax Department’s Collection Certificate is mentioned, the applicant prints it through the tax portal based on the amounts paid.