The Cyprus Tax Department has released a circular clarifying procedures for the certification of company reorganisation plans, detailing the requirements and deadlines for obtaining tax exemptions under Part VI of the Income Tax Law.
On 21 November 2024, the Cyprus Parliament approved a landmark amendment to the Prevention and Suppression of Money Laundering Activities Law. The legislation introduces a comprehensive framework for the enforcement of penalties related to beneficial ownership compliance, addressing longstanding challenges and providing relief for businesses, especially small and medium-sized enterprises (SMEs).
The institution of arbitration, as an alternative means of dispute resolution, is heading towards substantial reform following a relevant draft bill by the Ministry of Justice and Public Order, with the adaptation of the legislation to the new circumstances and modern requirements of the time being the primary concern.
The accession and successful implementation of the Hague Convention of 2 July 2019 on the Recognition and Enforcement of foreign judgments in civil or commercial matters (the Hague Convention 2019 or the Convention) between the European Union member states (excluding Denmark) and Ukraine on 1 September 2023, signals the commencement of the establishment of a potentially international framework on the cross-border recognition and enforcement of court judgments as other states embark on the same direction.
Following the scrutiny of the whiplash reform report, the Supreme Court has upheld the Court of Appeal’s decision in Hassam & Anor v Rabot & Anor [2023] EWCA Civ 19, providing clarity on the correct approach to assessing damages in mixed injury cases. While this ruling brings certainty to the UK legal landscape, it also highlights the broader issue of how whiplash injuries are treated in other jurisdictions. In Cyprus, for example, a comprehensive framework for addressing whiplash injuries remains absent from the public discussion—despite the need for it. As car insurers continue to benefit from the UK’s whiplash reforms, drivers are still grappling with rising premiums. For further information regarding the whiplash reform report, click here.
The European Commission’s new initiative to phase out “forever chemicals” from consumer products marks a significant shift in the European market, impacting industries across various sectors.
The HCCH Special Commission on the practical operation of the 1965 Service, 1970 Evidence and 1980 Access to Justice Conventions took place recently in the Hague. "The Special Commission meeting reviewed the Service, Evidence, and Access to Justice Conventions, focusing on digital advancements and best practices to ensure cross-border judicial cooperation remains effective amidst evolving technology and diverse legal frameworks.
The General Data Protection Regulation (GDPR) has increased the liability of data processors, imposing direct regulatory obligations and leading to a more complex and accountable data protection regime for both controllers and processors.
By a majority vote, Parliament has enacted a legislative package to align national law with European Directive 2021/2167, which establishes a unified framework for credit servicers and purchasers. The legislation aims to facilitate the creation of a secondary market for Non-Performing Loans (NPLs), regulate the licensing and supervision of credit servicers, and protect borrowers' rights in loan sale transactions. Specifically, with 27 votes in favour, 17 against, and one abstention, the plenary approved seven bills to establish a legislative framework for the secondary loan market.
Recovering payments made for third-party accidents under an insurance policy often proves more complex than insurers initially anticipate. Recent court rulings highlight that insurers must obtain a court judgment to recover compensation in certain circumstances.
The European Commission’s €15.9 million fine against IF&F signals an expanded enforcement approach, extending its investigative powers to digital communications like WhatsApp, setting a precedent for future competition law investigations.
Our Partner and President of the Reform and Civil Procedure Rules Committee of the CBA, Nicolas Kyriakides, expertly moderated the discussion alongside Secretary of the Committee, Ms. Constantina Zantira. The session addressed current practices, the challenges faced, and the future potential of conducting judicial proceedings via videoconferencing.
A recent ruling by the Cyprus Court of Appeal provides key insights into the standards required for granting such injunctions, especially where fraud and conspiracy are alleged.
The Insurance Institute of Cyprus (IIC) recently conducted a one-day seminar titled "Succession and Insurance," featuring a presentation by our partner, Nicolas Kyriakides. This seminar provided a comprehensive introduction to inheritance law, specifically addressing its relevance to the insurance sector.
The NIS2 Directive (Directive (EU) 2022/2555) is a comprehensive cybersecurity regulation aimed at strengthening the resilience of critical infrastructure across the EU. It expands on the original NIS Directive, widening its scope, imposing stricter security requirements, and enhancing enforcement mechanisms.
Despite Cyprus’ legislative efforts to enhance its judicial system, Cyprus remains behind other EU countries in the number and scope of adopted measures, leading to the lowest overall performance within the European Union.
The European aviation sector is undergoing significant regulatory scrutiny, particularly concerning state aid provided to airlines and airport operators. Recent decision by the European Commission has brought to light the complexities that EU member states face when balancing support for their aviation sectors with the stringent competition rules established by the European Union (EU). These developments have implications for Cyprus, which has been providing incentives to airlines and airport operators to support its aviation industry.
On 5 September 2024, the Court of Justice of the European Union delivered a landmark judgment in Case C-109/23, ruling that a notary's authentication of property sales involving Russian companies does not breach the EU sanctions regime.
On 27 June 2024, the English Court of Appeal delivered a judgment in Nicholls v AXA Assistance Group T/A AXA Travel Insurance [2024] EWCA Civ 718, addressing crucial issues under the Rome II Regulation (“Rome II”), which is assimilated EU law in the UK, regarding the classification of interest rates on damages and the principles of subrogation. For a comprehensive read, you can access the link.
Harris Kyriakides is excited to announce the successful completion of our digital enhancement project, undertaken and co-funded as part of the European Union's Cohesion Policy Programme "Thalia 2021-2027".
The Supreme Court issued a directive on July 26, 2024, stating that for cases arising from or related to credit facilities, a relevant notice must be submitted to the registry of the court where the case is filed. This ensures that the case proceeds before a competent judge.
The judgment addresses whether the decision of the Director of the Land Registry to transfer the property in the name of a trapped buyer and release the mortgage is consistent with the Constitution.
The EU's new AI Act establishes a set of comprehensive rules for the regulation of AI, aiming to safeguard fundamental rights and ensure ethical AI use within Europe and beyond.
On 10 July 2024, the Parliamentary Committee on Legal Affairs, Justice, and Public Order convened to discuss significant legislative proposals aimed at amending the Constitution of the Republic of Cyprus.
A recent judicial ruling declared unconstitutional the provisions contained in the articles 44IH - 44KB of the Transfer and Mortgage of Real Estate Law of 1965 (9/1965). The abovementioned articles regulate the process of issuing title deeds to “Enclaved” buyers through elimination or discharge of previous encumbrances, such as a mortgage.
On 24 May 2024, the Council of the European Union (the EU) formally adopted the Corporate Sustainability Due Diligence Directive (the Directive) as part of the EU Green Deal. This Directive represents a significant advancement in human rights and environmental protection, aiming to promote sustainable and responsible corporate behaviour across global value chains. While some EU Member States have already adopted similar laws, the Directive seeks to standardise these regulations, ensuring a level playing field for companies operating within the EU.
FIFA has released its first-ever International Player Transfer Guide, aimed at providing stakeholders with a comprehensive understanding of the player transfer process. This initiative forms part of FIFA's ongoing commitment to reforming the transfer system, one of the strategic objectives for the 2023-2027 cycle.
Cyprus legislation incorporates the sanctions regime promulgated by the United Nations and the European Union through the Law on the Implementation of Provisions of Resolutions or Decisions of the Security Council of the United Nations Organisation (Sanctions) and the Decisions and Regulations of the Council of the European Union (Restrictive Measures) of 2016.
The new Aviation Emissions Amending Directive (2023) will introduce new rules and reporting requirements on the Emissions Trading System in the Aviation sector, with potential effects on airline operators that provide transport and logistics services from and to Cyprus.
Our partner Nicolas Kyriakides participated in the English-Cypriot Legal Common Law Conference organised by the Bar Council and the Cyprus Bar Association at the Columbia Plaza in Limassol. The panel in which he participated focused on Suspicious Activity Reports (SARs) in civil litigation.
The Competition Protection Committee is initiating a public consultation to establish criteria for prioritising its duties and powers as defined by the 2022 Competition Protection Law. This initiative aims to enhance transparency and effectiveness in the Committee's operations by setting clear guidelines that will direct its actions. The consultation process involves soliciting feedback from the public to ensure that the criteria reflect a balanced consideration of various factors including public interest, market impact, and resource allocation. The Committee's ultimate goal is to foster a competitive market environment that benefits consumers and the economy.
In line with the Polluter Pays principle, local authorities in Cyprus have established the "Pay-As-You-Throw" scheme to enhance waste management practices. This initiative follows the Waste (Municipal Waste Management) Regulations 2022, which were adopted to align with the European Waste Directive (2008/98/EC). These regulations mandate local authorities to develop action plans aimed at significantly improving Cyprus' performance in recycling and waste reuse.
Performance bonds and bank guarantees are vital in ensuring smooth commercial operations. They act as safeguards for parties engaged in business, particularly in industries like construction and contracting. These bonds assure that obligations will be fulfilled, thereby promoting confidence and stability in commercial dealings. Their use is often described as essential for maintaining trust and ensuring reliable transactions in the marketplace. However, in cases where disputes arise, contractors who have provided bank guarantees may seek the assistance of the court to prohibit the demand on the bank guarantee, in an effort to avoid the relevant sums being made available to the owners.
The ELI and UNIDROIT convened a pivotal Dissemination Conference at the Austrian Academy of Sciences in Vienna on February 5 and 6, 2024. The event spotlighted the enduring significance of the ELI-UNIDROIT Model European Rules of Civil Procedure, introduced in 2021, which aim to harmonise procedural practices across European jurisdictions. Featuring discussions from nearly 80 experts, the conference underscored the rules' role in promoting fairness and clarity in judicial proceedings, with a particular emphasis on their ongoing translation into multiple languages for broader accessibility.
The Department of the Registrar of Companies and Intellectual Property (TEEDI) has announced the imposition of financial charges in regard to the Register of Beneficial Owners.
The significance of effective legal protection and access to justice is underscored in the EU Council’s conclusions, vital for upholding and enforcing the rights enshrined in both the Charter and EU legislation.
Nicolas Kyriakides served as one of the representatives for Cyprus, recently took part in the 95th meeting of the European Judicial Network (EJN) held in Brussels. The meeting particularly delved into EU procedures concerning the Small Claims (Regulation (EC) No 861/2007), European Payment Order (EOP/Regulation (EC) No 1896/2006), and European Account Preservation Order (EAPO/Regulation (EU) No 655/2014) Regulations.
We wish the 2023 class of our trainee associates all the best on their forthcoming examinations of the Cyprus Legal Council. We trust that their hard work and eagerness to learn, together with the guidance, practice and experiences they have gained at Harris Kyriakides, are the tools they need to succeed.
Legal scholars and practitioners gathered on 22 April 2024 for an insightful online conference titled "Conservatory Measures (Interim Injunctions) In Cypriot and Greek Law." Hosted by the Aristotle University of Thessaloniki, the event delved into critical aspects of interim injunctions within the legal frameworks of Cyprus and Greece.
The European Union has marked a significant advancement in its quest to digitalise justice systems with the adoption of Regulation (EU) 2023/2844 and Directive (EU) 2023/2843. These measures, ratified on December 13, 2023, aim to streamline electronic communications in civil, commercial, and criminal matters. Key provisions include the establishment of a uniform legal framework for electronic communication, the use of videoconferencing technologies in legal proceedings, and the introduction of electronic signatures and payments. However, challenges such as fragmentation within the EU's legal framework and varying digital development levels across Member States remain, underscoring the need for continued collaboration and adaptation.
The Harris Kyriakides Foundation and the University of Oxford have signed a landmark agreement for the funding of scholarships to law students from Cyprus over a 5-year period.
For the first time in Cyprus, a court decision has been made in a civil case with witness testimony being allowed via videoconferencing, pursuant to Article 36A of the Evidence Law, Chapter 9. This decision highlights the Cypriot courts’ recognition of the need to expedite changes and implement technological advances, in order to remain uniform with other European countries.
On April 21, 2021, the EU Commission announced the adoption of the Corporate Sustainability Reporting Directive (the CSRD) in line with the commitment made under the European Green Deal. The CSRD will amend the existing Non-Financial Reporting Directive (the NFRD) and will substantially increase reporting requirements on the companies falling within its scope in its efforts to expand the sustainability information for users. With the CSRD's enactment in January 2023 and the deadline for national transposition approaching in July 2024, companies subject to the CSRD must prepare to meet their reporting obligations.
Our associate, Munevver Kasif, addressed the attendees of the GBCY International Investment Conference 2024, on the recent challenges faced in the maritime sector in Cyprus explaining how Cyprus remains an international maritime and ship management centre.
We applaud the organisers for putting together this insightful event, and are proud to have been a part of it.
The European Court of Human Rights (ECHR) ruled on April 9, 2024, in the case Verein KlimaSeniorinnen Schweiz and Others v. Switzerland (application no. 53600/20) that the Swiss government's failure to take adequate measures to combat global warming violated the guaranteed rights of its citizens, particularly the right to respect for private and family life (Article 8 of the European Convention on Human Rights).
On April 4th, 2024, a bill was submitted to the Cyprus Parliament aiming to relief thousands of borrowers and guarantors whose assets are encumbered by MEMOs.
The Cyprus Commission for the Protection of Competition (the Commission) has launched a public consultation on the draft bill titled "The Protection of Competition (Amendment) Law of 2024". The consultation will run from April 4, 2024, to May 2, 2024. The aim of the consultation is to invite interested parties to submit comments, observations, and suggestions on a draft bill, which will amend the Protection of Competition Law No. 13(I)/2022.
In response to the need for heightened oversight of financial transactions involving entities associated with Russia, a new regulation, Article 5r, has been enacted. Effective as of May 1, 2024, this regulation imposes reporting obligations on legal entities, organizations, and bodies within the European Union (EU) whose ownership structures have connections to Russia.
As part of its ongoing efforts to strengthen sanctions against Russia and prevent the circumvention of export bans, the EU has introduced legal provisions, such as the 'no re-export to Russia' clause, effective as of 20 March 2024.
In light of increased complaints regarding unsolicited SMS and email advertising messages, the Cyprus Commissioner for Personal Data Protection (the Commissioner) affirms the legal requirements for businesses engaging in direct marketing communication.
Cyprus is a signatory to and has ratified the Convention Abolishing the Requirement of Legalization for Foreign Public Documents (the Hague Convention of 5 October 1961). Under this Convention, legal public documents issued by the Government of Cyprus require an "Apostille" seal to be recognised as legal in foreign countries. The Apostille seal eliminates the need for further legalisation and has proven to be instrumental for the purpose of allowing Cyprus companies to participate efficiently in international transactions.
Our partner, Nicolas Kyriakides, participated in the round table discussion, "Business leaders discuss the course of the economy and the future of entrepreneurship” at the 14th Nicosia Economic Congress. The panellists delved into the challenges foreseen in the coming years, the major issues concerning businesses across all sectors, and how the government can contribute to their development.
With the amendment of the Law relating to the Establishment and Operation of a Single Agency for the Out-of-Court Settlement of Financial Disputes, the powers of the Financial Ombudsman for the out-of-court settlement of disputes are extended.
The Fall 2023 Issue of the Cyprus Review is now available. Our Partner Nicolas Kyriakides wrote a book review on Nicholas Mouttotos’ book "The impact of Europeanization in Cyprus Contract Law and the Spill-Over to matters of Civil Procedure: More pieces on the Mosaic?"
Our partner and the co-director of the Procedural Law Unit, Dr Nicolas Kyriakides, was a speaker at the SCAN2 project final conference, hosted by the DIgitalisation and aCCEss to justice (DIKE) research group at Vrije Universiteit Brussel (VUB). The conference provided an opportunity to explore pertinent subjects related to small claims procedures, consumer online dispute resolution, and other relevant topics. Nicolas Kyriakides specifically addressed the European small claims procedure and the future of EU-wide procedural instruments.
In circumstances where a monetary arbitral award is issued against a Cyprus company, the issue arises as to whether the arbitral award would need to be recognised and enforced before the Cyprus Courts prior to the presentation of a petition for liquidation of the judgment debtor.
Harris Kyriakides is pleased to sponsor and participate in the 14th Nicosia Economic Congress for the third consecutive year, taking place on Tuesday, 9 April 2024. For the 14th year in a row, the Nicosia Economic Congress is being organised to outline the prevailing state of the Cyprus economy, critical government policies that will shape the economic field in upcoming years, and the most advantageous opportunities for Cypriot businesses, as well as the best ways to address them.
Discover your career possibilities with Harris Kyriakides - We invite you to join us at Cyprus' most prominent career fairs, where our team will be present to discuss how your skills and aspirations align with our dynamic organisation.
Let's connect, explore, and unlock your professional potential together.
Each year, this day serves as a powerful reminder of the progress made towards gender equality whilst also highlighting the work that still needs to be done.
The Department of Registrar of Companies in Cyprus has recently issued a practice direction, providing detailed information on the entries that Cyprus entities need to make for complying with the final database solution that accommodates the Cyprus Register of Beneficial Owners (the Register). This guidance comes in the form of a manual and provides information aiming to assist the user in filing the relevant beneficial owner information onto the final solution system that has been developed to facilitate the collection of data for the Register.
We're thrilled to share that Harris Kyriakides is collaborating for the eleventh consecutive year with the University of Oxford and The Careers Service at the University of Oxford.
In the complex interplay of politics and power, lobbying stands as a critical, yet often misunderstood, mechanism shaping legislation and reform across the globe. From the halls of the European Union, where financial lobbyists have influenced policies following major crises, to the pioneering transparency efforts in Cyprus with entities like Zenox Public Affairs, lobbying serves as a powerful tool for legislative transformation and civic education.
On 8 February 2024, the European Commission adopted a revised Market Definition Notice, reflecting new market realities and developments in the Commission’s case practice and EU case law.
The President of the Republic of Cyprus, announced on 21 February 2024, the decision of the Council of Ministers to abolish the annual levy of Euro 350, which was payable by all companies registered in Cyprus to the Registrar of Companies.
In an effort to protect the interests of purchasers of immovable property, the amended Sale of Land (Specific Performance) Law (132(I)/2023) (the Law) came into force on 12 December 2023. Essentially, the Law simplifies the procedure for specific performance, ensuring that the upon fulfilling their contractual obligations, the property will be transferred to the purchaser.
Following the strategic update by the European Insurance and Occupational Pensions Authority (EIOPA) regarding the Supervisory Convergence Plan for 2024, it is important to reflect on the impact of the Insurance Distribution Directive (IDD).
Harris Kyriakides offers a comprehensive set of solutions for Anti-Money Laundering (AML) compliance, ensuring a seamless journey through the ever-changing regulatory landscape. Our team of legal and compliance experts provides practical AML Compliance advice on audits, manuals, policies, training, and more. With a proactive, personalised approach, our team tailors our compliance service to your unique business needs, minimising risk and maximising profits whether within or outside the EU.
In a significant move towards enhancing digital operational resilience in the European Union’s financial sector, the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA), also known as the three European Supervisory Authorities (ESAs), have jointly published the first set of final draft technical standards under the Digital Operational Resilience Act (DORA). On 27 December 2022, DORA was published in the Official Journal of the European Union and entered into force on 16 January 2023 and it will apply from 17 January 2025. DORA outlines obligations to be met by financial services firms in the EU to bolster their cyber risk management and operational resilience.
Further to the recent turbulence which arose as a result of the lapse of the deadline for the submission of details of the beneficial owners of companies with the Cyprus Register of Beneficial Owners (the Cyprus UBO Register), the Cyprus Registrar of Companies has issued guidance pursuant to which it provides a final extension of the deadline for the submission of the details of the beneficial owners to the final solution of the electronic Cyprus UBO Register and it decides the repayment of the fines imposed due to the late filings.
On 20 December 2023, the House of Representatives passed a pivotal legislative amendment, Law Number 167(I) of 2023, bringing significant changes to the legal framework governing the Motor Vehicles' Third Party Liability Insurance Laws of 2000-2021.
FIFA has issued the CAS & Football Annual Report 2023, a detailed overview of the CAS appeals against FIFA decisions as well as of other important issues related to CAS for the period between 1 January 2023 and 31 December 2023.
On 21 December 2023, the European Insurance and Occupational Pensions Authority (EIOPA), in a significant update to its strategic plan, unveiled its Supervisory Convergence Plan for 2024, marking a pivotal step toward fostering a cohesive supervisory culture across the European Union (EU). The initial news item regarding the initiative can be explored here.
European Union lawmakers approved new voluntary standards for companies issuing green bonds, opening up new opportunities for issuers and investors to tackle greenwashing.
In response to the evolving challenges of money laundering and the financing of terrorism, the Council of the European Union and the European Parliament announced a significant milestone on 17 January 2024, shaping the future of the European Union's Anti-Money Laundering (AML) framework.
Cyprus Parliament modifies the Transfer and Mortgage of Property Law Ν. 9/1965 in order to suspend the foreclosure process in cases where mortgagors apply to the Mortgage to Rent scheme.
In a long-anticipated move aimed at attracting and retaining highly skilled employees of Companies of Foreign Interests, Cyprus amends the Civil Registry Law 141(I)/2002.
Each year, on the same significant date, we observe Data Protection Day, commemorating the anniversary of the opening for signature of Convention 108, a pivotal global agreement on data protection.
The European Union has implemented its 12th package of financial sanctions against the Russian Federation, effective immediately as of 18 December 2023. This latest set of measures significantly impacts businesses with ties to Russia and includes amendments to existing regulations (EU) 833/2014 and (EU) 269/2014 through Regulations (EU) 2023/2878 and (EU) 2023/2875.
Distributed ledger technology has propelled crypto-assets into a central position within financial markets. These digital representations of value hold immense potential benefits for various market participants, particularly retail crypto-asset holders. The streamlined capital-raising processes and enhanced competition associated with crypto-assets could revolutionise financing, especially for small and medium-sized enterprises (SMEs). The innovative aspects extend to faster and more efficient cross-border payments when crypto-assets are used as a means of payment.
In a globalised marketplace, Cyprus businesses aiming to expand operations across borders require a comprehensive approach to safeguard Cyprus trademarks and intellectual property rights in multiple jurisdictions. Simply put, the protection offered to intellectual property within Cyprus' national borders may prove inadequate for safeguarding a Cyprus business's brand integrity and intellectual assets in its operations outside Cyprus. Therefore, it is crucial for Cyprus businesses to extend their Cyprus trademarks and intellectual property protection into multiple jurisdictions where they currently operate or plan to operate in the future.
The implementation of eJustice represents a monumental shift in Cyprus's civil justice system, moving away from conventional paper-based procedures towards a modern online platform.
In a global effort to enhance transparency and combat money laundering and terrorist financing, jurisdictions around the world are implementing measures to identify and record beneficial ownership of entities.
On the 13th of December 2023, after months of intense negotiations between the European Commission (EC), European Parliament (EP) and EU governments (Council) on sweeping reforms to EU rules on anti-money laundering and countering the financing of terrorism (AML/CFT) reached a provisional agreement on creating a new European authority for countering money laundering and financing of terrorism (AMLA). The centrepiece of the anti-money laundering package, which aims to protect EU citizens and the EU's financial system against money laundering and terrorist financing.
In a welcome and much anticipated interpretation of Cyprus law, the Cyprus Administrative Court has clarified that in proceedings before the Tender Review Authority (the TRA) where the remedies sought include the grant of an order for rendering ineffective a signed contract between the contracting authority and a successful tenderer, such successful tenderer has the right to participate and be heard in the course of the TRA proceedings.
The Cyprus Bar Association has just published the December 2023 Issue of Nomiko Vima. In this issue, our partner Nicolas Kyriakides and Georgia Onoufriou talk about the law regulating lobbying in Cyprus which will enter into force in early 2024 and compare lobbying regulations in the US, the UK, the EU, Germany, France, Greece, and Cyprus.
The present news item deals with the European Directive’s objectives, its intended functions, its status within Cyprus Law and whether the Directive has been incorporated into the national legal framework.
FIFA Circular No. 1867 signifies significant amendments aimed at bolstering the enforcement of settlement agreements in financial disputes. These changes primarily seek to empower the FIFA Disciplinary Committee in effectively upholding these agreements, ensuring enhanced compliance and swift resolution.
The landscape of public decision-making processes is undergoing a seismic shift with the initiation of the Lobbyists Register by the Independent Authority Against Corruption. This pivotal step, effective from Monday, November 27, marked a significant leap towards fostering transparency and curbing corrupt practices within the corridors of power.
A warm welcome to the students from Oxford University, who joined our remote winter micro-internship scheme. At Harris Kyriakides, interns have the opportunity to collaborate, share knowledge and participate in projects designed to help them reach their full potential.
