Updates

Following the issuance of Circular 2/2025 dated 24 March 2025, the Cyprus Tax Department (“CTD”) has announced an extension of the deadline for the submission of Form T.D.1220, which relates to the exemption from VAT on the leasing and/or rental of immovable property for commercial purposes.

On 22 December 2025, the Cyprus Parliament voted into law the long-awaited tax reform package which aims to reshape and modernize the country's tax system. Here you can find a summary of the key amendments.

We would like to remind you that the deadline for the submission of the reportable information by digital platform operators engaging in “Relevant Activities” under Council Directive (EU) 2021/514 (known as DAC7) for the year 2025 is 31st January 2026.

We would like to inform you of the deadlines for the settlement of taxes due in relation to rental income, dividends and passive interest income.

The euro officially entered into circulation in Bulgaria today, bringing the number of European Union ("EU") Member States using the single European currency to 21. This follows on from the formal decision made in July, which also announced the official conversion rate of 1.95583 Bulgarian lev per 1 euro.

The European Banking Authority ("EBA") has updated its Guidelines on the equivalence of confidentiality and professional secrecy regimes in third countries, reinforcing the EU’s commitment to safeguarding confidential information and enabling effective cross‑border supervisory cooperation.

We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law (SDC) that apply on the 31st of December 2025, and for which there is a reporting deadline on 31st of January 2026.

The European Banking Authority ("EBA"), the European Central Bank ("ECB"), national central banks and national supervisory authorities across the European Economic Area have signed a Memorandum of Understanding ("MoU") to strengthen cooperation and information sharing in support of non-bank payment service providers’ ("PSPs") access to central bank-operated payment systems.

The Council of Ministers of the Republic of Cyprus has issued Regulation Κ.Δ.Π. 364/2025, published in the Official Gazette on 5 December 2025, introducing amendments to the Cyprus VAT Law N. 95(I)/2000 (the VAT Law).

The European Banking Authority ("EBA") today published its final draft amending Regulatory Technical Standards ("RTS") on the types of factors to be considered by national authorities in assessing the appropriateness of real estate risk weights.

The European Banking Authority ("EBA") today released its Autumn 2025 risk assessment Report ("RAR"), confirming that EU/EEA banks remain strong in capital, liquidity, profitability and asset quality.

Remaining uncertainties around trade agreements and the longer-term economic and financial effects of tariffs continue to shape the euro area financial stability landscape, according to the November 2025 Financial Stability Review published today by the European Central Bank ("ECB").

We would like to inform you that the deadline for the payment of the second temporary tax installment for the tax year 2025 is due on 31st of December 2025.

The European Central Bank ("ECB") has just completed a review of its risk control framework for collateralised credit operations to ensure the framework remains protective, consistent and risk-equivalent across asset classes.

The European Banking Authority ("EBA") today launched a consultation on its Guidelines on supervisory independence of competent authorities under the Capital Requirements Directive ("CRD").

The European Banking Authority ("EBA") updated today the aggregated overview on the implementation and transposition of the revised Capital Requirements Directive ("CRD V") and Investment Firms Directive ("IFD") packages.

The European Banking Authority ("EBA") today responded to the European Commission’s Call for Advice on the key components of the new anti-money laundering/countering the financing of terrorism ("AML/CFT") framework.

Corporate finance firms raise capital for businesses, contributing to growth in the UK economy.

On 23 September 2025 the Executive Board of the European Central Bank ("ECB") adopted a Decision on transitional provisions for the application of minimum reserves by the ECB following the introduction of the euro in Bulgaria on 1 January 2026 ("ECB/2025/33").

The EBA's Chairperson will be selected on the basis of merit, skills, knowledge of financial institutions and markets, and of experience relevant to financial supervision and regulation, following an open selection procedure.

We would like to inform you that fake emails with the logo of the Cyprus Tax Department are circulating, which request verification of the recipient’s personal information as well as their bank account details, under the pretext of a tax refund.

The European Banking Authority ("EBA") published today its Work Programme outlining the key priorities and initiatives for 2026.

The European Banking Authority ("EBA") today published its Q2 2025 Risk Dashboard ("RDB"), which discloses aggregated statistical information for the largest EU/EEA credit institutions.

José Manuel Campa, current Chairperson of the European Banking Authority ("EBA"), announced last week to the EBA Board of Supervisors his decision to step down from his role and leave the Authority at the end of January 2026 because of personal, family-related issues.

On 4 September 2025, the Court of Justice of the European Union (CJEU) delivered a decision in case C-726/23 that will resonate across multinational groups.

We would like to kindly remind you that the deadline for submitting VAT refund applications for business expenses incurred in another EU Member State during 2024 is approaching.

The European Central Bank ("ECB") and the People’s Bank of China ("PBC") have decided to extend their bilateral euro-renminbi currency swap arrangement for another three years until 8 October 2028.

We would like to inform you about the defensive measures which have been introduced into the Cyprus tax law regarding the payment of dividends, interest and royalties by a Cyprus Company to associated entities in low-tax jurisdictions (LTJs) and EU blacklisted jurisdictions (BLJs).

The European Banking Authority ("EBA") published an Opinion in response to the observations made by European Parliament in its 2023 Discharge Report.

This newsletter provides a brief overview of the Pillar II legislation for the imposition of a 15% minimum effective tax rate on Multinational Enterprise (ΜΝΕ) groups and large-scale domestic groups with consolidated annual revenues of at least €750 million.