Lawmakers on Monday sought to further tweak an EU harmonising bill whereby the state would levy 19 per cent VAT on building and development plots.

It concerns the imposition of VAT on land sales for commercial property transactions.

On acceding to the EU in 2004, Cyprus was granted a derogation from the VAT directive, allowing the island to continue exempting the supply of building land until December 31, 2007.

A government bill, submitted last June, exempts farm land, protected areas and forest land from the imposition of VAT.

Now, taking a page out of Dutch law, MPs have modified the definition of ‘building land’ – to be subject to 19 per cent VAT – so that it means undeveloped building land that is ‘clearly intended’ for the construction of one or more stable structures.

Finance ministry official Giorgos Pantelis said that, if the current definition stands, the state does not anticipate revenues from the transposition of the EU directive into domestic law.

There is thus no need for offsetting measures to cushion the effect on consumers, he argued.

Ruling Disy and socialists Edek have jointly tabled a legislative proposal allowing non-payment of capital gains tax (CGT) until the end of 2018, to counterbalance the soon-to-come 19 per cent VAT on land sales.

A prior exemption for payment of CGT had expired on December 31, 2016.

According to Pantelis, consumers have already been afforded tax relief, via the scrapping last year of immovable property tax, as well as a reduction in land transfer fees by 50 per cent.

He also reminded MPs that the legislation should be enforced immediately once enacted, as Cyprus already risks a fine from the European Commission for the delay.

The aim is to enact the law before the summer recess.

For its part, the Institute of Certified Public Accountants suggests that ‘building land’ is defined as that land for which there is in force, on the date of the sale contract, a town planning permit for its development; alternatively, land for which a duly completed application has been submitted for a town planning permit prior to or on the date of the sale contract.

Regarding the tax leasing/letting of immovable property for commercial purposes, the finance ministry official said tenants who rent for companies which have a VAT file and which engage in taxable transactions, will have the right to a VAT discount.

On the question of whether the full 19 per cent VAT would be levied on primary residences, Pantelis said the current definition exempts a great deal of building land from the new tax, and therefore the government sees no reason for a discounted rate on primary residences.

MPs had been considering inserting an amendment into the government bill to exempt from the 19 per cent VAT young couples who buy land in order to build their first home.

Under that proposal they would pay only 5 per cent VAT. This could be done either by paying the full 19 per cent VAT and then getting refunded the 14 per cent from the state, or paying the lower 5 per cent rate.

Currently, consumers do not pay any VAT on purchasing a land plot, but in the event they erect a house on that plot they pay 5 per cent.

By contrast, if they buy a house from a land developer they pay only 5 per cent VAT.

Also on Monday, the House finance committee discussed two bills tabled by the justice ministry and regarding cross-border debt recovery in civil and commercial matters.

Cyprus must adopt Regulation (EU) No 655/2014 of the European Parliament and of the Council of May 15, 2014 establishing a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters.

Under the regulation, a creditor “should be able to obtain a protective measure in the form of a European Account Preservation Order preventing the transfer or withdrawal of funds held by his debtor in a bank account maintained in a Member State if there is a risk that, without such a measure, the subsequent enforcement of his claim against the debtor will be impeded or made substantially more difficult.”

Under the regulation, a cross-border case “should be considered to exist when the court dealing with the application for the Preservation Order is located in one Member State and the bank account concerned by the Order is maintained in another Member State.”

As the bills have been formulated, requests for Preservation Orders would be made to the Central Bank of Cyprus, which will then instruct a local bank to freeze a debtor’s funds.

According to the text of the EU regulation, the debtor should not be informed about the creditor’s application nor be heard prior to the issue of the Order or notified of the Order prior to its implementation, “in order to ensure the surprise effect of the Preservation Order.”

 Sourse: CyprusMail

Moody`s Investors` Service has upgraded Bank of Cyprus Public Company Limited`s (BoC`s) long-term local and foreign currency deposit ratings to Caa1 from Caa2 and its Provisional Senior Unsecured EMTN ratings to (P)Caa1. 

The bank`s Not Prime short-term ratings have been affirmed. The rating action is driven by the upgrade of BoC`s Baseline Credit Assessment (BCA) to caa1 from caa2. The outlook on the long-term deposit ratings remains positive. 

The upgrade of BoC`s ratings reflects the improvement in the bank`s financial fundamentals- mainly profitability, asset quality, capitalization and its funding position. Moody`s expects BoC to remain modestly profitable in 2017, following its return to profitable performance in 2016 after five years of losses. The rating agency also expects further improvement in the bank`s asset quality metrics as ongoing loan work-outs and collateral sales are supported by the strong economic recovery. 

The positive outlook reflects Moody`s expectations of changes over the next 12 to 18 months in the bank`s liability structure, mainly the issuance of debt. 

The positive outlook reflects Moody`s expectations of changes in the bank`s liability structure. An increased cushion to depositors against potential losses, such as through an issuance of EUR500 million of senior debt, would result in one notch uplift in the bank`s deposit ratings. 

Upward pressure could develop on the ratings following further improvements in BoC`s financial performance, mainly a further reduction in the volume of NPLs and/or improvement in the coverage ratio. A change in the bank`s liabilities` waterfall through the issuance of senior or additional subordinated debt may also positively affect its deposit ratings. 

The outlook could stabilize if the bank`s progress with loan restructurings stagnates or if economic growth falters leading to a reversal in the recent improvement to the bank`s asset quality metrics. The outlook may also stabilize if the changes Moody`s expects in the bank`s liability structure do not materialize. 

Although not currently anticipated given the positive outlook, BoC`s ratings may be downgraded if the bank`s financial fundamentals, mainly asset quality, and capital weaken, while at the same time the changes Moody`s expects in the bank`s liability structure do not materialize.

Source: Stockwatch

Relocating can be an anxiety-inducing experience, whether you’re moving down the block or to a new city. But moving to an altogether new country presents a whole different set of hurdles to deal with. Take a deep breath and follow these seven simple tips that will make moving abroad stress-free.

Pack light

Moving is always a great excuse to hold a tag sale or garage sale, but relocating abroad provides even more of an impetus to purge. Chances are you won’t want to take most electric items since voltage is different and running them on a converter long term can burn out the engine. Consider what you can get cheaply in your new location and what you can’t live without. The less you take, the easier your move will be.

Decide how you will move

Are you taking two suitcases or all your worldly possessions? How much you are bringing will determine whether you need to hire an international moving company, if you will simply mail a few boxes or if you can bring it all on the plane. Be sure to weigh all the costs and benefits here -- you may be attached to your dining room set or 12-place china service, but consider what it will cost to move it versus the price of buying it there. Planning in advance is key for a stress-free move.

Stay organized

It may seem obvious to make a moving overseas checklist, but this is crucial. Think about every single thing you need to do and write it down. Not only does this help you stay organized, but it feels great every time you cross something off the list!

The devil is in the details

Moving abroad can entail a lot of paperwork and even vaccinations that need to be completed months in advance. Be sure you check with your new country’s embassy to ensure that all your ducks are in a row. Also don’t forget to take care of everything at home in advance --  taxes, credit cards, bank accounts, your home -- the list goes on and on. But planning and staying organized will make it all go that much smoother.

Pets and kids

Traveling with pets and/or children adds another layer to the process. For pets, look into which vaccinations they’ll need and what the airline requirements are for transporting them. For children, you’ll need to make sure that their vaccinations are up to date and, depending on the age, you may need to look into schools ahead of time.

Have someone you trust at home

Moving abroad is such a big endeavor that it can be difficult to tie up all the loose ends at home before you go. It helps tremendously to have someone you trust at home who is willing to help out with the occasional favor, whether it’s passing on keys to a new tenant or real estate agent, or collecting your mail. It also can’t hurt to make sure they have photocopies of important documents like passports just in case.

Speak to someone who’s done it

This is the single best piece of advice on moving abroad. As soon as you tell people you are moving abroad, chances are friends will start throwing around names of people they know who are either residing in your soon-to-be new home or who have lived there. Get their contact info and get in touch! Not only is it great to have instant friends in a new location, but they can give you priceless insider tips on what you may miss from home and what’s readily available.

Numerous high-rise buildings, comprising commercial and residential properties, are set to dominate the skyline of Limassol; several are already under construction others are in the pipeline.

THE SKYLINE of Limassol, which already boasts the highest commercial building in Cyprus, is set to be dominated by high-rise buildings in the coming years.

 The Oval is currently the tallest commercial building in Cyprus at 16 floors, with 2 underground parking areas. Just a few metres from the sea it is also close to Limassol’s town centre and will soon be joined a number of other high-rise developments, including:

 At 37 floors and 137 metres, the Limassol ‘One’ is set to become the tallest residential seafront tower in Europe. According to reports it will comprise of 84 residences with a starting price of €1,855,000 (excluding VAT) and commercial units and a restaurant on the ground floor. Anticipated delivery date is Q4 2018.

A second development , the ‘Landmark’ will be a mixed-use 30 floor development next to the Limassol zoo comprising 233 apartments, spa, fitness centre, lobby and business centre – and a plaza around which 14 commercial units will be developed.

The 59,000m2 ‘Lanitis Seafront’ project is to be built on the site of the old Lanitis mansion. It will consist of three tower blocks, the highest of which will have 37 floors. It will comprise 297 apartments, 10,000m2 of office space and 1,800m2 of commercial space.  Three swimming pools are planned, as well as green areas and 1,500 parking spaces of which 900 will be open to the public.The project will be carried out in three phases and is expected to be completed in 2023.

Construction of the ‘Limassol Del Mar’ project on 34,000m2 of seafront land at Germasogeia has started. When completed it will provide 168 properties with hotel-style facilities and services, clubhouse, gym, spa, tennis court, indoor and outdoor swimming pools and high-end shopping facilities. The first phase of the project, which includes 81 apartments and 31 commercial units, should be completed in 2017. The second phase of the project, which includes a 27-floor, 87 apartment building is planned for completion in 2020.

The ‘Halcyon Hotel’ on a 22,912m2 beachfront land at Ayia Varvara is expected to be operational in spring 2018. The 5 star hotel complex will consist of 183 rooms, 11 executive suites, 9 apartments and 14 villas.

The ‘iHome’, which is currently being built on 5,942m2 of land opposite the Poseidonia Hotel and the Limassol Sailing Club, will provide 28 properties in two tower blocks reaching 82 metres and 70 metres respectively.

The Four Season Hotel’s 10-floor apartment block that is being constructed next to the hotel will offer a choice of apartments from one-bedroom to a five-bedroom duplex and is expected to be completed shortly.

Planning permission is being sought for a 15-floor tower block and a 16-floor tower block in Germasogeia – and permission is awaited for a twin 25-floor project to replace the Golden Arches Hotel in the Amathunda area.

Meanwhile the Environmental Impact Board is looking at the impact of two buildings of 18 floors and 11 floors for construction on the site of the former Pavemar Hotel.

Sourse: Cyprus Properties News

Most people are currently afraid of the bad state of the real estate market. And it’s true, there have indeed been some problems that have arisen recently. But what’s good for a seller can be good for a buyer, and if you know how to take advantage of this, you can get your home sold more quickly. Let’s have a look at 10 simple ways to help your Cyprus based home sell more quickly!

Audit the agent’s online marketing.
An astounding 92% of people who buy homes look up houses online. Because of this, it is important to have a look at the online marketing strategy of your agent or take care of it yourself.

Set the right price. 
Many people think it’s a good idea to set a high price in the beginning and then to lower it if they don’t manage to sell it. However, this might lead to a delay in selling the house, so think well about it. There is also a matter of image involved in this sense. If people continue to see your property on the market constantly lowering the price, they will assume that it’s not worth what you’re asking for or that there is something wrong with it. It doesn’t matter how far from the truth that is as public image tends to have a strong impact regardless of that. This is why it’s important not to go overboard with pricing in the beginning as you might be hurting the house’s overall image.

Make a video about it. 
Vlogs are extremely popular nowadays, and a video can manage to convey what words and pictures can’t. Simply grab a camera (your phone will do) and walk around the neighborhood. Talk about the home, the neighbors, what you loved and what not. Make sure that whatever your video recording device of choice is, it’s of high quality. The quality of the video is the first thing that people will notice and if you show them a low resolution video of what you’re trying to sell, it’s not going to translate well. High quality video recording options are very affordable today and you should aim to make at least 1080p videos (that’s full HD and will convey a message of quality).

Make it look nice. 
This doesn’t mean to renovate it completely, but a new paint layer and some flowers can change the entire aspect.

Use your neighbours. 
Throw a huge block party before selling the house and let your neighbors spread the word. They might have friends or relatives willing to buy a new home, so why not take advantage of that?

Offer a clean home. 
A potential buyer needs to imagine himself living in that home. If the home is filled with your personal belongings, it will be hard for him to do so, so make sure you let him see a clean and decluttered home.

Use Facebook. 
In case you didn’t know, the huge social network is useful for mostly anything. Look up real estate groups and ask people to share your announcement.

Be flexible. 
You should try to adapt to your prospect buyer’s schedule, since it’s in your best interest. Going a little out of your way can help you a lot.

Offer to leave good things for the future owners as part of the sale! A small gift or something you leave behind can mean a lot, such as stainless steel appliances or some nice decorations.

Take good photos. 
Quality and professional photos can attract many people, so don’t let this opportunity slip away and invest in that if you can truly afford it. Or you could ask a friend who loves photography to help you with that.

Offer cash back as an incentive
A good incentive would be to offer a form of ‘cash back’ to your buyer. First time buyers who generally have little upfront cash would welcome this. Cash back can be used to pay for new furniture, carpets or other items necessary when buying a new house. Most of the popular mortgage providers and lenders allow up to a 5% cash back as part of the transaction.

Sourse: CyprusMail

Cyprus issued on Tuesday a 7-year EMTN bond amounting to 850 million euros, according to a lead managers press release. 

The coupon was set to 2.7% and the yield to 2.8%, the release added. 

Total bids amounted to €3.7 billion. 

The Finance Ministry said in a statement issued on Monday that it intends to utilize this issuance to buyback three EMTN bonds maturing in 2019 and 2020 with a face value of €1.4 billion with a higher yield. 

So far there was no information concerning the amount of bonds to be repurchased. 

 Sourse: Stockwatch

The job vacancy rate in Cyprus was 1.2% in the first quarter of 2017, up from 0.6% recorded in the previous quarter and 1.0% in the same quarter of 2016, according to figures published by Eurostat, the statistical office of the European Union. 

The job vacancy rate in the euro area (EA19) was 1.9% in the first quarter of 2017, up from 1.7% recorded in both the previous quarter and the first quarter of 2016. 

In the EU28, the job vacancy rate was also 1.9% in the first quarter of 2017, up from 1.8% recorded in both the previous quarter and the first quarter of 2016. 

In the euro area, the job vacancy rate in the first quarter of 2017 was 1.5% in industry and construction, and 2.2% in services. In the EU28, the rate was 1.6% in industry and construction, and 2.2% in services. 

The highest job vacancy rates in the first quarter of 2017 were recorded in the Czech Republic (3.1%), Belgium (2.9% in the fourth quarter of 2016), Finland and Sweden (both 2.7%) as well as Germany (2.6%). 

In contrast, the lowest rates were observed in Spain (0.8%), Portugal (0.9%), Bulgaria, Ireland, Greece, Poland and Slovakia (all 1.0%). 

Compared with the same quarter of the previous year the job vacancy rate in the first quarter of 2017 rose in twenty Member States and remained stable in seven. 

The largest increases were registered in Belgium (+0.7 percentage points between the fourth quarter of 2015 and the fourth quarter of 2016), the Czech Republic (+0.6 pp) and Estonia (+0.5 pp).

Sourse: Stockwatch

The Transport Ministry has announced its shortlist of companies which have been chosen to move on to the next phase of the tender for the development of the Larnaca port and marina.

The companies chosen are the “Peninsular and Oriental Steam Navigation Company and Cabo Marina S. de R.L. de C.V” consortium, the “AMPA Ltd & Israel Shipyards Ltd” consortium, and the company “China Communications Construction Company Limited”.

The tender is for the development of the Larnaca marina, port, and the land surrounding the port and marina. The goal of the Transport Ministry is to create a mixed-use development which will combine a modern, functional marina and port with various real estate developments for tourists and locals alike.

Sourse:incyprus

Governor of the Council of Europe Development Bank (CEB) Rolf Wenzel said that there’s a clear consensus by international financial institutions that the benefits of a solution in the Cyprus problem will be much higher than the costs. 

Referring during a press conference in Nicosia, to his participation last month in a meeting on the economic aspects of Cyprus reunification initiated by EBRD that brought together international financial institution such as EBRD, the World Bank, the IMF and the European Commission, he said that the meeting discussed what kind of demands could fall on the international community, on the country and the Government of Cyprus in case of reunification. 

“Obviously, you will have to make a very thorough analysis of the needs in the two communities in the country, leaving of course the Property issue, which is a very delegate and sensitive issue”, he said, clarifying that he was not party of any discussion on this. 

“But leaving that point aside, there was a consensus emerging from that discussion. The immediate costs and benefits, like infrastructure investment were not very high when you look at numbers, but the benefits for tourism, investments coming to the island, I think this is clear of what the international community is looking forward, waiting to come back to Cyprus with investments in Famagusta for example, in the tourism sector…”, he said. 

He also said that is not only CEB but everybody is ready to come and finance projects. He said however that they need to have a better understanding of what is needed, which as he said is a matter of question on what the local communities actually want. 

Wenzel also underlined that the CEB has been and will continue to monitor the ongoing talks on the reunification of the island. 

“I think that if that happens it will be very positive development for the communities of the island. I expressed again to the Government officials and the politicians in Cyprus that we stand ready to support the country in case of reunification and to make reunification really a success”, he stressed. 

CEB will have its annual meeting in Cyprus starting on Friday that will be opened by the President of Cyprus Nicos Anastasiades. 

The Bank will also sign, Saturday, the first disbursement of a loan of 32 million with the University of Cyprus, meant to finance the extension of the University. 

Speaking about the social projects the Bank is financing in Cyprus, Wenzel said the CEB finances projects in Nicosia’s city center, to finance the renovation of some buildings, pavements, rain water drainage systems, as well as in other cities which are center for tourism. 

He also said that he met and will continue to meet with Government officials and is in constant discussions to identify with the locals new projects that we could finance. On Saturday, the bank’s shareholders will visit some of these projects. 

Founded in 1956 by eight countries (Belgium, France, Germany, Greece, Iceland, Italy, Luxembourg and Turkey), the CEB has now 41 member countries. Cyprus joined the CEB in 1962. The Bank finances social projects, which provide, inter alia, affordable housing to low-income families, revitalize urban and rural areas, address the consequences of natural and ecological disasters, support job creation and preservation, and facilitate the integration of migrants and refugees. 

Since Cyprus became a member of the institution, the Bank finances 34 social projects, worth close to €2.5 billion.  

Sourse: Stockwatch

Cyprus’ complete and successful return to the financial markets hinges upon the authorities’ determination to maintain prudent fiscal policy, bank restructuring and structural reforms, the European Stability Mechanism has said. 

Cyprus concluded in March 2016 its three-year financial assistance programme financed by the ESM and the IMF. 

The ESM in its annual report for 2016, issued on Thursday, praised the Cypriot economy’s strong momentum and the improved fiscal performance in 2016, which enabled the country to generate a 3% primary surplus and a balanced fiscal position. 

“Cyprus is bearing the fruit of reforms introduced over recent years. The country needs however to restart the structural reform momentum, consolidate improvements and promote Cyprus’ international competitiveness to attract investments,” the ESM report said, adding “prudent fiscal policies are particularly important now as the economy recovers.” 

The ESM noted that Cyprus returned to the financial markets as its funding cost edged lower, adding that despite junk-rated bonds credit rating agencies’ outlooks were universally positive. 

“Looking forward, Cyprus complete and successful return to the financial markets will hinge largely on its determination to maintain its prudent fiscal policy, bank restructuring and structural reforms,” the ESM said. 

On the banking sector, ESM notes that although that the banks are well capitalised with modest internal capital generation and non-performing loans trending lower, pointing out however that actual restructurings slowed in 2016. 

It furthermore said that gradual improvement in economic performance combined with the recovery of the banking sector will enable the privatisation of the Cooperative Central Bank, Cyprus’ only state-owned financial institution, adding that “despite promising developments, new regulatory requirements pose a challenge to bank’s outlook.” 

According to the ESM, cheap EU financing allowed Cyprus to save €400 million in financing costs, compared with interest rate Cyprus would have paid had it covered its financing needs in the markets.

Sourse: Stockwatch