Patrikios Legal

Patrikios Legal

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News and developments

Press Releases

Appointed delegate by the icc!

We are pleased to announce that our Executive Chairman Stavros Pavlou, FCIArb, Bsc (Econ), Barrister,

01 August 2024

Press Releases

Empowering women in business & beyond

Our Senior Associate Ioanna Samara at the Women in Business and Beyond Conference on Saturday 13 July 2024 – Carob Mill Restaurants Ltd.

01 August 2024

Questionnair

Legislation 1. What domestic legislation enables economic, financial and trade sanctions to be implemented in your jurisdiction?

12 April 2024

Press Releases

Sanctions overview: a practical approach

Patrikios Pavlou & Associates LLC, is proud to have had the opportunity to attend the Cyprus Fiduciary Association’s conference where we were fortunate enough to hear from Mr. Stavros Pavlou and Stella Strati as speakers.

21 March 2024

Press Releases

Staff retreat! #60yearspatrikiospavlou

We had the privilege of celebrating our #lawfirm‘s 60 years of success with a special weekend for OUR PEOPLE as a start for this year’s events and celebrations marking this huge milestone.

21 March 2024

Cryptocurrency

Crypto assets service providers mica is around the corner!

On the 4th June 2018 the Republic of Cyprus along with 21 other Member States and Norway agreed to sign a Declaration creating a European Blockchain Partnership for the specific purpose of establishing a European Blockchain Services Infrastructure. The ambition and underlying purpose of this European Blockchain Partnership, was to support the delivery of cross-border digital public services, enhance the security and privacy of this sector and (although not expressly stated) to prevent any potential calamities in the financial-blockchain sector.

07 March 2023

Real Estate & Property

The real estate review 2022

The 11th edition of The Real Estate Law Review provides an invaluable overview of how key markets across the globe operate and how they react to major world events.

04 April 2022

Banking and Finance

Lending & taking security in cyprus

A Q&A guide to lending and taking security in Cyprus. The Q&A gives a high level overview of the lending market, forms of security over assets, special purpose vehicles in secured lending, quasi-security, guarantees, and loan agreements. It covers creation and registration requirements for security interests; problem assets over which security is difficult to grant; risk areas for lenders; structuring the priority of debt; debt trading and transfer mechanisms; agent and trust concepts; enforcement of security interests and borrower insolvency; cross-border issues on loans; taxes; and proposals for reform.

04 April 2022

Tax & private client

Chambers global guide to corporate tax – cyprus 2022

The Corporate Tax 2022 guide covers 46 jurisdictions. The guide provides the latest legal information on types of business entities, special incentives, consolidated tax grouping, individual and corporate tax rates, withholding taxes, tax treaties, transfer pricing, and more.

04 April 2022

Tax & private client

The inward investment and international taxation review

A useful guide to the tax rules in the jurisdictions where clients conduct their businesses. Each chapter aims to provide topical and current insights from leading experts on the tax issues and opportunities in their respective jurisdictions. While specific tax advice is always essential, it is also necessary to have a broad understanding of the nature of the potential issues and advantages.

04 April 2022

Litigation & Dispute Resolution

The complex commercial litigation law review

“Litigation requires an incredible amount of preparation, research and skill.. The purpose of The Complex Commercial Litigation Law Review is to provide an understanding of the different approaches various jurisdictions take to important cross-border issues.

04 April 2022

Corporate and Commercial

The era of environmentally & socially conscious entities: esg in cyprus

Today’s world calls for businesses which are not merely entities serving an economic purpose, but conscious beings whose decisions shape the world we live in. The 2021 26th United Nations Climate Change Conference, COP26, gathered together world leaders and delegates who were tasked with, inter alia, producing solutions to reverse climate change. Launched as a movement initiative in the United States, ESG, which stands for Environmental, Social, and Governance (“ESG”) was a focal point of COP26 aiming to provide direction for the corporate world in establishing ESG guidelines.

04 April 2022

Finance

Project finance 2022 – cyprus – lexgtdt

Types of collateral What types of collateral and security interests are available? A wide range of types of collateral and security are available under Cyprus law. Collateral and security arrangements can be given over movable or immovable property. Such types include, among others, security over immovable property whose main type is a mortgage, pledges over shares or share certificates, bank account pledges, fixed and floating charges over any assets belonging to a person, and security assignments. Collateral perfecting How is a security interest in each type of collateral perfected and how is its priority established? Are any fees, taxes or other charges payable to perfect a security interest and, if so, are there lawful techniques to minimise them? May a corporate entity, in the capacity of agent or trustee, hold collateral on behalf of the project lenders as the secured party? Is it necessary for the security agent and trustee to hold any licences to hold or enforce such security? A security agreement creating a charge is registrable with the Cyprus Registrar of Companies (ROC) against the Cypriot company chargor, pursuant to section 90 of the Cyprus Companies Law, Cap. 113 (the Companies Law) to be valid against such company’s liquidator or any creditor thereof. It must be registered within 21 calendar days (if executed in Cyprus) or within 21 days after the date on which the same could have been received in Cyprus (if executed abroad). The ROC has as a rule of practice allowed the registration of charges created abroad to take place within 42 days from their execution. Furthermore, section 99 of the Companies Law provides that a security agreement must be entered into the register of charges or mortgages of the company, accordingly. A mortgage must be registered with the land registry department of the district where the land is located to be valid. The mortgagee should also be registered with the land registry for the purposes of accepting a mortgage. If a mortgage is given by a Cypriot company, it must also be filed with the ROC for registration and be entered into the company’s register of mortgages. The Companies Law specifically exempts from registration pledges of shares in Cypriot companies given by Cypriot company pledgors. Nevertheless, a pledge over shares in a Cypriot company must be perfected in accordance with the provisions of the Cyprus Contract Law, Cap. 149. The formalities to be fulfilled include the following: the pledge must be evidenced by a written contract, signed by the pledgor and the pledgee in the presence of two witnesses; notice of the pledge must be given by the pledgee to the company whose shares are being pledged; a memorandum of pledge must be entered into the register of members of the company whose shares are being pledged; and the company secretary must issue and deliver to the pledgee a certificate confirming that a memorandum of pledge has been entered in the register of members in favour of the pledgee. Cypriot Stamp Duty Law subjects to ad valorem stamp duty all documents (including contracts) concerning property situated in Cyprus or concerning matters to be executed or take place in Cyprus, subject to certain exceptions, irrespective of where the same are signed. For contracts valued between €5.001 and €170,000, the current rate of stamp duty is €1.50 for each €1,000 or part thereof; for contracts valued over €170,000, the current rate of stamp duty is €2 for every €1,000 or part thereof, with a ceiling of €20,000. This maximum amount of stamp duty is payable on any document or on any transaction that has several documents; in a transaction having several documents, the parties may designate the main document, which will be subject to the full stamp duty; the other transaction documents may be stamped as secondary documents, in the amount of €2 each, provided they are dated the same day as, or very close to, the main transaction document. Paying the stamp duty late will result in penalties, which vary according to the period that elapsed between the date the stamp duty arose and the date of submitting the documents for stamping. To determine whether a document is subject to stamp duty in Cyprus, the documents can be submitted to the Stamp Duty Commissioner for a ruling. The Stamp Duty Law also provides that any document drafted outside Cyprus and that is subject to stamp duty pursuant to the provisions of the Stamp Duty Law will not be considered as being drafted or having effect in Cyprus until the applicable stamp duty is paid. However, any document that was signed abroad and is subject to stamp duty in Cyprus will be considered as having being signed in Cyprus on the date on which it was received in Cyprus, and in such a case the document may be stamped within 30 days from its receipt in Cyprus. Therefore, if a document that attracts stamp duty under Cyprus Law is signed and kept abroad, the stamp duty will not need to be paid until the same is brought into Cyprus. Not paying the stamp duty is a regulatory penal offence, which does not render a document void but merely requires in the future that the applicable stamp duty plus a penalty be paid; further, in the case of court proceedings, the court will not recognise the document as evidence unless it is stamped. Therefore, even if the document is not stamped because of executing it outside Cyprus and keeping it there, if proceedings need to be issued in Cyprus it will need to be stamped to be recognised. The registration of a charge with the ROC is subject to the payment of a nominal fee, while the fees for registration of a mortgage on immovable property are calculated on the secured amount and constitute 1 per cent thereof. In Cyprus, it is possible for a security trustee or agent to be used for the purposes of enforcing security. In such cases, the relevant security is granted to the security trustee or agent in favour of all or some of the lenders. The underlying documents would usually specify the powers of such security trustee or agent. Where a security trustee is involved, the relevant security agreement is registered with the ROC as a charge over the assets of the Cypriot company (chargor) in favour of such security trustee or agent. No licences are required for the purposes of holding or enforcing security. Assuring absence of liens How can a creditor assure itself as to the absence of liens with priority to the creditor’s lien? In relation to charges against a Cypriot company an electronic search can be performed through the webpage of the ROC, which will indicate whether any charges or mortgages have been registered against such company. An application can also be made to the ROC for the purposes of obtaining a certificate of freedom of charges or a statement of registered or deleted charges. With regard to immovable property, a possibility of a search through the land registry department with which the immovable property is registered exists; however, legitimate interest should be evidenced for the purposes of carrying out such a search. Moreover, pursuant to the Companies Law, it is possible to carry out an inspection of the internal registers of a Cypriot company (namely, the registers of charges, mortgages and members), usually kept at the registered office, for the purposes of ensuring absence of liens. Enforcing collateral rights Outside the context of a bankruptcy proceeding, what steps should a project lender take to enforce its rights as a secured party over the collateral? Out-of-court enforcement is possible on some occasions. Assets may be seized with out-of-court pledge enforcement, where the company is obliged to deliver the pledged assets to the pledgor in the event of default, as prescribed by the terms of the relevant security document. An alternative process, whereby assets of a company may be seized out-of-court, is when a receiver is appointed in a company under a contractual obligation to seize assets and then resign once these assets have been sold for the benefit of the security holder. Following receivership, a company may continue its business operations. A judicial sale is not necessary and there are no requirements for a public auction following enforcement of security. A public or private sale is permissible provided that this is included in the security documentation. Project lenders may participate as buyers and they may even appropriate the secured property (subject to the terms of the agreement). The consideration of such sales may be in foreign currency. Enforcing collateral rights following bankruptcy How does a bankruptcy proceeding in respect of the project company affect the ability of a project lender to enforce its rights as a secured party over the collateral? Are there any preference periods, clawback rights or other preferential creditors’ rights with respect to the collateral? What entities are excluded from bankruptcy proceedings and what legislation applies to them? What processes other than court proceedings are available to seize the assets of the project company in an enforcement? Certain transactions can be declared void due to fraudulent preference if entered within six months before the commencement of the winding-up. Any floating charges created within 12 months of the commencement of the winding-up may be considered invalid. For a charge or security to be valid against the liquidator of a Cypriot company it must be duly registered with the ROC. Therefore, a project lender will be able to enforce its rights if the security has been properly registered or perfected. Where there is a fixed charge, the net proceeds from the sale of the secured assets will primarily be used for the settlement of amounts secured thereby. Preferential creditors will not have any right or priority with respect to the proceeds from the sale of secured assets that will be used for the settlement of the amounts secured by the charge, but they will nevertheless have a right of priority with respect to any balance thereto. If there is a surplus from the sale of such secured assets subject to the charge, the surplus becomes part of the general pool of assets and is distributed as set out below. If, however, there is a shortfall, namely the proceeds from the sale are not sufficient to cover the secured amount, then the secured creditor concerned will be deemed to be an unsecured creditor only with respect to such shortfall and will thus rank after the costs of the winding-up, preferential debts and any floating charge holders (ie, pari passu with all the other unsecured creditors). The preferential debts are as follows: the costs and expenses of the winding-up; and the following preferential debts: rates and taxes, including all local rates and all government taxes, due from the company at the relevant date, and having become due and payable within 12 months immediately before that date; in the case of assessed taxes, not exceeding in the whole one year’s assessment; any salary owed to an employee and any sum withheld by the employer from the employee’s salary for the payment of any obligations of the employee or otherwise that the employer has not paid; and any other sum or benefit of the employee that arises as a result of an agreement or employment relationship, including any sum owed to a recognised union that arises from the employment relationship between the employer and the employee or otherwise that the employer has not paid; every amount of compensation that the company is obliged to pay to an employee, on account of bodily harm suffered by him or her as a result of an accident caused by his or her employment and during his or her employment. An employee of a private company who is a shareholder thereof is exempted, unless the company is voluntarily wound up or wound up for reconstruction or merger purposes; and every amount due to the employee, excluding an employee of a private company who is a shareholder thereof, concerning the leave that such employee is entitled to from his or her employment in the company for an employment period of only one year. The above shall rank equally among themselves and be paid in full unless the assets are insufficient to meet them, in which case they shall abate in equal proportions; and so far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge. If any amounts remain available, they will be used to cover any amount secured by floating charges and finally the unsecured creditors. Any transaction made by a company (including payments, deliveries of goods, mortgages and conveyancing, as well as executions or other acts relating to property) made or done by or against a company within six months before the commencement of its winding-up may be considered to be a fraudulent preference against its creditors and be rendered void. On the question of fraudulent preference, the court will look into the intentions behind the transaction. The onus is on those who claim to avoid the transaction (whether creditors or liquidator) to establish that the actual intention was to make a preference among creditors. Floating charges are valid up to the extent of any cash paid to the company at the time of the creation of the charge. In any case where a company is being wound up, a floating charge on the undertaking or the property of the company created within 12 months of the commencement of the winding-up shall be invalid, unless it is proven that the charge was made while the company was solvent. Under the laws of Cyprus, there is no exclusion of any entity, corporate or personal, from insolvency proceedings, other than the Central Bank of Cyprus, which is constitutionally established. Assets may be seized with out-of-court pledge enforcement. An alternative process whereby assets of a company may be seized out-of-court is when a receiver is appointed in a company under a contractual obligation. Foreign exchange and withholding tax issues Restrictions, controls, fees and taxes What are the restrictions, controls, fees, taxes or other charges on foreign currency exchange? There are currently no capital restrictions in Cyprus. As with other EU countries, travellers to Cyprus must declare cash sums greater than €10,000 upon arrival. Investment returns What are the restrictions, controls, fees and taxes on remittances of investment returns (dividends and capital) or payments of principal, interest or premiums on loans or bonds to parties in other jurisdictions? There are no restrictions on payment of dividends or interest to parties in other jurisdictions. However, distribution of dividends of a Cypriot company should be made only out of realised profits. Cyprus does not apply any withholding tax on dividends or interest paid to non-residents. A 10 per cent withholding tax is only applied on royalties earned on rights used within Cyprus. Also, in relation to dividend, interest and royalty payments in entities incorporated in other EU member states, the provisions of the relevant European directives apply. Foreign earnings Must project companies repatriate foreign earnings? If so, must they be converted to local currency and what further restrictions exist over their use? There are no restrictions in relation to the repatriation of foreign earnings. May project companies establish and maintain foreign currency accounts in other jurisdictions and locally? There are no restrictions on maintaining foreign currency accounts in Cyprus or operating through offshore accounts based in other jurisdictions, provided that the relevant anti-money laundering requirements and know-your-client procedures set out by the Central Bank of Cyprus are fulfilled. Foreign investment issues Investment restrictions What restrictions, fees and taxes exist on foreign investment in or ownership of a project and related companies? Do the restrictions also apply to foreign investors or creditors in the event of foreclosure on the project and related companies? Are there any bilateral investment treaties with key nation states or other international treaties that may afford relief from such restrictions? Would such activities require registration with any government authority? Generally, there are no restrictions on foreign ownership of the shares of a Cypriot company. On the contrary, non-Cypriot residents shareholders (or non-domiciled) enjoy certain tax exemptions. In relation to property investment, there are no restrictions on Cypriot and EU nationals. However, nationals of non-EU countries must first seek the approval of the Council of Ministers to register real estate in their names. A company whose majority of directors and shareholders is comprised of EU nationals is not considered to be a foreign company for the purposes of owning immovable property in Cyprus. Cyprus has entered into bilateral investment treaties with more than 27 countries, which offer protection for investor rights. Insurance restrictions What restrictions, fees and taxes exist on insurance policies over project assets provided or guaranteed by foreign insurance companies? May such policies be payable to foreign secured creditors? There are no restrictions, controls, fees or taxes for foreign insurance companies operating in Cyprus as long as they have obtained proper licensing from the Insurance Companies Control Service, the local regulator. EU member state companies must comply with the general good requirements that are issued by the local regulator to freely offer services in other member states. Such policies may be payable to foreign secured creditors, provided that such creditors are insured by the insurance company. Worker restrictions What restrictions exist on bringing in foreign workers, technicians or executives to work on a project? As per EU law, there is no restriction on the freedom of movement of individuals to Cyprus from all EU and EEA member states. There are no restrictions on third country nationals, however, the appropriate work permits or business visas will need to be obtained by the project company. In addition, in accordance with the EU-UK withdrawal agreement certain rights of UK citizens who had been resident in Cyprus are safeguarded. Equipment restrictions What restrictions exist on the importation of project equipment? There are no special restrictions, controls, fees or taxes on importing any equipment used by construction contractors other than customs fees and import taxes that would be incurred from importing goods. Any goods imported from EU and EEA countries are imported within the EU customs union and no taxes or customs fees apply. All machinery and equipment imported into the EU must comply with minimum EU certifications and guidelines for health and safety. Nationalisation laws What laws exist regarding the nationalisation or expropriation of project companies and assets? Are any forms of investment specially protected (from nationalisation or expropriation)? Cyprus is a full EU member and therefore nationalisation, expropriation, transfer and currency restrictions are regulated under EU law and EU policy. Furthermore, article 23 of the Constitution of Cyprus safeguards the right to acquire, own, possess, enjoy or dispose of any movable or immovable property. No deprivation or restriction or limitation is allowed, except for restrictions or limitations that are absolutely necessary in the interest of public safety, public health or public morals, town and country planning, or the development and utilisation of any property to the promotion of the public benefit, or the protection of the rights of others, and only if imposed by law. Just compensation must be paid for any such restrictions or limitations that materially decrease the economic value of such property. Such compensation, if not agreed, is determined by the courts. In certain cases, nationalisations of financial institutions such as the Cyprus Central Cooperative Bank have been pursued by the government as a form of state intervention to assist with stability and liquidity. Fiscal treatment of foreign investment Incentives What tax incentives or other incentives are provided preferentially to foreign investors or creditors? What taxes apply to foreign investments, loans, mortgages or other security documents, either for the purposes of effectiveness or registration? All Cypriot tax residents are taxed on their worldwide income. Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus. The applicable corporate tax rate is 12.5 per cent. For non-domiciled individuals residing in Cyprus or for non-Cypriot tax residents, there is a range of tax benefits. Namely, there is no withholding tax on dividends, and no tax on interest income or gains arising from disposal of investments (including shares and securities). The Special Defence Contribution tax is not applicable to non-domiciled residents or non-tax residents. Moreover, a foreign individual relocating to Cyprus and taking employment there enjoys a 50 per cent tax exemption on the emoluments arising out of employment exercised in Cyprus. The exemption applies for a period of 10 years beginning from the first year of employment, provided that the employment income exceeds €100,000 per year. Also, a 20 per cent exemption applies if the emoluments are lower than €100,000 per year; however, this exemption is only available until 2020. In relation to project financing, a 5 per cent withholding tax on gross income derived from within Cyprus (by non-residents without a Cypriot permanent establishment) relating to the extraction, exploration or use of the continental shelf, subsoil or natural resources, as well as the installation and exploitation of pipelines and other installations on the ground, seabed and on the surface of the sea is levied. Government authorities Relevant authorities What are the relevant government agencies or departments with authority over projects in the typical project sectors? What is the nature and extent of their authority? What is the history of state ownership in these sectors? Depending on the project, there are several government agencies that might exercise authority or supervise operations. For example, in matters relating to the exploration, prospection and exploration of hydrocarbons, the Hydrocarbon Service of the Ministry of Energy, Commerce, Industry and Tourism will be licensing the participating entities. Any construction project should be licensed by the Town Planning Service and possibly by the local authority that may request environmental impact assessments. Tourism sector projects will require licensing by the Cyprus Tourism Organisation (recently reorganised into the Deputy Ministry of Tourism), while specialised large-scale projects like the integrated casino resort currently under construction will be regulated by the National Betting Authority (in matters relating to its casino operations). Construction projects will also need to comply with the Department of Labour Inspection guidelines for health and safety requirements. Certain typical project infrastructure sectors, such as electricity are dominated by the state-owned Electricity Authority of Cyprus (EAC), which owns both the powers plants and the supply network. The Cyprus Energy Regulatory Authority currently aims to license additional electricity suppliers under the Regulation of the Electricity Market Laws. To provide an example, EAC was set up by the British colonial government of Cyprus, and following the establishment of the Republic of Cyprus, it has the status of a semi-state-owned government entity by special legislation and the majority of its share capital is owned by the state. Most utilities follow this model, such as the Cyprus Telecommunications Authority. Under EU regulation, these entities now provide access to the free market to new entities that are privately owned to create competition. Regulation of natural resources Titles Who has title to natural resources? What rights may private parties acquire to these resources and what obligations does the holder have? May foreign parties acquire such rights? In relation to natural resources, specific legislation exists for each type thereof. For example, in relation to mining, which historically has been a major industry in Cyprus, the Mining Service of Cyprus will need to license any exploration and exploitation of minerals as per the Mines and Quarries Law Cap. 270 (as amended). A more recent addition, due to the recent offshore hydrocarbon findings, is the Hydrocarbon (Prospection, Exploration and Exploitation) Laws of 2007 to 2015. The provisions of the EU Directive on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons have been incorporated into Cypriot law. Typically, such exploitation and exploration agreements will grant licences to entities to exploit natural resources and share revenues with the Republic of Cyprus. Depending on the project or industry, legislation requires a number of conditions to be met prior to commencing operations. For example, the Town and Country Planning Law 90/72 (as amended) and the more recently enacted Estimation of Repercussions on the Environment for Specific Construction Work Law, require the issue of certain licences relating to town planning. Construction methods and environmental impact of the project will need to be met. This applies to larger projects that may have an adverse environmental impact (ie, hotel resorts, golf courses, marinas). There are no restrictions on foreign entities applying for such licences. No specially recognised indigenous groups exist in Cyprus that may be affected by the exercise of the above rights. Royalties and taxes What royalties and taxes are payable on the extraction of natural resources, and are they revenue- or profit-based? Hydrocarbon exploration and exploitation activities in Cyprus and its exclusive economic zone are governed by the Hydrocarbon (Prospection, Exploration and Production) Law (4(I)/2007), which transposed into national law Directive 94/22/EC on the conditions for using authorisations for the prospection, exploration and production of hydrocarbons. The Hydrocarbon Law and the Hydrocarbon (Prospection, Exploration and Production) Regulations together set out the licensing framework for prospecting, exploration and extraction activities. Successful applicants for a licence are required to enter into an Exploration and Production Sharing Contract (EPSC), with the Ministry of Energy, Commerce, Industry and Tourism, which is the relevant authority. The model EPSC includes a tax clause requiring the contractor to comply with the applicable tax laws and regulations of Cyprus and the EU but there is no specific taxation regime in relation to oil and gas companies operating in Cyprus. Export restrictions What restrictions, fees or taxes exist on the export of natural resources? A 5 per cent withholding tax on gross income derived from within Cyprus (by non-residents without a Cyprus permanent establishment) relating to the extraction, exploration or use of the continental shelf, subsoil or natural resources, as well as the installation and exploitation of pipelines and other installations on the ground, seabed and on the surface of the sea is levied. Legal issues of general application Government permission What government approvals are required for typical project finance transactions? What fees and other charges apply? Depending on the project, there are various government departments that might exercise authority or supervise operations. In relation to the exploration, prospection and exploration of hydrocarbons, the Hydrocarbon Service of the Ministry of Energy, Commerce, Industry and Tourism will be responsible for licensing. Construction projects are licensed by the Town Planning Service and sometimes by the local authority who may request environmental impact assessments. The Cyprus Tourism Organisation is involved with tourist industry projects while the National Betting Authority acted as the licensing authority in relation to matters relating to the casino operations of the integrated casino resort. Registration of financing Must any of the financing or project documents be registered or filed with any government authority or otherwise comply with legal formalities to be valid or enforceable? There are no formal registration requirements with any governmental authority, except those that pertain to the issuing of government licences relating to the operations of the project (ie, environmental, health and safety). Finance documents might be subject to stamp duty. Security documents may also need to be registered with the ROC, as already explained. Arbitration awards How are international arbitration contractual provisions and awards recognised by local courts? Is the jurisdiction a member of the ICSID Convention or other prominent dispute resolution conventions? Are any types of disputes not arbitrable? Are any types of disputes subject to automatic domestic arbitration? Cypriot courts do recognise contractual provisions requiring submission of disputes to international arbitration, as well as awards by arbitration bodies. Domestic arbitration is governed by the Arbitration Law, Cap. 4; while international commercial disputes are governed by the International Arbitration in Commercial Matters Law of 1987. All the mandatory provisions contained in the UNICTRAL Model Law were adopted by the local legislation, regulating only international commercial arbitrations. Cyprus is a signatory to the Convention on Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the New York Convention), which has been ratified and implemented in Cyprus. Cyprus is also a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. Matters relating to criminal law, family law or that may have public policy implications are considered to be non-arbitrable. Public policy issues may include foreign commercial contracts that would otherwise be considered illegal under Cyprus law. Also, Cap. 4 provides that when fraud is raised by one of the parties, Cypriot courts have the competence to decide on such matters and to terminate the effects of any arbitration clause included in the agreement of the parties. There are no types of disputes subject to mandatory domestic arbitration proceedings. Law governing agreements Which jurisdiction’s law typically governs project agreements? Which jurisdiction’s law typically governs financing agreements? Which matters are governed by domestic law? This will mostly depend on the jurisdiction of the lender. Usually, international banking institutions prefer for the law of their jurisdiction to govern the relevant financing agreements. There are no specific rules that subject agreements to any particular choice of law. The parties are free to agree upon governing law. Even when a security agreement is governed by a foreign law, mandatory Cyprus law provisions will in any case apply, for example, in relation to the registration of charges or perfection of pledges. Typically, security agreements over assets situated in Cyprus are governed by domestic law. Submission to foreign jurisdiction Is a submission to a foreign jurisdiction and a waiver of immunity effective and enforceable? A foreign party’s submission to the jurisdiction of Cypriot courts, either through a contractual agreement or by the party’s appearance in court proceedings, will be binding and enforceable. Generally, state immunity is recognised and respected by Cypriot courts, provided that such immunity is not consensually waived and that a state is not acting under private or commercial capacity. A judgment obtained as a result of a party’s submission to a foreign jurisdiction will be legally binding and enforceable in Cyprus, provided that the conditions for the recognition and enforcement of judgments are fulfilled. In particular, civil and commercial judgments of EU member states’ courts are enforceable under the Brussels Regulations (EU Regulation 44/2001 in relation to proceedings instituted before 10 January 2015, EU Recast 1215/2012 in relation to proceedings instated on or after 10 January 2015). Civil and commercial judgments of Iceland, Norway and Switzerland will be enforceable pursuant to the Lugano Convention. Foreign judgments from uncontested claims can also be enforceable pursuant to the provisions of Regulation 805/2004. If a bilateral treaty on recognition and enforcement has been concluded between Cyprus and another state, then the procedure of the Law on Foreign Courts Judgments must be followed in seeking recognition and enforcement of a foreign judgment. Foreign judgments issued by courts of a commonwealth country will be enforceable under the Foreign Judgments Law 1935, Cap.10. Environmental, health and safety laws Applicable regulations What laws or regulations apply to typical project sectors? What regulatory bodies administer those laws? There are a number of local regulations and laws that may affect the total cost, operating overheads and by extension the financing and sustainability of certain projects. For example, the Safety and Health at Work Law of 1996 affects any construction works relating to any building constructed in Cyprus. Similar provisions apply for factories and heavy industry installations, as well as any workplace (where minimum safety requirements must be met). Project companies Principal business structures What are the principal business structures of project companies? What are the principal sources of financing available to project companies? The principal business structure usually followed for projects in Cyprus, is that a consortium of contractors, investors, plant and system operators will form a private company to act as a special purpose vehicle that will construct the project, operate it for a fixed number of years and then transfer it back to the sponsoring authority. Financing usually comes from multilateral or bilateral agencies as well as guarantees. In most cases, the sponsoring authority will retain ownership of the land and lease it to the parties for a fixed number of years (this is common with the Ayia Napa and Limassol Marina projects). Public-private partnership legislation Applicable legislation Has PPP-enabling legislation been enacted and, if so, at what level of government and is the legislation industry-specific? Although PPP has been widely in use in Cyprus since 1996 with the development of the first desalination plants in Cyprus, there is no specific PPP-enabling legislation currently in force. The Fiscal Responsibility and Public Finances Framework Law of 2014 (Law 20(I)/2014) was enacted for the purpose of setting minimum public sector standards when procuring PPP projects. For example, it defines what constitutes a significant project (where PPP may be applicable), evaluation principles and other applicable standards and tests that the public sector must conduct when evaluating PPP offers. Despite the relatively recent legislation, major projects such as the airports of Larnaca and Paphos have already been operating under a PPP since 2006, while several government buildings and the Limassol Port cargo and passenger operations are also PPP projects. Given the importance of PPP for the Cypriot economy, the Cyprus National Reform Programme, issued in April 2018 by the Presidency’s Unit for Administrative Reform, mentions that a specific PPP unit will be set up within the Public Works Department, but this has not been completed yet. The directorate general for European programmes, coordination and development has noted that the policy that will govern the implementation of PPPs in Cyprus is currently being prepared and that at this stage the procedures for designing, negotiating and contracting PPPs are performed though ad hoc arrangements with the appropriate departments and authorities. The Law regulating Public Procurement Procedures 73(I)/2006 (as amended) is the principal legislation governing public procurement contracts in Cyprus. It transposes EU Procurement Directives 17/2004 and 18/2004 into Cypriot legislation and provides for the coordination of procedures for the award of public works contracts, public supply contracts, public service contracts and related matters. PPP – limitations Legal limitations What, if any, are the practical and legal limitations on PPP transactions? There is no specific PPP-enabling legislation in force yet other than the fiscal responsibility framework and any limitations may depend on the industry and the appropriate regulators relevant to the project. However, in line with the EU, Cyprus is a free market economy and, therefore, there are practically no legal restrictions in contracting out certain services or utilities to private entities. PPP – transactions Significant transactions What have been the most significant PPP transactions completed to date in your jurisdiction? The Limassol Marina, the Ayia Napa Marina, the Larnaca Marina and the Limassol Port, as well as the operation of the Paphos and Larnaca airports are significant build-operate-transfer examples that have either been completed and are operating or are currently in the construction phase. These projects will be transferred to the ownership of the Republic of Cyprus after a fixed time period. In addition, the discovery of gas fields in the Cyprus exclusive economic zone has initiated the government’s planning for a liquefied natural gas plant that will enable international exports. Aimed at the management and utilisation of the findings, and recent private investments in a major oil terminal by VTTI in the Vasilikos area, despite the economic turmoil caused by covid-19, the government’s goal remains to create a master plan for the area that will involve most hydrocarbon-related infrastructure. In line with the EU’s post-covid-19 recovery strategy for investing in a digital and green transformation, additional projects in green energy and sustainability are expected to be promoted in the near future, and the participation of the private sector should be expected. UPDATE & TRENDS Key developments of the past year In addition to the above, are there any emerging trends or ‘hot topics’ in project finance in your jurisdiction? The covid-19 pandemic affected project finance transactions, as the measures introduced by the Republic of Cyprus to tackle the spread of the virus resulted in the suspension of work throughout a number of industries during several lockdown periods. The relevant governmental authorities issued health and safety guidance for the implementation of specific preventive and protective measures (organisational and technical) for the effective management of the risk of covid-19 infection while working at construction sites. In any case, the discovery of natural gas and potential oil deposits in Cyprus’s exclusive economic zone in the Mediterranean Sea has confirmed substantial natural gas reserves. This has attracted international energy heavyweights, such as Total, Eni, Kogas, Qatar Petroleum and Exxon Mobil, who have obtained licences and are planning infrastructure projects to exploit the findings commercially. These discoveries have initiated government planning for a liquefied natural gas conversion plant, along with neighbouring countries, that will enable international exports. Several marina destinations in Limassol, Ayia Napa and Paphos are currently in the pipeline with a number of them either being completed or constructed while the integrated casino resort is currently developed in Limassol (with the first temporary casino in Limassol and certain satellite casinos open within the past year). We see that PPP is a major driving force in the economy as it has been in use since 1996, with most projects being considered successful. Accordingly, the government seeks to formalise the procedures and legislation concerning PPP, as so far it has been in use ad hoc. Apart from the domestic aspect, a number of international finance projects are structured, negotiated and documented through Cyprus, although the underlying project is located elsewhere. Corporate structures in project financing including Cypriot special purpose vehicles are also being increasingly used by leading airlines to finance or lease commercial aircraft, or both. Coronavirus What emergency legislation, relief programmes and other initiatives specific to your practice area has your state implemented to address the pandemic? Have any existing government programmes, laws or regulations been amended to address these concerns? What best practices are advisable for clients? The government and authorities of Cyprus continue to implement a series of measures, albeit more specific, in the hospitality and retail industry that were affected heavily during the pandemic. Such measures are intended to provide financial relief to entities and businesses whose operations in Cyprus were affected during the pandemic, and to a large extent they have been lauded as successful. In addition, during the past year, the Central Bank of Cyprus by special decree provided the ability to suspend loan payments, whereby qualifying individuals and businesses could easily apply to suspend their loan payments and interest until the end of 2020. Additional measures are in place for qualifying industries that were heavily affected. It is expected that these initiatives will become even more targeted to allow for the hardest-hit industries to recover (ie, transport, tourism and hospitality). For example, a government grant is given to hotels to reopen and welcome local residents ahead of the summer peak season, as visitor numbers remain uncertain for summer 2021. Perhaps the most important initiative is the European Recovery and Resilience Facility, a multi-billion temporary recovery instrument scheme introduced by the EU to help repair the immediate economic and social damage brought about by the coronavirus pandemic and assist with the digital transformation. As Cyprus is one of the smallest economies in the EU, the impact of this package is expected to be significant for the economy. According to media reports, Cyprus has requested €1 billion in grants and €227 million in loans under this scheme. The plan includes measures to modernise the healthcare sector, increase the energy efficiency of buildings, promote sustainable transport and upgrade the digital infrastructure, as well as fostering upskilling and reskilling opportunities. From the tax perspective, deadlines for the payment of income tax, corporate tax and VAT have been delayed to allow businesses and individuals to cope. Similar extensions have been implemented by social security as well as most utilities and government organisations. As these initiatives and schemes are constantly re-evaluated, clients are advised to check regularly for initiatives that may be helpful.

07 December 2021

Litigation & Dispute Resolution

International arbitration 2021 – cyprus – chambers practice guides

 1. General  1.1 Prevalence of Arbitration Arbitration is usually used in Cyprus for construction disputes, shareholder disputes, banking disputes between debtors and co-op institutions, and commercial disputes. Despite the fact that international arbitration has become increasingly popular over the last few years, litigation is clearly the most favoured method of resolving disputes in Cyprus. However, there is a growing trend to resort to arbitration, given the inefficiency of the court system to resolve disputes quickly.

07 December 2021

Litigation & Dispute Resolution

Enforcement of judgments – chambers global guides

The new Enforcement of Judgments guide features 29 jurisdictions. The guide provides the latest legal information on the identification of another party’s asset position, the costs and time involved in the enforcement of domestic and foreign judgments, challenges to enforcement, and the process of enforcing arbitral awards.

07 December 2021

Finance

Alternative investment funds – iclg – 2021

The new edition of ICLG’s Alternative Investment Funds 2021 covers regulatory frameworks, fund structures, investments, reforms and taxation. Angeliki Epaminonda and Angelos Onisiforou contribute the Cyprus Chapter.

07 December 2021

Finance

Will the “black swan” fly over to cyprus?

As widely reported, on 4 October 2021, the Judicial Committee of the Privy Council issued its much anticipated decision in Broad Idea International Limited v. Convoy Collateral [2021] UKPC 24. With its judgement, the Privy Council effectively upheld the Black Swan jurisdiction, which is derived from the BVI judgement in the case Black Swan Investment ISA v Harvest View Ltd (BVIHCV 2009/399) (unreported) 23 March 2010 and is expected to have drastic effects in broadening the traditionally conceived limits of the powers of common law Courts to issue freezing injunctions in aid of international creditors.

23 February 2022

Employment

Being a digital nomad in cyprus

The outspread of the covid-19 pandemic left people worldwide with no other choice but to find ways to adjust to the new normal. While two years ago the concept of being a digital nomad could sound to most of us, more like a concept coming out from a science fiction film, it is not implausible to say that covid-19 has put “flesh on the bones” of this concept. But what does the term “digital nomad” mean?

07 December 2021

Tax & private client

Family offices: current challenges and trends

The outbreak of the COVID-19 pandemic has affected not only public health and the well being of humanity, but also a number of economies, businesses and industries worldwide. Family offices have not remained unaffected; not only by Coronavirus but also by the ever-shifting global economic environment. New trends that have arisen during the COVID era, including remote working and the demand for greater connectivity, as well as novel strategic and operational risks, are forcing family offices to rethink the way they have been traditionally doing business.

10 June 2022

Litigation & Dispute Resolution

The number of arbitrators and a preliminary award in a multi-party arbitration in cyprus

One of the main issues in the constitution of an arbitral tribunal is the number of arbitrators. Most of the times, either the arbitration agreement itself or the default rule of the national laws or the applicable institutional rules provide the number of arbitrators. Nevertheless, the constitution of the arbitral tribunal became one of the greatest challenges in a recent Cypriot arbitration involving multiple parties because the parties had not expressly agreed on the number of arbitrators.

26 July 2022

Press Releases

Leading legal experts in europe, middle east & africa

Our firm’s “first-class services” are therefore delivered by outstanding heads of departments and a highly qualified and talented team of associates and legal consultants. Thank you to our clients and associates for their extraordinary comments. We will continue providing top tier legal services, managing complexity “with out of the box and innovative legal thinking”.

23 April 2021

Press Releases

A top tier law firm by the legal 500! Again!

The Legal 500, EMEA 2021 edition once again recommends our law firm as a TOP TIER firm in Dispute Resolution and Tax and ranks our Banking & Finance, Commercial, Corporate and M&A, and Real Estate and Construction practice areas amongst the best in the Cyprus legal market.

23 April 2021

Press Releases

Highly ranked in chambers & partners global

Our “widely respected team” is once more highly ranked in the Global edition by Chambers & Partners, one of the world’s leading providers of ratings and recommendation of legal firms.

03 March 2021

Litigation/Dispute Resolution

The complex commercial litigation review

Cyprus is a common law jurisdiction country and its justice system is based on the adversarial model. Most of Cypriot law has been modelled after the English Common Law and Equity, the basic principles of which are directly applied by Cyprus courts, under Section 29 of the Courts of Justice Law.

03 February 2021

Finance

Lending & taking security in cyprus: overview

A Q&A guide to lending and taking security in Cyprus. The Q&A gives a high level overview of the lending market, forms of security over assets, special purpose vehicles in secured lending, quasi-security, guarantees, and loan agreements. It covers creation and registration requirements for security interests; problem assets over which security is difficult to grant; risk areas for lenders; structuring the priority of debt; debt trading and transfer mechanisms; agent and trust concepts; enforcement of security interests and borrower insolvency; cross-border issues on loans; taxes; and proposals for reform. https://uk.practicallaw.thomsonreuters.com/w-008-0390?transitionType=Default&contextData=(sc.Default)&firstPage=true

03 February 2021

Finance

Depositary duties in the alternative investment funds realm

One of the key players in the Alternative Investment Fund’s industry sector is the depositary. A depositary is in essence the entity responsible for the safekeeping, cash monitoring and oversight of the AIF’s assets. As the reader may appreciate, this is perhaps the most important service provider of an AIF as it operates as an independent third-party provider specifically appointed to ensure the investor’s protection bearing also the responsibility to verify that the assets of the AIF are invested in accordance with the AIF’s investment policy.

10 June 2022

Tax and Private Client

Lex_gtdt private client

Given the international mobility of wealthy individuals and their families, it is vital that they and their local advisers have a resource to guide them through the often significantly different legal frameworks they may face in other jurisdictions in which they choose to live, do business and invest. Stella Strati and Nikoleta Christofidi contribute the Cyprus chapter in the Private Client guide, which seeks to draw together the main issues of importance to a private client in this situation covering: rules in relation to tax, succession, the holding and management of property and immigration.

07 January 2021

Press Releases

Stavros pavlou registered as a difc practitioner

We are very proud that, following the registration of our firm with the DIFC Courts in Dubai, now our Senior & Managing Partner, Mr Stavros Pavlou, has been registered as a DIFC practitioner, and obtained full Rights of Audience before the DIFC Courts.  From the available records, Mr Pavlou is the first Cypriot lawyer to be registered as a practitioner with this very busy International Commercial Court.We are very proud that, following the registration of our firm with the DIFC Courts in Dubai, now our Senior & Managing Partner, Mr Stavros Pavlou, has been registered as a DIFC practitioner, and obtained full Rights of Audience before the DIFC Courts.  From the available records, Mr Pavlou is the first Cypriot lawyer to be registered as a practitioner with this very busy International Commercial Court.

07 January 2021

Press Releases

Our lawyers have been appointed in committees of the cyprus bar association

With professional skills to provide top quality legal services and a range of backgrounds and interests, eight lawyers of our team have been selected among many candidates and appointed in various committees of the Cyprus Bar Association and the Limassol Bar Association.With professional skills to provide top quality legal services and a range of backgrounds and interests, eight lawyers of our team have been selected among many candidates and appointed in various committees of the Cyprus Bar Association and the Limassol Bar Association.

07 January 2021

Press Releases

Katerina philippidou and theodoros symeonides have been promoted to partners

Reflecting our firm’s commitment to investing in the future and the depth of our team’s talent, Patrikios Pavlou & Associates LLC promoted Katerina Philippidou and Theodoros Symeonides to Partners, with effect from 1 January 2021.Reflecting our firm’s commitment to investing in the future and the depth of our team’s talent, Patrikios Pavlou & Associates LLC promoted Katerina Philippidou and Theodoros Symeonides to Partners, with effect from 1 January 2021.

07 January 2021

Litigation and Dispute resolution

Chambers global guide to international arbitration 2020

Chambers & Partners' International Arbitration 2020 practice guide features 47 jurisdictions. Stavros Pavlou, Eleana Christofi, Theodoros Symeonides, and Athina Patsalidou provide expert legal commentary on tribunals, preliminary and interim relief, collection and submission of evidence, confidentiality, types of remedies, class actions, and grounds for appeal and enforcement in Cyprus. Click below to read the Cyprus chapter.

20 October 2020

Litigation and Dispute resolution

Chambers global guide to the enforcement of judgments 2020

The new edition of Chambers’ Global Practice Guide to the Enforcement of Judgments discusses identifying assets, domestic judgments, foreign judgments and arbitral awards in 24 jurisdictions. Eleana Christofi and Theodoros Symeonides contribute the Cyprus chapter and provide expert legal commentary on the key issues and latest developments in the enforcement landscape in Cyprus.

20 October 2020

Tax and Private Client

All about nexus: link your ip asset to cyprus

The Cyprus IP regime gives considerable benefits to IP companies wishing to transfer their offices and personnel in Cyprus. Apart from such tax benefits, other advantages also exist rendering Cyprus an attractive jurisdiction for the establishment of fully-fledged offices. In light of this, Stella Strati provides an overview of the new Cyprus IP regime and the Nexus approach.

10 September 2020

Finance

Lexology gtdt project finance 2021

The new Project Finance edition in the Getting the Deal Through series provides a comparative guide to the most important issues related to project finance regulation across jurisdictions worldwide.

27 August 2020

Finance

Covid-19: legal reflections on virtual closings

There is no doubt that Covid-19 represents a new challenge in all sectors of the economy, let alone the legal world. In light of this, the issue of distant or virtual closings in corporate finance transactions is revisited by Elena Georgiou, who provides practical guidelines as to how to structure the closing of a deal around the “virtual” table.

02 July 2020

Litigation and Dispute Resolution

Sponsored crisis management focus: a view from cyprus – carrying on in the face of the covid-19 crisis

The legal profession has entered into an unprecedented challenging period where old habits and norms have to be questioned. In Cyprus, the system of administration of justice is yet to embrace modern reforms and law firms need to adapt and map out a strategy to survive. In light of this, Stavros Pavlou and Stella Strati provide a practical guide to the golden rules of crisis management, outlining the steps to carry on in the face of the Covid-19 crisis in Cyprus. Click to read the article, published by Legal Business.

04 June 2020

Dispute resolution

Chilidescu v. Gheorghiu: exercising jurisdiction over foreign defendants

The aim of this article is to present that jurisdiction of Cyprus Courts cannot be established and Interim Orders cannot be issued against foreign defendants when the basis of the claim is not really connected with Cyprus and there isn’t a sufficient jurisdictional ground in relation to the Cypriot defendants. In doing so, it outlines, briefly, the gateways for exercising jurisdiction over foreign defendants as prescribed by Order 6 of the Civil Procedure Rules and the provisions of the Regulation (EU) 1215/2012 on jurisdiction in civil and commercial matters (Recast Brussels Regulation). It concludes with an analysis of the above-mentioned case.

24 May 2020

Press Releases

Cyprus and the “new normal”, reasons to invest

As the world is seeking ways to achieve the new normal in their daily lives and business activities, Cyprus is also confidently restarting its economy as the country has been praised as one of the countries to successfully manage the COVID-19 epidemic.

10 June 2020

Press Releases

Podcast ‘alternative dispute resolution: the road to the future’

Our Senior & Managing Partner, Stavros Pavlou, FCIArb gave a podcast interview to LegalMatters, and provided a clear and structured opinion on the steps that Cyprus should follow with regards to Dispute Resolution. He analysed the reasons why he believes that the current Court system of administration of justice in Cyprus is at a dead-end, and that the only immediately available escape route is to embrace Alternative Dispute Resolution and implement a new Arbitration Law.

12 June 2020

Press Releases

Transforming general meetings: covid-19 and other viruses

Cyprus companies are faced with the challenge of finding the new normal in a changing climate, along with the need to facilitate the running of their business. The introduction of strict measures imposed on human social conduct all over the world due to the Covid-19 outbreak, including lockdowns, restrictions on travel, public gatherings and social interactions, are serious obstacles for companies that need to uphold their obligations with regards to general meetings.

29 April 2020

Press Releases

Leading legal experts in europe, middle east & africa

Our “strategic” Senior and Managing Partner, Stavros Pavlou, is a Leading Lawyer in the Dispute Resolution and Tax areas, recommended for being “a chess master who maps a strategy several steps ahead” and for finding a way to cut through complexity. He is also highly recommended as a primary contact in Corporate, Commercial and M&A, Banking and Finance and Real Estate & Construction.

29 April 2020

Press Releases

A multi-top tier law firm for the legal 500 once more

We are very proud that The Legal 500, EMEA 2020 edition once again recommends our law firm as a TOP TIER firm in Dispute Resolution and Tax and ranks our Banking & Finance, Commercial, Corporate and M&A, and Real Estate and Construction practice areas amongst the best in the Cyprus legal market.

29 April 2020

Tax & Private Client

Potential implications of the quarantining to tax residency

Containment of the spread of the COVID-19 pandemic has prudently become a top priority for governments around the world. For this reason, quarantines, lockdowns, self-isolation measures and travel restrictions have been widely and strictly imposed on billions of people. Amidst this new state of affairs, it would be worth considering the potential implications that quarantining could have on an individual’s taxable residency status.

31 March 2020

Corporate and Commercial

Legal implications of the covid-19 epidemic on contractual obligations under cyprus law

The recent outbreak of COVID-19 epidemic is currently affecting Cyprus, Europe and is becoming an emergency in most other regions of the globe. Naturally the primary focus of any business will be on ensuring the health and wellbeing of their staff. Containment measures, including lockdowns, closures of public services, disruption in travel due to restrictions and cancellations of global events are having unprecedented impact on businesses and the economy affecting global supply chains.

31 March 2020

Corporate and Commercial

The validity of electronic signatures under cyprus law – covid19

t is widely expected that the COVID-19 (widely referred to as the coronavirus) epidemic will cause unprecedented disruption to the global economy and inevitably eventually reshape the way we conduct business. It has become evident that whilst the disruption in certain industries is widespread and chaotic, in other industries the effects can be mitigated through the use of technology.

31 March 2020

Finance

Regulatory update alert aifs and ucits: new depositary safekeeping rules

The Alternative Investment Fund Managers Directive (“AIFMD”) has been widely regarded by European regulators and industry players alike, as a very powerful and proficient tool, responsible for the establishment of a coherent and integrated legislative framework amongst Member States in the European Union.

31 March 2020

Litigation & Dispute Resolution

Top tier in dispute resolution

We are thrilled that Chambers & Partners Global, one of the world’s leading legal directories, recommends our Firm as a Top Tier firm in Dispute Resolution for its capability of “acting on complex, high-value international and Cypriot disputes involving construction companies, financial institutions and private clients” and its “strength covering debt recovery, international arbitration and fraud claims”.

06 March 2020

Tax & Private Client

The inward investment & international taxation review

Cyprus has a very advantageous environment for inward investment. Different incentives exist, able to encourage non-residents to set up a business in, or invest through, Cyprus. In a nutshell, no restrictions on foreign share ownership exist, there are no withholding taxes on dividends or interest, the sale of shares and other titles is exempt from tax, the corporate tax rate is one of the lowest in the European Union (EU), while non-Cyprus tax residents (or non-domiciled) enjoy a number of tax exemptions. These, and other characteristics of the Cyprus tax system, shall be further analysed below.

06 March 2020

Press Releases

Cams certificate - milto charalambous

Our Assistant Compliance Officer, Milto Charalambous, has successfully completed the CAMS (Anti-Money Laundering Specialist) certificate. She now has the core competencies and essential knowledge in the Anti-Money Laundering field.

18 February 2020

Press Releases

Angeliki epaminonda has been promoted to partner

Congratulations to Angeliki Epaminonda for her promotion to Partner! Angeliki joined our firm for her legal training in 2009, and she has since proven to be a highly committed individual. She stood out for her professionalism, dedication and integrity, and exceptional legal skills. Angeliki’s promotion strengthens our commitment to diversity, as 6 in 8 partners at Patrikios Pavlou & Associates LLC are women...

26 July 2022

Litigation & Dispute Resolution

The complex commercial litigation review

Our Senior & Managing Partner, Stavros Pavlou, Senior Associates Katerina Philippidou and Andria Antoniou, and Athina Patsalidou, Associate, contribute the exclusive Cyprus chapter in Complex Commercial Litigation Review's 2nd edition, in which expert practitioners from 23 jurisdictions provide their overview on litigation and arbitration of commercial disputes, contract formations and negotiations, fraud, misrepresentations and other claims. Click to read the Cyprus chapter, published by The Law Reviews.

26 July 2022

Finance

Highly regarded lawyers - iflr1000 financial & corporate

We are excited that IFLR 1000, the only international legal directory dedicated to financial and corporate transactional work, has ranked our firm among the top law firms in Cyprus in this field and recommends our law firm as a “strong Financial and Corporate firm with strong cross-border capabilities”.

29 March 2020

Finance

Adit & blockchain professionals

At Patrikios Pavlou & Associates LLC, we continuously invest in our team’s professional expertise to keep track with the latest developments and ever-growing demands. We are also very proud of our team’s persistent success...

28 October 2019

Corporate & Commercial

Events 2019

This month, our team will be attending highly regarded international conferences...

28 October 2019

Corporate & Commercial

Cyprus implements atad

In light of EU Anti-Tax Avoidance Directive (ATAD), the Cyprus House of Representatives on April 5, 2019 voted into law (applicable from January 1, 2019) the partial implementation of legally-anti-abusive measures. These measures include the ‘interest limitation’ rule, the ‘general anti-abuse’ rule, and the ‘controlled foreign companies’ rule. The rest two measures stipulated by the EU ATAD (exit taxes and rules to tackle hybrid mismatches) are expected to be implemented in Cyprus by 2020.

28 October 2019

Corporate & Commercial

Double tax treaty between cyprus and kazakhstan

A DTT between Cyprus and Kazakhstan has been signed and ratified by Cyprus on the 15th of May 2019. The DTT is expected to “enter into force’ as from the 1st of January 2020, provided that the various legal procedures involved are finalized. Kazakhstan currently has the largest and strongest performing economy in Central Asia.

28 October 2019

Corporate & Commercial

Is “substance” the current buzzword?

It seems that one of the latest buzzwords in the field of international tax planning is “substance”. The term “substance” is frequently used to indicate real/physical presence of legal entities in their country of tax residence, as opposed to the use of the so called “shell” or “conduit” companies for obtaining certain tax, or double tax treaty, benefits.

28 October 2019

Finance

Licensed insolvency practitioners

Two of our Senior Associates, Mrs Nasia Papakonstantinou and Mr Christos Ioannou, successfully passed their Insolvency Practitioners examinations and are now officially included in the Cyprus Insolvency Service (ISC).

28 October 2019

Corporate & Commercial

Takeover law: an overview

The primary source of legislation relating to public M&A transactions in the Republic of Cyprus is the Law to Make Provision for Public Takeover Bids for the Acquisition of Securities of Companies and Related Matters, Law 41(I)/2009 (“Takeover Law”).

28 October 2019

Litigation & Dispute Resolution

Litigation and enforcement in cyprus overview

A Q&A guide to dispute resolution law in Cyprus, providing a structured overview of the key practical issues concerning dispute resolution, including court procedures; fees and funding; interim remedies (including attachment orders); disclosure; expert evidence; appeals; class actions; enforcement; cross-border issues; the use of ADR; and any reform proposals.

28 October 2019

Litigation & Dispute Resolution

Arbitration procedures and practice in cyprus overview:

This country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in Cyprus, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim.

28 October 2019

Corporate & Commercial

Top-tier law firm & leading lawyers

Patrikios Pavlou & Associates LLC is led by exceptional heads of departments who possess great knowledge and expertise. Our firm is a Top Tier Firm in 4 practice areas for the Legal 500...

28 October 2019

Corporate & Commercial

M&a opportunities in cyprus post brexit

Cyprus has reclaimed its status as a country with a developed and well-trusted economy, having overcome the challenges of recent years with a gross domestic product growth of 3.9% in 2018. There has been a noticeable rise in foreign investments in the local market, with an upswing in mergers, acquisitions and joint ventures. 

28 October 2019

Corporate & Commercial

Mergers and reorganizations - an overview

Cyprus boasts an attractive merger and reorganisation regime not only locally, but also at an EU level. Mrs Lia Iordanou Theodoulou, our firm's Partner-Head of Corporate Finance, shares an overview of the procedures to carry out a local and a cross-border merger, providing essential legal and tax information.

28 October 2019

Projects, Energy & Natural Resources

Supporting local and international charitable organizations

As one of the leading law firms in Cyprus, we are active promoters and supporters of local economic growth by sponsoring local events, applying environmental-friendly practices, minimizing our ecological impact, and most importantly, by raising money for local charities and non-profit organizations.

28 October 2019

Corporate & Commercial

The 'dark' side of the data room: disclosure dangers in m&a and finance transactions

Given the corporate environment's ever-changing nature and business needs and the importance of data protection at the EU level, the topic of due diligence in M&A and financial transactions warrants examination. The disclosure, transfer and processing of data raises concerns at several stages of the due diligence process during a transaction and undoubtedly makes things more complicated.

28 October 2019

Finance

Project finance 2018

Mrs Stella Strati, Partner-Corporate Finance, and Mr Stylianos Trillides, Senior Associate, contributed the exclusive Cyprus chapter to the 7th edition of the International Comparative Legal Guide to Project Finance 2018.

13 June 2022

Press Releases

Internal lawyers seminar

Our firm organized an exciting retreat weekend for the legal team that aimed in encouraging the lawyers to enforce internal ties, discuss internal matters, develop their skills further and have fun with the colleagues. The retreat weekend took place on the 24th and 25th February 2018 in Elysium Hotel in Paphos.

28 October 2019

Press Releases

A comparison of cyprus and bvi corporate structures in the light of recent global tax reforms

The recent revelations in the Panama and Paradise Papers illustrated the need for companies to make a shift towards more responsible fiscal behaviour and tax responsibilities. International guidelines such as the OECD guidelines and the 4th EU AML Directive clarify that evasive fiscal practices will be disclosed. This article analyses the implications on some of the most established corporate structure vehicles, British Virgin Islands (BVI) business companies and Cyprus companies, by outlining their key characteristics and evaluating how each jurisdiction is adhering to stricter international compliance standards.

28 October 2019

Press Releases

Cyprus vat on land – updates by the tax department

In November 2017, the Cyprus parliament voted an important amendment to the Cyprus VAT Legislation, which amends the main VAT Law N.95(I)/2000 concerning taxation of building land, in order to align it with the provisions of EU VAT Directive 2006/112/EC. The amendment has entered into force on 2 January 2018.

28 October 2019

Press Releases

Prometheus award for mr stavros pavlou

On Monday 11th December 2017, our Senior and Managing Partner, Mr Stavros Pavlou was awarded the Prometheus prize in Moscow for his invaluable contribution towards the protection of Russian business interests in Cyprus and abroad. 

13 June 2022

Press Releases

Double tax treaty for between cyprus and saudi arabia

The Cyprus Ministry of Finance has announced that Cyprus has entered into a double tax agreement with Saudi Arabia for the avoidance of double taxation (‘DTT’), which aims to prevent tax evasion. 

28 October 2019

Press Releases

Key speakers at the cyprus fiduciary association seminar

Once again, The Cyprus Fiduciary Association (CFA) selected our law firm to present another specialised and highly demanded seminar, the “Advanced Directors’ Workshop”, which took place on 30th November and 1st December 2017 in Nicosia and Limassol respectively.

28 October 2019

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