The Cyprus House of Representatives has unanimously passed seven laws which were proposed to extend the current tax relief offered for those undertaking loan restructuring until 31 December 2019.
Under the new laws which were passed, for the period up to 31/12/2019, no special defense tax contribution will be imposed in the case of accounting profit and/or deemed interest. Further, the new laws regulate the non-payment of transfer fees or stamp duty costs for loan restructuring purposes that take place until the end of 2019.
Also, until the end of 2019, any benefit, surplus, profit or loss of an individual resulting from the restructuring of a loan shall not be taken into consideration when determining the taxable income of that person.
Importantly, until the end of 2019 no capital gains tax will be imposed in the context of loan restructuring so that the cost of the restructuring process is, in fact, possible for borrowers who wish to restructure their loans.
The new laws also stipulate that if a property is acquired by the lender until the end of 2019 during the restructuring process of a loan any real burden on that property shall be transferred by the borrower to the lender of the specific immovable asset.
Lastly, until 31 December 2019, if an immovable asset is acquired by a lender during the loan restructuring process, any real interest in the specific property shall be borne by the specific property when transferred by the borrower to the lender.
For further information on the new law amendments or if you are considering restructuring your loans and need assistance, please contact us to find out how best we can help you.