VAT reduced from 9% to 5% for Hotels & Restaurants

We would like to inform you about the amendments to VAT’s Fifth and Twelfth Annex of 2020.

The decree adds the following categories to goods deliveries and services that are subject to a reduced VAT rate of 5% of the Fifth Annex.

1. Accommodation in hotels, tourist accommodation, and similar areas, including holiday accommodation. 2. Restaurant and catering services. Restaurant and catering services are the services that consist of the delivery of prepared or non-prepared food or beverages or both, for human consumption, accompanied by adequate support services that make it possible to consume them immediately. The supply of food or drink, or both, is the main but not the only service of the whole business. Restaurant services cover the provision of such services at the provider's premises and catering services cover the provision of such services outside the provider's premises. Delivery of prepared or non-prepared food or beverages or both, with or without transport, not accompanied by other support services, are not considered restaurant and catering services. 3. Transfer of passengers and their accompanying luggage inside the Republic by urban, intercity and rural taxis as regulated by the current legislation on Traffic Regulation and by tourist, excursion and intercity buses. The Twelfth Annex of the law is differentiated by the deletion of the first three paragraphs. It is noted that the said decree enters into force from 1 July 2020 until 9 January 2021. The decree is attached as it is in Greek.

Travel Advice for Cyprus during COVID-19

Travel advice for the Republic of Cyprus issued by the Ministry of Foreign Affairs

Category A: From 20th June 2020, passengers coming to the Republic of Cyprus from Category A countries are not required to present a laboratory examination certificate, but only to fill out information data and make Solemn Declarations.

Category B: For passengers coming to the Republic of Cyprus from Category B countries the following are required:

  1. For the passenger to have carried out a laboratory examination by a recognized laboratory at least 72 hours prior to his/her departure and have a Certificate showing negative PCR for the COVID-19.
  2. For the passenger to have filled out certain information data as well as to make Solemn Declarations.

In addition, the following categories of passengers:

  1. Cypriot citizens, their alien spouses and under-age children,
  2. Persons residing lawfully in the Republic,
  3. Persons allowed to enter the Republic under the Vienna Convention,
  4. Persons regardless of nationality and
  5. Persons irrespective of nationality,

who can show, following the relevant announcement by the Health Ministry of the Republic of Cyprus, that the authorities of their country (Category B) in which they reside do not provide a service for laboratory testing, would alternatively be afforded the possibility of carrying out the laboratory examination upon their arrival in Cyprus and undertaking the cost of the laboratory testing themselves amounting to 60 euros. In this case and until the announcement of the result, they shall remain in self-isolation at home or in their place of residence.

Category C: For those countries not included in the two Categories A and B flights to and from the Republic of Cyprus will be allowed. Only the following categories of passengers shall be allowed to travel to the Republic of Cyprus:

  1. Cypriot citizens, their alien spouses and under-age children,
  2. Persons residing lawfully in the Republic,
  3. Persons allowed to enter the Republic under the Vienna Convention,
  4. Persons regardless of nationality, who may enter Cyprus following a special permit by the Republic of Cyprus.

If you are travelling to the Republic of Cyprus from a Category C Country or you have stayed/lived or travelled abroad within the past 14 days or you are a passenger on an international flight who has travelled to/from country(ies) in Category C, you are required to remain under compulsory self-isolation for 14 days, according to the instructions and the precautionary and self-protection measures of the Ministry of Health, regardless of whether the result of the COVID-19 laboratory test is positive or negative, either at your residence or in case you do not have a residence in the Republic of Cyprus, at a place that will be indicated to you by the Republic of Cyprus. Υou are required to bear the cost of the COVID-19 laboratory test of 60 euros yourself, as well as accommodation (60 euros daily for single occupancy and 90 euros daily for double occupancy) and transportation costs, for one day or for as long as it is necessary for the results of the laboratory test to be completed.

The electronic platform -

The use of the electronic platform CyprusFlightPass is compulsory for all who wish to visit Cyprus. In order for the passenger to aboard the flight, the presentation of an electronic approval, which is granted through the platform, is required.

The electronic platform CyprusFlightPass also provides the following:

  1. Information Material in relation to the services of the platform and the requirements that must be met to obtain the required approval
  2. Quick Check by the passenger allowing him/her to know whether they satisfy the requirements for travelling to Cyprus
  3. Setting up of a personal account and user profile
  4. Submission of details and uploading the required negative health certificate for the COVID-19
  5. Checking, approval/rejection of the request and sending of the necessary receipt to the passenger via email.

*Information for the Categories:

*** The current situation regarding COVID-19 in Cyprus is subject to change. The above information can be altered at any time by the Government.


Personal income tax returns

Deadline extension for the submission of 2019 personal income tax returns and of payment of tax

Following a Decree published on 5 June 2020, the subsequent deadlines are extended to 30 October 2020:

  • Submission of the 2019 personal income tax returns by (a) employees and pensioners (TD1 –Employee) and (b) self-employed individuals (TD1 – Self-employed) with a turnover that does not exceed €70,000, and the payment of their relevant tax due.

Please note: Obligation for Income Tax Return of (TD1 – Employee) and (TD1 – Self-employed) for 2019 is ONLY applicable if the gross income exceeds €19.500.

The submission of personal income tax returns will be available for electronic submission and the users of TAXISnet will receive the relevant notification through their TAXISnet email address.

*For any questions and/or clarifications please contact us.

Annual Levy 2020 - Registrar of Companies

Companies registered in Cyprus (either dormant or not) are required to pay an Annual Levy by 30 June of each year in the amount of EUR 350.
This deadline had now been extended to 31 December 2020, without the penalty charge of 10% or 30%.

For additional information and how to proceed with the payment please contact us at +357 25 755301 or +357 25 583253.