Latest updates

New regulations on fees and dues for ocean-going commercial ships
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 06 November 2019

The Shipping Deputy Ministry recently issued the Merchant Shipping (Fees and Dues with respect to Ocean Going Commercial Cyprus Ships) Regulations, which contain the new fees and charges payable for ocean-going commercial ships registered in Cyprus. In particular, the regulations cover fees concerning the registration of ships and other transactions with the shipping registry (eg, ship certificates and applications for the transfer of ownership or name change of a ship).

Interlocutory injunctions as a post-judgment tool
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 05 November 2019

An interim or interlocutory injunction is a court order effectively ordering a party to carry out or refrain from carrying out an action for a certain period. The general rule is that an injunction remains effective until a final judgment is rendered for the main action or until it is cancelled or modified by a subsequent court injunction. Nonetheless, in certain instances, the Cypriot courts have decided to uphold such injunctions in effect, even after the issuance of a judgment in the main proceedings, to facilitate execution.

Supreme Court upholds first-instance decision on fraudulent transfer of shares
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 15 October 2019

​The Supreme Court recently confirmed a first-instance decision which had annulled a transfer of shares by a debtor to his son. The Supreme Court found that the debtor had acted fraudulently to prevent his creditor from executing a court judgment which had been issued in the creditor's favour. The Supreme Court also found that the issuance of a decree on the sale of shares as a means of enforcing the decision against the debtor was possible.

Tax incentives for start-ups
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 27 September 2019

Innovation and entrepreneurship are heavily sought after by countries looking to ameliorate and modernise their economies. Cyprus is no different in this respect and has prioritised creating a vibrant landscape which addresses the needs of start-ups and their investors. The defining features of the Cypriot system are its IP box regime, notional interest deduction, alternative investment funds and various tax incentives which can be coupled with research and development and innovation.

Brexit's potential impact on shipping in Cyprus
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 21 August 2019

In an effort to minimise disruption to the shipping industry deriving from Brexit, the Shipping Deputy Ministry has undertaken a number of contingency measures. However, the ministry has emphasised that affected parties must also make their own preparations for the United Kingdom's withdrawal from the European Union and that where new authorisations, licences or certificates will be required post-Brexit, each party will be responsible for applying in good time.

Supreme Court rejects appeal against detention order in sexual assault case
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 20 August 2019

The Supreme Court recently rejected an appeal against a detention order issued by the Larnaca Permanent Assize Court in a sexual assault case. The appellant claimed that the evidence placed before the first-instance court had speculated on his guilt and the risk of him absconding. However, the Supreme Court found that the accused's detention until trial was at the discretion of the first-instance court and that, based on the circumstances of the case, the court had exercised this power correctly.

EU directive on administrative cooperation in field of taxation amended
Elias Neocleous & Co LLC
  • Corporate Tax
  • European Union
  • 16 August 2019

The European Union has added further impetus to its objective of providing greater transparency with regard to harmful tax practices through an amendment to EU Directive 2011/16/EU. The directive has introduced the mandatory reporting of cross-border arrangements that are indicative of potentially aggressive tax planning. The relevant disclosure requirements must be followed by intermediaries and, in some instances, taxpayers.

Court examines validity of lawyer's sworn affidavit provided on behalf of clients as part of interim application
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 13 August 2019

The Larnaca District Court recently issued a decision on the validity of a sworn affidavit provided by a lawyer on behalf of his clients in the context of an interim application. Drawing on relevant case law, the court found that lawyers who are or will be witnesses in the relevant case or who represent clients in the relevant case cannot provide sworn affidavits as part of the court proceedings. As a result, the court rejected the claimant's objection for being invalid.

Objectivity versus practicality: adding a third party to an action
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 06 August 2019

A recent Supreme Court decision examined a first-instance court's interpretation of the Civil Procedure Rules and, in particular, who can be added as a third party to a process pending before the courts. The decision established that the courts should look only at the conditions imposed by the Civil Procedure Rules on a prima facie basis and not the merits of the claim.

Interim injunctions: submission of recognisance by lawyer on client's behalf
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 30 July 2019

In a recent first-instance judgment, the Supreme Court of Cyprus examined the meaning of 'recognisance' under the Civil Procedure Law. The judgment indicates that the court has a tendency to follow both a more liberal approach reflecting the needs of modern commercial transactions and a teleological interpretation by focusing on the purpose of legislation instead of the ordinary meaning of the words.

Dismissal of application due to delay in implementing enforcement measures
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 23 July 2019

The Supreme Court recently upheld a lower-court judgment to dismiss an application under the Civil Procedural Rules requesting enforcement measures 18-and-a-half years after an initial judgment had been handed down. However, the appeal was dismissed because the debt judgment's existence had not been established and because there had been such a long delay in applying for the adoption of the enforcement measures.

Who has locus standi to bring derivative actions in Cyprus?
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 16 July 2019

In order for a derivative action to be raised, there must be evidence of fraud and of wrongdoers controlling a company to the extent that the company cannot be made a plaintiff in a lawsuit. Recent case law has confirmed that when shares in a company are held on trust by a nominee shareholder, only they are entitled to raise an action on the company's behalf. In practice, this means that a company's beneficial owner has no locus standi to claim their rights.

Admissibility of digital evidence in court
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 02 July 2019

The rapid development of technology and the use of digital devices have resulted in a significant transition from the creation of physical to digital data. Consequently, the role of digital forensics in fighting crime is becoming ever more important and it is critical for law firms and courts to develop a well-thought-out strategy for such investigations. This article aims to demystify this subject and define high-level criteria that can be used to identify the needs and admissibility of digital evidence in court.

Response to EU Anti-tax Avoidance Directive
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 14 June 2019

The House of Representatives recently approved legislation implementing the EU Anti-tax Avoidance Directive in Cyprus with the aim of improving the resilience of the internal market against cross-border tax avoidance practices. The new legislation has once again demonstrated the government's commitment to supporting international efforts to tackle tax avoidance practices.

New policy on registering vessels in Cyprus Register of Ships
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 12 June 2019

The Deputy Ministry of Shipping recently updated its policy on the eligibility of ships to be registered under the Cyprus flag. The policy stipulates additional requirements beyond those set out in the Merchant Shipping Registration of Ships, Sales and Mortgages Law and should therefore be read in conjunction with the relevant legal provisions.

Court applies international collision regulations and considers subrogation
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 22 May 2019

The admiralty jurisdiction of the Supreme Court recently ruled in a case concerning a marine accident which occurred when the bow of a sailing boat rammed the starboard side of a speedboat. It was highly disputed whether the sailing boat had been simultaneously using open sails and its engine. In reaching its conclusion, the court considered the evidence and the Rules of the Convention on the International Regulations for Preventing Collisions at Sea.

New form introduced for safety management and port facility security requirements
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 01 May 2019

The Deputy Ministry of Shipping recently announced its decision to replace the International Safety Management Code Form and the International Ship and Port Facility Security Code Form with a new consolidated form in an effort to reduce paperwork and avoid the duplication of information. All interested entities are requested to use the new form to declare the particulars of companies or ships under the code and to comply with relevant circulars.

Can a driver be responsible for the death of a passenger with heart problems?
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 30 April 2019

The Supreme Court recently examined the issue of causality arising from a road traffic accident. The first-instance court had found the defendant guilty of causing death by want of precaution or carelessness and of driving a motor vehicle under the influence of fatigue. The Supreme Court rejected the subsequent appeal and confirmed that, despite having taken a simplistic approach, the first-instance court had reached the correct conclusion by applying common sense and experience.

General Healthcare System contributions
  • Healthcare & Life Sciences
  • Cyprus
  • 10 April 2019

As of 1 March 2019, employees, pensioners, state officials and income earners in Cyprus must contribute 1.7% of their income to the General Health System, while self-employed individuals must contribute 2.55% of their income. Private employers must also make General Health System contributions of 1.85% on emoluments made to employees, while the state must make an additional contribution of 1.65% of the incomes of employees, self-employed individuals, pensioners and government officials.

Amendment of Judicial Practice Code
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 19 March 2019

The Judicial Practice Code was recently amended to provide that no judge, whether sitting alone or as a member of a panel of judges of an adjudicating court, can hear a case in which a party is represented by a lawyer who is a family member of the judge or works in the same firm or office as a family member of the judge. The recent media focus in Cyprus on the alleged impartiality of certain judges was the impetus behind the changes.