Insider Business Pressure on Chinese buying property in Cyprus

Pressure on Chinese buying property in Cyprus

Wealthy Chinese face a myriad of new tax rules as Beijing ratchets up the pressure on tax evaders and on sheltering of assets. This puts pressure on Chinese buying property in Cyprus as well.

Bloomberg recently reported that Chinese investors are choosing specific methods and ways to avoid tax evasion, and that in the last few days the country’s state media has been constantly referring to new rules aiming to combat this trend. Specifically, with the implementation of the Common Reporting Standard which focuses on the exchange of information between China and Authorities of third countries for tax identification purposes, it appeared that a significant number of Chinese are tax evaders. As a result, the Chinese government has launched a “hunt” to collect attributable amounts by tax evaders.

The CRS is a system for exchanging information between tax authorities, for example if a Chinese citizen opens a bank account in Cyprus then the Cypriot authorities are obliged to inform the Chinese Authorities and vice versa. Cyprus and China began exchanging information through the CRS since last year.

Bloomberg also reported that a referenced person in the CRS is any legal entity or a natural person who resides in a state that applies the CRS. However, certain assets such as real estate are excluded from this standard. On the other hand, INSIDER was informed that at the behest of the Organization for Economic Co-operation and Development, it is up to banks to ask for additional information from third-country nationals and to then forward this to relevant tax authorities.

Bloomberg also referred to Cyprus saying that Chinese nationals have taken advantage of the citizenship by investment programme the Mediterranean island has on offer, and have possibly undermined the CRS.

According to a recent study by the Ministry of Finance on the citizenship by investment programme, it is mainly Russians and Chinese who obtained Cypriot citizens by investing primarily in real estate.

Based on the same study, Limassol is the top choice for f Russians who buy apartments in high-rises, while the Chinese choose Paphos to invest in houses.

Read more:

 

https://in-cyprus.com/mainly-russians-and-chinese-obtain-cypriot-citizenship/

 

Top Stories

Headmaster Lambon: The English School still a leader in education (PHOTOS)

The English School has always been an innovator with a reputation as a leader in education but the coronavirus pandemic has proved it is...

Cypriots fed up with rising corruption, insufficient measures to combat it-poll

Cypriots are fed up with rising corruption on the island and consider as insufficient measures announced by the government aiming to combat the bleak...

Parked car with driver inside falls in sea waters after brake was not pulled (PHOTOS)

A car parked by the sea in Peyia area and whose driver forgot to pull its brake early on Sunday ended up falling in...

EU’s Reynders: Cyprus can no longer sell passports through citizenship schemes

Cyprus can no longer sell passports through citizenship schemes, EU Commissioner for Justice Didier Reynders told Sunday’s Phileleftheros in an exclusive interview. And it should...

Swiss voters to decide ban on facial coverings

Swiss voters are deciding on a far-right proposal to ban facial coverings as they take to the polls on Sunday in a binding referendum...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...