Cyprus is no longer on Italy’s blacklist of tax havens.
The Ministry of Economy in Italy has issued amendments to the relevant legislation, by which Cyprus has been removed from the country’s ‘blacklist’ of tax havens.
The Ministry has made the appropriate changes to the list of countries considered to have tax systems which favour the avoidance of taxation:the rules concerning the residence of individual taxpayers; the list valid within the tax legislation concerning controlled foreign companies (CFCs); and that regarding the non-deductibility of corporate costs and expenses.
Cyprus has been eliminated from the blacklist of countries with which Italy does not have a sufficient level of tax information exchange.
Due to the fact that Cyprus is a member of the European Union it now has full ordinary fiscal status as far as the Italian tax system is concerned. In particular, with effect from this tax year, any Italian individuals who have attempted to transfer their residence to Cyprus will not have a continued presumed residence in Italy, while there will be no additional tax consequences for those Italian businesses with subsidiaries or associated companies in Cyprus.