Europe: Tax

FinanceMalta speaks with Rachel Zarb Cousin, President of the Malta Institute of Taxation, about the main tax schemes and changes currently in play in Malta. Taxation is a moving target, and the rules keep shifting both locally and abroad, with key implications for businesses and professionals operating in the financial services sector.

The European Union has proposed a comprehensive recast of its Directive on Administrative Cooperation (DAC), aiming to consolidate nine existing directives into a single framework while addressing longstanding concerns about reporting burdens.

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

German entrepreneurs and high earners face substantial tax burdens through corporate tax, trade tax, solidarity surcharge, and dividend tax. Relocating from Germany to Cyprus presents a strategic opportunity to optimize tax obligations, but the process involves navigating complex requirements including exit tax calculations, yellow slip procedures, and Cyprus's non-dom regime. Understanding these legal and tax implications is essential for anyone considering this international move in 2026.

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

Vergi kaçakçılığının önlenmesi, suç gelirlerinin aklanmasıyla mücadele edilmesi ve mali şeffaflığın artırılması amacıyla gerçek faydalanıcı bilgilerinin tespit edilmesi ve idareye bildirilmesi önem arz etmektedir. Bu kapsamda Hazine ve Maliye Bakanlığı tarafından hazırlanan 529 Sıra No.lu Vergi Usul Kanunu Genel Tebliği (“Tebliğ”), 13.07.2021 tarihli Resmî Gazete’de yayımlanarak aynı tarihte yürürlüğe girmiştir.

Cyprus has introduced a dedicated statutory regime for cryptocurrency taxation, effective 1 January 2026, that taxes gains from crypto-asset disposals at a flat 8% rate. This article examines how Article 20E of the Income Tax Law applies to both individuals and companies, what transactions trigger the tax, and how mining, staking, and losses are treated under the new framework.

Austrian entrepreneurs and investors relocating to Cyprus face a complex web of exit tax rules, residency requirements, and treaty provisions that can either preserve or eliminate significant tax advantages. Understanding Austria's dwelling-based residence test, the section 27 deemed disposal rules, and the new annual reporting obligations for deferred exit tax is essential before departure, as mistakes made during relocation can trigger immediate tax liabilities or preserve unwanted Austrian tax exposure f

The UK tax authority is proposing sweeping changes to how it taxes individuals for company distributions and capital reductions, modernizing outdated legislation to ensure economically similar payments receive consistent tax treatment. However, these proposals represent a significant departure from long-established rules that underpin the UK's attractiveness as a place to do business and invest, potentially inflicting collateral damage on wider commercial activity and retail investors.

UK executors and beneficiaries dealing with US assets face significant delays in obtaining IRS Transfer Certificates, with waiting times now extending to two or three years. This comprehensive FAQ addresses the critical questions surrounding Form 706-NA applications, US estate tax requirements, and the practical challenges of administering estates containing US shares and investments when the deceased was not a US citizen.

Malta is consolidating its four existing tax programmes into a unified Individual Tax Programme framework, effective January 2027. The new rules introduce significantly higher annual tax thresholds, increased property requirements, and stricter application fees while maintaining the attractive 15% flat tax rate on foreign-sourced income remitted to Malta.

Since October 2014, the rules governing who inherits when someone dies without a Will (the ‘Rules of Intestacy’) have remained largely unchanged.