Marios Christodoulou, Author at Karitzis Legal

Thanks in no small part to an influx of foreign investment, in recent years Limassol has emerged as the financial hub of Cyprus. As a corollary of this development, the demand for immovable property in Limassol, both for commercial and residential purposes has skyrocketed. It should therefore come as no surprise that real estate prices have been on an upward trajectory for quite some time.

Boasting a wealth of experience and expertise in the field of immovable property, our Law Firm offers the following legal and ancillary services in relation to any transaction involving the sale, disposition, acquisition, use, exploitation, and development of immovable property in the Republic of Cyprus, either for commercial or private purposes:

Comprehensive due diligence on the parties to the intended transaction as well as the property comprising the subject-matter of the transaction to ensure conformity with applicable legislative and regulatory requirements and for the purpose of identifying any legal risks the Client should be mindful of.
Drafting, Review and Amendment of agreements, including without limitation:
Option Agreements
Reservation Agreements
Sale and Purchase Agreements
Barter Exchange Agreements
Lease Agreements
Partition Agreements
Division Agreements
Construction Agreements
Escrow Services Agreements

To facilitate the swift and uneventful completion of the intended transaction, we also offer a wide range of ancillary services, including:

Liaising with any financial, credit or banking institutions involved in the transaction.
Review of loan / credit facility agreements and of ancillary documentation at the request of the Client’s bank (where the Client is the Purchaser).
Calculation and Payment of Applicable Stamp Duty on behalf of the Client (where the Client is the Purchaser);
Acting as Escrow Agents, on the basis of an Escrow Services Agreement, with a mandate to undertake or perform specific tasks on the Client’s behalf.
Representation of the Client (on the basis of a Power of Attorney) before competent governmental, semi-governmental and other authorities and departments in the Republic of Cyprus. These services include, without limitation:
Deposit of Sale Agreements at the Land Registry for specific performance purposes and payment of applicable land registry deposit fees (where the Client is the Purchaser).
Accepting the transfer and registration of title in immovable property in the name of the Client and procuring the issuance of new title deed in Client’s name and payment of applicable land registry transfer fees (where the Client is the Purchaser) OR submitting all necessary documentation before the Land Registry for the purpose of arranging an appointment for the transfer of the property and attending the closing of the transaction at the Land Registry on behalf of the Client (where the Client is the Vendor).
Application for the Imposition of Reduced V.A.T. Rate on behalf of the Client (where the Client is the Purchaser and if applicable).
Procuring the issuance of all requisite tax and other clearances necessary to give effect to the transfer of immovable property (where the Client is the Vendor).
Transfer of utilities in the Client’s name (where the Client is the Purchaser);
Application for the issuance of a Council of Ministers Permit for the acquisition of immovable property in the Republic of Cyprus (where the Client is the Purchaser if applicable).

Recent developments in the applicable legislative and regulatory framework governing the processing of personal data of natural persons, spearheaded by the entering into force of the Regulation EU/2016/679 (henceforth the “General Data Protection Regulation” or simply “GDPR”), seek to confer upon data subjects a greater degree of control over their personal data whilst at the same time imposing more stringent obligations upon data controllers and data processors when it comes to the processing of personal data. The GDPR is complemented by the provisions of Protection of Natural Persons Against the Processing of Personal Data and the Free Transmission of Such Data Law, L.125(I)/2018 (the “Law”). For the purposes of this article, the GDPR and the Law shall henceforth be jointly referred to as the “Data Protection Legislation”.

Personal information pertaining to employees processed by the employer in the course of the employment relationship is a subject that often leaves employers scratching their heads when trying to reconcile the interests of their business with the rights expressly afforded to employees in their capacity as data subjects under the Data Protection Legislation.

More specifically, in the context of the employment relationship, an employee is expected to provide information which is required by the employer for the performance of the contract of employment, including -among others- the employee’s social insurance number, the employee’s contact details and details of the bank account of the employee to which the employee’s salary will be deposited. The provision of such information by the employee is not especially controversial, provided of course that it is processed by the employer in a manner that is compatible with the Data Protection Legislation. At the same time, however, the realities of the employment relationship may give rise to more difficult questions which merit a cautious approach when balancing the rights of the employer against the rights of the employee.

In this regard, an interesting question arises with regards to the email accounts of employees and former employees and, more specifically, when and under which circumstances can these be accessed by the employer without running the risk of falling afoul of the provisions of the Data Protection Legislation. This question is the subject of Opinion 1/2019 (the “Opinion”) issued by the Commissioner for Personal Data Protection (the “Commissioner”) in its capacity as the competent supervisory authority tasked with monitoring compliance with the provisions of the Data Protection Legislation.The Commissioner’s authority to issue opinions on any matter concerning the processing of personal data can be traced inthe provisions of Article 53(3)(b) of the GDPR.

It is stressed from the outset that the Opinion applies to a number of persons to whom the employer provided an email address strictly for business use in the course of the employment; these persons include (a) former employees, (b) current employees who are absent for an extended period of time and (c) former and current employees who are reasonably suspected of being involved in the commission of offence(s). It is worth noting that the scope of the Opinion also encompasses (a) other electronic means of communication or electronic equipment made available to the employee for use in the course of the employment such as mobile phones and portable handheld devices (tablets) and (b) data deleted by the employee but which remain stored in secure copies or other secure locations to which the employer has access.

The Opinion urges employers to take precautionary measures with a view of limiting the instances necessitating the employer accessing messages contained in the email accounts of employees. In this context, the employer is expected to ensure that outgoing and incoming emails for business use are also accessible by other sources. It is suggested that this may be achieved by storing such emails on an email server which shall only be accessible by an authorised user.

Notwithstanding the implementation of precautionary measures, it is conceivable that the employer may still need to access the email account of an employee or former employee in certain cases. Where it is necessary to access the email account of employees / former employees and to process data stored on such account in order to:

Ensure the seamless operation of the business,
Ensure the protection of the interests, property and managerial rights of the employer,
Facilitate the organization and monitoring of carrying out of a particular task or turnover and in particular monitoring of expenditure,
The investigation of possible offences,

Such processing -the Opinion suggests- may be permissible provided that the following conditions are met:

(a) at least one of the legal bases for processing stipulated in Article 6(1)(b)-(g) of the GDPR applies,

(b) the employer has adopted a written policy with a view of determining clear procedures for accessing email accounts of employees / former employees and for processing of information stored therein (the “Policy”),

(c) the employer has informed employees about the purpose and scope of the Policy upon the commencement of their employment in a concise, easily accessible and legible manner and using precise and plain wording,

(d) the employee / former employee is specifically notified of the employer’s intention to gain access to the email account,

(e) the employer processes any such data having regard to the fundamental principles of processing enunciated in Article 5 of the GDPR and specifically,

(i) the principle of lawfulness, fairness and transparency,

(ii) the principle of purpose limitation,

(iii) the principle of data minimisation,

(iv) the principle of accuracy,

(v) the principle of storage limitation,

(vi) the principle of integrity and confidentiality,

(vii) the principle of accountability

(f) The email message should be read in the presence of the employee / former employee, unless this is not feasible or would require disproportionate effort or where an administrative investigation / disciplinary procedure is underway.

The Policy must -at the very least- include the following information:

(a) Whether the sending of emails for personal reasons from terminals installed in the workplace is permissible and of the penalties associated with such use of the business email account and, where possible, the provision of appropriate mediums to facilitate the completion of personal email correspondence in the employee’s spare time,

(b) the purpose and manner of accessing of the email account by the employer and the information included therein,

(d) any legal recipients,

(e) the legal basis for processing,

(g) if the legal basis cited for processing is the employer’s legitimate interest pursuant to Article 6(1)(g) of the GDPR, the nature of the legitimate interest of the employer or of a third party,

(h) in case that it shall be permissible for the personal data to be communicated to a third party-recipient, the employee / former employee must be notified when the data in question shall be communicated to the third party-recipient for the first time. When the entity intends to process data for a different purpose to the one for which it was originally collected, the employee / former employee must be provided with all material information prior to any such processing taking place, and

(i) departing employees must be informed if and for how long their email account shall remain active and for which purpose.

It is stressed that the notification obligation included in points (a) – (i) above, does not apply where the information in question is already at the employee’s disposal, or where the registration or communication of the data is expressly provided by law, or in cases where the provision of information to the employee / former employee is not feasible or would require a disproportionately onerous effort on the part of the employer.

In an attempt to insulate themselves from liability, some employers require employees to sign data processing consent forms, the rationale being that any processing on the basis of such consent will be considered legitimate. Nevertheless, having regard to the idiosyncratic nature of the employer-employee relationship whereby the employer is acknowledged to be negotiating from a position of strength (hence the presumption of equality of bargaining power usually applicable to most contractual relationships is not applicable in this context), such consent forms signed by an employee in the course of their employment will not be considered as valid consent for the purposes of the Data Protection Legislation.

Source: Opinion 1/2019 issued by the Commissioner for Personal Data Protection available in Greek at: https://www.dataprotection.gov.cy/dataprotection/dataprotection.nsf/all/CBD480CDE52BEF21C225820A004BBEB3/$file/2019-access%20to%20email%20accounts%20by%20the%20employer.pdf?openelement

Introduction

In the aftermath of the Turkish invasion of Cyprus in 1974, the Central Agency of Equal Distribution of Burdens (Establishment, Objects, Responsibilities and Other Related Matters) Law of 1989 (141/1989) (the “Law”) was enacted in acknowledgement of the need to ease the burden suffered by persons who were stripped of their right to occupy and use their properties following the events of 1974.

To this end, the Law established the Central Agency of Equal Distribution of Burdens (the “Central Agency”), a public law legal person supervised by the Minister of Finance on behalf of the State, with a mandate to provide state relief and support -including certain forms of financial assistance- to eligible persons.

For the purposes of the Law, persons eligible to receive such state support are owners of immovable property that is either inaccessible or which is legally or practically impossible to exploit owing to the continued occupation of the norther part of Cyprus by the Turkish armed forces.

Imposition of Levy

The Law was recently amendment by law L.12(I)/2021 and subsequently by law N.172(I)/2022, with the most important change to the applicable legislative framework concerning the imposition of a new levy for the purpose of raising funds in order to facilitate the attainment of the objectives of the Central Agency. Subject to a limited number of exceptions which are expressly referred to in the Law, the new levy is payable in the context of a sale of immovable property in the Republic of Cyprus as well as in the context of a sale of shares in a company which owns (directly or indirectly) immovable property in the Republic of Cyprus which was concluded on or after 22/02/2021.

In particular, a levy at a rate of 0,40% on the sale price of any immovable property (in respect of which a general valuation price has been determined by Department of Lands and Surveys) is payable by the seller at the time of the transfer and registration of title in the immovable property in question.

In the case of sale of shares of a company that is not listed in any recognised Stock Exchange and which, either directly or indirectly, owns immovable property (in respect of which a general valuation price has been determined by Department of Lands and Surveys), the seller of shares must pay, at the time of transfer of the shares, a levy at a rate of 0,40% on the price of the last valuation carried out by the Department of Lands and Surveys on the immovable property in question corresponding to the shares being transferred by virtue of such sale.

Interestingly, pursuant to the provisions of the Law (as amended), the person responsible to collect the levy is the Director of the Tax Department “who issues the relevant confirmation of payment required at the transfer of title in immovable property or at the transfer of shares of a company which owns, directly or indirectly immovable property”. From a practical standpoint, this provision appears to be somewhat at odds with the obligation of the seller (in either case) to pay the levy at the time of the transfer of the property or the shares (as the case may be).

In practice, the levy in question is paid, not at the time the transfer of the property or the shares in the name of the purchaser is completed, but rather, well in advance of the transfer of the property or the shares (as the case may be), for the purposes of issuance by the Tax Department of the necessary tax clearance certificate that is required in order for the transfer of the property or the shares (as the case may be) to be completed.

It must be stressed that the obligation to pay the levy in either of the aforementioned cases, is in addition to any other tax, levy or charge payable by the seller to any competent authority, department, council or body pursuant to the provisions of any other law.

Exceptions

It is worth noting at this juncture that the following transactions are exempt from the obligation to pay the levy:

Where, in the context of a loan restructuring scheme or arrangement, the transfer of immovable property, or the transfer of shares of a company which, either directly or indirectly, owns immovable property, is required, no levy is imposed on the sale price or the valuation price (as the case may be) that is used for the reduction or settlement of non-performing loans.

Furthermore, where, in the context of a company reorganization, the transfer of immovable property, or the transfer of shares of a company which, either directly or indirectly, owns immovable property, is required, no levy is imposed on the sale price or the valuation price (as the case may be).

Finally, in the event that a sale agreement has been deposited and/or lodged at the Department of Lands and Surveys or where an Instrument of Transfer of Shares has been filed at the Department of the Registrar of Companies and Intellectual Property bearing a transfer date, prior to the entering into force of the amending law, L.12(I)/2021 (i.e. 22/02/2021), no levy in respect of the sale price shall be imposed for the purpose of execution of the said document.

Commencement of legal Proceedings in Case of Non-Compliance and Important Information

In accordance with the provisions of the law (as amended), in case of failure or omission by any affected person to pay the levy or any other administrative fines or penalties, the Director of the Tax Department shall commence legal proceedings for the purpose of collecting any due amount as a civil debt owed to the Republic.

An announcement of the Tax Department posted on 21/11/2022 in the official webpage of the Press and Information Office of the Republic of Cyprus states that with regards to transactions taking place between 22/02/2021 and 18/11/2022, the Director of the Tax Department is willing to afford a reasonable timeframe for the settlement of the levy without the imposition of interest or other charges.

At the same time, as from 21/11/2022 the Department of Lands and Surveys declines to give effect to any transfer of immovable property in the event that the payment of the levy continues to be outstanding at the time of transfer.

(in accordance with the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224)

Pursuant to the powers vested in it by virtue of s.69(1) of the Immovable Property (Registration, Tenure and Valuation) Law, Cap. 224 (henceforth the “Law”), the Council of Ministers may, for the purposes of obtaining an up to date and uniform valuation of immovable property situated in any municipality or community, issue a decree ordering the conducting of a general valuation of such immovable property, carried out at such time periods which shall not, in any case, be further apart than three years from the date of the most recent general valuation, with the first three-year period commencing on January 1^st 2018 (being the date of the last general valuation).

Going further, it is worth mentioning that the Council of Ministers reserves the right, to order, at its discretion, the conducting -within the said three-year period- of a general valuation in respect of any specific part of immovable property situated in any municipality or community, notwithstanding whether or not a general valuation was conducted in respect of the immovable property in question.

Importantly, for the purposes of calculating the general valuation of immovable property, the immovable property comprising the subject of calculation is deemed as being vacant.

For the purposes of the Law, a “general valuation” is defined as the valuation of immovable property irrespective of whether or not any valuation or re-valuation was conducted in relation to the said property and irrespective of the date on which such valuation or re-valuation was conducted.

For the sake of clarity however, the general valuation is not equivalent and does not correspond to the “market value” of the immovable property in question. In practice, a general valuation is “general” in that it is carried out en masse, and is calculated by taking into account, not the particular or specific characteristics of each individual immovable property, but rather groups or clusters of real estate with similar natural and legal characteristics.

The update of the general valuation at regular intervals results in the fair and uniform taxation of immovable property and is utilized by authorities such as municipalities, community councils, sewerage boards etc, for the calculation of the fees and levies imposed on real estate. In its press release following the new general valuation of 2021, the Department of Lands and Surveys labelled the general valuation as a “pillar of transparency in the real estate market” in that it offers an indication of the market value and return of immovable property and guidance to prospective sellers and prospective purchasers of real estate, as well as investors in such a significant sector of the economy.

In accordance with the provisions of s.70 of the Law, where the Council of Ministers has ordered the conducting of a general valuation, the Director of the Department of Lands and Surveys (henceforth the “Director”) must publish in the Official Gazette of the Republic (and in such other newspaper as he shall deem necessary) and post a notice, informing the public that a general valuation shall be conducted, such notice containing details pertaining to the region in respect of which the notice is being given, as well as with regards to the date on which the general valuation shall commence, and shall summon all affected registered owners to provide the valuer with such information, or written report including such information concerning the immovable property comprising the subject of the valuation as the valuer may require, and to present for inspection by the valuer any document in their possession or control as the valuer shall determine.

Following the completion of the general valuation the Director shall see to it that a notice in the Official Gazette of the Republic is published and/or transmitted by mass communications media, informing that the catalogues (in printed and/or electronic form) have been submitted to the office of the mayor or the relevant municipality or the office of the municipality of the relevant community as the case may be, and send a notice in writing to the owner informing him of the value of the general valuation of the immovable property in respect of which he is the registered owner.

Any person having an interest in any immovable property to which the notice relates may inspect the abovementioned catalogues at reasonable times and the mayor or mukhtar responsible for safekeeping these catalogues must allow, at reasonable times, any such person to receive any extract therefrom or copies of the same free of charge.

In accordance with the provisions of the Law, a valuation carried out by a valuer is rendered final unless any affected person submits before the Director, an objection against such valuation, within six months from the date of publication of the general valuation in the Official Gazette of the Republic (in which case the Director must examine such objection), or unless the Director applies to the Court asking for the valuation to be revised.

In view of the above, following a relevant order to this end issued by the Council of Ministers, the new general valuation for the year 2021 has been completed by the Department of Lands and Surveys. Prior to the relatively recent amendment to the Law which dictates that general valuations are to be carried out every three years, previous general valuations were carried out much more sporadically, specifically in the years 1920, 1980, 2013 and 2018.

According to the records of the Department of Lands and Surveys, in the context of the new general valuation 1.093.495 plots of land and 566.53 units (including flats, maisonettes and shops) were valued. Interestingly, the aggregate value of the real estate valued is in excess of 186 billion euros, compared to approximately 182 billion euros, being the aggregate value of real estate on 01.01.2018 (being the date of the previous general valuation). As the Department of Lands and Surveys notes, there does not seem to be a great fluctuation between the values of the general valuation dated 01.01.2021 and the values of the general valuation dated 01.01.2018. Modest increases in value were observed in respect of houses and apartments; on the other hand, there was a decrease in value in respect of certain plots of land. More notable increases in value (albeit, as the Department of Lands and Surveys observes, inconsequential) were noted in apartments and houses in the district of Limassol.

Recent years have witnessed a rapid growth in the betting industry in the Republic of Cyprus. According to the records of the National Betting Authority (NBA), between 2016 and 2019, the total revenue from betting activities has increased by 286%, contributing approximately around 3.5% to the country’s GDP.

Betting activities in the Republic of Cyprus are regulated under the Betting Law L. 37(Ι)/2019. The Law imposes on licensed bookmakers, i.e. holders of Class A license (land-based betting) and Class B license (online betting), certain restrictions when it comes to advertising their services.

From the outset, it is worth remembering that the advertising of betting-related services is subject to certain statutory restrictions. Pursuant to the provisions of s.89 of the Law, any person advertising betting in a manner that:

(a) suggests that betting promotes or is related to social acceptance, personal or financial success, or the resolution of any personal, financial or social issues, or

(b) includes the endorsement of well-known personalities in a way that suggests that betting is related to their success, or

(d) promotes the taking place of betting using services provided by a person not a licensed Class A or Class B bookmaker or authorised representative, or

(e) exceeds the limits of honesty and decency

is guilty of an offence.

The NBA, in its capacity as the competent supervisory authority tasked with ensuring compliance of licensed bookmakers with the provisions of the Law, has recently proceeded to issue a new Advertising Code, which takes into account recent technological advancements and developments in the field of advertising and marketing. In addition, in recognition of the growing influence of social networking sites as powerful advertising forums, the revised Advertising Code aims to facilitate the protection of the public (placing particular emphasis on the protection of minors and underaged persons) against the risk of exposure to unethical and illegal advertising and marketing practices.

In this respect, the Advertising Code, which came into force on July 1, 2021, seeks to ensure that the advertising of betting activities shall be characterised by a sense of social responsibility prioritising the adequate protection of underaged persons and other sensitive social groups.

It is worth noting that the Advertising Code applies not only to licensed entities but also to any person who enters into a contract with, or is in any way associated or represents or offers services for or on behalf of the licensed entity in respect of services subject to licensing by the NBA. Essentially, the Advertising Code serves as a rulebook, outlining not only the marketing and advertising activities which are prohibited but also the procedure for the granting of an approval

Any proposed advertising or marketing activity must be submitted to the NBA for review prior to its circulation or publication. Depending on the outcome of the review, the NBA may approve publication, prohibit publication, require that amendments be made or make comments. Falling afoul of these requirements may result in the imposition of fines by the NBA.

For the purpose of facilitating compliance with the stipulations of the Advertising Code the NBA will proceed to issue a Practical Guide which shall cover all issues relating to the Advertising Code, including, among others, the procedure for the submission of advertising plans and marketing activities, the maximum timeframe for the review of advertising plans by the NBA as well as advertising activities which may be exempt from the obligation of prior submission to the NBA.

Advertising Activities

The Advertising Code defines an “advertisement” as the announcement or unilateral transmission of information with a view of promoting betting services. Advertising plans must necessarily include details and information expressly stating the licensed entity’s identity, that the services comprising the subject-matter of the advertisement are licensed by the NBA, that the participation of underaged persons in betting activities is prohibited, and must also include a reference to the Safer Gambling webpage of the NBA www.safergambling.gov.cy.

Betting-related advertisements must be readily recognisable and distinct from any other content of any third person. In this respect, any person who publishes or incorporates in his content a betting-related advertisement shall not claim or imply that he is expressing an opinion as a consumer or expert; on the contrary he is under an obligation to clarify his relationship with the license holder and that the publication constitutes a paid advertisement.

The dissemination of advertising material by licensed entities to persons not registered as players is expressly prohibited, while several restrictions apply in respect to advertising material that can be sent to a registered player. Among others, licensed entities, may not proceed to send advertising material to registered players unless, it enables the player to elect not to receive such advertising material, it contains links relating to the protection of players and safer gambling.

The Advertising Code introduces a stricter regime in relation to the manner in which betting-related services are advertised through various mediums. More explicitly, there is a general prohibition on betting related advertisements which

(a) encourage the excessive and/or unrestrained betting activity,

(b) present the choice of abstinence from betting activities in a negative light,

(c) are untrue or misleading, especially with regards to information relating to winnings or the chances of the player to win,

(d) accept or encourage any person to violate the Law or to engage in antisocial behaviour,

(e) imply that skill plays a decisive role in predicting the outcome of future sporting events,

(f) suggest that the participation in betting activity may constitute a way out of financial worries, or solution instead of employment or means of financial security or means of financial investment,

(g) present participation in betting activity as priority or necessity in relation to other social or family relationships or obligations, such as friendly, professional, or academic,

(h) imply that participation in betting activity may offer a way out of professional, learning, or personal problems, such as loneliness or depression,

(i) present the participation in betting activity as a condition or means for successful social, friendly or professional relationships,

(j) present the participation in betting activity through a context of toughness or associates betting activity with endurance or dangerous or reckless behaviour,

(k) suggest that the participation in betting activity may enhance the player’s personal characteristics, such as his sense of self-respect, or his abilities, or suggests that betting constitutes a way to acquire control, superiority, power, recognition or admiration,

(l) exploit cultural convictions or traditions in respect of betting or chance,

(m) link the participation in betting activity with charm, sexual success, or enhancement of attractiveness,

(n) promote smoking and/or excessive consumption of alcoholic during participation in betting activity,

(o) present the participation in betting activity as acceptable or encourages the participation of betting activity in the work environment.

Unsurprisingly, in order to ensure the protection of children and underaged persons, the Advertising Code imposes certain prohibitions, placing particular emphasis on digital advertising and advertising through social networking sites. An underaged person is defined as any natural person below the age of eighteen, whilst “child” is defined as any natural person below the age of fifteen. In particular, digital advertisements which feature age-targeting must be adjusted in a way to preclude the targeting of underaged persons. Similarly, advertising through social networking sites must be made following the determination of appropriate age adjustments to prevent the targeting of underaged persons, and preventing, where reasonably possible, the projection of announcements, posts, notifications or any other content from the page of the licensed entity to the accounts of underaged persons.

Furthermore, the Advertising Code expressly prohibits the advertising of betting activities by any medium where such advertisements:

(a) encourage underaged persons and/or vulnerable persons to participate in betting activity;

(b) seeks to exploit the vulnerability, aspirations, credulity, inexperience or ignorance of underaged persons or other vulnerable persons;

(c) have particular appeal among underaged persons, especially where it reflects or relates to the culture of youngsters;

(d) represent persons behaving in an adolescent, childish or unorderly manner within licensed premises;

(e) are addressed to underaged persons via the choice of means of communication or the manner in which it is presented;

(f) include a person who is or appears to be below the age of twenty-five engaging in betting activity or playing a vital role in the advertisement.

Some restrictions and limitations also apply in respect of audio-visual and acoustic advertisements, in that such advertisements are prohibited unless a distinct reference is made to the existence of means of self-protection and safer gambling.

In so far as television advertisements are concerned, their duration may not exceed ninety seconds per television organization within any given clock hour. Advertisements through television and the radio are allowed to be broadcasted only within the time schedule determined by the competent authority and the Radio and Television Organizations Law L. 7(I)1998 as amended or repealed. The broadcasting of advertisements and program sponsorship is allowed during live sporting events, subject to compliance with the time schedule as aforesaid. In particular, the broadcasting of betting-related activities is permissible during live sporting events and for an interval of fifteen minutes prior to the beginning and after the ending of the sporting event. In any case, however, the broadcasting of betting-related advertisements immediately before and after, as well as during, kids shows, or shows addressed to children or shows appealing to children are prohibited.

Marketing Activities

For the purposes of the Advertising Code, “marketing activity” is defined as the offer of a player reward program or system provided by the licensed bookmaker, which entails or claims to entail some form of offer or benefit for the player. As is the case with advertising, all marketing activities are subject to the prior approval of the NBA.

The Advertising Code introduces a general requirement for marketing activities not to be misleading or unfair. This general requirement encompasses the obligation to ensure that marketing activities:

(a) are specific as to the extent of the player’s commitment in order to avail themselves of an offer or opportunity;

(b) do not omit or withhold material information or present these in an unclear, vague or ambiguous manner;

(c) provide all material information with sufficient emphasis, including the conditions relating to participation and deposit that the player must fulfil in order to benefit, and any other restriction or limitation.

(d) provide examples which state the conditions, requirements and restrictions using plain and intelligible language; and

(e) include terms and conditions relating to all material information relating to the marketing scheme and, provided that the player shall submit a confirmation that he has been informed with regards to such terms and conditions, remain available and accessible to the player.

A licensed bookmaker is obligated to ensure that players shall be informed in relation to their progress in the fulfilment of the conditions or requirements in order to benefit from an offer or opportunity immediately and at any time, whilst in case a player is disqualified from the scheme on the basis of the terms and conditions of the marketing activity he must be informed immediately with regards to any such disqualification.

With the exception of marketing activities relating to registration or deposits rewards, the advertisement of marketing activities requiring a player to place a bet within a specified timeframe (a) a minimum amount or (b) a number of bets is prohibited, except where such marketing activities take place in the licenced bookmakers premises or on the licensed bookmakers webpage.

It is a prerequisite that players provide a confirmation of acceptance of the terms and conditions of the marketing offer or opportunity before their induction into any marketing activity. In the event that a player agrees to participate in a marketing activity, the licensed bookmaker may only amend the terms and conditions of such marketing activity, provided that the amended terms are more favourable for the player, the licensed bookmaker informs the player with specificity and using examples all material amendments to the player and procures a new confirmation by the player on the revised terms and conditions.

The NBA is expected to issue a practical guide with regards to the Advertising Code, and also plans to organise seminars addressed to the various stakeholders for the purpose of analysing the provisions of the Advertising Code.

We are glad to announce that A. KARITZIS & ASSOCIATES LLC contributes to the 6^th edition of the exclusive Cyprus Chapter to The Gambling Law Review, published in the United Kingdom by Law Business Research Ltd.

The Gambling Law Review covers the main perspectives of gambling in various jurisdictions; in particular, the Cyprus Chapter seeks to address the main areas underpinning the legislative framework governing gambling activities (betting, gaming and lotteries) in the Republic of Cyprus and offer readers insight, information and guidance in relation to a rapidly evolving and growing industry.

The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Thus, such information should not be used as a substitute for professional consultation; legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as at March 2021, be advised that this is a developing area.

For further details or clarifications of the subject guide or/and any assistance, you may require please do not hesitate to contact our Corporate/Commercial Department at: mail@karitzis.com.

This article seeks to provide an outline of the nature of the position as well as the scope of the duties of a Data Protection Officer under the General Data Protection Regulation (EU2016/679) (“GDPR”).

The position of the Data Protection Officer introduced by virtue of Article 37 GDPR constitutes one of the most innovative and interesting aspects of EU data protection legislation. It is submitted from the outset that, depending on the circumstances, the appointment of a Data Protection Officer may be mandatory, or not required at all (although it is worth noting that the designation of a Data Protection Officer is encouraged by competent supervisory authorities as good practice). In light of the practical difficulties of formulating a one-size-fits-all approach with regards to whether or not the appointment of a Data Protection Officer is necessary, the GDPR provides some guidelines which seek to help data controllers and data processors determine whether the processing activities in which their organization is engaged warrant the designation of a Data Protection Officer.

In so far as private entities are concerned, the appointment of a Data Protection Officer is understood to be mandatory where the core activities of the entity in question constitute processing activities requiring the frequent and systematic monitoring of data subjects on a large scale. It therefore follows that the activities of the organization, the frequency of processing and the volume of data processed, all constitute material factors. The practical application of these guidelines to each particular scenario is, nevertheless, a matter which requires the kind of meticulous analysis which largely falls outside the ambit of this article, and as such will not be considered further.

Essentially, the role of the Data Protection Officer consists of monitoring and facilitating compliance of the entity which he / she serves with the provisions of the GDPR and applicable data protection legislation. More specifically, as part of his responsibilities, the Data Protection Officer may collect information with a view of determining the processing activities, analyse and examine the compliance of processing activities with the GDPR and inform the data controller or data processor and provide advice and issue suggestions. What is more, whilst the GDPR imposes on data controllers and data processors the obligation to keep a record of processing activities, this record-keeping obligation may be delegated to the Data Protection Officer. In this respect the record of processing activities shall enable the Data Protection Officer to perform certain aspects of his responsibilities such as the monitoring of compliance and the provision of advice to the data controller or data processor.

Whilst the level of expertise and professional qualifications which the Data Protection Officer should possess, are not expressly stipulated in the GDPR, pursuant to the guidelines issued by Working Party 29, the Data Protection Officer is generally expected to possess, among others, the following professional qualifications, skills and expertise:

Expertise from a legal and practical standpoint in respect of personal data protection in both a national and EU level, as well as excellent knowledge of the GDPR
Knowledge of processing activities carried out by the data controller
Knowledge of the field of information technology and data security
Knowledge of the fields of business activity of the data controller
Ability to develop a data protection culture within the data controller

It is worth noting that the GDPR endeavours to safeguard that the Data Protection Officer is autonomous and independent, in that he is answerable only to the highest management level within the organization and must be provided with access and information concerning departments, personnel, and processing activities carried out by the entity. At the same time, it should be stressed that the designation of a Data Protection Officer does not, in any way absolve or release the data controller or data processor from the obligation of ensuring compliance with the provisions of the GDPR; in fact, whilst the position of Data Protection Officer entails a number of important responsibilities, the Data Protection Officer cannot be held personally liable in respect of any breach of the data processing obligations imposed upon data controllers and data processors.

In order to ensure that the Data Protection Officer shall be in a position to carry out his duties adequately and effectively, the GDPR requires data controllers and data processors to offer every reasonable assistance to this end. Crucially, the Data Protection Officer is expected to be promptly and duly involved in any matter relating to data processing. This necessarily entails, among others, the participation of the Data Protection Officer in meetings of senior officials of the organization’s management (to the extent and in so far as the agenda of the meeting includes any proposed course of action which is capable of influencing or affecting personal data protection), as well as consultation with the Data Protection Officer in respect of cases relating to data breaches or other similar incidents.

Going further, to ensure the autonomy and independence of the Data Protection Officer, the designating entity should not seek to influence or dictate the manner in which the duties of the Data Protection Officer are to be exercised. In particular, having due regard to the guidelines issued by Working Party 29, the Data Protection Officer must not, among others, receive instructions as to the desired outcome of a case, instructions on how to approach an investigation of a complaint, instructions on whether or not the competent supervisory authority should be consulted, or indeed instructions with regards to the manner in which legislative provisions relating to data protection laws are to be interpreted. In addition, in order to ensure that the Data Protection Officer shall be in a position to exercise his duties in an impartial and independent manner the following safeguards must be in place:

The designating entity should not dismiss or otherwise penalise the Data Protection Officer for reasons relating to the exercise of the Data Protection Officer’s duties and responsibilities under the GDPR
No conflict of interests should exist between the duties of the Data Protection Officer under the GDPR and any other duties or obligations arising by virtue of any other position held by the Data Protection Officer in the organization. This means that the Data Protection Officer must not hold any position that may determine the purpose and means of processing of personal data. Because each organization has a different organizational structure, this particular issue should be examined on a case-by-case basis. Usually, a conflict of interests is deemed to arise where the appointed Data Protection Officer also holds some other senior managerial or other key position within the organization which -by its very nature- determines or contributes in the determination of the purposes and means of processing of personal data (i.e. executive director, general manager, chief executive officer, chief financial officer, marketing officer, human resources manager, IT manager).

Moreover, to enable the Data Protection Officer to carry out his responsibilities effectively, the organization is expected to offer adequate support and sufficient resources. Such support is not only limited to financial assistance but may also take the form of continuous professional training aiming to enhance and improve the skills and qualifications of the Data Protection Officer, notifying the organization’s employees and members of staff of the designation of a Data Protection Officer and informing them of his duties and responsibilities, ensuring that the Data Protection Officer will have access to other departments within the organization such as the human resources department, legal department or information technology department for the purpose of ensuring the continuous technical support of the Data Protection Officer, and providing the Data Protection Officer with sufficient time in order to properly and effectively carry out his responsibilities.

Finally, yet another important function of the Data Protection Officer is that he also serves as the point of contact between the entity and the competent supervisory authority (in this case, the Commissioner for Personal Data Protection). In this respect, the contact details of the person appointed as a Data Protection Officer must be communicated to the Commissioner for Personal Data Protection.

We are glad to announce that A. Karitzis & Associates LLC, contributes the 7th Edition of the exclusive chapter on Cyprus to the ICLG to Corporate Immigration 2020, published in association with Kingsley Napley, and produced in partnership with the American Immigration Lawyers Association (AILA).

The ICLG to: Corporate Immigration covers common issues in corporate immigration laws and regulations – including compliance, investment work permits and dependants in Cyprus.

The content included in the below pdf is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. For further details or clarifications of the subject guide or/and any assistance, you may require please do not hesitate to contact our Corporate/Commercial and Immigration Department at: mail@karitzis.com.

We are glad to announce that A. KARITZIS & ASSOCIATES LLC contributes to the 4^th edition of the exclusive Cyprus Chapter to The Gambling Law Review, published in the United Kingdom by Law Business Research Ltd.

For further details or clarifications of the subject guide or/and any assistance, you may require please do not hesitate to contact our Corporate/Commercial Department at: mail@karitzis.com.

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