by Andria PapageorgiouAI’s Impact on the Legal Profession: Evaluating Risks and Assessing the Future of Legal Practice
A. Introduction:
Artificial Intelligence (AI) has revolutionized various industries, and the legal profession is no exception. AI technologies are increasingly being adopted in legal practices to streamline processes, enhance efficiency, and provide new insights. However, along with the benefits, AI also brings certain risks. In this article, we will explore the impact of AI on the legal profession, assess the associated risks, and examine the future of AI in the legal practice profession.
B. AI’s Impact on the Legal Profession:
- Automation of Routine Tasks: AI-powered tools and algorithms can automate repetitive tasks, such as document review, due diligence, and contract analysis. This automation frees up valuable time for legal professionals to focus on more complex and strategic work, improving overall productivity and efficiency.
- Enhanced Legal Research: AI-powered algorithms can quickly analyze vast amounts of legal information, including case law, statutes, and legal precedents. This enables lawyers to conduct comprehensive legal research more efficiently, saving time and providing valuable insights for case preparation and strategy.
- Contract Analysis and Due Diligence: AI-based contract analysis tools can review and extract key information from contracts, reducing manual effort and human error. Similarly, AI can assist in due diligence processes by quickly analyzing large volumes of data, identifying potential risks, and highlighting critical information.
- Predictive Analytics: AI algorithms can analyze historical data and patterns to provide predictive analytics for legal outcomes, such as case verdicts or settlement amounts. This can help lawyers and clients make informed decisions and assess the potential risks and rewards associated with legal actions.
C. Risks Associated with AI in the Legal Profession:
- Data Privacy and Security: The use of AI involves the collection and analysis of vast amounts of data, including sensitive client information. Safeguarding data privacy and ensuring robust cybersecurity measures are crucial to prevent unauthorized access, breaches, or misuse of confidential data.
- Bias and Fairness: AI algorithms learn from historical data, which may contain biases or reflect societal inequalities. If not carefully monitored and audited, AI systems can perpetuate biases in legal decision-making, potentially leading to unfair outcomes. It is crucial to ensure transparency, accountability, and regular audits of AI systems to mitigate these risks.
- Ethical Considerations: The use of AI raises ethical concerns, particularly when it comes to issues such as AI-generated legal advice, responsibility for errors in AI outputs, and the ethical implications of delegating decision-making to machines. Legal professionals must navigate these ethical considerations and ensure that AI systems align with professional ethical standards.
D. The Future of AI in the Legal Practice Profession:
- Augmented Intelligence: The future of AI in the legal profession lies in augmented intelligence, where AI technologies complement human expertise rather than replace it. Lawyers will leverage AI tools to enhance their capabilities, improve efficiency, and provide more value-added services to clients.
- Legal Innovation and Efficiency: AI has the potential to drive legal innovation by automating routine tasks, improving legal research capabilities, and providing data-driven insights. This can result in increased efficiency, cost savings, and the ability to deliver legal services more effectively.
- Enhanced Client Experience: AI-powered chatbots and virtual assistants can improve client interactions by providing instant responses, personalized recommendations, and self-service options. This can enhance the overall client experience and improve client satisfaction levels.
E. Conclusion:
AI technology has the potential to significantly impact the legal profession by automating tasks, improving research capabilities, and providing predictive analytics. While the benefits of AI in the legal practice are substantial, it is crucial to address the associated risks such as data privacy, bias, and ethical considerations. By navigating these risks and embracing AI as a tool for augmented intelligence, the future of the legal profession holds promise for increased efficiency, innovation, and enhanced client experiences.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouCryptocurrencies: Evaluating Risks and Assessing Their Future in Digital Banking
A. Introduction:
The emergence of cryptocurrencies has disrupted traditional financial systems, offering decentralized and secure alternatives to conventional banking. However, as with any financial innovation, cryptocurrencies come with inherent risks. In this article, we will delve into the risks associated with cryptocurrencies and explore their potential future in the realm of digital banking.
B. Cryptocurrency Risks:
- Price Volatility: One of the primary risks associated with cryptocurrencies is their extreme price volatility. The value of cryptocurrencies can experience significant fluctuations within short periods. Investors must be prepared for the possibility of substantial gains or losses in their cryptocurrency holdings.
- Regulatory Uncertainty: Cryptocurrencies operate in a regulatory landscape that is still evolving. The lack of standardized regulations across jurisdictions introduces uncertainties regarding their legal status, taxation, and consumer protection. Regulatory changes can impact the viability, adoption, and usage of cryptocurrencies, leading to potential risks for investors and digital banking institutions.
- Cybersecurity Vulnerabilities: Cryptocurrencies face cybersecurity threats due to their digital nature. Hacking attempts, phishing attacks, and theft pose significant risks to individuals and digital banking platforms that deal with cryptocurrencies. Robust security measures, such as secure wallets and strong authentication protocols, are essential to safeguard against these risks.
- Market Liquidity: Cryptocurrency markets may experience liquidity challenges, particularly for less-established or low-volume cryptocurrencies. Limited liquidity can impact the ability to buy or sell cryptocurrencies at desired prices, leading to potential trading difficulties and increased transaction costs.
- Technological Risks: Cryptocurrencies rely on underlying technologies, such as blockchain, which are still evolving. Technical vulnerabilities, software bugs, and network disruptions can pose risks to the stability and reliability of cryptocurrencies. Ongoing technological advancements and upgrades are necessary to mitigate such risks.
C. The Future of Cryptocurrencies in Digital Banking:
Despite the risks, cryptocurrencies have the potential to shape the future of digital banking in several ways:
- Increased Financial Inclusion: Cryptocurrencies can provide access to financial services for the unbanked and underbanked populations, enabling secure and efficient cross-border transactions without the need for traditional banking intermediaries.
- Streamlined Cross-Border Payments: Cryptocurrencies can facilitate faster and cheaper cross-border transactions, eliminating intermediaries and reducing transaction fees. Digital banking institutions can leverage cryptocurrencies to offer efficient global payment solutions to their customers.
- Decentralized Finance (DeFi): Cryptocurrencies underpin the growth of decentralized finance, enabling various financial services, including lending, borrowing, and yield farming, without traditional intermediaries. DeFi platforms can integrate cryptocurrencies to provide innovative financial products to users.
- Central Bank Digital Currencies (CBDCs): Several central banks worldwide are exploring the development of CBDCs, which are digital currencies issued and regulated by central authorities. CBDCs can potentially enhance the efficiency and transparency of digital banking systems, bridging the gap between traditional currencies and cryptocurrencies.
D. Conclusion:
Cryptocurrencies have emerged as a disruptive force in the financial industry, offering unique advantages and challenges. Understanding the risks associated with cryptocurrencies is crucial for individuals and digital banking institutions venturing into this domain. While risks such as price volatility and regulatory uncertainties persist, cryptocurrencies hold the potential to transform digital banking by enabling financial inclusion, streamlining cross-border payments, fostering decentralized finance, and paving the way for central bank digital currencies.
As the digital banking landscape continues to evolve, carefully navigating the risks and leveraging the opportunities presented by cryptocurrencies will be pivotal for the future of the industry.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. It is important to conduct thorough research and consult with financial professionals before making any investment decisions related to cryptocurrencies or digital banking. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouReal Estate in Cyprus
A. Introduction to Cyprus Property Law
The Cyprus legal system is based on the British requirements as Cyprus was a British colony until 1960. Further, with EU membership, Cyprus property laws and regulations were harmonised in line with the European Union laws and regulations.
B. Cyprus immovable property law
Cyprus immovable property law was enacted in 1946. It is regarded as the cornerstone of immovable property in Cyprus, dealing with all matters concerning the tenure, registration, disposition, and valuation of immovable property within the framework of the Cyprus land registration system, in which immovable property is defined, drawn, recognised, and valued.
C. Land Registry Department
Every interest or right over or affecting immovable property (land, buildings, trees, plantations, rivers, wells, and all rights relating to estate and buildings) is registered and can be traced in the Registries of the Department.
Any information related to a potential purchase can be traced from Land Registry records prior to the completion of the transaction. Also, after the purchase, the contract of sale or title deed transfer is registered or takes place at Registry.
Submitting the contract of sale to the Land Registry gives the Buyer the right to seek specific performance of the terms and conditions of the contract. Thus, to register the property and title deed into the Buyer’s name once the title deed will be issued.
D. Purchase of Cyprus property by EU citizens
There is no legal obligation on EU citizens to require any permission to buy Cyprus real estate property. EU citizens are treated equally as Cypriot Citizens and can purchase real estate without any limits.
E. Purchase of Cyprus property by foreigners (non-EU citizens)
Non-EU citizens are entitled to buy properties in Cyprus, but they should apply for permission to register it in their names. This application is submitted at the District Office of the City that the property is situated after the contract of sale is signed. The permission is given to all Buyers, and this procedure currently is just a formality. The required time for obtaining permission is about 2-4 weeks.
Permission is allowed subject to some limitations which apply for each family (husband and wife). The limit is two units from the below:
- Apartment or house.
- A villa on a plot of land up to 4014 m2.
- A plotland up to 4,014 m2provided that a residence is going to be constructed soon.
- For the acquisition of bigger plots of land or other property types (offices, commercial, industrial etc.) permission might be granted under certain conditions.
F. The Purchase Procedure
Step 1. Due diligence
After selecting a property to buy, it is highly recommended that the lawyer performs a due diligence check for the property, which mainly involve the following, further to express request of the Client (i.e. Buyer):
- Confirming with the Land Registry office that the property is free from any mortgages or burdens. In case the property has any mortgages or burdens, the lawyer arranges for the so-called waiver, which is a critical document that makes Buyer’s sales contract prevail any existing liabilities of the Seller to the bank in relation to the property in question.
- Negotiate the payment terms.
- In the case of a property under construction, the lawyer can ensure that all the necessary planning and building permits have been obtained; and to make sure architecture plans & specifications are attached to the relevant contract.
- In the case of a land purchase, the lawyer could verify the building Zones (how many square meters you can build on) and that the intended use, of any planned buildings, are permitted. In addition to the above-mentioned, the lawyer can also verify that utilities can be connected to the property.
Step 2. Reservation deposit & Agreement
Upon signing the reservation agreement, and payment of a reservation deposit, the property is taken off the market for a specific period of time until the contract of sale is prepared, and the parties are ready to finalise the transaction.
Reservation deposits vary depending on the price of the property and usually are 1-2% of the purchasing price.
Step 3. Contract of sale
Once all the preliminary steps above are made, the buyer and the seller can proceed signing a contract of sale. However, there are some general points to check before signing a sale contract to make sure the transaction is fair. These include:
- 50% deposit paid on the signing of contracts;
- 49% on delivery of property or in stages if under construction; and
- 1% on transfer of title deeds
To ensure that the buyer is legally protected, the following actions must take place:
- The Buyer must sign a valid contract of sale for property* free of any legal and financial commitments.
- The contract must be signed, stamped and registered with the Land Office. This prevents the Seller/Developer from reselling or mortgaging the property before the transfer of title.
- Possession of the property is completed when the property is delivered to the Buyer when the second payment is paid. At this stage the Buyer can connect the utilities (Water, Electricity & Telephone etc).
- Transfer of the deeds in Buyer(s)’s name(s) will take place when:
- The Buyer has a temporary Residency Permit or Council of Ministers Permit from the District Office
- The Developer has completed the subdivision of the project and the Lands Office has issued a separate title.
If the Buyer is abroad, all the procedure can be done through a duly executed Power of attorney. It can be signed and certified in Cyprus or abroad at Cyprus Embassy or Consulate or be endorsed by Notary Public and bear the Apostille Stamp.
*Further to the announcement of the House of Representatives on the 2nd of April, only registered lawyers should draft sale agreements of real estate or other documents relating to property transactions. The suggestion was made by a member of the House and 32 other members voted in favour of it.
Before the recent new Bill, anyone could offer advice or draft legal documents regarding renting or buying immovable property. It was often the case that people lacked a clear understanding of the law and were wrongful in its application. This resulted in violations of the rights of the contracting parties. The amendment intends to prevent people who do not possess the necessary expertise on the subject from appearing as professionals.
Lawyers are considered to be experts and have the necessary knowledge and experience to prepare sale agreements or relevant documents. They have the expertise to provide clients with specialised advice on property matters. The lawyers who draft the agreements for tenancy or other transactions of real estate bears the legal responsibility as professionals.
The members of the House highlighted the distinction between a person who seeks professional services and someone who does not. In other words, people can seek friendly advice or gather information from anyone with knowledge of real estate. However, only the documents drafted by a registered lawyer will be regarded as binding.
Step 4. Registration of Contract of sale in the Land Registry
When contracts have been duly signed, the Buyer or his/her lawyer takes the signed contracts to the Inland Revenue Department to be stamped. Stamp duties are payable on each contract for the purchase of real estate depending on the purchase price (as below).
As soon as the signed contracts have been stamped then the Buyer (or his lawyer or representative) should take them to the Land Registry Department to be submitted/registered for Specific Performance purposes.
The Lands Office stamps the contract and records it in the Land Registry. It secures the buyer’s ownership rights until a separate title deed is issued.
Step 5. Transfer of title deed
If the seller has got a title deed (ownership certificate) for the property, the transfer of the title deed in the name of the new owner can be done immediately. Typically, this is the case when buying a resale.
If the property is brand new, in most cases the seller (developer) does not have a separate title deed for the property. Until that time, the ownership rights of the buyer are guaranteed by the registration of the sales contract at the Lands Office.
G. Taxes and Duties
Stamp duty
1. For Contracts with a value of €1 up to €5.000 there is no stamp duty payable.
2. For Contracts with a value between €5.000 up to €170.000 the stamp duty payable is of €1,50 for every €1.000.
3. For Contracts with a value over €170.000 the stamp duty payable is €2,00 for every €1.000 with a maximum stamp duty of €20.000.
If on an agreement or memorandum of agreement and all documents embodying any agreement there is no specific fixed value, then the stamp duty is €34.17.
The stamp duty is payable at once.
Transfer fees
The Land Registry Department required fees to be paid by the Buyer for transfers of immovable property. They are calculated by the Department based on the market value as estimated by them on the day of the transfer of the title deed and not based on the sales price.Transfer fees
| Market Value | Rate | The current rate at 50% |
| First €85.000 | 3% | 1.5 % |
| From €85.001 to €170.000 | 5% | 2.5% |
| Over €170.000 | 8% | 4% |
- The above transfer fees do not apply if the transaction is subject to VAT.
- Currently Reduced by 50%.
H. VAT
- VAT at the rate of 19% is payable on the sale of new real estate projects.
- Resale properties are exempted from VAT.
The reduced VAT rate of 5% on the acquisition of primary and permanent place of residence in Cyprus
Any person that is buying the first permanent residence in Cyprus can apply for a reduced VAT rate at 5%.
The reduced rate of 5% VAT applies on the first 200 m2 whereas for the remaining square meters, as determined based on the buildable area, the standard VAT rate is imposed.
The square meters for VAT purposes include only the internal covered areas (do not include covered verandas or other).
It is required that the property is to be used as the primary place of residence in Cyprus for the next ten years, rental of it is not allowed.
The VAT on plots – Building land
VAT at the standard rate of 19% for the supply of undeveloped building land. The VAT is imposed in cases where the supply is intended for the erection of one or more constructions, and the supply falls within the course of a person’s economic or business activities.
It is noted that the supply of land is not subject to VAT in cases where the supply is an occasional transaction.
Cyprus Capital Gains Tax
Cyprus Capital Gains Tax is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property in Cyprus. Including gains from the disposal of shares in companies which own immovable property directly.
Exemptions
The following are not subject to Capital Gains Tax:
- Lands or land with buildings acquired between 16th July 2015 and 31st December 2016 are exempt from CGT (subject to certain conditions) upon their disposal.
- Transfers arising on death.
- Gifts made from parent to child or between husband and wife or between up to third-degree relatives. Contributions to a company where the company’s shareholders are members of the donor’s family.
- Gifts by a family company to its shareholders
Calculations of Cyprus Capital Gains Tax
The costs that are deducted from gross proceeds on the disposal of immovable property are the cost of purchase, adjusted for inflation up to the date of disposal based on the CPI in Cyprus.
Also, construction works and improvement costs of the property are deducted.
Other expenses related to the acquisition and sale of real estate are also deducted, e.g. estate agency fees, transfer fees, legal fees.
Exemptions from Capital Gains Tax
Individuals can deduct from the capital gain the following:
- Sale of a private residence (subject to certain conditions) €85.430
- Sale of agricultural land by a farmer €25.629
- Any other transaction €17.086
Note: The above exemptions are lifetime exemptions with a total lifetime limit of €85.430.
Cyprus Inheritance Tax
There is no Cyprus Inheritance Tax as it has been abolished from the 1st of January 2000.
I. AP Law Firm
AP Law Firm has extensive experience and deals with all matters related to real estate, including purchase transactions and disputes, including commercial and residential property. Cyprus’ real estate market is rapidly evolving and expanding, and the opportunities for investment are in their peak. It is essential and highly recommended to engage the services of property lawyers who have sufficient experience and knowledge of the Cyprus real estate law and procedure.
Our Law Firm can assist through all the purchase procedure to make sure it is done smoothly and with maximum protection for the client’s interests. We are ready to approach each new client with extra care and attention to personal/financial needs and demands.
Areas of work include:
- Due Diligence before Property Purchase
- Drafting Property Reservation Agreements, Advice on the procedure to be followed
- Real Estate Sale Agreements Draft or Review
- Power of Attorney Preparation for Purchase or sale of Real Estate
- Permission for Acquisition of property by foreigners
- Land Registry Services
- Real Estate Gift Transfers between family members
- Rental agreements advice and preparation
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouCySEC New Directive for the Registration of Crypto Providers
The Cyprus Securities and Exchange Commission (CySEC) issued on Friday a directive about the registration and operating conditions of providers of services related to cryptocurrencies. According to the guidelines, published only in the Greek language, CySEC provides certain procedures to follow in order to comply with the recent transposition of AMLD5 measures taken in the European Union (EU) to combat Anti-Money Laundering and Counter-Terrorist Financing.
The registration fee for the providers who want to apply before CySEC for authorization under the said directive would be EUR 10,000, and the renewal fee shall be EUR 50,000. In terms of the board’s composition, there should be a minimum of four members: two executives and two non-executives. Furthermore, among the conditions set out in the said directive, the companies should comply with some requirements such as good reputation, appropriate policies, systems and procedures, relevant security policies, and remuneration requirements, as specified by the CySEC.
In addition to the said directive, it is expected that the CySEC will issue a policy statement very soon clarifying other relevant matters. Additionally, there is a CySEC application file available with the updated regulatory requirements to follow the AMLD5 rulings.
It is well admitted by CySEC, who shares the position of the European Securities and Markets Authority (ESMA), that some crypto assets, including the so-called virtual currencies, such as Bitcoin, are highly risky and speculative, and investors must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money. Crypto assets come in many forms but the majority of them remain unregulated in the EU including Cyprus.
In light of all the above, it is quite evident that the incorporation of crypto-asset businesses under the scope of the EU AML legislation under the amended 5th AML Law in Cyprus is a very significant step.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.