Areas of Practice

Cyprus Rides the Storm

Cyprus rides the storm and strengthens scope as a sound financial services and business centre with global reach.

 

The services sector continued to perform strongly. In evaluating the aftershocks of the global credit crunch Central Bank Governor said vibrations from such a convulsion cannot leave Cyprus totally untouched. Regarding the banking sector Governor said that it remains healthy. The strict monitoring framework has protected Cypriot banks from exposure either to risks of liquidity or to excessive investment dangers. The Finance Minister said that “we remain cautiously confident we will do much better than the rest of EU”.


Mergers and acquisitions involving Cypriot companies have dropped ending four years of deal growth. However total deposits with Cyprus banks were up. Advertised 3-month bank deposit rates average 6.5% reaching 7.25%. Loan growth increase is maintained.


Cyprus with a uniform corporation tax rate of 10% offers the lowest tax regime in the EU still complying fully with EU and OECD. An EU member state having successfully introduced the Euro equipped with one of the widest networks of double tax treaties offers an attractive basket of tax and business solutions. Cyprus is firmly established as one of the most efficient business locations in Europe.


Tax costs are significant in investment structures, regulation and adherence to sound financial practices are more important now than ever. Cyprus also offers excellent business infrastructure and professional services, well trained English – speaking staff, English legal system, excellent air routes and telecommunications. Further the hot climate and cosmopolitan lifestyle as a prime tourist destination.


The island’s strategic location at the cross-roads of Europe, Asia and Africa has shaped its history and its development into an attractive financial centre   particularly for Central and Eastern Europe, Russia and ex C.I.S. Countries.


The financial services sector is rising to the challenges ahead with the Investment Services and Activities and Regulated Markets Law which implements the MiFID, and introduction of the Capital Requirements and all relevant EU Directives.

 

At this historic moment of re-defining business strategies and re-evaluating business options Cyprus stands out to be chosen as a superb location.