CYPRUS

By Leo Zhang. The Republic of Cyprus is an island country in the Eastern Mediterranean Sea, east of Greece, south of Turkey, west of Syria and Lebanon, northwest of Israel and north of Egypt. Cyprus is the third largest island in the Mediterranean Sea. It is also the third most populous island in the region and one of the area's most popular tourist destinations. Cyprus' strategic location at the crossroads of Europe, Asia and Africa has helped shape its history throughout the centuries, making it not only a major eastern Mediterranean trading hub, but a reputable international business and financial...

EXPERT INSIGHTS 2020

1. What is the single most important advantage your jurisdiction provides for Chinese clients? 1) Cyprus’s main advantage is that it’s a prime location for holding companies, which can lead to substantial tax savings. The following key factors make Cyprus the best jurisdiction for a holding company: The ability to extract dividends out of the operating company free of withholding tax or at a reduced rate Cyprus’s wide network of double tax treaties allows this – the highest tax rate is 15% and several countries have a zero tax rate 2) The ability to dispose of investment in an operating...

2015

What are some of the biggest issues &challenges you come across when planning for Chinese or Asian clients in general? What are the solutions that your jurisdiction provides for these issues? The challenges faced are not in particular to Chinese or Asian Clients but apply to any client that is not familiar with the international business system and needs time to recognize and familiarise himself with the opportunities that are provided in Cyprus as an international financial centre, the legal framework of the Cypriot Laws, in particular for international business services and complex corporate structures for efficient tax planning.  ...

2015

Offshore finance is all the more important for Cyprus following the financial crisis. As a warm, sunny island just hours from Europe it is fitting that Cyprus biggest industry is tourism, but a reliance on visitors has made the global recession a tough time for the country. More than 70% of Cyprus population are employed in the services industry, which accounts for 80% of the country GDP, and as visitors from Europe dried up, the industry felt the pinch. Cypriot debt ballooned to 4.4% of GDP, leaving the island in violation the EU budget deficit criteria of no more than...

ARTICLE OVERVIEW - EXECUTIVE SUMMARY 2014

OCED-whitelisted Cyprus has more allure By Anas Almasri. No longer considered a tax haven, did Cyprus lose its long standing financial allure by joining the EU. Cyprus' unique geographical location situated between three continents has, throughout history, been the main drive behind its focus on benefiting from trade and economical relations between Europe, Asia and Africa. Up to the 1970s Cyprus was viewed as a trade stop between the coastal countries of those continents, leading it to be positioned as one of the world's major re-exporting hubs. Although it still holds that status today, the island has developed into a truly...

CORPORATE & FIDUCIARY OVERVIEW - EXECUTIVE SUMMARY 2014

By Tendai Musakwa. Chinese investors looking to establish a successful shipping business would do well by considering Cyprus. The Cypriot maritime industry is ranked third in terms of size in the EU and tenth worldwide. Cyprus has proved to be an ideal center for the establishment of enterprises by foreign ship-owners and other professionals engaged in shipping activities and related services worldwide. Part of Cyprus' attraction to shippers stems from an attractive set of tax incentives and supporting services that make it easy to operate a shipping business there. Generous Tax Incentives for Shipping Operations. The most important reason for...

YACHT & AIRCRAFT REGISTRATION OVERVIEW - EXECUTIVE SUMMARY 2014

Cyprus has a unique opportunity to attract Chinese investment despite the financial misfortune of its neighbors. The OECD crackdown on tax avoidance has divided the offshore world - on the one side are jurisdictions that have been able to achieve legitimacy in the eyes of the onshore world, on the other there are those who have not. The island of Cyprus puts itself firmly in the former camp. Although it was once considered a traditional tax haven, sweeping reforms in the run-up to EU accession brought Cyprus new respectability as an international business center. Black list. As a result the...

CORPORATE & FIDUCIARY OVERVIEW - EXECUTIVE SUMMARY 2014

By Leo Zhang. The Republic of Cyprus is an island country in the Eastern Mediterranean Sea, east of Greece, south of Turkey, west of Syria and Lebanon, northwest of Israel and north of Egypt. Cyprus is the third largest island in the Mediterranean Sea. It is also the third most populous island in the region and one of the area's most popular tourist destinations. Cyprus' strategic location at the crossroads of Europe, Asia and Africa has helped shape its history throughout the centuries, making it not only a major eastern Mediterranean trading hub, but a reputable international business and financial...

ARTICLE OVERVIEW - EXECUTIVE SUMMARY 2014

What is unique in your jurisdiction and why Chinese investors should form companies there? Cyprus is an EU country and is a long standing tried and tested financial center. Specifically the Cyprus holding company is widely used in international tax planning.  Chinese investors may choose to take advantage of the beneficial tax system of Cyprus and form a Cyprus company as part of various other corporate structures such as financing, intangible asset ownership, trading, investment fund and international trust structures. What makes your jurisdiction different from other competitors for Chinese investors? Cyprus has excellent and ripe infrastructure to accommodate international...

2014