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Email: sales@groupchesterfield.com

Corporate Services Blog

Why Cyprus is a Good Decision for Russia?

13/03/2013

Further to our article dated 5th December 2012 in which we reported that due to the signing of a protocol between Cyprus and Russia which is aligned with the OECD policy standards on fiscal transparency and exchange of information on taxation matters Cyprus is now removed from Russia’s ‘black list’ of unsupported tax jurisdictions, we have decided to take a look at what makes Cyprus so appealing for Russian investment.

Russian and Cyprus have strong social connections with as many as 100,000 Russian nationals choosing to live in Cyprus.  There are several reasons for this, one being that business relations between the countries are strong and therefore work often brings Russian nationals to the Island. Many prefer the climate relishing the warm summer months and mild winters.  Cyprus and Russia also share their faith both being Christian Orthodox and religion is still important to both cultures.

The new tax agreement also brings several advantages to investment between the two countries such as, dividends being received by Russian companies from Cyprus will be exempt from tax in Russia, dividends will have a 5% withholding tax if there is a direct investment in the capital of the Russian entity of at least EUR100,000, otherwise the withholding tax will be 10%, Interest and royalties are exempt from withholding tax, transactions shall not be subject to the transfer pricing rules that apply to Russian companies that have transactions with countries on Russia’s black list.

  • Cyprus already has numerous attractive advantages over other jurisdictions such as;
  • 10% corporate tax, being one of the lowest in Europe
  •  Cyprus is a full EU member
  •  Location is optimal as a gateway between Russian, Europe and Africa
  •  Over 40 Double Tax Treaties
  •  Modern infrastructure

Chesterfield has had a relationship with Russian clients and investment for quite some time now and have departments geared at catering solely to the Russian market, to this effect we also have several members of staff of which Russia is their mother tongue. We have long recognized the strong existing relationship between the two countries and sought to integrate into our business accommodating structures between the two to make incorporation and administration of this market as profitable as possible.

To learn more about our Cyprus Company Formation services follow the link below or call us on our offices

Telephone Number: 44 20 7097 1385




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