Why Cyprus is a Good Decision for Russia?
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
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
- 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
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Telephone Number: 44 20 7097 1385