CYPRUS AS OFFSHORE CENTER -A brief  introduction.
 By Demetris N. Lazaris

During the last few years the number of offshore companies registered in cyprus has increased substantially reaching over 13,000.

The factors contributed towards the development of Cyprus into one of the world's major offshore centers are the followings:

LOCATION
Cyprus lies at the crossroads of Europe, Africa and Asia and is the Europe's link with the Arab World and the Far East.
 
COMMUNICATIONS
The telecommunication system of Cyprus is one of the best in the world. Cyprus
 holds the 4th place in the world as regards the automatic communications.

INTERNATIONAL RELATIONS
Cyprus maintains diplomatic relations with all countries and has friendly relations with the Arab World.

DOUBLE TAXATION TREATIES
Cyprus has signed treaties with 21 countries -including UK, USA, Germany, France, Norway and Greece-  for the avoidance of double taxation on income earned in any of the contracting countries.

SERVICES SECTOR INFRASTRUCTURE

ECONOMY
Cyprus has an open free market economy.
The  average annual income per person in conjunction with other socioeconomic indicators indicates that Cyprus can be classified as financially strong.
The inflation rate is low at 2 to 3% p.a.
Cyprus is currently in negotiation with the European Economic community and
most possibly will soon be a full member of E.E.C.

 BANKING
The government of Cyprus is acting as supervisor of the commercial Banks in
order to ensure that their loan portfolio as well as other banking risks are well
managed and the Banks are- and remain sound. In general the Banking system
and banking legislation follow the British model.
In addition to the 8 commercial banks, 30 offshore banking units are operating in
Cyprus offering a variety of services to foreigners and offshore companies.
Onshore and offshore banks maintain strong correspondent networks around the
world having thus easy access to almost any country in the world.
Information Technology is highly classified in the priorities of the Banks and
undoubtedly  the local Banks are among the most technologically advanced in the
world.
During the last ten years local Banks have successfully expanded their activities
outside Cyprus. (Greece, England, U.S.A. Canada, South Africa and Russia).

FISCAL & OTHER INCENTIVES TO OFFSHORE ENTERPRISES

 http://www.centralbank.gov.cy/offshore-ent/index2.html
 
 
         
 
Feel free to conduct me for any further information
  lazaris@cytanet.com.cy