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Despite being one of the world’s smallest countries, Cyprus has developed into one of the world’s major financial and business centres. It has gained this enviable position through its attractive tax system, transparent legal system, world-class professional and banking services and superior global telecommunications capabilities.

During the past decade Cyprus has established itself as the main financial centre for inward investment in Russia, Central and Eastern Europe. This is due to the strong cultural and political ties it has with this region and last but not least, its comprehensive treaty network with all the major countries in the region.  Cyprus was and still is the largest source of investment into Russia over the past five years, ahead of the other major financial centres such as Luxembourg, the Netherlands, Germany, Great Britain, the US and France.

Ø       Attractive Tax System: Conforms to the EU and OECD regulations. The full acceptance by Cyprus of the European Union code of conduct and the Campaign against harmful tax competition has added a lot to the reputation of Cyprus, as having a very competitive but internationally respected tax legislation.

Ø       Transparent Legal System: The legal system in Cyprus is closely connected with the legal system of the United Kingdom, with all statutes regulating business matters and procedures being based essentially on English law. It is important to emphasise also the fact that most laws are translated into the English language. The Cyprus legal system is in full compliance with the acquis communautaire of the EU.

Ø       World-class professional and banking services: Cyprus is well known for its high quality of professional services offered. This is mainly due to the fact that most of the professionals (such as lawyers and accountants) are members of UK and USA professional bodies. The Central Bank of Cyprus is the supervising authority of the banking system in Cyprus. The Central Bank of Cyprus has always been guided in its supervisory role by the recommendations of the Basle Committee on Banking Supervision and implements the EU Directives on banking regulation. Commercial banking arrangements and practices follow the British model.

Ø      Superior global telecommunications capabilities:  It is well known that Cyprus has one of the most advanced telecommunications networks in Europe. Cyprus' established reputation as an international financial and business services centre owes much to its superior global telecommunication capabilities.

Ø       Time Zone, Language, Local Accounting requirements: Cyprus is two hours ahead of Greenwich Mean Time. Its time zone is 7 hours ahead of New York, 2 hours ahead of London, 1 hour ahead of Sweden, 1 hour behind Moscow and 5 hours behind Beijing. Greek and Turkish are the official languages of the Republic but English is widely spoken and understood and is regularly used in commerce and government. In accordance with the Cyprus Companies Law, every company must prepare financial statements in accordance with International Financial Reporting Standards.   

3^rd Largest Merchant fleet in the EU

Cyprus has long been established as one of the most attractive shipping and shipmanagement centres in the world. It has gained this enviable position through its attractive tax system, transparent legal system, world-class professional and banking services and superior global telecommunications capabilities.  The accession of Cyprus to the European Union (EU) on 1 May 2004 has served to add to the country’s impressive advantages. Cyprus joined the EU with a strong fleet and a well founded and efficient maritime infrastructure.

Today, Cyprus ranks among the top ten countries, with one of the largest shipping fleets in the world, with ships representing a gross tonnage exceeding 23 million.  The Cyprus Merchant fleet is the 3rd largest fleet in the EU, representing approximately 6% of the merchant fleets under EU flags.  The good international relations enjoyed by Cyprus have played a significant role in the attractiveness of Cyprus as a Shipping centre. The Cypriot Government is continuously taking steps to ensure that, the strong bonds of cooperation and friendship that have been developed over the years with all international organisations, are maintained and at the same time, through the Department of Merchant Shipping, every effort is made to maintain the respectable and responsible reputation of the Republic of Cyprus as a Shipping centre.  

However, the driving force behind the success of Cyprus, as a Shipping centre, was and still is the favourable tax regime.   The tax law of Cyprus, as reformed, is probably the most modern, effective and simple tax system in the EU and in addition, it conforms to the EU and OECD regulations. Cyprus is a low tax jurisdiction, not a tax haven, and its fiscal and regulatory regimes and legislation are fully aligned with the EU’s acquis communautaire.