Clients from East Europe
An ever-increasing number of western companies are expanding their activities across their borders. Their success depends on obtaining timely and relevant information regarding the market in which they wish to expand. On the other hand, organisations operating in countries which are relatively less stable and with limited resource capital markets such as east Europe, experience difficulties in realising their growth potential. They are not in a position to expand their activities or create optimal structures as they lack access to cross-border markets and international finance.
We assist businesses moving in both directions. We have been advising clients operating in east and central Europe for more than fifteen years. We have advised businesses entering east European markets and east Europeans on their expansion plans into Europe and the USA, Canada etc. We consult companies to reorganise their business, create tax efficient structures, secure finance, business plans and bring to them our knowledge of different business environments.
During the past twenty years, Cyprus has established itself as a major financial centre for inward investments in Russia, central and east Europe. This is due to an excellent infrastructure, geographic location, strong cultural links and last but certainly not least a comprehensive treaty network with all the major countries in the region. It is no wonder that Cyprus tops the country lists for inward investments in Russia, the Ukraine, central and east Europe countries.
Few treaties in the world have lower withholding tax rates for dividends and interest than the Cyprus treaties. In the case of Russia, none of its other treaties provide for lower rates when one takes into account the Cyprus corporate tax rate. Royalties, interest and payments to Cyprus entities from Russia would ensure minimum overall taxes – both withholding and at Cyprus level. Further, the profits can either be accumulated in Cyprus or be re-invested within the group or be paid as dividends without any additional tax.