“Cyprus was a breath away from economic collapse. It was a big battle in which we came out wounded, but upright and determined to make a fresh start. The people of Cyprus have sent a strong message… of stability, credibility and change.”
As most of us know, 2013 was a difficult year for Cyprus,
it got into financial difficulties and asked the EU and IMF rescue package,
which was estimated at 17 billion euros. But the reputation of Cyprus as a tax haven
and a place for money laundering was not perfect.
Cyprus eventually received financial assistance around 10 billion euros.
But he had to commit to raising the tax on corporate income from 10% to 12.5%,
and selects the one-time tax of 9.9% on deposits over 100 thousand and EUR 6.75 %
of the lower deposits. It did damage the reputation of Cyprus as a tax haven,
and partially by outflows in other locations.
At present, despite the increase of corporate tax, Cyprus still attracts Czech firms on tax optimization,
international investment protection and greater legal stability, comparing to Czech Republic for example.
Despite all the problems in Cyprus, it still remains the easiest and most stable option in Europe
for enjoying the benefits of foreign companies.
The main disadvantage Cypriot jurisdiction is impossible of its use for purposes of anonymity,
because one of the conditions for granting financial assistance from the EU
to greater cooperation in the exchange of tax information.