Cyprus is situated in the north eastern basin of the Mediterranean Sea at the crossroads of three continents: Europe, Asia and Africa. The strategic location of the island is an important factor that has contributed to its development into a major International Business Centre.
On 1 May 2004 Cyprus joined the European Union as a full member. The Country’s legislations, including its tax legislation, is harmonised with the European Union directives and guidelines as well as OECD requirements against harmful tax practices.
On the 1 January 2008 Cyprus adopted Euro as its unit of currency and entered the Euro zone, further confirming the country’s macro-economic stability.
Cyprus has developed as a competitive business centre offering excellent professional services, maintaining a high standard of telecommunication services as well as havingfrequent air connections to and from the island. These factors combined with the favourable tax regime maintain and enhance the competitiveness of Cyprus as a financial centre.
Over the past twenty years, Cyprus has established itself as the main financial centre for inward investments in Russia, Central and Eastern Europe. This is mainly due to its excellent infrastructure, geographic location, the strong cultural and political ties it has with this region and most importantly its comprehensive treaty network with all the major countries in the region. The reputation of Cyprus as a holding company location has increased substantially following its accession to the EU. As a result, it is fast becoming the preferred holding company location for inward and outward investments in the EU and other countries.
