Cyprus: A gateway for Russian investments 2014
Through the years, Cyprus and the Russian Federation have developed very strong ties and cooperation bonds in areas such as economic, political and social. From an economic view the comparative advantages Cyprus has to offer as an International Business Centre combined with the favourable Double Taxation Avoidance Agreement (DTAA) in force between the two countries, have made Cyprus the favourite jurisdiction of choice for investments in and out of Russia. Consequently Cyprus has for many years been the top investor country into the Russian Federation.
Recently the two countries have signed a protocol to the Russia – Cyprus DTAA, which has been ratified by both parties and became effective as from 1st of January 2013. The new protocol along with the removal of Cyprus from Russia’s so-called ‘black list’ of jurisdictions, which came on the 1st
January 2013, improves and extends the already excellent financial and business relations shared between the two countries. With the new treaty Cyprus intends to maintain its position as one of the most advantageous jurisdictions for routing investments and other transactions in and out of the Russian Federation, and provide a new and stable tax environment for years to come. Under the new treaty many benefits are offered by Cyprus to the Russian business world and the international cross border business.
We have prepared this publication for the use of clients, partners and staff of Typographos & Co Lawyers. It is intended to provide some general information and guidance on the benefits of structuring Russian inbound and outbound investment through Cyprus. We will start by providing information on Cyprus in general, outline Cyprus’ benefits as an international business and investment center, introduce Cyprus’ new DTAA with Russia and finally provide examples of how structuring through Cyprus can be effected.
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