Dubai, November 2007 Cyprus post EU accession The ideal investment destination Phidias K Pilides...

Dubai, November 2007

Cyprus post EU accessionCyprus post EU accessionThe ideal investment destinationThe ideal investment destinationCyprus post EU accessionCyprus post EU accessionThe ideal investment destinationThe ideal investment destination

Phidias K PilidesPresident - Cyprus Investment Promotion Agency (CIPA)

Phidias K PilidesPresident - Cyprus Investment Promotion Agency (CIPA)

CIPA Dubai – November 2007

Cyprus Investment Promotion Agency (CIPA)

• Recently established

• A company limited by guarantee

• Only member – the Government of Cyprus

• Sponsored by the Ministry of Commerce, Industry and Tourism


Cyprus Investment Promotion Agency (CIPA)

• 11- member Board of Directors

- 8 from private sector - 3 from public sector

• In the process of recruiting permanent personnel


CIPA objectives

• Promote Cyprus as an international investment centre

• Support foreign investors

- accurate information on incentives and procedures - after care development services

• Submit proposals

- improvement of the regulatory environment - enhancement of the competitiveness of the Cyprus

economy


What do you want from your international structure?

MAXIMUM AFTER-TAX RETURN


So, what you need is…

• Low tax environment for- International holding- International operations- Cross-border transactions and distributions

• Political, legal and tax systems that are- Stable- Reputable- Sophisticated and experienced

• The right location and time zone- Good communications- Developed business services- Confidentiality


Low tax environment

• The lowest effective tax rates in the European Union• 10% headline corporate tax rate, but…• Foreign source income generally tax exempt• Generous tax deductibility rules reduce effective tax rate

• Profits on securities transactions tax exempt• No withholding taxes• Tax free exit• EU tax directives apply

- Parent / Subsidiary- Interest & Royalties- Reorganisations

Cyprus has for you…


Low tax environment

• Wide network of more than 40 favourable tax treaties, including China and India

• Cyprus extensively used for:

- Inbound investments in India• Real estate structures• Financing structures

- Outbound investments from India• Investments in EU



Low tax environment

• Most international transactions free of VAT

• Low personal tax regime Top rate 30%

• OECD approved / EU compliant system

• A tax administration that wants to help foreign investors


A stable political and legal system

• More than 40 years as a Parliamentary democracy

• Very good relations with neighbouring countries

• European Union membership since 1 May 2004

• English style legal & accounting system operating for 130 years

• Independent courts applying precedents

• Sophisticated legal & accounting professions- Internationally trained- Internationally experienced



The right location

• Strategic location for both Europe and Asia• A thousand years of commerce with Europe and Middle East• A Mediterranean climate with an international culture• Excellent telecommunications and air services• Space to live, build and expand• A culture and government sympathetic to expatriates



Developed business services

• International quality financial and business services- Banking, tax, business administration, legal, trustee, investment and brokerage

• An active Stock Exchange

• An active Securities and Exchange Commission

• Highly educated and skilled human resources- Internationally qualified and experienced- High standard of living – low cost of living



Developed business services

• 30 years experience as a centre for- International business services- Finance - Shipping- Trustee services

• A tradition of confidentiality, with legal support• Authorities who want to help your business thrive in

Cyprus



Further investment opportunities

• Access to government and EU funds- Research and Development- Innovation- New technologies in energy and transport sectors

• Opportunities for local projects- Tourism (health/medical, marinas, golf courses)- Larnaca free zone

• Citizenship for foreign “significant” investors in Cyprus



The complete solution!

• Low taxation• Impressive network of double tax treaties• Access to EU tax directives• Access to EU grants and subsidies• Strategic location• Sophisticated infrastructure• Unsurpassed experience in International Business

Services• An environment friendly to European business



Investor

Cyprus

Investee

EquityDebt

IntangiblesPeopleGoods

Securities

DividendsInterest

RoyaltiesService Charges

Sales Margin

EquityDebt

IntangiblesPeopleGoods

Securities

DividendsInterest

RoyaltiesService Charges

Sales Margin

Cyprus

You can do all of these… and more!


Following accession to the EU

• OECD Approved

• EU Member

• Tax legislation reform maintains

Cyprus’ competitiveness as a

reputable international financial

centre

• Access to EU grants and subsidies

• Adoption of the EURO as from 1.1.2008

• Cyprus accession to the EU creates

a multitude of structuring opportunities

for inward and outward investments

Thank you

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Dubai, November 2007 Cyprus post EU accession The ideal investment destination Phidias K Pilides...

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