Cyprus Banking / Financial Crisis and Solutions

Nicosia, 28th March 2013

Special Update

Cyprus Banking / Financial Crisis, and Solutions (Set up New Malta Companies or Open Bank Accounts of a Cyprus Company in Malta, Switzerland, Hong Kong or Dubai)

Special – Brief – Update for Clients and Associates

1. The present update is not final, but an interim and short update as changes are taking place daily and have not reached the final stage. It goes without saying that you will receive IMMEDIATE update from us when the changes are FINAL as well as full, accurate and unbiased guidance which protects your interests.

2. Before the release of our final update the major issues are:

– Banking System: At first the stabilization of the banking system and the finalization of the changes/measures during the next days following the shock from the closing of Laiki Bank and the haircut on large deposits at Bank of Cyprus (the final official amount of the haircut on deposits above €100.000 is still pending)

– Tax Regime: The signing of the final memorandum and its ratification by the House of Representatives which, according to Troika’s statements, will take place the latest within two weeks from today. The draft bill to date maintains all the tax benefits of Cyprus for foreign investors and does not contain substantial-negative-changes to the tax regime concerning international business companies except the increase of the corporate tax from 10% to 12.5% which is a negligible change. It does not take into consideration the additional increase of tax burden to businesses due to the extent of the “haircut/loss” of business deposits and the importance of international investors as a percentage of the GDP (46%)

– Conclusion – Cyprus company with bank accounts outside Cyprus: It seems that Troika allows Cyprus, at least at this point, to continue as an international business centre with powerful tax benefits for attracting international investors BUT…Not a banking/financial sector center which attracts the available bank deposits of the said investors (like in the Seychelles which is under the supervision of the IMF the last years but with important tax benefits)

– …in other words the tax benefits and Cyprus companies are maintained BUT with bank accounts abroad

FIND here the latest update AND the IMMEDIATE solutions we recommend (MALTA COMPANIES OR – TEMPORARILY – BANK ACCOUNTS OF A CYPRUS COMPANY IN MALTA, SWITZERLAND, HONG KONG OR DUBAI)

FIND here the official statement of the governor of the Central Bank of Malta regarding the Maltese banking system and – the important – differences from the Cyprus one … which finds us in agreement and forms the basis theat our firm invested in Malta

FIND HERE OUR MALTA OFFICE WEBSITE