During the last decade, Cyprus seems to be involved in a balancing act, trying to mediate its relations with both Russia and the US without isolating either party (or for fear of being isolated by either party). Cyprus has been accused of trying to have its cake and eat it too; but is this true?

To what extent are the claims true, and what are the consequences of trying to stay everyone’s friend?

Cyprus has always been a favourable destination for Russian businessmen. CIS countries have always advocated the island’s advantageous settings in essence: its low tax rate and historically loose supervisory framework.

Russians quickly started to see Cyprus not just as a place to do business and store cash; but finally, as a new paradise both for vacationing and for permanent relocation. As a result of this new business dynamic, the entire structure of the country’s economy shifted. The services sector kept growing, with more Accountants and Solicitors qualifying than ever before in recent years.

For more information on the benefits of Cyprus as a jurisdiction, click here.

If it Seems to Good to be True, it Probably is

With this new-found economic invigoration, the real estate sector also began seeing the benefit of Russian investment. Seemingly, business was booming in every sector in Cyprus. However unsurprisingly, issues regarding reputability arose. Cyprus soon joined the tax haven paradise club, which undoubtedly hurt its credibility as a reliable jurisdiction.

Over the last five years, the Cyprus government and many providers in the professional services sector have launched collective efforts in order to redeem the country’s reputation, and thus remove directly from the source of evil: the cash. Banks and lenders had no choice but to follow suit, suspending any accounts that could be directly and indirectly related to money laundering.

 

Dependence on the US Dollar

Most Cyprus lenders only have one international bank to correspond for transactions in USD. If any of these banks were to leave their partnership, then the country’s banking system will have to find entirely new routes to be connected to the global economy.

Cyprus lenders and the Central Bank of Cyprus understand the seriousness of getting on the wrong side of FATCA. This is the reason they have started trying to convince international regulators and banks that the Cypriot banking system is making huge progress to this end.

This effort coincides with the US authorities being extra sensitive and reactive to the business relationships countries have with known Russian HNWIs, especially ones on the the US Department Treasury’s Offices sanction lists.

Cyprus is now trying to balance its relations with the US and Russia, while at the same time being a member of the EU: a political tango that if not handled in the correct way could have consequences for the island’s reputation as a dependable business hub.


 

Comments

xing

November 13 07:46

来看看,因为,总能学到东西!

daxi

October 31 01:46

学无止境,认真拜读!

Scuba Diving in Cyprus: Best Spots & Average Prices - Expand Your Property World

October 12 11:49

[…] The Chapel, Protaras […]

Scuba Diving in Cyprus: Best Spots & Average Prices - Expand Your Property World

October 11 09:26

[…] Polis & Latchi, Paphos: Cyprus Travel Series […]

Scuba Diving in Cyprus: Best Spots & Average Prices - Expand Your Property World

October 11 03:30

[…] The Zenobia Shipwreck, Larnaca […]

Scuba Diving in Cyprus: Best Spots & Average Prices - Expand Your Property World

October 11 03:30

[…] The Best Spots for Snorkelling in Cyprus […]

The Selling or Disposal of State Land in Cyprus: Definition & Practice - Expand Your Property World

October 06 01:05

[…] disposal of state land is regulated by Cyprus Immovable Property Legislation, and can only be carried out after being presented before the Cyprus Council of Ministers. The act […]

Using Mirror or Mutual Wills to Dispose of Property in Cyprus - Expand Your Property World

October 06 01:05

[…] Notwithstanding, a Cyprus resident can dispose the whole of his property by way of a gift to anyone he wishes to without any restrictions. It is natural and reasonable for a person to keep property while he is alive. Maintaining or keeping property is preferable since, if it is disposed, it changes hands and afterwards it belongs to others. Consequently, more and more people prefer to dispose of their property through a will. […]

Sacred & Religious Day Trips in Cyprus - Expand Your Property World

October 04 04:09

[…] For more information on Kykkos Monastery, click here. […]

The Best Spots for Snorkelling in Cyprus - Expand Your Property World

October 04 03:51

[…] Read more about Cape Greco here. […]

The Best Spots for Snorkelling in Cyprus - Expand Your Property World

October 04 03:51

[…] Polis & Latchi, Paphos: Cyprus Travel Series […]

Polis & Latchi in Paphos, Cyprus Travel Series - Expand Your Property World

October 04 03:14

[…] Polis/Latchi side of the island has the most picturesque and truly unspoiled beaches. Lara bay on the Akamas peninsula is sandy and spectacular however requires more effort to reach and either a […]

Polis & Latchi in Paphos, Cyprus Travel Series - Expand Your Property World

October 04 02:57

[…] favourite place for some snorkelling in Cyprus is Aphrodite’s Baths near Latchi on the Akamas coastline. The Akamas is the only large unspoiled coastal area remaining in Cyprus and one of the very few […]

Sacred & Religious Day Trips in Cyprus - Expand Your Property World

October 04 08:39

[…] Larnaca: the Understated Tourist Destination in Cyprus […]

Larnaca: the Understated Tourist Destination in Cyprus - Expand Your Property World

October 04 08:39

[…] addition to the notorious Salt Lake, Larnaca has many interesting places, among which it is highly recommended seeing Larnaca Castle. […]

Foreign Loan Repayments to Cyprus Banks & Currency Fluctuations - Expand Your Property World

September 28 05:25

[…] recently issued a judgment demonstrating the precedent that the Cyprus courts will take for the remaining pending disputes among lenders and borrowers on the island regarding credit agreements and loans being lent in […]

藏阴套图网

September 20 03:16

认真拜读,好为学徒!

Cyprus Golden Visa Restriction: Update - Expand Your Property World

September 19 12:30

[…] previously mentioned earlier this year, Brussels is planning to restrict EU countries including Cyprus giving citizenships to wealthy […]

Cyprus Food: What Can You Expect From the Local Offering? - Expand Your Property World

September 17 07:06

[…] meze typically includes most Cyprus specialties, principally halloumi cheese, village salad, a selection of red meats such as lamb, […]

Personal Taxation Rates for Residents in Cyprus - Expand Your Property World

September 17 07:05

[…] income and tax is levied on all income arising from sources location both within and outside of Cyprus, […]

Larnaca - Under the Sea - Expand Your Property World

September 17 06:41

[…] addition, Larnaca is home to the famous Salt Lake which inhabits the island’s prized flamingos. The lake also welcomes many visitors in the winter […]

Larnaca - Under the Sea - Expand Your Property World

September 17 06:41

[…] mountainous parts of Larnaca extend up to the Troodos range with lots of little villages which continue to practice skilled handicrafts. One of the most […]

Kakopetria Village, Solea Valley- Troodos - Expand Your Property World

September 17 06:40

[…] It is a popular summer resort, due to its charming character and breathtaking scenery of pine forests and rivers that stretch across the Karkotis Valley. As such, it is ideal for agrotourism and beautiful nature walks. […]

The Blue Lagoon- Akamas - Expand Your Property World

September 17 06:40

[…] places and is very popular for off the road drivers. It is known for its wildlife especially the turtles at Lara Bay Beach. The Blue Lagoon boasts the most incredible and beautiful crystal clear turquoise waters to rival […]

The Rise in Organised Crime & Robberies in Cyprus - Expand Your Property World

September 17 06:39

[…] Nicosia has also been having news headlines typical of what you would see in larger cities, as a 29-year-old man was imprisoned by the Nicosia court for eight days on Saturday in connection with the death of an 80 year old retired teacher, who was found gagged and tied up in her home in last month. […]

Using a Cyprus Investment as a Special Purpose Vehicle - Expand Your Property World

September 17 06:39

[…] the standard in global taxation is that a business is taxed mainly in its determined country of residency. The issue arises in establishing principles and conditions to decide taxation residency as the […]

Do you Qualify for the Cyprus Energy Saving Grant? - Expand Your Property World

September 17 06:38

[…] Cyprus Ministry of Energy opened the second call for applications for existing homes belonging to permanent residents within the Republic of Cyprus as long as they have a Planning permit application starting before 21/12/2007. The application […]

How to Protect Your Immovable Property Rights in Cyprus - Expand Your Property World

September 17 06:38

[…] Property have legal experts on hand to provide assistance with any property or land matters in Cyprus. Contact us for more […]

Renovating Unlicensed Property or Land in Cyprus - Expand Your Property World

September 17 06:38

[…] and in progress, with on-going work being completed when the permit expires. As long as the town planning permit is valid, the construction must have started and left incomplete […]

Cyprus Property Owners to be Notified of Any Significant Change in Property Value - Expand Your Property World

September 17 06:37

[…] was passed by a unanimous vote in Cyprus Parliament and is relevant for the following areas for property ownership, maintenance & general […]

The Announced Amendments to the Long-Awaited Cyprus NPLs Bill - Expand Your Property World

September 17 06:37

[…] Property have legal experts on hand to provide assistance with any property-related loans in Cyprus. Contact us for more […]

Cyprus Rent Control Legislation: Communal Charges - Expand Your Property World

September 17 06:37

[…] definition of the term ‘rent’ or 'lease'; according to legislation in Cyprus, must involve a situation where a contract is signed for an […]

Oleastro Olive Park, Anogyra Village - Expand Your Property World

September 17 06:37

[…] visiting a Mediterranean island such as Cyprus that focuses so heavily on olive oil in its cuisine and culture, a great day trip while visiting would be to stop in Oleastro Olive Park in Anogyra. A Cypriot […]

Important Changes to the Cyprus Foreclosure Bills (NPLs) - Expand Your Property World

September 17 06:36

[…] Property have legal experts on hand to provide assistance with any property-related loans in Cyprus. Contact us for more […]

948

August 26 06:40

三天两头过来看一看,每次看完都有新体验!

大喜

August 17 06:27

这里真心不错,每次来都有新收获!

闺房独自乐

July 14 02:12

炎热的夏天,看到这样的博客瞬间清凉了许多!

948ooo

July 11 07:36

YE! This Is A Good Blog!

爱就爱啦

July 05 05:56

从百度点进来的,学习学习,呵呵!

爱就爱啦

July 03 06:45

从百度点进来的,学习学习,呵呵!

948

June 22 01:15

炎热夏天,闲来无事,拜读博客,消暑解闷!

kitty23

June 18 06:17

第一次看,感觉还挺新鲜!

Post-Brexit: Healthcare & Travel Rights for Expats in Cyprus - Expand Your Property World

June 14 02:23

[…] UK National Living in Cyprus: What Next as Brexit Approaches? […]

藏金网

June 07 03:21

这个博客就像一座宝藏,我是来掘金滴!

巨根增大网

June 03 12:55

让人百看不厌的博客,真的不是很多!

巨根增大网

June 01 07:28

让人百看不厌的博客,真的不是很多!

Kakopetria Village, Solea Valley- Troodos - Expand Your Property World

May 23 09:16

[…] Kakopetria, there is church Agios Nikolaos tis Stegis is a UNESCO World Heritage Site along with other beautifully painted churches in the region. The church is the only surviving […]

巨根增大网

May 22 09:18

人不学不知义!特来学习学习!

siwei

May 11 07:22

一个博客能让人流连忘返,讲真,靠的是实力!

admin

May 30 09:57

1063 total Then on NB5672 we have 1070 its eqaul +- 2500 properties

Read also