Russian businesses and Entrepreneurs alike have always been interested in Cyprus as a business centre, mostly due to its tax regime, with double taxation agreements included, European Union membership, and Russian amiability, a study has found.
Russia Doing Business in Cyprus 2017: Measuring Quality & Efficiency reported that 85% of surveyed Russian companies explained their biggest reasons for relocating to the island were in no particular order:
- The friendly tax regime and stability of its tax legislation.
- The wide range of double taxation agreements with other countries.
- Its membership to the European Union.
- The exceptional professional and legal services offered in the country.
Additionally, the consultant firm also stated that 53% of the survey participants were thankful that Cyprus provides a great amount of businesses offering professional services in Russian, whereas 65% responded that Russian speakers are also easily found.
The survey found that 1% of Russian-held businesses are based in Larnaca, 29% in Nicosia and more than 69% are located in Limassol. Over 50% of Russian enterprises started their business in Cyprus ten years ago or less; with 19% of Russian companies operating in the area of investment, exchange and brokerage, 9% in real estate and construction, 9% accounting, and 8% in software or and IT related field.
Drawbacks of Doing Business in Cyprus
Out of ten companies, four or more said bureaucracy was a drawback and close to a third were dissatisfied about the current status of the banking system. Moreover, the majority of complaints were towards:
- The department of immigration.
- The land registry.
- The town-planning department.
The research was conducted for the Cyprus-Russian Business Association, a group that has several renowned Russian Politicians within it.
One of the board members stated that as Russian companies continue to become an ever expanding part of the country’s economy, the results of this research assist on specifying the main concerns and likely problems Russian companies are facing on the island, however generally speaking, business is booming.
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