Cyprus has many advantages to offer as a maritime centre. It has a well established maritime infrastructure and offers substantial tax incentives for the shipping industry. Also, it is a member of the International Maritime Organisation (the “IMO”), the Council of Europe, the Commonwealth and many other international organizations. It is a signatory to many international maritime conventions and has concluded bilateral agreements of co-operation in merchant shipping and double tax treaties with a large number of countries. A significant number of Cyprus vessels are managed by ship management companies operating from fully manned offices on the island.
Cyprus has created the perfect environment within which to incorporate a holding company, either as an intermediate holding entity or as an ultimate holding company. Benefits to note include the fact profit from the disposal of securities is exempt from Cyprus tax, irrespective of whether this profit forms part of a company’s trading activity or is of a capital nature. There is no capital gains tax on disposal of real estate or other assets situated outside Cyprus and no time restrictions on carrying forward tax losses and the existence of group relief for utilisation of tax losses.
Over the last quarter we have been participating in notable deals, most of all because of their level of complexity over the last quarter. For confidentiality purposes, we cannot disclose this kind of information. Aczalaw, more and more each day, is one of the Central American Law Firms that is always being considered to represent this kind of deals, mostly because of our experience in the region, capacity to handle these kinds of transactions in intense time schedules, and our competitive tariffs.
With its strategic location, great accessibility, excellent infrastructure and the numerous government incentives, Cyprus is an ideal financial and business hub. Investments of European origin have to comply only with certain restrictions such as among others, respect for the environment and safety standards. With Cyprus’ EU accession, dividends paid to Cyprus from other EU countries have no tax withheld in those countries.
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Christodoulos G Vassiliades & Co. LLC, established in 1984 and based in Nicosia, Cyprus, is a broad based legal practice entrusted by major corporations with their legal matters. The firm is internationally acknowledged to be one of the leading law firms in Cyprus and is viewed as a pioneer in its field.
Christodoulos G. Vassiliades & Co. LLC, established in 1984 and based in Nicosia, Cyprus, is a broad based legal practice entrusted by major corporations with their legal matters. The firm has developed expertise in both domestic and international law to private and corporate clients in the corporate, intellectual property, trust, mergers and acquisitions and commercial legal fields and has grown into one of the most reputable law firms in Cyprus. ACQ spoke to Mr Christodoulos G. Vassiliades, the Managing Director.