Cyprus: The financial sector is stabilizing

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Cyprus: The financial sector is stabilizingThe President of the Eurogroup Joeren Dijsselbloem has told the Committee on Economic and Monetary Affairs of the European Parliament that the state of Cyprus’ economy is much better today than original expectations and the financial sector is stabilizing. He also noted that although the economic adjustment program in Cyprus was at an early stage, there had been considerable efforts in the area of reforms and the recapitalization of the financial sector. Due to economic and financial crisis a cost of incorporation and maintenance of a Cyprus offshore company is at the rock bottom. In fact, it is close to the cost of incorporating a classical tax haven offshore company. Cyprus has 12.5% corporate tax rate, no CGT except for Cyprus based property, no tax on shares and securities, no controlled foreign entity rule, etc., that makes Cyprus an attractive place for international tax planning. Cyprus banking sector is recovering gradually from financial crisis that happened in March 2013. Opening a Cyprus bank account is a good option now.