According to a survey published by the EY accounting firm, Russian businesses are attracted to Cyprus due to its competitive tax regime which includes EU membership for their subsidiary company; double taxation treaties and Russian-friendliness.
The survey entitled Russia Doing Business in Cyprus 2017 – Measuring Quality and Efficiency, states that 83% of interviewed Russian enterprises “commended Cyprus for the friendly tax regime and stability of its tax laws”. They also praised Cyprus’ vast range of double taxation agreements with other countries, its European Union membership and the remarkable legal and professional services in Cyprus.
It has also been said that 53% of participants stated that they appreciated that Cyprus offers a wide number of companies that conduct professional services in Russian. This was alongside 65% of respondents who said that they could find Russian speakers to employ.
The report also detailed that more than 69% of the Russian-owned companies were based in Limassol, 29% in Nicosia and 1% in Larnaca. Following this, the EY survey highlighted that 19% of Russian companies in Cyprus operate within the investment, exchange and brokerage sector.