Cyprus has been one of the most favourable jurisdictions for the Russian market primarily because of its strong judicial system which is based on the Anglo Saxon system. Following Cyprus accession to the European Union in 2004 the Constitution was amended so that European Union Law has supremacy over the local Constitution and laws and regulations. This strengthens the comfort our international clients have when conducting business in Cyprus as they can settle any disputes to the European Court of Justice if they want to challenge the local courts decisions.
It is no wonder why Cyprus companies (of Russian interest) have the biggest direct investment in Russia. Coupled with Cyprus judicial system Cyprus has and favorouble double tax treaty with Russia it is no wonder why Cyprus is the preferred jurisdiction by many Russian origin businessmen.
Consequently, the Russian market comprises a fair portion of our portfolio. In addition, since the introduction of the “non-dom” status, i.e. the non-domiciled status which is a special tax status for worldwide tax free dividends, more and more Russian clients are relocating to Cyprus to take advantage of the Special Tax Benefits offered to them as well as to use their Cyprus Companies without any international restrictions.