Business in Cyprus: realities of 2022

Cyprus has long been a win-win option for many foreign entrepreneurs. A comfortable taxation, a quick registration of a company in Cyprus, an easy of opening an account with a Cypriot bank, a bank secrecy and other advantages made the state an incredibly popular among Russian investors (according to statistics, one third of all foreign investments belongs to Russian citizens).

But, as you know, nothing lasts forever.

Cyprus crisis wave

The first wave of crisis in Cyprus broke out in 2012-2013, as a result of which the banking system was almost completely paralyzed. Those, who previously chose to register a company in Cyprus or to open an account for a company in Cyprus, found themselves in a difficult situation.

During this period, the reputation of this jurisdiction was seriously undermined, which was no longer regarded as reliable.

A rehabilitation period

To restore the banking sector Cyprus allocated 10 million euros from the EU and the IMF. The state undertook:

  • to eliminate the country's second largest bank;
  • to write off debts of banks by creditors in the private sector;
  • to withdraw deposits in excess of 100,000 euros.

Cyprus gradually established the work of banks and for several years tried to regain its former position. The inflow of money from the Russian Federation increased, but literally this year the situation became critical again.

To open an account in Cyprus in 2020

Due to the large-scale fight against money laundering and financial terrorism, classic jurisdictions have come under pressure from the EU and the United States. Now, businessmen, who were interested in registering a company in low tax jurisdictions, are having difficulty opening a corporate account in Europe, Asia and other regions. This is due to the fact, that banks fear sanctions and prefer:

  • to refuse to cooperate to owners of shell companies;
  • to close existing accounts of dummy companies for good reason;
  • to frozen accounts before receiving a confirmation of the legal origin of funds;
  • to reluctantly open accounts for non-residents.

Speaking about opening an account in Cyprus, a large amount of the capital is concentrated in the country's banks. In 2020, the Cyprus authorities took up seriously checking the accounts of citizens of the Russian Federation.

This happened after the visit of US representatives to the country. It is known, that the delegation from America set stringent conditions for the Cyprus government, regarding assets of Russian investors. Today, Cyprus massively closes accounts of residents of Russia. We are increasingly approached by entrepreneurs, who, realizing the disadvantage of this jurisdiction, seek to transfer business from Cyprus to another country.

A redomiciliation and the withdrawal of money from the country

To date, a redomiciliation is really possible. If you also previously wanted to register a Cyprus company or to open a corporate account in Cyprus, then it's time to think about possible options for re-registering a company or transferring funds to save your assets.

Our company is ready to assist you in process of transferring a company from Cyprus or will suggest a good option for a banking organization for transferring funds.

Analyzing the situation as a whole, understanding all risks and opportunities - we offer our customers real solutions in each individual case. A personal approach is one of the important aspects of your business success. We always recommend storing capital in different banks of different countries to minimize losses.

Summing up, we emphasize the need for accurate and timely solutions. If you need help in transferring funds from a Cyprus bank to another country or accompanying in redomiciliation from Cyprus, YB Case specialists will efficiently solve these tasks.

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