The globalisation of economic activity and the ever tighter tax regulations of developed economies make the search for the ideal financial centre increasingly more difficult. It has long become apparent that tax havens have failed to meet the objectives of serious international investors. Such havens may not impose tax themselves but do very little, primarily due to the lack of a double tax treaties (DTTs) network, to reduce the global tax burden of the investor.
To the contrary, from the very beginning Cyprus has fundamentally differentiated itself from such havens. Whilst introducing, back in the 60s and 70s, a series of sophisticated financial and other incentives for the international investor, Cyprus has embarked on a policy of entering into DTTs. By Panicos Kaouris, Vice President of the tax committee of the Institute of Certified Public Accountants in Cyprus.