In an exercise purely designed to maximise profit and limit outgoings, rather than pay the higher rates of tax required of them within the countries that they do the majority of their business, large companies and banks will instead locate areas that are seen as ‘tax havens’ – keeping as much of their money for themselves as possible. While that may seem like an understandable business decision on the face of it, these are controversial measures, with some companies facing backlash and protest over their lack of support for the economies from which they profit. Cyprus, of course, is far from alone in operating in this manner and is amongst other popular destinations for businesses looking for tax relief.
Finance companies have more than just tax benefits to consider in Cyprus, however, with many Forex companies basing themselves out of the country too. While the likes of OANDA remain based in North America, many other businesses have been drawn by their EU membership, MiFID, busy financial sector, reliable internet and telecoms infrastructure, lifestyle and existing skilled workforce.