UK financial institutions and other companies seeking to relocate their HQs to Cyprus in light of Brexit, will find it’s easy to do – so it’s business as usual in the EU.
Recent reports based on data from the Bank of England, the WEO, the IMF and other calculations, show the impact of Brexit on the UK and the EU. All in all, Cyprus views any relocation of UK companies, financial institutions and foreign investment companies to its country, very favourably indeed.
There’s no doubt that now is the time for UK companies to take action, if they wish to continue their EU trading activities without serious interruption.
Sterling does not seem to have been affected for long periods but recent reports have now down-graded the UK's economic growth. This, together with the fact that companies are looking to secure their contingency plans following the triggering of Article 50, means that alternatives are being sought to enable companies to maintain their trading operations under the umbrella of the European Union.
Cyprus is currently a very popular choice for UK company relocation within the EU as it offers:
The word 'Brexit' is the Collins dictionary word of the year in 2016. It has become synonymous with the United Kingdom leaving the European Union, including all the pros and cons of the argument. The UK is the first country to do so, 40 years after it joined. Back then it was trying to convince the French to let it join the EEC. A few years ago, on an overseas trip to Brazil, the then Prime Minister, David Cameron, said in a speech: "Come to Britain and you can sell to the 320 million consumers across Europe." Sadly, of course, this is no longer the case as Britain voted to leave the EU in 2016. Fortunately, for British companies seeking to re-establish the status quo, they can now relocate their HQ to Cyprus, leveraging a very favourable relationship as Cyprus' second biggest trading recipient, receiving approx. 7 per cent of Cypriot exports, the bulk of which is in services (approximately 20 per cent of the total). Although further devaluation of sterling could possibly make such exports less attractive and travel costs for British holiday-makers could also rise, affecting the Cypriot economy even further as it is heavily dependent on tourism.
All in all, the significant corporate benefits of establishing an office in Cyprus and Cyprus’ keenness to continue to maintain close relations with the UK, makes it now top of the list in Board room discussions concerning UK companies’ plans on how to carry on conducting business within the EU after March 2019 when the UK must cast off again and become an island once more.
Worrying times for those left behind but it needn’t be for those companies embracing all that Cyprus has to offer as outlined here.
Marinos D. Marinou studied Accounting & Finance BA (Hons) at Liverpool John Moores University where he graduated in 2011 with a 1st class degree and an average mark of 81%. Subsequently he moved on to pursue the professional qualification of a Chartered Accountant (ACA) with BDO Cyprus where he gained valuable experience as part of the audit and tax team.
Since 2015 Marinos is specialising in International Tax Planning and in 2017 he has become a member of the International Tax Planning Association (ITPA) attending various conferences throughout the world. At the same time Marinos is attending lessons and undergoing exams for qualifying as a Certified Fraud Examiner (CFE) and has successfully passed CFE Level 1.
Marinos is currently the head of the International Department at D. Marinou & Co Ltd specialising in Corporate services, Company structures and tax planning. His core principle when advising clients is that the tax advice shall adjust on clients’ demands and not vice versa.