Countries

Cyprus was historically Russia's financial entrance into the European Union taking receipt of the majority of that business following Malta's introduction of stringent Anti-Money Laundering (AML). The main products offered were 10% companies and it had recently introduced a scheme for reducing the VAT on the import of pleasure yachts in the EU. In any case Cyprus' economy recently collapsed following that of Greece and talks are underway regarding bailout options which look likely to include the freezing of funds in Cyprus and a flat rate taxation on balances held there.

Gibraltar is a small peninsula attached to the South of Spain at the top of the entrance to the Mediterranean. It remains British despite ongoing sovereignty claims from Spain. Gibraltar is a tax haven offering 0% tax companies (the situation is in effect that all companies pay 10% unless they have no real presence in Gibraltar, as is the case for the vast majority). Gibraltar enjoys a special relationship in being a member of the EU based on its connection with the UK but with a very beneficial tax regime and does not have VAT.

Luxembourg enjoys an excellent international reputation as one of the founder members of the European Union and home to the European Court of Justice (ECJ). It however suffers somewhat from its reputation as an overly bureaucratic country with an unduly complex and esoteric tax system. Luxembourg retains its historic position as the financial services capital of Europe and a centre of excellence for the fund industry despite some recent concerns about the adequacy of its consumer protection provisions.