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Cyprus taken off the blacklist
In a statement issued on October 31st 2012, the Russian Ministry of Finance confirmed that Cyprus had been removed from its blacklist of tax-haven jurisdictions. This step by the Russians came about as a result of the protocol signed by the two countries on October 7th 2010 on the signing of an agreement for the avoidance of double taxation between them. This is an extremely important decision for companies registered in Cyprus. From now on Cyprus can more freely advertise the tax benefits enjoyed by companies registered there. As we have mentioned several times in earlier editions of the LAVECO Newsletter, the Cypriot tax system offers very favourable possibilities for the arrangement of international investment and holding companies. Cyprus was already popular among both Russian and other foreign businessmen, as even now it is the number one investor in Russia. The amount invested in Russia through Cypriot companies is more than 70 billion euros.