DC MAGAZINE PAGE 1

M A G A Z I N EPublished by the Dutch - Cypriot Chamber of Commerce

2 edition Juli 2008

Your Dutch Cypriotbusiness navigator

Commandaria:‘the apostle of wines’

‘The best medicine is a smile’ Femke Ellens M.D.

The Do’s and Don’ts in Cyprus Business Life: ‘Networking is of paramount importance’

DC MAGAZINE PAGE 2

In this Magazine:3 A word by the Chairman

4 Interview with Femke Ellens M.D. General Practitioner in Cyprus

8 The Do’s and Don’ts in Cyprus Business Life

12 Column: Life in Cyprus (2) - Traffic

14 Tax PlanningCyprus and the Netherlands: A Successful Combination

18 The Top 10 Reasons to Invest in Cyprus

20 Cyprus Wines

22 New Members

Colofon

DC Magazine contains

information about Cyprus

and the Netherlands, and the

activities of the Dutch - Cypriot

Chamber of Commerce.

Editorial StaffSaskia van Griethuizen

Robert Hek

Advertisements and advertorialsFor information about

advertisements and editorials,

please contact us on

info@cypruschamber.eu

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Address the Netherlands:

Singel 23

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Website: www.cypruschamber.eu

E-mail: info@cypruschamber.eu

SubscriptionDC Magazine is freely distributed

amongst members of the

Dutch - Cypriot Chamber of

Commerce.

Head Offi ce Dutch- Cypriot Chamber of Commerce

It is with great pleasure that I bring you the summer

edition of DC Magazine. In it, the focus is on Cyprus as

an interesting location for international business, and

on the way that business is conducted here.

Nayia Morphi, the Managing Director of Amicorp Cyprus,

has provided us with an article she has written about

businesses in which both Cyprus and the Netherlands

play a big part.

In addition, Saskia van Griethuizen, Managing Director of

the Dutch- Cypriot Chamber of Commerce has, with the

help of the Cypriot members of the Chamber, researched

the do’s and don’ts of Cypriot business life. After reading

this article, you will be better prepared for working with

Cypriot partners.

One of my relations referred me to Femke Ellens

M.D, who is a Dutch general practitioner on Cyprus.

A word by the Chairman

This contact has lead to an interview with her for the

magazine, about her work as a doctor on the island.

If you have the misfortune to need medical assistance

while on Cyprus, she is the person you should contact.

As always, we also want to tell you about the more

pleasant aspects of life on the beautiful island of Cyprus.

As well as sun, sea, beaches and a wonderful culture,

the country has some delicious wines, amongst which

is the famous Commandaria.

I hope you enjoy reading this edition of DC Magazine,

if possible while soaking up the summer sun.

Yours sincerely,

Robert HekChairman of the Dutch - Cypriot Chamber of Commerce

Dear reader,

DC MAGAZINE PAGE 4

Interview with Femke Ellens M.D. General Practitioner in Cyprus

Femke Ellens was born in the Netherlands, and studied medicine in Maastricht, which is a beautiful small city in Southern Holland, close to Belgium and Germany. She completed her studies with a once in a lifetime experience: an internship in Ghana (West Africa), where she worked in an HIV Hospital and at a dermatology department. Immedi-ately upon her return to the Netherlands, she started work as a doctor in an emergency department in Den Bosch. As you can imagine, this was a huge change; she went from working in an African Hospital without modern technology, to a brand new facility with all the equipment that a doctor could want and need!

Femke Ellens M.D.

“small pieces of advice can make all the difference”

WHY DID YOU DECIDE TO LIVE AND START UP

YOUR OWN PRACTICE IN CYPRUS?

After the “Africa experience” I’d always planned to leave

Holland again for another adventure. I had already ap-

plied for a job as a doctor in Australia, when an oppor-

tunity to go to Cyprus came up. I visited the country for

three days in February 2004, and it didn’t once stop rain-

ing, which was rather off-putting! I decided to move here

anyway, and so far I haven’t regretted my decision for a

minute.

HAVE YOU HAD ANY PROBLEMS IN ADJUSTING

TO LIVING AND WORKING ON CYPRUS?

Although Cyprus is a member of the European Union, it still

took six months to get my licence approved. It’s a differ-

ent country, and, unsurprisingly, each country has its own

mentality, and differences in its “organisations”… I started

to understand, ‘siga siga’ and accepted that it is the way

that it is. Finally, after six long months my licence was ap-

proved and I could start work properly.

Exterior of the medical pratice of Femke Ellens M.D.

Because I already knew that things weren’t like what I was

used to in Holland, I thought it was important to get an

understanding of the Health System on Cyprus. I worked

for several months at a specialist Cypriot doctor’s private

practice. He taught me everything I needed to know about

how the system works, and the way that patients “want”

to be treated. After some good advice from Froukje (Dutch

General Physician in Pafos), I fi nally opened my own medi-

cal practice in the tourist area of Limassol in 2005.

HOW DID YOU FIND YOUR PATIENTS - THROUGH AD-

VERTISING OR WORD OF MOUTH, AND DO YOU SEE

MORE LOCALS OR FOREIGNERS IN YOUR CLINIC?

The best form of advertising on Cyprus is word of mouth,

which is what people in Limassol like to do! I have a very

diverse patient population: most of them are local foreign-

ers, British, Dutch, German, French, and Canadian etc. Yet

I’m also beginning to see more Cypriot patients, who are

starting to accept my “different” way of working: antibiot-

ics are only necessary for bacterial infections, and a doctor

does have time to talk and so on. I enjoy my work a lot,

and sometimes small pieces of advice can make all the

difference.

CAN YOU DESCRIBE YOUR WORK IN CYPRUS?

The work I do is the same as that of a general practitioner

in Holland. I am the patients’ fi rst line of contact with the

medical profession, which means that I can syringe an ear,

then treat a child with asthma, glue a small cut on a hand,

and end the day by seeing a patient with high blood pres-

sure. As well as my work at the surgery, I’m also the doctor

to a men’s volleyball team, and I provide medical support

to the Cypriot national squash team. So all together: Work

with a big diversity.

DC MAGAZINE PAGE 5

WHAT DO YOU LOVE ABOUT CYPRUS?

In the Netherlands, everything is very well organised

and there are guidelines about how to treat all diseases.

Cyprus is still trying to discover the ideal health system,

and many things could still be improved upon and given

more thought. Of course, the weather is a big positive:

Who wouldn’t like to be able to go to the beach after work

and swim in a warm blue sea?

CAN YOU DESCRIBE HOW THE CYPRIOT HEALTH CARE

SYSTEM WORKS?

Cyprus has two health systems: the National Health Service

and private medical care, rather like in England, I think.

Every big city (Nicosia, Limassol, Larnaka and Paphos)

has a general hospital where all Cypriots can be treated

for free. European citizens can also be treated there without

charge in an emergency. There are also plenty of private

clinics all over the island, where people have to pay

cash (or are covered by private medical insurance). My

experience so far is that the medical care provided in these

private hospitals is well organised and of a good standard.

When you go to the general hospitals, however, it very

much depends on which doctor you see, and how many

hundreds of people are waiting to be seen before you;

it can be chaotic.

WHAT ABOUT YOUR FUTURE?

Good question! I want to stay on Cyprus for a long time.

There are still a lot of things that I can improve on and

expand in my practice. My dreams are to set up a medical

health centre with all kinds of facilities under one roof, and

to become a doctor to a team that is going to the Olympics,

maybe London in 2012...

Femke Ellens, M.D14 Georgiou Av, Andrea Court 144047 Yermasoyia (Tourist Area)Limassol- Cyprus

“I never felt sorry for this decision to move to Cyprus”

Waiting area of the medical practice of Femke Ellens M.D.

“General practitioner: Work with big diversity”

DC MAGAZINE PAGE 7

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The Do’s and Don’ts in Cyprus Business Life

When doing business in a foreign country, it is important to understand the local business culture. What is perfectly normal in one country, can be highly offensive or strange in another. We have, therefore, asked some of our Cypriot members to give us some tips.

BEFORE MEETINGS

To start up a business in a foreign country requires contact

with potential business partners who are native there. In

Cyprus, the best way to get in touch with such people is

through someone you know. Initial contact is then, prefer-

ably, made via email, in which the mutual acquaintance

or referee is mentioned. Once a business relationship has

been initiated, it is important to set up a face to face meet-

ing to strengthen business ties and pave the way for future

collaboration.

There are a number of times during the year when such

meetings are less than ideal; business usually slows down

during the Christmas and Easter weeks, and in August, for

example. In recent years, however, companies engaged

in the services’ sector (e.g. fi nancial, accounting, banking,

legal services) have started to open, even during the tradi-

tionally slow August period.

Once the fi rst contact has been made, and a meeting has

been scheduled, it is important to be aware of the etiquette

DC MAGAZINE PAGE 8

DC MAGAZINE PAGE 9

regarding clothes and punctuality.

The Cypriot business environment

is usually well dressed; business-

men wear a suit and tie despite the

weather, so it is important that you do

likewise.

So far as punctuality is concerned,

Cypriots are not known for their time-

keeping, so if you are running a bit

late this shouldn’t be a major problem.

First impressions are, however, impor-

tant and it is, therefore, best to arrive

on time.

DURING THE MEETING

Before going into a meeting, you

need to know what to expect. In

some countries, business is only done

during offi ce hours, whereas in others,

lunch or dinner time is preferable.

Furthermore, whereas in some

countries questions about another’s

private life should be avoided, in

some cultures it is rude not to ask

these types of questions. Cyprus is a

combination of all of the above; offi ces

are normally the main venues for

meetings, but these are often followed

by a lunch or dinner in a more re-

laxed environment. As Cypriots tend

to be very generous and hospitable,

the fi rst meal is usually paid for by

them. You should, however, at least

try to pay the bill, even after a fi rst so-

cial outing (despite the fact that your

offer will be refused). On a second

meeting, you should insist on paying.

Stinginess is socially unacceptable in

Cyprus!

So far as social conversation is con-

cerned, Cypriots always take a

personal interest in the people they

deal with, and are very family-orien-

tated. Thus, in all meetings, whether

they take place in an offi ce, or during

lunch and dinner, make sure to dis-

cuss both business and social matters.

The extent of such social chatter is,

however, infl uenced by the level of

your acquaintance with another party

and their personal characteristics.

CYPRIOT BUSINESS MENTALITY

Understanding a foreign business

mentality is crucial when conducting

business abroad, since it helps to man-

age expectations. For example, can a

fast delivery of services be expected

or not? Moreover, the infl uence that

age and rank have varies between

countries, and should also be taken

into account.

As in many countries, there is a differ-

ence between the working mentality

in the public and private sectors. Cyp-

riots who operate in the private sector

are usually hard-nosed and shrewd

businessmen, who work extremely

hard, and are focussed on effi ciency,

productivity and the prompt delivery

of services. They are, however, more

laid back than their Western European

counterparts.

“Cypriots are usually very generous and hospitable people”

“Networking is of paramount importance”

DC MAGAZINE PAGE 10

There are further differences between

the public and private sectors. The

latter take a more progressive and

innovative approach to business op-

portunities, while the former are more

conservative and “settled” with respect

to their employment aspirations. They

work a set numbers of hours and are

generally promoted on the basis of

their years of service, qualifi cations,

and who they know, as opposed to

their performances. They also have

complete job security (an employee

would have to be convicted of a crime

to be dismissed). This in contrast to the

private/ offshore sector, where there

is no such thing as job security and

competition is fi erce, meaning that the

levels of service and professionalism

encountered are on an entirely differ-

ent level.

In Cyprus, the infl uence of an individu-

al’s age depends on the industry and

sector in which a company is operat-

ing. On the one hand, older people

are well respected, but on the other,

younger individuals are given op-

portunities to prove themselves within

organisations and grow. Although

rank is an infl uence, it is more impor-

tant for an individual to have both the

actual authority to represent a com-

pany, and in depth knowledge of its

services, structure and management

composition.

Therefore, what is important when

sending someone to Cyprus for a busi-

ness meeting is not so much age or

rank, but whether he or she has the

relevant knowledge and authority.

BUSINESS DEALS

Understanding the real meaning of

yes and no in different cultures can be

crucial. In some countries, saying no

is unacceptable, and a business man

will always say yes, even if he does

not mean it. These types of cultural

differences can lead to major problems

in negotiations about, for example,

signing and following-up business con-

tracts. The following advice about the

business world in Cyprus is relevant.

Although a Cypriot may say that he is

interested in dealing with you, this is

not always the case. Generally speak-

ing, if Cypriots are truly interested in

working with a particular individual

or company, they will do everything

in their power to ensure that the deal

goes ahead, starting with the early

exchange of some sort of communica-

tion. If they are not interested, they

will simply not pursue a matter, even

though they might have looked like

they wanted to during a meeting you

held with them.

Concluding a business agreement

depends on its nature. If it is something

basic, e.g. the formation of a Cypriot

company, instructions can be execut-

ed by any form of communication,

such as an e-mail, fax, or letter. If the

deal involves a sizeable contract, set-

ting up a personal meeting is recom-

mended.

Regarding further agreements, it is

important to develop a sense of trust

and mutual understanding between

all parties. Although Cypriots will meet

their obligations, additional effort is

sometimes needed to make sure that

the agreed time-scale is adhered to.

As in any business deal, it is also

important to always request written

confi rmation of contracts.

A fi nal piece of advice: both business

connections and social networks are

of paramount importance in Cyprus.

Since the business community is

relatively small, reputation, whether

positive or negative is quickly

disseminated by word of mouth!

“ Cypriot business people: hard working, focusing on effi ciency, high productivity

and prompt delivery of service”

DC MAGAZINE PAGE 11

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If you are ready to go the distance – we are ready to take you there.Amicorp (Cyprus) Ltd. Amicorp Netherlands B.V. Telephone: +357 22 504 000 Telephone: +31 20 578 8388Email: cyprus@amicorp.com Email: netherlands@amicorp.com

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DC MAGAZINE PAGE 12

First, second and third on the list is the absence of traffi c

jams! When I arrived, someone told me that as soon as

there are fi ve cars stuck in a queue, a traffi c report will be

broadcast on national radio. Although I listen to Greek

Cypriot radio a lot, I haven’t yet been able to verify this

story, although I suspect it is something of an exaggera-

tion. Nevertheless, you will fi nd that driving in Cyprus,

except perhaps in the big cities, is as relaxing as driving in

the Netherlands… 30 years ago!

Unfortunately, but in line with the relaxed pace of life

here, the speed limit on the motorways is only 100 kmh.

As compensation, police cars always have their lights

fl ashing when they are on speed patrol, which is especial-

ly useful at night, because you can spot them from quite a

distance away.

In any event, the police offi cers are usually very kind.

They hate issuing fi nes, although they will if they have

to, because they have targets to reach. But you can get

lucky. I was once caught driving in the city without my

seat belt and talking into my mobile phone at the same

time. Although both of these things are prohibited, I was

let off with nothing more than a gentle warning.

Life in Cyprus (2) Traffi c

I think the offi cer could see that carrying on

business overseas was stressful enough!

Ronald van de Langenberg email:ronald@psilovouno.com

It is now almost two years since I kissed goodbye to my subscription to monthly speeding fines and my daily irritation about traffic jams, and moved to Cyprus. What a wonderful experience it has been. Of course, I had to make some adjustments, like driving on the other side of the road, but have got so much in return.

Col

um

n

DC MAGAZINE PAGE 13

DC MAGAZINE PAGE 14

Tax Planning Cyprus and the Netherlands: A Successful Combination

Within the last five years the European Union has ballooned to near double its former size in 1995. Twelve new States, cultures and economies have joined to in total 27 EU States. Naturally, the integration of the different tax systems into this economic melting pot has resulted in numerous changes to the Union’s tax map. Newcomers, Cyprus and Malta are today considered significant international tax planning competitors to traditional jurisdictions such as the Netherlands and Luxembourg. This article provides insights and illustrations of how a combination of a Cyprus company and a Netherlands company can yield tax efficient results for cross-boarder income distribution.

DC MAGAZINE PAGE 15

THE CYPRIOT TAX REGIME’S MAIN CHARACTERISTICS

1. Corporate income tax rate of 10%;

2. Dividend income received is tax exempt (subject to non-stringent conditions);

3. No withholding tax on the distribution of dividends, interest and royalties,

irrespective of the location and type of recipient;

4. No taxation on gains from the sale of securities and there is no minimum

holding period, percentage of ownership;

5. No taxation on profi ts from foreign permanent establishments;

6. No taxation on gains from the liquidation of a Cypriot company;

7. A broad network of treaties for the avoidance of double income taxation;

8. Unilateral foreign tax credit relief, irrespective of the existence of a tax treaty;

9. No substance or thin capitalization (i.e., debt to equity) rules;

10. All EU Directives have been fully adopted.

THE PARENT/SUBSIDIARY DIRECTIVE

Under the Parent/Subsidiary Directive EU companies can

pay dividends to other EU companies without any with-

holding tax provided the receiving company holds at least

15% of the paying company for a period of minimum two

years. This results in zero withholding tax on dividend dis-

tributions from the Netherlands to Cyprus subject to these

conditions. Cyprus local law has improved the function,

having removed the holding period and the minimum

ownership percentage, enabling distributions to any EU

company without withholding tax, unconditionally.

CYPRUS AS A TOP HOLDING COMPANY

Netherlands companies have been traditionally used as

holding companies for multi-national groups. However, in

certain cases, for example, where there is no double in-

come tax treaty or where an existing treaty leaves a with-

holding tax, a more tax effi cient ‘exit solution’ will include

a Cyprus company as the top holding company.

As shown in illustration 1, various international companies

can distribute profi ts to a Netherlands BV. The distribution

can be exempt from income taxation in the Netherlands

under the Netherlands’ participation exemption (See

the qualifying factors below). Income can subsequently

be distributed onto the Cyprus company without any

withholding tax, courtesy of the EU’s Parent/Subsidiary

Directive. The income received in Cyprus provided the

company holds at least 1% of the Netherlands BV and the

majority of the income is not of an investment nature (nar-

row defi nition of investment income) would be tax exempt.

Finally, the Cypriot company can distribute the income to

the investor (company or individual) without any withhold-

ing tax, irrespective of the tax residency of the investor or

the existence of a tax treaty.

Investor

0% Dividends

0% income taxCyprus

Company

0% Dividends

Netherlands B.V.

Dividends

InternationalGroup of

Companies

Illustration 1

THE NETHERLANDS PARTICIPATION EXEMPTION

SUMMARY

An exemption from corporate income tax is granted on the

receipt of dividends and capital gains received by a Neth-

erlands company from it subsidiary provided:

There is at least 5% share ownership in the subsidiary; and

The subsidiary is not considered a ‘low taxed portfolio in-

vestment company’.

BV; in the latter case the Netherlands tax rules on the

taxability of interest income should be observed.

ROYALTY STRUCTURE

Netherlands B.V.

OverseasLicensor

Company

Royalty receivable Dividend

Cyprus RoyaltyCompany

10% on the margin

Operating Company

Royalty receivable Illustration 3

In illustration 3, the Cypriot company is used as the re-

licensor of intellectual property. Profi ts realized are taxed

at an effective tax of 10% and are then distributed to the

Netherlands BV without any withholding tax. Where the

10% effective tax rate satisfi es the Netherlands tax rules, the

participation exemption will apply to the dividend income

received from the Cyprus Company. The Netherlands BV

can also act as the licensor of the IP in which case the

Netherlands tax rules on royalty income should be

considered.

THE CYPRIOT PARTICIPATION EXEMPTION SUMMARY

An exemption from income taxation is granted on dividend

income provided at that at least 1% shareholding in the

company paying the dividend is maintained. Additionally,

the paying company must not carry on directly or indirect-

ly more than 50% investment activities which give rise to

investment income or the foreign tax burden suffered must

not be signifi cantly lower than the Cyprus tax burden (not

lower than 5%).

The conditions of the Cypriot participation exemption

are more relaxed than those of the Netherlands. In addi-

tion to the reduced ownership requirement (1% versus 5%

shareholding), Cyprus applies a less stringent “activities”

test, employing a very narrow defi nition of, “investment

income”. Finally, the qualifying minimum tax burdens for

the subsidiary are 5% (Cyprus) and 10% (the Netherlands).

DC MAGAZINE PAGE 16

A “low taxed portfolio investment company” has been

defi ned as one that holds (directly or indirectly) more than

50% of freely available investments and it is subject to tax

on profi ts at an effective rate lower than 10%. Practically, a

subsidiary engaged in fi nance or licensing activities could

be considered a low taxed portfolio investment company if

the effective tax on profi ts is below 10%.

LICENSING AND FINANCING STRUCTURES

A uniform corporate tax rate of 10% is imposed on Cyprus

companies. Net profi ts (e.g., the taxable margin) bear 10%

taxation. The Cypriot rules for the tax deductibility of ex-

penses are similar to those in the Netherlands. As such,

both licensing and fi nancing structures can be established

with a Cypriot ‘SPV’ and a Netherlands BV. The structure

should benefi t from the 10% Cypriot tax rate, 0% withhold-

ing tax on distributions from Cyprus to the Netherlands

and an income tax exemption in the Netherlands under

its participation exemption. Examples of a fi nance and

royalty/license structure are illustrated below:

GROUP FINANCE STRUCTURE

Netherlands B.V. Dividend

Source Loans

ForeignOperatingCompany

ForeignOperatingCompany

CypriotFinancingCompany

10% on the margin

Re-lending

Illustration 2

In illustration 2, the Cypriot company operates as the cor-

porate group’s fi nancing vehicle. Profi ts realized are taxed

at an effective tax rate of 10% and are then distributed to

the Netherlands BV without any withholding tax. Where

the 10% effective tax rate satisfi es the Netherlands tax rules,

the participation exemption would apply to the dividend

income received from the Cyprus Company. Loans can be

either granted by a third company or by the Netherlands

DC MAGAZINE PAGE 17

To illustrate the percentage of shareholding condition, the

structure in illustration 4 should be considered.

Netherlands B.V. 0%

0%

CyprusCompany 0%

Dividend Dividend

Trading Company

Trading Company

Trading Company

≥ 1% but < 5% shareholding

A wholly owned Cypriot company may be placed be-

tween a Netherlands BV and a number of trading invest-

ments where the shareholding in the latter is more than

1% but less than 5%. Assuming that the Cypriot company

would not be considered as a low taxed portfolio invest-

ment company, any dividend income may be distributed

to the Netherlands BV without any tax and should benefi t

from the Netherlands participation exemption. The latter

would not apply if the Netherlands BV owned the shares of

the trading companies directly.

CONCLUSION

The above is a clear illustration that Cyprus and the Neth-

erlands can be combined successfully to accommodate the

needs of the private individual investor all the way to the

multinational corporation.

Nayia Morphi Managing Director Amicorp Cyprus

This article is intended for informational purposes only and does not constitute tax, legal or professional advice. Recipients should not act or rely on any information contained in this article without seeking appropriate legal, tax, or other profes-sional advice on the particular facts and circumstances at issue. Amicorp makes no express or implied representations or warranties or guarantee the completeness, accuracy or timeliness of this information. Your use of this information is at your own risk and responsibility.

Alleen op een eiland? Zeker niet!... ...

Illustration 4

The top 10 reasons to invest in Cyprus1. Strategic Location: Europe’s Middle Eastern Outpost

Cyprus’s strategic location at the crossroads of three continents has been a major factor in shaping its history throughout the centuries and its development into not only a major eastern Mediterranean trading post but also a reputable international business and services centre

Upon membership into the European

Union, Cyprus is being transformed

into a key outpost in the Eastern Medi-

terranean, facilitating partnerships

and serving as the springboard for in-

vestments among Europe, Africa, and

Asia. Providing the perfect gateway

for businesses to penetrate new mar-

kets, Cyprus is a heaven for modern

business.

Cyprus location is further enhanced

by its connectivity to the busy trade

routes linking Western Europe with the

Arab World and the Far East. Specifi -

cally, a wide network of air-routes con-

nects Cyprus with Europe, Africa and

Asia; over a 1.100 scheduled fl ights

per week are served by 32 interna-

tional airlines while a large number

of chartered fl ights are operated by 41

chartered airlines. In addition, about

70 shipping lines include Cyprus in

their regular schedules to and from the

5 continents and 4.800 ships totalling

20 million net registered tons call at

Cypriot ports each year.

Cyprus has become the EU’s key trad-

ing post in the eastern Mediterranean,

providing a point of exchange be-

tween Europe, Africa, and Asia. The

1. Strategic Location: Europe’s Middle Eastern Outpost2. European Union Member State3. Highly qualifi ed and multilingual labour force4. Lowest EU corporate tax rate5. Macroeconomic stability with successful economic performance6. Effi cient legal, accounting and banking services7. Advanced telecommunications network and infrastructure8. FDI track record9. Reputable International Shipping Centre10. Living and working on the “island for all seasons”

island’s location also makes it an ideal

transhipment centre, with Cypriot

companies operating independently

and with foreign partners to ship goods

into and out of the EU via Cyprus.

Unsurprisingly, Cyprus is one of the

key international transhipment centres

with substantial amount of products

re-exported; amounting in 2005 to ap-

proximately €802 million Euros.

DC MAGAZINE PAGE 19

DC MAGAZINE PAGE 20

FROM PAST TO PRESENT

Fashions change however and Cyprus has had to adapt its

wine industry. “Foreign” varieties, like Cabernet Sauvignon,

Grenache, Carignan Noir, Chardonnay and Semillon, have

been successfully introduced in the past 20 years and are

used for blending with the local varieties of Mavro and

Xynisteri, as well as producing small quantities of “varietal”

wines.

In the early 1980’s, the Cyprus government enabled small

enterprises to operate wineries of 50.000 to 300.000 bottles

a year capacity, in the hill villages of the grape growing

regions. There are now more than 50 regional wineries

which are producing more diversifi ed and characterful

wines. The fi rst of these was at Chrysoroyiatissa Monastery

in the Paphos district, whose Monte Roya winery was

established with German technology and equipment,

making a range of good quality wines.

Whilst this exciting development has been taking place,

the four traditional wineries (ETKO, KEO, SODAP and LOEL)

have also been very active. They have planted hundreds

of thousands of new vines of famous international varieties

and re-discovered old Cyprus types. Their laboratories have

researched new production techniques and their oenologists

have introduced new styles and brands.

Cyprus WinesCyprus is a small island, yet the renown of its wines is great. The cultivation of grape vines dates back to 3.000 B.C., during the early days of the colonisation of the Island. Studies indicate that the grape varieties in Cyprus are some of the oldest in the world.

“Commandaria the pioneer of the concept «appellation of origin»”

Vasa Winery, Limassol Cyprus

DC MAGAZINE PAGE 21

“Cyprus wines a wonderful 5.000 year long tradition of enjoyment”

www.keo.com.cy

All this of course is good for the wine lovers. There is a wide

range of wines to choose from at prices that still represent

very good value. The Cyprus wine industry has a battle on

its hands, but everybody in the sector is confi dent that the

Island will ultimately get the place it deserves on the

international wine map. After all, Cyprus wines continue

a wonderful 5.000 year-long tradition of enjoyment!

COMMANDARIA

It’s the wine with the oldest tradition in the world, as far as

the method of production and the appellation of origin is

concerned. Commandaria is therefore the pioneer of the

concept «appellation of origin».

Commandaria acquired its name after the area where the

wine is produced. When in 1210, the Knights of the Order of

St. John came to Cyprus, they took an estate neighbouring

to Kolossi which became their chief headquarters, known as

the «Grande Commanderie». This land was the richest of the

Island, yielding grapes which were used to produce the

rich sweet wine which was distinctive to Cyprus. Thus the

superior wine produced in that area was named “Vin de

la Commanderie”.

According to the legend, Commandaria was crowned by

King Philippe Augustus as “the Apostle of Wines” as early

as 1223. Questioning the merits of different wines, the King

of France asked for samples of all the best known wines in

the world. The fi rst, of more than a hundred wines he asked

for, was the wine of Cyprus. The “Vin de Chypre” which he

crowned as “the Apostle of Wines”.

Commandaria is as much a part of the present as it is of

thousands of years which have preceded; rich in aroma,

subtle in taste, it is a wine for each and every occasion; it is

a healing and a life-giving tonic; it might be the wine that

the great philosopher Plato described as the most valuable

drink ever given by gods to Man.

Vasa Winery, Limassol Cyprus

DC MAGAZINE PAGE 22

New

Mem

ber

s

CYPRUS AIRWAYS PUBLIC LTD.

Cyprus Airways, the national carrier of Cyprus, was

established in 1947. The fl eet of the airline currently

comprises 11 Aibus Aircrafts, and serves 28 scheduled

destinations, that connect 18 European destinations to and

via Cyprus to a further 9 destinations in the Middle East

and Gulf region.

Central to the success of Cyprus Airways’ strategy is the

quality of its product. Apollo (Business) Class and Aphro-

dite (Economy) Class incorporate upgraded in-fl ight service

compared to that of leading international airlines.

The A319 and A320 aircraft provide in-fl ight entertainment

systems. The Airbus A330 aircraft are confi gured with 265

economy and 30 leather business class seats, provide

individual personal video screens in each seat with an

offer of 7 programs as well as audio and Airshow chan-

nels. Additionally there are 4 telephones located in the

cabin in Aphrodite Class. Each seat in Apollo Class is

equipped with its own telephone system.

The Sunjet Executive Club provides its members with

services and facilities of the highest quality, including mod-

ern and spacious Apollo VIP Executive Lounges at Larnaca

and Paphos Airports.

An agreement between KLM and Cyprus Airways

provides for joint services between Larnaca and Amster-

dam using Cyprus Airways aircraft and crews.

Cyprus Airways Public Ltd.

Zandsteen 64, 2132 MR Hoofddorp

The Netherlands

Telephone.: +31 (0)20 65 33 546

Telefax.: +31 (0)20 65 33 467

E-mail: informatie@cyprusair.com.cy

Webpage: www.cyprusairways.com

BANQUE PASCHE S.A.

The Dutch speaking team of Banque Pasche SA is special-

ized in asset management dedicated to an international

clientele. As a reputed name in the fi nancial centers of

Zurich, Lucerne, Geneva, Monaco, Nassau, Dubaï,

Liechtenstein, Istanbul, Rio de Janeiro, Montevideo and

Marrakech, Banque Pasche SA brings together, along with

the utmost discretion, the security and the professional

skills required to achieve the highest standards of perform-

ance in managing assets for its clients.

Present in 70 countries around the world, Banque Pasche

SA is continually extending its product range and services

for an exclusive clientele. Such a demanding clientele

requires high quality advice with the combined objectives

of preserving capital and meeting profi tability targets.

Banque Pasche SA has develop a new vision of private

banking based on tailor-made services and long-lasting

personal relationships, built on an inventive and high-

performance range of products and services and support-

ed by the international expertise of its dynamic teams.

Thanks to the strength and reputation of its shareholder,

the CM-CIC group, “AA”- rated by Fitch Ratings, Banque

Pasche SA has been growing steadily and has the

necessary assets and resources to accelerate this growth.

The Dutch speaking team has extensive knowledge about

investments as well as asset protection with offshore

structures such as IBC, trust, foundations, SPF and onshore

structures.

Banque Pasche CM-CIC Private Banking

Bellariastrasse 23

8027 Zurich / Switzerland

Webpage: www.cmcic-banquepasche.com

Rob Veelenturf Remko van Ekelen

Telephone: +41 44 204 81 15 +41 44 204 81 16

Telefax : +41 44 204 81 81 +41 44 204 81 81

Swiss mobile: +41 79 304 96 53 +41 79 304 93 63

Dutch mobile: +31 6 158 412 02 +31 6 159 55 121

DC MAGAZINE PAGE 23

HLB AFXENTIOU

HLB Afxentiou, Chartered Accountants has

been providing audit, accounting, consul-

tancy, international tax advice, and

fi nancial and advisory services since 1997

and is one of the leading accounting and

consulting organizations in Cyprus.

Comprised of highly motivated specialists,

whose complementary skills and extensive

experience combine to offer far-reaching

audit, accounting, management consul-

tancy, international tax planning and

advice, fi nancial and advisory services, HLB

Afxentiou meets the demands of interna-

tional business in the new millennium.

The fi rm is dedicated to offering unparal-

leled professional services in Cyprus and

has the pleasure of serving a loyal client

base in addition to new clients. Our

specializations in international tax planning

and business matters encompass all aspects

of international accounting and audit

concerns.

HLB Afxentiou is an interdisciplinary

organization with a wide scope, which, in

addition to the traditional auditing and

accounting services, and the areas of

specialization already mentioned, also

supports clients with management consul-

tancy services, trust administration, and a

range of corporate services, placing a

special emphasis on corporate fi nance.

HLB Afxentiou

Synyka Building, Corner of Nikis Avenue &

Kastoros Street, CY-2085 Nicosia Cyprus

P.O. Box 16006, CY-1087 Nicosia Cyprus

Telephone: +357 22 51 35 33

Telefax: +357 22 51 33 30

E-mail: nicosia@hlb.com.cy

Webpage: www.hlb.com.cy

AMICORP GROUP

The Amicorp Group (Amicorp) since 1992, a

fi nancial services company specialized in

providing corporate and trust management

services, private wealth and estate plan-

ning, corporate, asset and project fi nance

structuring and Business Process Outsourc-

ing services; since 2007 Amicorp has an

offi ce in Cyprus as well.

At Amicorp we go the maximum distance

for our clients. Amicorp provides long-term

personalized service and builds dependable

and loyal client relationships. We deliver

responsive administrative, legal, corporate

and fi duciary structuring services to a broad

range of corporate and individual clients.

We deliver the best possible fi nancial

solutions, every time, all the time. Our

worldwide team of professionals comprises

over 400 specialists in 20 countries contribut-

ing to Amicorp’s wide range of expertise

and experience.

Amicorp’s extensive international network

guarantees our clients the most appropriate

solution to their needs. We provide fully

custom-made fi nancial services and advice

in your time zone, language, and tax and

legal framework.

Amicorp Group

Paseo de Gracia 103, 1st Floor

08008 Barcelona, Spain

Telephone: +34 93 208 2581

Telefax: +34 93 208 2582

Cyprus Offi ce

1 Avlonos Street

1075 Nicosia, Cyprus

Telephone: +357 22 504 000

Telefax: +357 22 504 100

E-mail: Amicorp@amicorp.com

Webpage: www.amicorp.com

KNOL ROOS ADVISEURS B.V.

Knol Roos Adviseurs B.V. is a fi rm of

accountants who offer both a full range of

integrated services in assurance and

advisory business, and transaction and tax

advice. As well as the main offi ce, in

Wezep, near Zwolle in the centre of the

Netherlands, the company also has

premises in Meppel. In both locations, staff

are able to offer support and advice to their

clients, whether in the economic, fi nancial

or the personnel fi elds.

With a well educated and experienced

team of 35, Knol Roos Adviseurs B.V. can

also provide advice about the international

tax rules and jurisdictions of a variety of

countries. They also possess the knowledge,

contacts and experience of doing business

in places such as, Cyprus, Hong Kong and

Dubai. Their goal is not to help people to

evade tax, but to minimise the tax burden,

in accordance with international tax

legislation.

As special service for our clients, on their

behalves we also visit the relevant bodies

on Cyprus to check local dossiers and bank

accounts.

If you want more information about Knol

Roos Adviseurs B.V., then please do not

hesitate to contact them.

Knol Roos Adviseurs B.V.

Rondweg 13

P.O. Box 29

8090 AA Wezep

The Netherlands

Telephone: +31 (0)38 444 62 44

Telefax: +31 (0)38 443 25 59

E-mail: eikelboom@knolroos.nl

Webpage: www.knolroos.nl

DC MAGAZINE PAGE 28

Singel 23, 7411 HW Deventer, Netherlands Po Box 529, 7400 AM Deventer, NetherlandsTelephone: 0031 570 611711 Telefax: 0031 570 619037 Website: www.paritax.eu E-mail: Info@paritax.eu Skype: Paritax

A DIFFERENT RESULT NEEDS A DIFFERENT APPROACH

PRAGMATIC

CREATIVE

PERCEPTIVE