and remains a member of the European Union, the island is likely to be favoured by many Forex brokers. The Cyprus boasts the European Unions lowest rate of corporation tax. While MiFID ensures a minimum standard of financial regulation, regulation does vary in each jurisdiction. This means that brokerages are able to recruit all the staff they need without too much hassle. For instance, Cyprus insures retail customer funds up to the amount of 20,000 Euros, while in Britain funds are insured up to 70,000 pounds should a regulated investment happen to collapse. This is mainly due to the fact that the crisis didnt see any clients losing any of their deposited funds. One can easily imagine how important a strong telecoms infrastructure would be in running a serious Foreign exchange brokerage. Cyprus is a member of European Economic Area and the European Union, meaning that Cypriot based brokerages can offer their services to citizens of any other EEA country. Low tax rates and a solid business saw Cyprus grow to be one of Europes larger financial hubs, with the financial services sector growing rapidly after the breakup of the ussr in 1991. The draw of Cyprus as a destination for Foreign exchange brokerages has been confirmed in recent months with a number of new brokers applying for licences.
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European Union Membership and MiFID, miFID stands for the Markets In Financial Instruments Directive and is a web based forex trading platform European law that harmonises investment regulation throughout the 30 states of the European Economic Area. While Cyprus doesnt have Europes strongest internet infrastructure, in recent years Cyprus has vastly improved its telecoms infrastructure. The only other European Union country to charge such a low rate of corporation tax is Bulgaria, which itself has seen a small influx of Foreign exchange brokerages in recent years. MiFID also maintained the passport principle introduced by previous European Union law, this principle means that a firm regulated in a MiFID country can offer its services to citizens and residents of other European Economic Area countries. Essentially MiFID sets out a minimum regulatory framework which must be adopted and followed by all the countries in the European Economic Area. This makes Cyprus a very attractive destination for those who looking to open a brokerage, as company can reduce its overall tax bill significantly. Concluding Thoughts, it has been suggested that the recent economic crisis in Cyprus might dent the islands reputation and lead to a flock of brokerages to move elsewhere, however this hasnt been the case. These specific needs leads to brokerages being drawn towards jurisdictions which have a strong financial services sector. Internet Telecoms Infrastructure, in addition to the other factors mentioned above, Cyprus already has a strong telecommunications infrastructure in place. It is not only low taxes and European Union membership which attracts many retail brokers to Cyprus, the island also boasts a large financial sector. Low Taxes, being based in Cyprus has a number of benefits; one of the most obvious benefits is the low rate of corporation.
I'm now living in England, where I pay no tax on my earnings. But it's cold and horrible, and I'm thinking of relocating to either Spain or Portugal. Anyone who has browsed a number.