Russian and CIS clients view Latvia as a safe and affordable alternative to Cyprus


As the whole world is following the financial crisis unfold in Cyprus, private persons and nonbank corporations that had deposited €68.4 billion in Cypriot banks are now actively looking at alternatives to place their funds. Cyprus’ holding company regime, tax system and banking secrecy laws have long been appreciated by the Russian and CIS clients that in terms of funds deposited account for approximately one half of all Cypriot bank depositors. These clients now seriously view Latvia as an alternative safe haven in the E.U., especially due to the fact that the ratings agency Moody’s Investors Service has raised Latvia’s government bond rating to Baa2 (with positive outlook). Moody’s pointed to Latvia’s strong and balanced economic recovery and significant improvements in Latvia’s public finances. Latvia’s GDP growth at 5.5% is the strongest in the E.U.

Latvia offers four essential benefits: modern and safe banking system, tailored holding company regime, low corporate income tax and Russian language services.

Latvia’s holding company regime includes:
(i) exemption of dividends received,
(ii) exemption of capital gains realised on the sale of shares (no limit on the percentage of shares and holding period),
(iii) no withholding tax on dividends paid,
(iv) no withholding tax on interest and royalties paid, and
(v) low corporate income tax rate of 15%.

TRINITI assists its clients in transferring their Cyprus tax planning structures to Latvia, Lithuania and Estonia with a view to set up long-term viable and flexible solutions. TRINITI provides a full set of services, including incorporation, legal address, accounting and reporting.

As a long-term trusted partner of various Latvian leading banks TRINITI assists its clients in opening bank accounts. TRINITI provides its clients with tailored local bank monitoring information in order to always be secure and ready to act upon any developments in the financial markets. TRINITI also assists its clients in opening accounts in several global international banks registered in other jurisdictions to maximise their international business efforts.

Country ratings: Latvia

Fitch Ratings BBB, outlook positive
Standard & Poor’s BBB, outlook positive
Moody’s Investor Service Baa2, outlook positive

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