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ISSUE 53AUGUST 14 - SEPTEMBER 13, 2015PRICE €4.95

PRIVATISATIONTransport Minister

Marios Demetriadeson Limassol Port

INTERVIEWSBruno Pepermans

Jameel AhmadBert Pijls

INSEAD‘The Business School

for the World’ nowhas an alumni club

WHAT’S ONOpera, Film, Dance, Art,

Music & More

23DIFFERENT NATIONALITIES!

Mergers & Acquisitions (M&A) play an

important role in today’s financial world.

Many organisations, in many regions,

are using M&A as a key part of their

growth strategy to expand their busi-

ness operations to gain increased mar-

ket share, access to new markets, tech-

nology and talent, and so on. Whatever

the reasons are, M&A bring about great

opportunities which come with great

challenges.

Is your growth strategy aligned with

your overall corporate strategy?

Have you identified the right mar-

kets & targets?

Is the culture of the target company

compatible with yours?

Can you afford the costs now and

in future?

Have you prepared a proper inte-

gration planning?

The above are only a fraction of many

issues that need to be taken into con-

sideration when planning for M&A.

How We Can Assist You

We, at Eurofast, take pride in our ded-

icated team of professionals, special-

ising in M&A and transactional work

in our offices, throughout South East

Europe and East Mediterranean. Euro-

fast has over 25 years of experience

working with global businesses and

leading institutions. Over the years we

have performed successfully significant

number of local and international M&A

transactions in the region.

We have a unique approach to sup-

port M&A transactions at international

level through our professional network,

providing assistance to our clients in

all phases of M&A transactions from

planning process to closure and post

integration.

Our fully integrated M&A and Transac-

tional services include:

Research of the business environ-

ment and market

Searching for investors/targets &

approach

Due diligence (legal, tax and finan-

cial)

Price negotiation, contract negotia-

tion and closing

Sourcing of capital

Tax-optimized deal structuring, in-

cluding tax rulings

Preparation and drafting of all legal

documents

Support services

Who we are:

Eurofast is a regional business adviso-

ry organisation operating in South East

Europe and East Mediterranean offer-

ing various services such as M&A and

Transactional Advisory, Business Re-

structuring & Insolvency, Market Entry

Services, Banking and Financial Ser-

vices, Outsourced Payroll and Employ-

ment Solutions, Citizenship & Residency

Services, Corporate Services, Transfer

Pricing, International Tax, Tax Planning

& Tax Compliance, and Accounting.

Great challenge with greater opportunities!

info@eurofast.eu | www.eurofast.eu

Your Regional Business Advisory Organisation

Erbil

Beirut

Mergers & Acquisitions and Transactional Services

SPECIAL PROMOTIONAL FEATURE

Deloitte DiscoveryProviding focus

A key component of litigation is the Discovery process, whereby each party provides relevant evidence to other parties in the litigation. Discovery presents

a risk to litigants, and, if inadequately managed, may have a significant effect on the success and cost of the litigation. Discovery however also presents an opportunity for litigants to maximise their informational, evidential and strategic advantage.

In our days, evidence in a case is not going to be primarily from tape recorders or handwritten notes. Instead, evidence will reside in electronic documents, spreadsheets, emails, social media accounts, in the cloud, or moreover on smart phones and tablets. Lawyers must have the capability and support that’s necessary for collecting this data to successfully use it in their cases.

Litigation SupportWhen lawyers take on clients and cases containing electronic media (laptops, disks, servers, mobile devices, etc.) and large amounts of data, they may not know where to turn for guidance. Deloitte Discovery services were designed to manage large volumes of data during investigations - whether the data is already available in electronic format or in hard copy - as well as efficiently managing all technical aspects.

Our Discovery services include forensic data collection, handling, retention and analysis of data with specific tools and methodologies in order to find information and evidence relevant to the investigation. Discovery services can be tailored to the specific needs of each investigation by including only those specific phases of interest.

Forensic Analysis & Investigation ServicesOur Litigation Support services are further enhanced by access to other services offered by Deloitte forensic practitioners. In particular we utilise our Forensic Technology specialists,

forensic and investigative professionals and technologically advanced computer labs and sophisticated software to offer new, innovative solutions to our clients’ complex legal problems. We have the skills and resources to navigate information technology systems for evidence of malfeasance, such as information deletion, policy violations or unauthorised access.

Our professionals can recover a wealth of information from computer hard drives and backup tapes, including active, deleted, hidden, lost or encrypted files; file fragments; and even files that were merely viewed but never saved.

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“While storage of data is becoming easier to manage affordably, its proliferation is a major information management and litigation risk. We are far past the days when all information potentially relevant to a matter could fit into a law firm conference room”

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6 | GOLD | www.goldnews.com.cy

SPECIAL PROMOTIONAL FEATURE

Tax Atelier is a premier boutique tax

Our Services•••

Neofytos Neofytou

-

Costas Savva Christos TheophilouDemis Ioannou

RECENT AND PROPOSED CHANGESIN THE TAX LEGISLATION OF CYPRUS

By Neofytos Neofytou

In July 2015, Cyprus introduced part of the proposed chang-es to its tax legislation for the purpose, amongst others, of introducing incentives to encourage new investments in Cyprus and the setting up of regional headquarters on the

island by international groups, including those in the shipping industry. The remaining changes are expected to be introduced in September-October 2015. The most important amendments to the previous laws are summarized below.

A. NEW INVESTMENTOPPORTUNITIES IN CYPRUS1. Notional interest deduction on equityCyprus has introduced provisions to allow thenotional deduction of interest in cases wherefunds are introduced to the company in the formof equity instead of interest- bearing loans. Themain provisions are:• Deemed interest deduction will be allowed

OUR DIRECTORS ARE:

www.goldnews.com.cy | GOLD | 7

on “new equity” funds introduced into a company after 1January 2015.• The deemed interest will be calculated on the basis of a“reference interest rate”. This rate is equal to the yield on the 10-year government bonds, plus 3%.• The notional interest to be deducted cannot exceed 80% of the taxable income of the company.

2. New capital expenditureUnder existing rules, capital expenditure incurred during the years 2012, 2013 and 2014 qualifies for increased wear and tear allowances. It is proposed that this benefit be extended for capital expenditure incurred in the years 2015 and 2016.

B. ESTABLISHING OFFICES ANDRELOCATING SENIOR STAFF IN CYPRUSA number of incentives for encouraging the setting up ofregional headquarters in Cyprus by international groups,including those in the shipping industry are introduced.

1. Employment incentivesUnder current law, 50% of the income from employment in Cyprus which commences after 1 January 2012 of a per-son who was not tax resident of Cyprus during the previous tax year is exempt from taxation for a period of five years, provided the income from employment in Cyprus exceeds €100.000 per annum. It is now proposed that the period of the incentive be extended to 10 years.

2. Introduction of the “non-dom concept” for defence tax purposesCurrently, the defence levy is payable only by Cyprus taxresident individuals and is payable on dividends, interestand rental income earned by the tax resident individual both from sources within Cyprus and outside Cyprus. The law has been amended so that Cyprus tax resident individuals who are not considered to be “domiciled” in Cyprus would be exempt from payment of the defence levy on dividends, interest and rents, even if they are considered to be tax resi-dents of Cyprus.

C. OTHER CHANGES• Extending the group loss relief provisions to cover losses of overseas subsidiaries.• Exchange differences will no longer be taxable/taxdeductible (except in the case of companies trading in foreign).• In the case of transactions with related parties when anadjustment in the income of the one party, a corresponding deduction should be given to the other party to the transac-tion.

CONTACT INFORMATIONTaxatelier Ltd

Tel: (+357) 22875720Fax: (+357) 22875721

8 | GOLD | The Business Magazine of Cyprus

| COVER STORY |

FOREIGN CEOS IN CYPRUS

We all know that Cyprus has worked hard over the years to gain a reputation as an international business centre, attracting foreign companies to set up branches and even headquarters here so as to take

advantage of the island’s favourable tax regime. But there has always been much more than tax planning to this arrangement. Companies are, after all, made up of individuals and while

take advantage of the country’s talent pool and employ local professionals, many of them have a non-Cypriot CEO or Managing Director in place. On the following pages we list 40 such senior executives, who represent no fewer than 20 different nationalities, including those one might expect (British, Russian, German) as well as others that may surprise (Latvian, Indian, Palestinian). In fact, in addition to these, our list includes Dutch, Norwegian, Israeli, Slovakian, Finnish, American, Belarusian, Jordanian, Lebanese, Greek, French, Czech, Irish and South African citizens. There are doubtless others whom we were unable to discover and, of course, there are many more foreign CEOs working and living in Cyprus, some of whom simply didn’t want to be included in our list for reasons of their own. We are happy to feature the 40 who responded positively to our request for information, and especially those who explained in some detail why they enjoy the professional and personal lifestyle that Cyprus offers them.

By John Vickers

+

T H E B U S I N E S S M A G A Z I N E O F C Y P R U S

I S S U E 5 3 A U G U S T 1 4 - S E P T E M B E R 1 3 , 2 0 1 5

C O N T E N T S10 | EDITORIAL 12 | BUSINESS BRIEFINGEconomic & Business Highlights of the past month 16 | MY WAY Bert Pijls’ management style17 | FIVE MINUTES WITH…Jameel Ahmad18 | THEY SAID WHAT?A selection of memorable recent quotes

OPINION41 | The Day AfterBy Kyriakos Iordanou

48 | What if...By Savia Orphanidou

FEATURES34 | The Future Is NowInterview with Bruno Pepermans, Business Development Director Europe, RICS37 | The Cyprus Funds SummitPromoting Cyprus as an Investment Fund Hub38 | Spreading the WordThe formation of an INSEAD Alumni Club in Cyprus.42 | Yes We Cannes!Stelios Anastasiades at the Cannes Lions International Festival of Creativity46| Lord Lamont to Address the 6th Limassol Economic Forum Big names are lined up for the year’s most prestigious conference 50 | First Port of CallLimassol will soon have what it takes tobecome a regional hub54 | Investing in a Global MarketplaceEmergo Wealth presents the Investment Expert Conference90 | Dream TeamRoman Nikitin, Alexis Tsielepis andConstantinos Adamides

92 | Bringing People TogetherLast month’s International Cooperative Conference

94 | BOOKSHELFFive of the best new business titles

96 | IN GOOD COMPANYExploring the professional journey of employees at Hermes Airports

98 | MY COLLECTIONDemetris Fessas on his collection of vintage toys

100 | LUNCH WITH GOLDEvan Gavas, former Country Director of Barclays in Cyprus103 | BUSINESS CLASSCaptain Eberhard Koch, Chairman, CEO and Managing Partner of Österreichischer Lloyd Seereederei (Cyprus) Ltd104 | WHAT’S ONGold’s guide to the best cultural events106 | A DAY IN THE LIFEGeorge Theocharides

COVER STORY

20 | Foreign CEOs in Cyprus

Why they like Cyprus as a place to work

and live.

SPECIAL PROMOTIONAL

FEATURE55 | Leading Law Firms in Cyprus56 | 50 Biggest

Law Firms

SPECIAL OFFERSubscribe today

for just €90 and get an annual subscription

to both Gold & IN Business Call us on

(+357) 22505555

OFFER INCLUDES

FREE ACCESS TO

DIGITAL EDITIONS

50

34

42

100

A great cup of coffee.

1. Engomi 22 252134

2. Strovolos (Aretaieio) 22 250345

3. Strovolos (Athinon) 22 311984

4. The Mall of Cyprus 22 570177

5. Pallouriotissa (Kantaras) 22 434395

6. Larnaca (Finikoudes) 24 622224

7. Limassol (Makariou Aven.) 25 251136

8. Ayia Napa (Makariou Aven.) 23 722818

10 | GOLD | The Business Magazine of Cyprus

| EDITORIAL |

John Vickers,Chief Editor

john@imhbusiness.com

Island Life

t’s easy to take things for granted when you are a permanent resident of a place like Cyprus, enjoying for free the things for which several

million visitors every year are willing to pay – sunshine, good food, friendly people, low crime, a relaxed way of life and much more. But people who are here because of their business obligations, and may well be on the island for a finite period, tend to be far more appreciative of what Cyprus has to offer than those of us who have had the good fortune to call this place home.

I mention this after being struck by the responses to questions we asked some of the foreign CEOs who feature in this month’s cover story and, in particular, how certain issues were cited by more than one of them as being among Cyprus’ advan-tages as a place to live. We all know about the usual ‘selling points’ that the Cyprus Tourism Organisation has used in countless advertising campaigns but living and working here is not the same as being on holiday, whatever our jealous friends and family elsewhere may claim.

So I found it interesting that several CEOs noted, for example, the fact that they can get to work in a matter of minutes or that they can arrange on the spur of the moment to go out with friends – something they evidently cannot do at home. The country’s small size is actually viewed in a positive light when, for many residents, it is unfavourably compared with bigger places where there is so much more going on. It’s all relative, of course, and while the lack of long distances for commuting and time-consuming traffic jams are not really a feature of life in Cyprus (with the notable exception of the capital at 8am) because it is a small place, there are even smaller ones, as Evan Gavas, my lunch guest for this issue’s Lunch with Gold feature (page 100) realized when he was posted to Jersey, an island of 100,000 people. “In comparison with Jersey, Cyprus is New York!” he told me.

Having lived here for 43 years, I recognise that I no longer see the country through the same lens that I did when I arrived in 1972. Like many of you, I’m sure, I have been grumbling about the 40°+ temperatures with which August began and I am still shocked by some of the examples of bad driving I see on a daily basis, not to mention the more outrageous statements by politicians and state officials who should know better. But when my newsagent makes a point of saving me a new magazine that he thinks I might like, or the parcel from Amazon with a guaranteed delivery date actually arrives on time, I remember, like many of our featured foreign CEOs, that there is a lot more to Cyprus than sun, sea, sand and souvla.See you in September!

MANAGING DIRECTOR George Michail

GENERAL MANAGER Daphne Roditou Tang

MEDIA MANAGERElena Leontiou

EDITOR-IN-CHIEF John Vickers

JOURNALISTSEffy Pafitis, Artemis Constantinidou

CONTRIBUTORS TO THIS ISSUE Stelios Anastasiades, Kyriakos Iordanou, Neofytos Neofytou, Savia Orphanidou

ART DIRECTION Anna Theodosiou

SENIOR DESIGNERAlexia Petrou

PHOTOGRAPHY Jo Michaelides

MARKETING EXECUTIVE Kevi Chishios

SALES MANAGER Irene Georgiou

SALES EXECUTIVE Stavros Epifaniou

OPERATIONS MANAGER Voulla NicolaouSUBSCRIPTIONSMyria Neophytou

PRINTERS Cassoulides Masterprinters

CONTACT5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus

Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus

Tel: +357 22505555, Fax: +357 22679820e-mail: gold@imhbusiness.com

subscriptions: goldsubscriptions@imhbusiness.comwww.imhbusiness.com

ISSN 1986 - 3543PUBLISHED BY IMH

k hi f d hIGOLD

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ISSUE 53AUGUST 14 - SEPTEMBER 13, 2015PRICE €4.95

40FOREIGN CEOS IN CYPRUS

PRIVATISATIONTransport Minister

Marios Demetriadeson Limassol Port

INTERVIEWSBruno Pepermans

Jameel AhmadBert Pijls

INSEAD‘The Business School

for the World’ nowhas an alumni club

WHAT’S ONOpera, Film, Dance, Art,

Music & More

23DIFFERENT NATIONALITIES!

+