Baiba Saldovere, Managing Director of Sovereign Trust (Cyprus),  believes that the economy will continue to grow steadily over the next few years. She argues that an investor should invest in tourism, financial services and shipping industries. Moreover, she sees great potential at Cyprus’ first Science and Technology Park.

How do you see the current state of the Cypriot economy? Do you believe that there is potential for further growth? What changes could be made by the government?

There is no denying that the local economy suffered a massive shock a few years ago but the recent upgrade of Cyprus’ rating to B+ by Standard & Poor’s is proof of the success of the recovery process so far. All the data available at the moment indicate that the economy will continue to grow steadily over the next few years which, of course, is very welcome news.

Cyprus has upgraded and relaxed the conditions and procedures of its immigration and naturalisation programmes. To what extent do you believe that these programmes have attracted foreign investors?

It is difficult to judge the success of these programmes. However, I believe that nearly 2,000 applications for citizenship have been processed so far which is a significant number. The existing immigration programme has attracted investors and, although in comparison to other similar programmes, the Cyprus offering is quite pricey, the streamlined process is a definite advantage.

In my opinion, the recent changes to tax legislation, in particular introducing the non-domicile concept, will attract High Net Worth Individuals to the island and is another positive step towards encouraging further foreign investment.

Which sector of the Cypriot economy would you advise a client to invest in?

In a recent interview, the Cypriot Finance Minister, Mr Georgiades, highlighted three sectors that have been growing despite the economic challenges. Based on this, for those clients who are more risk averse, I would recommend the tourism, financial services and shipping industries.

I am also watching developments regarding Cyprus’ first Science and Technology park with great interest so this might be an option for the more adventurous investor out there.

 There are many advantages benefiting any international company that brings its operations to Cyprus. What led to the decision by Sovereign Trust (Cyprus) to establish its Limassol office?

Sovereign is located in over twenty of the main internationally recognized jurisdictions worldwide so it makes perfect sense to be here in Cyprus too. We have had a presence in Cyprus for over 15 years. The island’s reputation as an international business centre, its tax regime and impressive infrastructure mean that Cyprus is a natural choice to be for us.

What services does Sovereign Trust (Cyprus) provide? What are the areas in which the firm specializes?

As you know, traditionally, our main business activity has been the incorporation and management of companies for a diverse portfolio of clients. Over the years, the range of services has expanded to include estate planning, asset management, yacht and aircraft registration and, most recently, market entry services, which are all natural additions to our main activity.

How would you describe your main client base in Cyprus?

Being part of the worldwide Sovereign Group means that we are able to offer a two-tier approach. In the first instance, we work with Sovereign’s other offices in order to provide comprehensive tax planning solutions for those clients who want to take advantage of the beneficial Cyprus tax regime. We also have established a very successful cooperation with other corporate service providers and professional intermediaries in Cyprus, as through our other Group offices we have the necessary expertise and resources to be able to assist with market entry services. Just to give you an example, Sovereign has a very strong presence in China and over the past year we have been dealing with a large number of requests for information regarding entering this particular market.

As a provider of professional services, what are your goals for 2015?

In a nutshell, Sovereign in Cyprus aims to maintain its client base, introduce new products and services where appropriate and continue to promote the benefits of the country’s financial services to its worldwide audience. Only by following these objectives will we prosper.

www.sovereigngroup.com/cyprus