Today the Parliament of Cyprus must decide on a life-changing solution. It will affect not only the economy of the island state but also for the whole European Union. We are talking about a tax on bank deposits. Under the new law, all deposits held in Cypriot banks are subject to a one-time tax rate of 3% for deposits less than 100 000 euro and almost 13% for other investments.
Sad news from Cyprus caused mild shock to foreign investors that hold money in recently seemed so convenient “safe offshore haven”. The Russian stock market dipped by 2%, stocks of the leading companies is falling. State officials are speaking out in defense of the violated interests of Russian business. Experts are afraid to make positive predictions about the consequences of this controversial decision.
On the other hand, this case has proved the rightness of investors who prefer to keep their savings in real assets, rather than accumulate them in the accounts of foreign banks. Property in Cyprus or in any other European country retains its value regardless of the fiscal authorities’ experiments. And considering that Cyprus could be the first sign of a series of “expropriations” of European banks deposits, real-estate investment is becoming more and more urgent.