Tax reforms and implications for international banks: The case of Cyprus

The article reviews the development of the international (offshore) banking sector in Cyprus and focuses on the effects of the transitional corporate tax regime, introduced for this sector, since the country’s admission into the European Union. The consolidated performance of international banks and data collected through semi‐structured questionnaires are examined to provide important insights into how management perceives of the new tax regime and of its impact upon the country’s attractiveness as an international banking center.