“With the ever-increasing establishment of CIFs since 2014 undoubtedly demonstrates that Cyprus provides investors with essential advantages for growth and vast profitability.”
It is anticipated that there will be a significant upheaval of the fund industry in Cyprus in the near future. The Cyprus Securities Exchange Commission (CySEC) is the regulatory body which licenses and supervises the financial investment services industry in Cyprus and strictly follows EU directives and guidelines. Therefore, being “badged” as “EU-compliant”, Cyprus offers a passage to Europe and the fund management industry making it possible for a pan-European market reach, cross-border and global fund distribution in all Europe key markets.
A Cyprus Investment Firm (CIF) is a company which is licensed by CySEC to provide investment services to third parties and / or perform investment activities on a professional basis. In 2014, the Cyprus parliament adopted the ‘Alternative Investment Funds Law 113(I)/2014’ based on the relevant EU directives. With CySEC as the regulatory authority and the strong legal system retained in the island, Cyprus offers protection to investments and has remained one of the most attractive EU jurisdictions for investment firms since 2014, given its ideal location for set-up, re-domiciliation, structuring of fund businesses as well as the low tax regime which has been proven attractive for major financial investment firms across the globe.
With an extensive double treaty network, its EU and Eurozone membership and exclusive tax regimes, investment firms and fund management firms in Cyprus enjoy all the tax benefits that the island has to offer.
Furthermore, Cyprus is the country of residence of many top tear professionals in the field and it is anticipated that a range of companies that offer specific services related to the investment fund industry such as financial technology, innovations and applications, will establish their businesses in Cyprus.
The provision of highly qualified professionals, the sophisticated infrastructure, the strong legal framework and the exclusive tax incentives has, over the years, established the investors’ trust in the Cyprus economic and financial system.
Benefits in a “nutshell”:
- EU ‘passporting’ – A licensed CIF may provide investment services through representative and branch offices across 30 EU and EEA member states.
- CySEC, as a regulator, follows straight forward procedures with reduced bureaucracy and low regulatory fees as well as fast process and professional approach.
- One of the lowest corporate income tax rates (12.5%) in the EU and Eurozone
- Full exemption from tax on gains from trading in securities and on foreign dividends
- A vast network of double tax treaties
- Lower set-up, operation and maintenance costs compared to many other EU Member States -including working space, professional services providers, staffing.
- Various options for structuring investment firms according to the company’s operations
- Significant tax benefits for high-earning managers and high-net-worth individuals
How can our team help you:
- Assist in Incorporation and licensing procedures of Cyprus Investment Firms (CIF, Alternative Investment Funds (AIF), registration of mutual funds, UCITS) through our licensed professional partners.
- Management and day to day administration of the entities
- Opening of bank accounts in Cyprus and other jurisdictions
- Tax structuring of investments and investment firms
- Specialised legal advice and legal services through our specialised legal partners
- Excellent accounting, tax, audit and recruitment services