Financial Services: Set up, operation and advising of Cyprus Funds and Investment Firms

 

 

Attorneys to contact
Michail Kamperis 
mkamperis@iklawfirm.com

Yiannis Hadjicharos

yhadjicharos@iklawfirm.com

 

Cyprus: An ideal location to set up and operate a Fund or Investment Firm

Cyprus is a business friendly European Union economy that has become an attractive portal for fund investors and  managers as well as investment firms.
The adoption of the Investment Services Law of 2017 and the Alternative Investment Funds Law of 2018 and the continuous harmonization with MiFiD II, the UCITS and AIFM EU Directives has modernized the legislation and provides a stable tool for the setting-up and operation of Funds and Investment Firms in Cyprus. 


The choice of a Cyprus Fund or Investment Firm has a number of significant advantages:

• Modern regulatory framework in line with relevant EU Directives
• No restrictions regarding the type of investments
• The application process is fairly simple and not time consuming
• A Fund can be self-managed by its Board of Directors, subject to the approval of the Regulator

• Funds can be set-up as umbrella funds with multiple investment compartments, allowing the 
management of different asset pools with separate investment policies
• Cyprus funds and Investment Firms benefit from significant tax incentives (no withholding tax on dividend 
distributions for foreign Investors and CY corporate entities, no taxation of capital gains etc.)
• The services provided by the Investment Manager and Fund Administrator are not subject to VAT
• Cyprus funds and Investment Firms  take advantage of the double tax treaty network of Cyprus
• Full transparency through annual audited reports to CySEC
• Supervised by a competent, accessible and business friendly Regulator
• No onerous ongoing reporting requirements to the Regulator
• Low set up and maintenance costs 


Our Team 


Our dedicated team, comprised of qualified lawyers, CySEC licensed individuals has a wide and in-depth knowledge of the local Laws and requirements and, coupled with their international Financial Services experience, can assist you with any challenges you face in setting up a Fund or Investment Firm.