Cyprus has evolved into a leading investment fund centre, not just in Europe, but globally. The country’s on-going effort to advance its legislative and regulatory regime has resulted in the deployment of excellent fund infrastructure and broad networks of agencies offering financial and professional services.
Cyprus’ resolve to remain highly competitive and at the epicenter of industry developments has resulted in the development of an advantageous framework that provides investors, funds and fund managers from around the world with inimitable access to world class markets.
The Cyprus fund and asset management landscape is characterized by professionalism, skill and cost-efficient fund structures. This has boosted Cyprus’ financial prospects, making the island a strategic regional hub, ideal for investment funds and fund managers.
Cyprus boasts one of the most well-educated populations in Europe with a sizeable portion of the population focusing on financial services, a fact that is reflected in the professionalism, skill and quality of service providers active in Cyprus. These characteristics have made the island a prime destination for international fund managers, funds and investors searching for more secure and advantageous fund options.
Below are the most significant advantages Cyprus offers as a prime location for fund managers and funds:
- Cyprus is a member state of the European Union and has fully adopted all EU standards and regulations with respect to funds and fund managers.
- Cyprus has developed its own framework for small funds with input by market stakeholders via open consultations initiated by the Regulatory Authorities.
- Cyprus is a Eurozone member since 2008.
- Cyprus is situated at the crossroads between three continents with close proximity to the Middle East, Europe and Africa. The island also boasts direct connections to major hubs such as London, Frankfurt, Dubai and Moscow.
- Cyprus-based funds and fund managers can use the island as their base of operations from where they can target the entire European Economic Area benefiting from the freedom to provide services across the EEA that Cyprus EU membership affords.
- The island has developed into widely accredited business centre, manned by highly skilled professionals and impeccable
- Cypriot financial service providers such as legal, accounting firms offer top-notch supportive services to funds and asset managers.
- The Cyprus framework for taxation, incorporation and ongoing operational cost are among the lowest in the EU.
- Cyprus boasts one of the most advantageous EU tax regimes.
- Investors in Cyprus have access to a significant number of double tax treaties, enabling tax efficiency for their investments.
- Cyprus’ regulatory framework is highly efficient and modern, suitable for the needs of today’s funds and their managers. Moreover Cyprus’ regulatory framework is consistent with all corresponding EU Directives and Regulations.
- Collective investments may be listed on the Cyprus Stock Exchange and other EU stock exchanges.
- Funds and their managers based in Cyprus can benefit from the country’s low taxation.
- Finally, all these years Cyprus has offered diligently and consistently incentives and tax advantages to individuals with high income.
Hence, Cyprus’ emergence as a prime fund and asset management destination in the European and world market is neither inexplicable, nor transient. It is the result of several macroeconomic factors, its reliable infrastructure, favorable location and consistent investor-friendly economic policy and legislation.