The Cyprus fund industry is one of the most dynamic sectors of the economy and the country is becoming a competitive jurisdiction for investment funds and fund managers. This has been assisted by recent legislative reforms that have taken place and the upgrade of Cyprus’ sovereign debt rating to investment grade in October 2018.
Cyprus has seen remarkable growth in the sector, with assets under management (“AUM”) more than tripling from €2.1 billion in 2012 to €6.8 billion in the second quarter of 2019. The sector stakeholders are targeting a rise of AUM to €20 billion in the next three to five years.
Cyprus offers multiple benefits in relation to the set-up and promotion of investment funds, making it an attractive destination for asset managers:
- The “EU Passporting advantage” which allows the offering of services seamlessly within the EU;
- A robust, attractive and EU harmonised regulatory regime;
- An extensive network of double tax treaties and a favourable tax framework for entities and natural persons;
- An attractive tax environment with one of the lowest corporate income tax rates in the EU, which exempts any gains from trading in securities and fund units;
- Very competitive setup and maintenance costs, compared to other fund jurisdictions;
- Units of funds can be listed on the Cyprus and/or other Stock Exchanges.
The number of funds and fund management companies is growing steadily. According to the quarterly statistics released by the Cyprus Securities and Exchange Commission, as of June 2019, there are 95 Alternative Investment Funds (“AIFs”) and Undertakings for the Collective Investment in Transferable Securities (“UCITS”) in total; 28 Alternative Investment Fund Managers (“AIFMs”); 73 sub-threshold AIFMs and 4 UCITS Management Companies.
As Cyprus is fast becoming an attractive market for professionals in the financial services and capital market industries, EY Cyprus, as a member of the EY network, has positioned itself in a leading position offering full spectrum services and meeting the needs of its clients. EY is a global leader in assurance, tax & legal, advisory and transaction advisory services with about 250,000 people in over 150 countries, being the most globally integrated professional services organisation.
EY Cyprus offers a full scope of services meeting the needs of funds and fund managers, including but not limited to, pre – setup advisory services, AIF/RAIF and AIFM incorporation, re-domiciliation and ongoing support. EY Cyprus also provides support to individuals and key executives in the sector as well as relocation advice, ensuring a smooth transition to Cyprus. Furthermore, EY Cyprus actively participates in the local asset management ecosystem and through its global network in other established funds jurisdictions provides assistance seamlessly in all jurisdictions where fund managers and funds operate, both within and outside Europe.
Jean Nouvel Tower
1060 Nicosia – cyprus
P.O.BOX 21656, 1511 Nicosia – cyprus
Τ: +357 22 209 999
F: +357 22 209 996/7/8
Ernst & Young House
Spyrou Kyprianou 27-29,
Mesa Yitonia 4003 Limassol – Cyprus
P.O.BOX 50123, 3601 Limassol – Cyprus
Τ: +357 25 209 999
F: +357 25 209 996/7/8