CySEC Licence, Company Formation & Relocation to Cyprus

A foreign-regulated investment advisory firm contacted us seeking guidance on establishing a Cyprus Investment Firm (CIF) licensed by CySEC.

Their enquiry covered:

• The full cost and timeline for obtaining a simple CySEC licence for provision of investment advice.
• Clarification on whether the required initial capital (€50K or €75K) is restricted or available for use.
• Fixed versus flexible application support fees, and inclusion of liaison with CySEC.
• A rough licensing timeline from submission to approval.
• Estimated ongoing compliance costs for accounting, audit, and regulatory reporting.
• Requirements for appointing executive directors and whether two UK-based directors could qualify.
• Possibility of relocating to Cyprus with spouses and children, visa options (including digital nomad), and timing in relation to company incorporation.
• Questions about becoming Cyprus tax residents and healthcare obligations once employed in Cyprus.

CYAUSE Response:

Our licensing team provided the following guidance:

• Licence Costs & Timeline: Total licensing fees were confirmed, including CySEC fees (€7K) and our service fee (€30K + VAT), which includes all application handling. Depending on document readiness and CySEC's internal process, approval may take approximately 6–8 months.
• Initial Capital: The minimum capital for an investment advisory CIF is now €75,000, not €50,000. Although technically usable, in practice capital should remain intact, as CySEC requires applicants to prove financial sufficiency for their first 3 years.
• Compliance Fees: Ongoing costs (accounting, audit, ICARA, COREP, etc.) vary but typically start at €10K + VAT annually, depending on the firm’s complexity and reporting obligations.
• Director Requirements: Two executive directors must be Cyprus tax residents and engaged full-time in the CIF. UK nationals can qualify, provided they relocate and are not tied to other entities.
• Relocation Support: Our immigration specialist will provide cost and timeline estimates. Visa options (e.g. pink slip, digital nomad visa) are available for relocation before or after company setup, depending on intent.
• Tax & Healthcare: Cyprus tax residency is based on 183-day or 60-day thresholds. Medical cover is available via GESY (Cyprus’ National Health System) through either employment contributions or private enrolment.

The enquiry remains ongoing with further details expected from the client once internal board discussions are complete.