Cyprus Investment Firms

Cyprus is increasingly becoming an Investment Company hub in the Mediterranean as various types of Investment Firms (especially Forex Companies and Binary Option Companies) set up their premises locally and trade taking advantage therefore of the Cyprus low tax system and set up costs.

 

Reasons for setting up a Cyprus Investment Firm (CIF):

 

  • Low set up costs (office overheads)
  • Great infrastructure (roads, government buildings, transport)
  • English language is commonly spoken by all residents
  • Payroll expenses are low so as the payroll taxes
  • Lowest corporation tax in Europe at 12.5%

 

Other tax considerations:

 

  • Majority of expenses are allowable
  • Tax Free Dividends
  • No VAT in the majority of the transactions

 

These are achieved through:

 

  • Cyprus’s extensive Double Tax Treaty network
  • EU Parent Subsidiary Directive
  • Part of EU and Euro zone
  • Cyprus features on the white list of the Organization for Economic Co-operation and Development (OECD)

 

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Cyprus Investment Firms (CIF's) services:

 Investment Services

 

1. Portfolio management
2. Investment advice
3. Reception and transmission of orders in relation to one or more financial instruments
4. Execution of orders on behalf of clients
5. Dealing on own account
6. Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis

 

Auxiliary Services

 

1. Safekeeping and administration of financial instruments, including custodianship and related services
2. Granting credits or loans to one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
3. Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings
4. Foreign exchange services where these are connected to the provision of investment services
5. Investment research and financial analysis or other forms
6. Services related to underwriting

Registration time: Application process normally takes around 6 – 8 months.


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