Cyprus an EU member state since 2004 and part of the Eurozone since 2008 provides an attractive and cost efficient investment funds location bridging the Middle East and Europe for UCITS; non-UCITS including private equity type funds and Real Estate; local domestic funds; and investment managers and fund administrators. The industry is regulated by the Central Bank of Cyprus for private investment funds and Cyprus Security and Exchange Commissions for UCITS.
Cyprus has the lowest corporate tax regime in the EU at 10% together with over 43 double tax treaties (Source: Ministry of Finance) which are open to its domiciled investment funds. In particular it has DTTs with many Eastern European countries, Russia, China, India, Singapore, Kuwait, UK and the USA. A full updated list of countries is located at www.mof.gov.cy
It has put in place an internationally acceptable transparent tax system and is accordingly on the Organisation for Economic Co-operation and Development (OECD) tax white list. Companies are exempt from tax on most dividend income received and profits from disposal of shares and securities. Also there is no withholding tax on dividends paid to non-resident shareholders and generally has a favourable tax regime for investors.
Cyprus employs a common law legal system and is an ideal hub for doing business in Russia, Eastern Europe, Middle East, Gulf States, Asia (including China and India) and Africa. Cyprus’ languages include Greek, English which is widely used in international business and Turkish.
Cyprus fully applies EU law and has subscribed to the EU directives on UCITS IV and Alternative Investment Fund Managers (AIFMD) so it has adopted the management of funds passport directive, can be a useful alternative location of hedge funds and the infrastructure to support cross-border and global fund distribution.