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Fund registration

Cyprus is a member of European Union since 2004 combining the tax advantages offered with the advantages of EU membership in that a fund can be marketed freely to other EU counties without having huge costs for setting up and also operating costs as existed in other EU jurisdictions like Luxemburg and London. Also Cyprus having close relationships with countries outside European Union it can form a bridge of access for investments towards markets from EU countries to markets like Asia and Middle East.

It must also be appreciated that Cyprus offers the prestigious image of strong, well organised legal framework that complies in all aspects with all European Directives. The Prospectus Directive and the Markets in Financial Instruments Directive (MiFID) are incorporated into Cyprus national legislation. In this way issuers are provided with a single EU passport for marketing prospectuses in all European Countries without any barriers and managers to promote their services in all EU member states. Fund managers, custodians, administrators and promoters seeking to raise funds and maximize returns for their clients must choose a jurisdiction to domicile (or transfer) their fund and/or their own operations taking into account the requirements of the new European Directives as well as their regulatory, tax and cost implications. Here is where Cyprus comes in as the new, cost efficient, lowest EU tax member state with great infrastructure, a cosmopolitan way of life and well educated work force, offering to fund managers an attractive place either to relocate or register their fund and manage it from another member state as per the MiFID.

As for all Cyprus resided companies funds also enjoy the favorable tax regime implemented in Cyprus:

  • Low corporation tax at 10%
  • No tax on the sales of securities
  • Interest revenue taxed at 10%
  • No tax on dividends paid to non residend shareholders
  • Tax benefits as derived from the vast amount of tax treaties signed by Cyprus with other counties
  • No withholding taxes are levied on dividends paid to residents of other European countries
  • No capital gains on disposal of securities.
  • No taxes paid on dividends received form other corporations either local or from other countries

We can provide assistance for the efficient management of the application process, ensure that appropriate corporate and organizational structure exists and provides the basis for efficient and effective operations. Exertus maintains a network of experienced specialists with international and local expertise that can assist a Fund to address all necessary aspects for the establishment and operation in Cyprus. We can provide an One stop solution for all matters arising for the Compliance with statutory filing deadlines.

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