Thriving Fund Industry Attracts Israeli Capital
The Cypriot fund industry is experiencing significant growth, attracting a growing number of Israeli investors seeking access to the European Union (EU) market. This shift can be attributed to several key factors:
- Cost-Effectiveness: Setting up a fund in Cyprus is significantly more affordable compared to other EU jurisdictions like Belgium, Luxembourg, or Ireland, and even non-EU options like the UAE. Costs can be up to 33% lower in Cyprus.
- Favorable Legal and Tax Framework: Cyprus offers a well-developed legal system based on English common law and boasts one of the most attractive tax regimes in Europe. Benefits for foreign investors include no withholding tax on dividends, no tax on unit redemption, and no deemed distribution restrictions.
- EU Passporting: Cyprus’s EU membership allows funds established within the country to be easily passported across Europe. Once passported, funds can be promoted throughout the EU without the need for additional authorization.
- Strong Regulatory Environment: All regulated funds in Cyprus (AIFs, RAIFs including V.C.I.Cs, umbrella structures, etc.) are overseen by the Cyprus Securities and Exchange Commission (CySEC), ensuring compliance with EU regulations and directives for robust investor protection.
- Proximity and Strong Relations: The geographical proximity between Cyprus and Israel, coupled with long-standing socio-economic and political ties, further strengthens the appeal of Cyprus as a gateway for Israeli investors.
Investing in the EU with Confidence
By choosing to invest in the EU through regulated funds established in Cyprus, Israeli investors gain access to a vast and lucrative market while enjoying:
- Reduced Costs: Significant cost savings compared to other fund domiciles.
- Tax Advantages: Favorable tax regime with benefits like no withholding tax on dividends and no redemption tax.
- Investor Protection: Strict regulatory oversight by CySEC ensures compliance with EU regulations.
- EU Market Access: Easy fund passporting throughout the EU for broader reach.
Eurofast: Your Partner in EU Investment
Eurofast (www.eurofast.eu) is a leading provider of comprehensive fund administration and management services. We leverage our in-house expertise and extensive network of trusted associates to deliver tailored solutions for your investment needs across Europe.
Contact us today at info@eurofast.eu or ibsd@cypress.com.cy to schedule an e-meeting and discuss how we can help you achieve your investment goals in the EU.
Nicos Pilavas
Banking Officer
Eurofast Nicosia
nicosia@eurofast.eu