EU Member – OECD Recognized – Multilingual – € Currency – Fiscal Advantages

Cyprus – a Viable Option

Brexit – Britain’s momentous decision to leave the European Union has put into question what rights will British nationals and companies located in Britain have in relation to the European market? In particular, there is doubt whether the passporting rights pursuant to European directives will continue to apply.

Following Brexit, Cyprus offers a number of advantages to individuals and companies looking for a secure and stable entry point into the European market.

Cyprus, a full EU member, has transposed all applicable EU directives into its domestic law, particularly in relation to the financial services sector, covering such areas as Funds, Investment Services, Pensions etc.

Why Cyprus?

• Full EU member
• Cyprus’ long standing special relationship with England
• English is the most widely spoken language
• Cyprus’ corporate and commercial laws are based on English law and EU directives
• EU and OECD recognized and compliant jurisdiction
• EU financial services directives fully implemented
• Tax and fiscal advantages
• Currency – Euro
• Multilingual, knowledgeable workforce
• Excellent communications infrastructure

What is ‘Passporting’?

Passporting is the exercise of the right (known as a single market passport, or single license), available to a firm authorized under one of the EU single market directives to carry on activities in another EEA member state, on the basis of its home state authorization. The activities can be conducted through a branch in the host member state (the right of establishment) or on a cross-border services basis without using an establishment in the host state (a services passport).

Single Market Directives

The single market directives are currently:

• The Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD)
• The CRD IV Directive (2013/36/EU), which repealed and recast the Banking
• Consolidation Directive (2006/48/EC) (BCD)
• The Insurance Mediation Directive (2002/92/EC) (IMD)
• The Markets in Financial Instruments Directive (2004/39/EC) (MiFID).
• Mortgage Credit Directive (2014/17/EU) (MCD)
• The Solvency II Directive (2009/138/EC), which repealed and recast the First Non-Life Insurance Directive (73/239/EEC), Second Non-Life Insurance Directive (88/357/EEC), Third Non-Life Insurance Directive (92/49/EEC), Life Assurance
• Consolidation Directive (2002/83/EC) and the Reinsurance Directive (2005/68/EC)
• The UCITS IV Directive (2009/65/EC), which repealed and recast the original UCITS Directive (85/611/EEC)

Which types of firms does Passporting apply to?

• Alternative investment fund managers (AIFMs) under the AIFMD
• Credit institutions (that is, banks and building societies) under the CRD IV Directive, as well as unauthorized subsidiaries of credit institutions (referred to in the CRD IV
• Directive as financial institutions) that fulfil certain criteria
• Insurance undertakings and reinsurance undertakings under the Solvency II Directive
• Insurance intermediaries under the IMD
• Investment firms under MiFID
• Management companies under the UCITS IV Directive.
• Mortgage intermediaries under the MCD

Cyprus Citizenship & Residency

Cyprus is a jurisdiction of choice for individuals to live and work and to gain Cyprus Residency & Citizenship. Unlike the rest of the European Union, Cyprus’ unemployment rate declines due to the increased number of businesses that are choosing to move to Cyprus.

About THEOCHARIDOU & ASSOCIATES LLC – Legal & Advisory

THEOCHARIDOU & ASSOCIATES LLC is a well-established set of multidisciplinary legal, tax and accounting firm located and managed in the tax efficient EU jurisdiction of Cyprus.

THEOCHARIDOU & ASSOCIATES LLC operates as a full-service law firm with services including aviation, corporate formation, accounting, estate & wealth planning, taxation, intellectual property and more.

Should you wish to discuss the opportunities that Cyprus can offer your business, kindly contact us at office@theocharidou.com