27.09.2018. Cyprus tries to attract investment after Brexit

News

While Paris, Frankfurt and Dublin compete to become the new hub for financial services after Brexit, Cyprus is setting its sights on a different race: to become a regional base for British businessman that want a European hub after the UK cuts ties with the EU. With one of Europe’s lowest corporate tax rate, at 12.5% and a double tax treaty network covering more than 60 countries, the island wants to capitalise its low cost of doing business as companies shift operations outside the UK because of Brexit. Britain’s Electronic Money Association has identified six jurisdictions, including Cyprus, that could enable its members to passport their services into the EU.
Cyprus can also offer mutually beneficial support to the British investment fund sector post – Brexit. By contracting a company in Cyprus, British – based investment managers could maintain their current operations without having to relocate staff. They would have a fully – EU compliant platform with a European passport to market their funds in the EU. The UK-based fund manager would also benefit from the Cyprus platform’s pre-existing structure in terms of sharing costs. As a former British colony, Cyprus has a British-based legal system and skilled staff, many educated at British universities.
The assets under management in Cyprus have tripled since 2013, totalling €3bn last year, with funds registration increasing by 18% year-on-year since 2014.