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Setting Up a Family Office in Cyprus: A Strategic Choice for Global Families

As Family Offices continue to grow in popularity worldwide—valued for their ability to centralize wealth management, enhance control, and optimize tax strategies—the choice of jurisdiction is more critical than ever. In this context, Cyprus is emerging as a premier destination for the establishment of international Family Offices.

Combining favorable tax treatment, a robust legal system based on common law, and EU membership, Cyprus provides the legal and financial infrastructure that sophisticated families and their advisors demand. As the global regulatory landscape becomes increasingly complex, jurisdictions like Cyprus—offering stability, transparency, and strategic access—are becoming more attractive than ever.

Family Offices are now the preferred solution for affluent families seeking effective wealth management, asset protection, succession planning, and private investment management—all within a tailored and centralized structure. As global interest accelerates, Cyprus is positioning itself as a leading jurisdiction for Family Office operations, offering an exceptional mix of benefits.

 

Why Cyprus?

A Robust Legal and Tax Environment
Cyprus offers one of the EU’s most attractive and competitive tax regimes:

  • 12.5% corporate income tax, among the lowest in Europe.
  • No inheritance or gift taxes.
  • Exemption from tax on capital gains (exempt for disposal of real estate in Cyprus), dividend and interest income.
  • An intellectual property regime with favorable tax treatment.
  • “Non-domiciled” tax status, exempting new residents from defence tax on dividends, interest and rental income, for up to 17 years.
  • Access to an extensive network of over 60 double tax treaties.

These advantages create an efficient framework for managing cross-border investments, preserving family wealth, and facilitating long-term generational planning.

 

Asset Protection and Succession Tools

Cyprus is internationally recognized for its Cyprus International Trust (CIT)—a powerful vehicle for safeguarding wealth, ensuring privacy, and enabling smooth succession. CITs offer:

  • High levels of confidentiality.
  • Broad flexibility in investment strategy.
  • Tailored succession planning: Individuals can ensure that their wealth is passed on to beneficiaries according to their wishes, without the complexities and delays associated with probate or inheritance procedures.
  • Asset protection: Shield assets from claims in the event of settlor’s subsequent bankruptcy, liquidation or legal actions by creditors.
  • Long-term wealth management: Trustees can manage and gradually distribute income and capital to future generations, avoiding the burden of direct wealth management.

Additional structures such as foundations, partnerships, and regulated funds (e.g., AIFs) offer bespoke, scalable solutions for institutional and multi-generational Family Offices.

 

Relocation and Non-Dom Status

Cyprus offers a highly attractive relocation environment, supported by:

  • A streamlined permanent residency program, allowing for fast-track applications and minimal bureaucratic hurdles, making it easier for individuals and families to establish residency.
  • A high standard of living, characterized by modern infrastructure, excellent healthcare, and access to top-tier international schools, all within the context of a safe, family-friendly Mediterranean lifestyle.
  • As highlighted above, Cyprus offers significant tax incentives, including an exemption from defence tax on dividends, interest, and rental income for new residents, applicable for up to 17 years.

This combination has led many Family Office principals to relocate or establish operational headquarters in Cyprus.

 

Investment Opportunities in Key Sectors

Cyprus provides access to diversified investment opportunities across:

  • Real estate development (residential, commercial, and hospitality).
  • Shipping and maritime services.
  • Fintech, energy, and healthcare.
  • Private equity and venture capital, in both local and regional markets.

These sectors offer compelling growth potential for Family Offices seeking long-term, strategic investment returns.

 

A Strategic Time to Re-Evaluate

In a post-BEPS, post-pandemic world, jurisdictions offering both compliance and efficiency are increasingly rare. As global wealth migrates and governance standards rise, Cyprus presents a future-focused, well-regulated, and cost-effective base for Family Offices looking to expand or diversify.

 

Conclusion

Cyprus delivers an exceptional combination of tax efficiency, legal certainty, strategic location, and professional infrastructure, making it one of Europe’s most attractive destinations for Family Offices.

Families seeking a trusted jurisdiction to protect, manage, and grow their wealth—across generations—will find Cyprus to be a uniquely capable and welcoming environment.

 

Disclaimer

At Antoniou Law Firm, we advise Family Offices at every stage—from initial planning and cross-border structuring to trust formation, regulatory compliance, and succession. If you are exploring Cyprus as a base for your Family Office, we are here to guide you with insight and precision. The information provided above offers a general overview, If you require specific guidance or consultation, please do not hesitate to contact us at info@antonioulegal.com.