Cyprus was selected as the jurisdiction to establish the domiciliation of Mouflon Real Estate Fund for the numerous advantages offered by the country’s regulatory framework, legal system, tax system, as well as the cost effectiveness of set up and operations.
Cyprus as an EU Member
Benefits in Cyprus
As Cyprus joined the European Union in 2004, followed by the EEA in 2005 and the Eurozone in 2008, the financial regulations governing the Fund are harmonized with EU law, and with the European MiFID in particular, which consists of the EU’s regulation of financial markets. More information on this can be found here (Link to Regulatory Framework).
In terms of taxation, Cyprus benefits from one of the lowest corporate tax rates in Europe. Moreover, Cypriot Alternative Investment Funds benefit from a number of significant tax incentives relevant to their operations, as well as Cyprus having in place double tax treaties with over 60 countries, all to the advantage of the investor.
The financial ecosystem in Cyprus boasts close cooperation between the government, regulatory bodies, professional bodies, and fund association, thus making it advantageous for the smooth operations of the Fund.
Cyprus is considered a cost-effective jurisdiction as compared with other fund jurisdictions within Europe and beyond, rendering the setup and running of the Fund a relatively straightforward and cost-efficient process.