Cyprus Signals a ‘New Era’ for Investment Funds with Landmark Law
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Cyprus has taken a major step forward in becoming a premier global hub for investment fund management. With the recent approval of the Investment Fund Administrators Law by the House of Representatives, the island has formalised a modern framework to attract international fund managers seeking transparency, security, and regulatory clarity.
A Milestone for the Sector
The Cyprus Investment Funds Association (CIFA) welcomed the law as a landmark moment, aligning Cyprus’ investment fund industry with international standards. The law strengthens investor protections and fortifies Cyprus’ commitment to becoming a leading jurisdiction for fund administration.
CIFA president Maria Papadopoulou stated that this development completes the country’s institutional framework, significantly enhancing Cyprus’ position on the global investment map.
Backed by Strong Growth
This legislative progress comes as Cyprus continues to show strong performance across its investment ecosystem:
As of Q4 2024, UCIs (Undertakings for Collective Investments) in Cyprus reached €10.1 billion in assets under management.
321 UCIs were operational, with 253 managing investments directly.
Quarterly growth hit 10.21%, a reflection of increasing international interest.
This growth has been fuelled by both new funds and expansion of existing structures, positioning Cyprus as a serious contender in fund management.
What This Means for International Managers
For international fund managers and institutional investors, Cyprus now offers:
A harmonised legal framework for fund administration
Alignment with EU and global regulatory standards
Cost-effective and tax-efficient structures
Strong support from CySEC, the Ministry of Finance, and other authorities
The Bigger Picture
This new legal milestone is part of Cyprus' broader strategy to:
Attract and safeguard long-term investments
Build credibility and transparency in the financial sector
Compete globally as a jurisdiction of choice for fund setup and management
Looking ahead, CIFA is also pushing for modernisation of the AIF and AIFM Laws and launching new international outreach to raise awareness of Cyprus’ strengths in the fund sector.
Interested in setting up or relocating your investment structure to Cyprus?
Speak with our compliance and fund advisory team at ProACT to explore your options.
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