Interest in Cyprus grows as global families seek EU base

Date: 11 Mar 2026

Karen Jones

Cyprus is attracting growing attention from international families, entrepreneurs and businesses looking for EU stability and access to European markets. Advisers add that geopolitical tensions, regulatory changes and recent policy reforms are prompting more clients to move to the island as a base for relocation, corporate structures and family office activity. Rising company formation and relocation enquiries suggest Cyprus’s combination of EU access, common law and lower tax continues to appeal to internationally mobile wealth.

If you contributed to this article and would like to make a post, you can take one paragraph of text with a link back to the Citywealth site.

Cyprus strengthens its position as an international business base

Cyprus has been steadily strengthening its position as a base for international business and private wealth. Last year, Citywealth reported on the island’s growing appeal as a gateway between Europe, the Middle East and Asia, highlighting its combination of EU membership, a common law legal system and a competitive tax framework that has attracted entrepreneurs and international companies.

That interest appears to be deepening. As geopolitical uncertainty and regulatory changes prompt many ultra-high net worth individuals and family offices to reconsider where they structure their assets and operations.
Industry advisers say the shift is being reflected in rising client enquiries and growing company formation on the island. Marina Zevedeou, Aspen Trust, says the trend has become particularly visible over the past year.

Global context and company formation boom

Marina Zevedeou, CEO, Aspen Trust Group said. “Over the past year, our UHNW clients as well as new clients have been talking a lot about stability and flexibility in a world that feels increasingly unpredictable, a concern made even more pressing by the recent conflict in the Middle East. Many families and entrepreneurs from the region, as well as from China and India, are looking at Cyprus as a practical EU base, not just for tax or corporate structuring, but for family office setups, relocation planning, and holding structures with real operational substance. This interest is backed up by the numbers, Cyprus Mail has reported that 18,858 new companies were registered in Cyprus in 2025, a 26.5% increase from the previous year, showing strong confidence in the jurisdiction as a platform for international business.”

One example of this trend is the Indian technology consulting and digital services company LTM, which develops artificial intelligence, cloud and data systems for large corporations and employs more than 84,000 people worldwide. The company has opened a digital innovation office in Nicosia aimed at supporting clients across Europe, according to a company announcement. Secondary reporting says around 100 staff will be based in Cyprus.
She adds that recent policy changes have also strengthened Cyprus’s appeal to international investors.

“Clients are particularly positive about recent government reforms, including the abolition of stamp duty from January 2026 and the flat 8% tax rate on crypto gains, which together make both traditional and digital-asset transactions simpler, more cost-effective, and attractive for international investors. At the same time, there’s a growing focus on substance, transparency, and compliance with EU standards, ensuring structures are robust and sustainable. For many, Cyprus is no longer just a place for holding companies, it’s becoming a real hub for international families and businesses navigating an increasingly uncertain global environment.”

Asked whether tensions in the Middle East, particularly involving Iran, could further increase interest in Cyprus, Zevedeou says the trend is likely to continue. “Yes, we believe so. In times of geopolitical uncertainty, we often see more enquiries from UHNW families.”

Client demand and real case studies

Lawyers say this growing interest is increasingly visible in the type of enquiries they receive.

Theo Antoniou, Founding Partner at International law firm, Spencer West in Cyprus, who also have with a presence in twenty countries and headquarters in the City of London said. “Cyprus continues to attract significant interest from ultra-high-net-worth individuals, family offices and international entrepreneurs who are reassessing their global structures in light of geopolitical developments and evolving regulatory landscapes.”

“In recent months we have seen a noticeable increase in enquiries from clients in the UK, Switzerland and the Middle East who are looking to establish European structures, relocate key business functions or create investment vehicles within the EU.” He says clients are seeking advice on a range of issues. “Many of these clients are seeking advice on cross-border corporate structures, international investment funds, trusts and foundations, real estate investments and relocation solutions that allow them to maintain global mobility while safeguarding their wealth and operations locally.”

Antoniou adds that this growing interest is reflected in the types of structures and transactions his firm is now handling.
“We recently assisted a Swiss family office acting for an UHNWI with setting up a Cyprus holding company for tax structuring purposes, together with a Cyprus International Trust for asset protection and succession planning. From the UK, we assisted a technology entrepreneur with establishing a Cyprus IP company in order to benefit from the Cyprus IP Box regime, where the intellectual property developed by the operating company is held through a Cyprus structure. We have also advised a Crypto-Asset Service Provider on regulatory and legal matters under Cyprus law, including guidance regarding MiCA licensing through CySEC as part of its EU market entry strategy.”

Crypto regulation and EU market access

A CySEC MiCA licence allows a crypto firm authorised in Cyprus to operate across the EU under a single regulatory passport, but approval requirements are significantly stricter than under previous national regimes. Firms must hold minimum regulatory capital of roughly €50,000 to €150,000 depending on the services offered, while regulators typically expect higher buffers to cover operational risks. CySEC also requires strong governance, including directors who pass fit and proper tests, dedicated compliance and anti-money laundering functions, and a genuine operational presence in Cyprus with local management and staff rather than a simple registered office.

Corporate relocation and EU headquarters

Antoniou said. “In addition, we assisted two UK-based companies that have chosen to relocate part of their business operations to Cyprus through the Headquartering and Relocation Program, establishing a presence here to manage their EU activities.”

Cyprus’s headquartering and relocation programme encourages international companies to move management teams and staff to the country. Similar schemes exist across Europe, but Cyprus promotes itself as a lower-cost base within the EU for multinational headquarters, with corporate tax rates roughly half those of some Western European countries.

Demand from Dubai advisors in the search for a European base

Advisers working with international clients in the Middle East say Cyprus is increasingly viewed as a practical European base. Joe David, Dubai-based managing partner at tax and advisory firm Nephos Group, who are also based in London, says demand has grown as clients look for ways to diversify assets and establish EU-based structures. “Cyprus continues to attract serious interest from our clients looking to diversify assets and establish EU-based structures. The combination of a familiar legal framework, competitive tax environment, and genuine European access makes it a practical choice, particularly for families and businesses with Middle East or international ties. With the current instability across the Middle East, we’re finding more clients want optionality, a Plan B that gives them a credible European base without having to commit to a full relocation. Cyprus ticks that box in a way few other jurisdictions can.” Of his clients he said. “One is UAE based and the other UK based but reviewing global residency.”

Emily Beirne, Principal, Kobre & Kim, Dubai said. “Cyprus remains a popular destination for my clients looking for strong protective structures for their assets as well as options for property linked residency. The Cyprus International Trust is a popular structure for families with a global footprint, allowing flexibility in terms of where trust assets are situated as well as class of assets, with all the protection offered by a common law regime supported by a strong judiciary.”

Residency, trusts and relocation drivers

Alongside corporate structuring and business relocation, Cyprus is also attracting growing interest from international individuals considering the aforementioned residency options.

Stella Strati, Partner, Head of Corporate and Private Client, Patrikios Legal said. “Cyprus permanent resident permits (PRP) are available for all third country nationals (other than EU nationals). Not only geopolitical reasons, but also tax reasons drive a number of individuals to relocate to Cyprus and apply for the PRP. Some of the nationalities that we have seen opting for the PRP route are UK, US, Israel, Lebanon, Ukraine and Canada. It is a fact that the current geopolitical situation has driven a lot of third country nationals to move to Cyprus, especially those coming from Ukraine, Israel and Lebanon.”

She adds that Cyprus’s tax regime is another factor attracting high net worth individuals to the island. “The Cyprus Non-Dom regime is still perceived as one of the benefits offered by the Cyprus tax system to UHNW individuals looking to relocate. Apart from the exemption from the Special Defence Contribution (SDC) offered to Cyprus Non-Doms, it is important to note that Cyprus offers credit for any foreign taxes paid preventing double taxation (irrespective of the existence of a double tax treaty). However, apart from tax reasons, the sun, the sea and the lifestyle are main driving forces for relocation to Cyprus.”

The Cyprus non dom regime allows qualifying individuals to receive many forms of foreign investment income in Cyprus without additional local tax for up to 17 years.

Strati also points to Cyprus’s legal framework for trusts as another factor attracting international families. “Cyprus is a common law country; therefore principles of common law and equity are applicable to trusts established under Cyprus law. Main advantages for setting up a Cyprus trust, is the EU membership of Cyprus, offering EU regulatory conformity and credibility and also the modern framework offered by the Cyprus international trusts law.”

Strati says the Cyprus International Trust in particular offers strong asset protection for international families. “It is important to note that a Cyprus International Trust (CIT) is a very strong asset protection tool. A transfer of assets to a CIT may only be set aside by the settlor’s creditors to the extent that it is proven to the satisfaction of the court that the CIT was made with the intent to defraud creditors. The burden of proof is on the creditors who must prove that the CIT was made with intent to defraud them and that they were creditors at the time of the making of the CIT. An action must be brought within a period of two years from the date when the transfer or disposal of assets was made by the settlor to the CIT and only with regard to those assets and not any assets transferred earlier. Moreover, CITs offer a tax-neutral platform for global investments and for holding assets worldwide.”

Strati adds that Cyprus is also widely used for corporate structuring and succession planning. “Cyprus can be used as a holding company jurisdiction, due to a variety of reasons, for example its corporate law framework and the tax treatment of dividends and other tax reasons, but also for estate planning, due its trusts regime. Therefore, international HNW individuals and families elect to use Cyprus for both their corporate structures, but also for planning and succession.”

In practice, Strati says Cyprus trusts are most commonly used by international families. “Local individuals are not very familiar or are reluctant to use trusts; however, trusts are also used locally by certain Cyprus HNWI for estate planning. The majority of the persons setting up Cyprus trusts are international. Any kind of assets, located both in Cyprus and abroad, may be transferred into Cyprus trusts.”

Strategic positioning and compliance realities

Savvas Savvides, senior partner at law firm Michael Kyprianou, says he is seeing the same uptick in interest from international clients but banks are tightening their rules and may require more checks, documentation, or due diligence depending on perceived risk.

Savvides said. “Recent reforms in tax transparency, simplification of corporate structures and incentives for attracting global talent are driving renewed interest, particularly from clients relocating operational headquarters or family members to the EU. UHNW clients are increasingly asking for support on redomiciling companies to Cyprus, establishing family offices, and securing EU residency solutions that offer both mobility and operational certainty. We also see rising demand for structures involving technology ventures, asset protection vehicles, and cross border succession planning that spans Cyprus, Greece and further afield. While the opportunities are significant, advisers must remain alert to evolving compliance requirements, new risk-based expectations from banks, and the fast moving geopolitical environment, all of which require proactive, well-coordinated planning.”

On his comments about ‘new risk-based expectations from banks, Savvides said. ” Both local and international banks operating in Cyprus have noticeably strengthened their AML, KYC, and ongoing monitoring frameworks. Instead of relying on uniform requirements for all clients, banks are now tailoring the depth and frequency of their checks based on each client’s unique risk profile, source-of-wealth complexity, geographic exposure, and corporate structure.”

Onboarding pressures

“Practically speaking, this shift translates into more detailed onboarding processes, especially for clients linked to high-risk jurisdictions or those with intricate asset holding arrangements. Banks are also conducting closer reviews of transactional behavior, requiring justification for incoming funds and ensuring that these transactions are in line with the declared business model. For corporate entities relocating to Cyprus, enhanced documentation requirements have become standard. There’s a greater expectation for transparency regarding ownership, governance, real economic activity, and substance. These changes are largely driven by European wide regulatory developments, the Financial Action Task Force (FATF) standards, and a move among banks to adopt a more conservative risk appetite.”

“In terms of client profile, we continue to see strong interest across a variety of sectors. Technology and software development firms are relocating engineering teams or setting up EU hubs after restructuring elsewhere. Digital marketing, content creation, and influencer management companies are coming for tax advantages and access to EU markets. Fintech and payment services groups are seeking a compliant EU jurisdiction, with an experienced regulator and multilingual talent pool. Logistics, maritime services, and supply chain management companies leverage Cyprus as a base for EU–Middle East connectivity. In addition, consultancy, advisory, and specialist service companies favor Cyprus for its corporate friendly environment and ease of establishing substance.”

“It’s also worth highlighting the ongoing demand for real estate, both residential and commercial, which has prompted the formation of property holding companies, special purpose vehicles, and family investment structures designed to acquire and manage assets in Cyprus. This demand is being driven by third country nationals from the Middle East, Asia, and CIS regions relocating family members or seeking EU access, as well as EU nationals choosing Cyprus for lifestyle reasons including safety, climate, and cost. Investors are increasingly targeting luxury coastal developments, boutique residential projects, and income generating assets such as short term rentals and mixed use buildings. Consequently, many clients are setting up Cyprus companies or family office entities to hold property, manage rental income, facilitate succession planning, or consolidate multiple real estate assets under a regulated and tax-efficient structure.”

Shipping and maritime investment

Cyprus is also one of Europe’s largest maritime centres, with shipping remaining a cornerstone of the island’s economy.

Pelagic Partners’ managing director, Atef Abou-Merhi said. “The shipping sector in Cyprus plays a significant role within the national economy, contributing around 7 per cent of GDP and strengthening the country’s competitiveness on the international stage. Combined with its strategic geographic location, strong legislative and operational infrastructure, and a competitive tax framework, Cyprus has developed into one of the most robust and diversified shipping centres globally.”

“The funds industry in Cyprus has also been expanding steadily, and we saw an opportunity to combine this with the island’s established maritime expertise. Pelagic Partners was therefore established in Cyprus as both a shipowner and fund manager, bringing specialist sector knowledge to a market where shipping funds have often been managed by investors without deep industry experience.”

“From our headquarters in Cyprus we have launched several maritime and offshore energy investment funds with a combined portfolio of around US$400 million. Building on Cyprus’s reputation for stability and reliability, we have also recently launched Pelagic Credit on the Oslo Stock Exchange, raising an initial US$75 million to help address the maritime sector’s current capital funding gap by focusing on structured leasing transactions designed to generate equity like returns from lower risk debt style investments.”

Future development of the Cyprus family office ecosystem

Sara Gunnervik, Partner, KENDRIS, Cyprus said. “Cyprus is steadily emerging as a credible and increasingly sophisticated jurisdiction for family offices and private wealth structures. The tax reforms effective from 1 January 2026 modernised the framework while preserving the core advantages that make Cyprus a highly efficient holding jurisdiction, most notably exemptions on dividends and securities profits, the Notional Interest Deduction and the IP Box regime. Together with the extended Non-Dom regime and the flexibility of Cyprus holding companies, these features continue to provide a strong platform for structuring and preserving multigenerational family wealth.”

“A long-standing strength of Cyprus is its highly skilled workforce in legal, tax and corporate services supporting international families. To remain competitive, however, this expertise must now be rapidly upskilled to become digitally native. Professional service providers will need to move beyond commoditised administrative work and focus on technology-enabled service delivery and higher-value advisory capabilities”

“Looking ahead, Cyprus must also further develop its investment advisory ecosystem. Strengthening international banking and non-banking financial services will be key if the jurisdiction is to evolve into a truly robust financial centre for family offices and private wealth. With a stable credit profile and a proven ability to adapt quickly to change, Cyprus is well placed to continue evolving alongside the needs of global private wealth.”

Gunnervik elaborates, “It is a must for Cyprus to develop itself as a regional family office centre. While some Cypriot banks now offer investment services, these are mostly designed for wealthy local clients, not for the complex needs of family offices. Cyprus cannot compete with the large global financial centres on size. We are a small island. Instead, we could consider a focus on specialisation, if you cannot go wide, go deep, developing strong expertise in specific investment areas, attracting international talent, and building a high-quality advisory environment for regional family offices and UHNWIs.”

She said. “Currently it is only Alpha bank, Bank of Cyprus and Eurobank offering investment services, but independent wealth advisory firms are starting to emerge in Cyprus. These firms can grow quickly and should be supported as part of the ecosystem.” She cites two examples of these: Equine Capital Partners Cyprus and Athlos Capital. Saying “They are young, but on the right track.”

Conclusion

Taken together, the advisers and managers interviewed say Cyprus is seeing increased interest as tensions in the Middle East, including the situation involving Iran, push some international families and businesses to reconsider where they base assets, companies and family members.

For many clients with ties to the region, Cyprus offers a way to remain geographically close while operating within the European Union. Advisers say the island is increasingly being used not just for holding companies but also for relocation, family office structures and EU-facing business operations.

At the same time, Cyprus’s long-standing Non-Dom regime continues to attract internationally mobile wealth, particularly for those seeking a tax-efficient base for investment income.

Rising company registrations, relocation enquiries and the mandates described by advisers suggest Cyprus’s role as a gateway into the EU for international families and businesses is becoming more firmly established.

See our Top 20 Cypriot Advisors and Managers 2026 list

Subscribe to the Citywealth Weekly Newsletter to learn more about Private Wealth Management.