Investment regulation - Cyprus
Holding restrictions
The Cypriot government has liberalised its foreign direct investment policy for both EU and non-EU nationals.
For the capital distribution aspect of portfolio investment, foreign investors are subject to the same CSE rules and regulations as Cypriots or other EU nationals.
Investors may acquire up to 100% of the share capital of any Cypriot company listed on the CSE, except those operating in the banking sector.
If the Central Bank approves, residents or non-residents can own, directly or indirectly, 10% or more of a banking company's share capital or voting stock. Banking companies are also required to obtain the Central Bank's approval before registering more than 50% of their share capital in the name of nonresidents. In some other sectors, such as private tertiary education institutions, broadcasting corporations etc., permits or consents may be required under specific laws. There are currently no companies in such sectors listed on the CSE.
Due to Cypriot restrictions, clients are not allowed to hold Cypriot financial instruments, except government debt securities, in Clearstream Banking for underlying beneficial owners that are Cypriot residents or legal entities that are incorporated in Cyprus.
Clients are allowed to hold Cypriot government debt securities for underlying beneficial owners that qualifies as a Cypriot credit institution. Other Cyprus residents or legal entities that are incorporated in Cyprus will not be allowed to hold Cypriot securities via Clearstream.
Note: It is the responsibility of the CBL client to ensure compliance with local holding restrictions. If a requirement is not met, it is the client that will be liable for any related penalty. Clients may wish to seek independent legal advice on the interpretation of Cypriot holding restrictions.
Disclosure requirements
For details of the local domestic disclosure requirements, please refer to the Disclosure Requirements.