Get a Forex Brokerage License in Cyprus 2023

Facts & Figures

Arguably the best overall best on-shore Forex license on the market, Cyprus offers access to the highly sought-after European markets while offering a robust legal framework with comparatively low capital requirements.

The process

The costs

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Book a free consultation with one of our experienced specialists to get your license application start or learn more about the Mauritius Forex License.

About the Cyprus Forex License

Table of Contents

Cyprus, an island country in the Eastern Mediterranean, has managed to become the prime choice for Forex licenses in the world thanks to its well-thought-out regulatory structure that has been curated over the past decades. Today, Cyprus offers the easiest and best access to the European Union financial services market, and there’s no reason to think that this will change anytime soon.

In this detailed guide, we’ll navigate through the process of acquiring a Forex brokerage license in Cyprus, discussing the various steps, requirements, and potential difficulties, with expert insights from our specialists at – which also happens to be based in the world’s Forex capital: Limassol, Cyprus.

The Economy of Cyprus

The economy of Cyprus is a high-income economy with a GDP per capita north of $31,500 as of 2023. Predominantly, the economy is driven by the sectors of tourism, shipping, real estate, and financial services. 

The government has done an excellent job in transforming the country into an interesting jurisdiction for financial services companies, which has attracted thousands of Forex companies over the last two decades. Crucially, Cyprus is a member of the European Union (EU) and uses the Euro as its currency.

How Cyprus Regulates Financial Markets

The Cyprus Securities and Exchange Commission (CySEC) regulates financial markets in Cyprus. CySEC is responsible for the licensing, supervision, and regulation of all financial services providers, including banks, insurance companies, and investment firms. The organization also cooperates with other regulatory bodies such as the Central Bank of Cyprus and the Cyprus Stock Exchange to ensure the stability and integrity of the financial system.

Any Forex company looking to do business in Cyprus will need to obtain a license from CySEC.

Registering a Company in Cyprus

The process of registering a company in Cyprus involves several steps, including selecting a company name, preparing the Memorandum and Articles of Association, obtaining a business registration number, registering the company, opening a corporate bank account, obtaining a tax identification number, and registering for Value Added Tax (VAT) if applicable.

Taxation in Cyprus

Cyprus offers one of the lowest tax systems in Europe, specifically within the European Union. Its income tax is based on a progressive tax system with a tax rate that ranges from 20% to 35% for individuals. For companies, the corporate tax rate is 12.5%. 

Notably, Cyprus offers substantial tax breaks to immigrants from the European Union. Individuals from EU nations can obtain the so-called non-dom status for 17 years, which releases them from any dividend taxes, special defense contributions, and also reduces their income tax (over €100,000 per year) by 50%. Apart from that, Cyprus has double taxation treaties with over 50 countries and no controlled foreign corporation law, allowing residents to own and operate companies in off-shore destinations without running into taxation issues.

Benefits of the Cyprus Forex License

Cyprus has gained prominence as a preferred hub for obtaining forex brokerage licenses, thanks to its robust regulatory environment, strong financial services sector, numerous tax incentives, and geo location. The benefits include:

1. EU Membership

Being a part of the EU, a Cyprus Forex license enables holders to service and advertise in all EU member states.

2. Reputable Regulatory Framework

Cyprus boasts a well-regulated financial sector supervised by CySEC, promoting transparency and accountability. It is a well respected license throughout the world.

3. Cost-Effective Licensing Process

The licensing process in Cyprus is relatively cost-effective compared to other EU jurisdictions like Germany.

4. Access to Skilled Workforce

Cyprus provides access to a highly educated and skilled workforce. Notably, the local workforce is further reinforced by a huge influx of highly skilled specialist workers from Eastern Europe, Israel, and Russia.

5. Favorable Tax Regime

The corporate tax rate in Cyprus is one of the lowest in the EU, and it has double taxation treaties with over 50 countries – as well as a number of great benefits for individuals.

Drawbacks of the Cyprus Forex License

Of course, every jurisdiction comes with its unique challenges, and Cyprus is no different. So, here are some disadvantages of the Cyprus Forex license you should know.

1. Stringent Regulatory Requirements

CySEC imposes stringent requirements on Forex brokers, which can be difficult to comply with, particularly for new and small businesses. Working with an experienced partner, like, is paramount to ensure a smooth application process and operation.

2. Capital Requirement

The minimum capital requirement for a Cyprus investment firm can be high, making it challenging for smaller brokerages to meet these obligations.

3. Ongoing Compliance Obligations

There are ongoing compliance obligations that must be met. Additionally, these obligations my further increase in the future.

How to obtain a brokerage license in Cyprus

To secure a Forex license in Cyprus, here are the steps you need to follow:

1. Create a Detailed Business Plan

Begin with a comprehensive business plan that covers your business strategy, financial projections, marketing plans, and procedures for assessing client risk levels and complying with anti-money laundering regulations.

2. Incorporate a Company

You must first incorporate a company in Cyprus before applying for a Forex license.

3. Prepare the Necessary Documentation

Prepare the necessary documents for application, including corporate documents, operational manuals, anti-money laundering procedures, and other required paperwork.

4. Submit Application to CySEC

Submit your application along with the required documents to CySEC.

5. Wait for Approval

Once the application is submitted, CySEC will review it, which may take several months. During this time, they might ask for additional documentation or clarification on certain points.

6. Start Operating

After receiving approval from CySEC, you can start operating your Forex brokerage in Cyprus.

Comparing Cyprus to Other Jurisdictions

Cyprus, as a member of the EU, operates under a highly reputable regulatory environment managed by CySEC. It’s comparable to jurisdictions such as the UK and Germany. However, it may be considered stricter than jurisdictions like Seychelles and Mauritius. While the cost and time to obtain a Forex license in Cyprus are typically higher than in offshore jurisdictions like Seychelles, they are significantly lower than in jurisdictions like the US and UK.

A major advantage of Cyprus is its membership in the EU, allowing Forex brokers to service all EU member states under the MiFID II regulation. This is a distinct advantage over many other jurisdictions. Cyprus has a good reputation as a Forex hub, thanks to its robust regulatory framework and commitment to financial transparency. This is generally better than many offshore jurisdictions, but somewhat lower than jurisdictions like the US and UK.

With a corporate tax rate of 12.5%, Cyprus has one of the lowest tax rates in the EU, giving it an edge over many other jurisdictions. The country also has double taxation treaties with over 50 countries, making it more attractive for Forex brokers. Remember, the choice of jurisdiction for a Forex license depends on several factors, including your target market, budget, and business strategy. It’s advisable to seek expert advice to make an informed decision.

Key Benefits of a Cyprus Forex Broker License

  • Most sought after forex broker license
  • Access to European and EU market
  • IP Box regime for lowered tax rate
  • Home to the world’s most successful licensed brokers

Ready to Move Forward?

Book a free consultation with one of our experienced specialists to get your license application start or learn more about the Mauritius Forex License.