Cyprus is opening a new chapter in the diversification of its economy with the attraction and upcoming legislative regulation of Family Offices, or more accurately in Greek: Offices for the Management of Family Wealth.
Recently, a significant event took place in Limassol, gathering key players from the financial, regulatory, and private wealth management sectors. This meeting aimed to explore the future of Family Offices in Cyprus and outline the potential benefits for the country.
Mr. Theodoros Parperi, the event organiser and President of Family Office Connect Cyprus (FOC), emphasised the platform’s role in promoting dialogue and innovation within the family office ecosystem. Established in 2025, FOC aims to position Cyprus as a leading jurisdiction for Family Office services.
Family Offices, as described by Mr. Parperi, are specialised entities that manage the wealth, investments, and personal affairs of affluent families. They offer a range of services including investment management, tax planning, legal support, philanthropic activities, and succession planning. There are two primary types: Single Family Offices (SFOs), which cater to one family, and Multi-Family Offices (MFOs), which serve multiple families.
The process of establishing a Family Office involves strategic planning and legal guidance. Families must select the appropriate jurisdiction, define their structure (SFO or MFO), and engage with financial professionals such as lawyers and investment advisors.
Unlike traditional investment funds, Family Offices are private structures that primarily serve the needs of individual families, allowing them to invest in various assets without the regulatory burdens faced by public funds. This setup offers advantages such as control, flexibility, and tailored investment strategies, which can enhance financing for economic development initiatives, including startups and existing businesses.
Experts believe that Family Offices can significantly benefit the Cypriot economy by attracting foreign investment, creating high-quality jobs, and bolstering the professional services sector. They can also help elevate Cyprus’s reputation as a financial centre and provide long-term economic stability and diversification. Drawing from successful models in countries like Singapore, Family Offices can contribute to philanthropy, an area where Cypriot society stands to gain immensely.
According to reports from Phileleftheros, several Family Offices are already operational in Cyprus, with both local and international families recognising the country’s tax stability and quality of professional services as key factors for their choice.
However, the absence of a formal legal framework in Cyprus limits the comprehensive documentation of these entities and hinders sector development. Efforts are underway to establish a more structured environment for Family Offices.
The establishment of Family Office Connect Cyprus (F.O.C.) marks a significant step towards this goal. The platform advocates for a robust institutional framework for Family Offices in Cyprus. Among its initial recommendations are the creation of a legal framework for SFOs, the introduction of Private Foundations for succession and philanthropy, and collaboration with regulatory bodies like the Cyprus Securities and Exchange Commission (CySEC) and the Ministry of Commerce.