How to Set Up a Family Office in Cyprus: A Practical Guide | LCK Financial Services

Establishing a family office is a significant decision — one that blends wealth preservation, governance, and long-term planning. For families considering Cyprus as a base, the country offers a well-established framework for setting up and running a family office, whether as a standalone entity or part of a broader international strategy.

In this article, we walk you through the key steps, structures, and considerations involved — and how LCK can support you throughout the process.

What Is a Family Office?

A family office is a private organisation established to manage the financial, investment, legal, and administrative affairs of a wealthy family. Its scope may include everything from asset management and tax planning to succession, philanthropy, and family governance.

There are typically two types:

• Single Family Office (SFO): Serves the needs of one family exclusively.

• Multi-Family Office (MFO): Offers services to multiple families, often sharing infrastructure and advisory expertise.

  
  

Cyprus provides a legal and regulatory environment flexible enough to accommodate both models — making it a highly attractive destination for both new and relocating family offices.

Why Cyprus?

Cyprus is increasingly seen as a strategic base for family offices due to:

• Favourable tax regimes and trust structures

• EU membership and regulatory certainty

• Robust professional services infrastructure

• High quality of life for relocating families or key personnel

• English as the primary business language

Whether your family is seeking privacy, governance, tax efficiency, or EU market access, Cyprus offers the tools and flexibility to meet those needs.

Step-by-Step: Setting Up a Family Office in Cyprus

Setting up a family office in Cyprus can be broken into clear, manageable phases — with each stage tailored to the family’s goals, size, and complexity.

1. Define Objectives and Scope

Before anything is registered or structured, the family should define:

• Purpose of the family office (investment management, estate planning, etc.)

• Operational model (fully staffed, outsourced, or hybrid)

• Preferred structures (trusts, companies, funds)

• Level of involvement of family members

• Long-term vision (succession, philanthropy, legacy)

This discovery phase is where LCK begins — helping you clarify what kind of family office model is right for your circumstances.

2. Choose the Right Structure

There is no one-size-fits-all solution. Common structuring options in Cyprus include:

• Cyprus International Trusts (CITs) for succession and estate planning

• Private holding companies to manage assets or equity interests

• Alternative Investment Funds (AIFs) or RAIFs for pooled family assets

• Private trustee companies (PTCs) for families wanting to retain trust control

• Foundations or limited liability companies (LLCs) for charitable or governance purposes

LCK works closely with you to identify the most suitable combination — ensuring it aligns with your family’s risk appetite, control preferences, and cross-border needs.

3. Incorporation and Compliance

Once the structure is defined:

• The relevant legal entities are incorporated

• Tax residency is established

• Banking and financial accounts are opened

• Regulatory filings and registrations are completed

  
  

At this stage, it's crucial to ensure full compliance with:

• Cyprus and EU laws on AML and tax transparency

• Economic substance requirements, if applicable

• Cross-border reporting for internationally active families

Our role is to coordinate these steps seamlessly, working alongside legal, tax, and fiduciary professionals to ensure everything is properly implemented.

4. Operational Setup

With the structure in place, attention turns to running the family office day-to-day. Options include:

• Hiring in-house staff (accountants, legal advisors, portfolio managers)

• Outsourcing functions to trusted third parties

• Implementing digital tools for reporting, document management, and communications

Whether you want a discreet, low-footprint office or a full-service operation, Cyprus supports both. LCK helps you build the operational backbone that matches your vision — efficiently and securely.

5. Governance and Family Involvement

A well-functioning family office is built on clarity — in responsibilities, expectations, and values. We often support families in establishing:

• Family constitutions or charters

• Investment committees or advisory boards

• Clear succession plans and contingency frameworks

• Education programmes to involve the next generation

This is where many family offices add the greatest long-term value — turning financial capital into generational continuity and strategic legacy.

What to Expect in the First 12–24 Months

The journey doesn’t stop at setup. Over the first year or two, your family office typically evolves through:

• Refinement of reporting systems

• Active asset deployment or restructuring

• Introduction of succession or philanthropic elements

• Regular reviews of legal, tax, and risk frameworks

• Engagement of new advisors, partners, or platforms

LCK remains by your side during this period — providing ongoing support, coordination, and expert input as your family office matures.

Let’s Build Your Vision, Together

Setting up a family office in Cyprus is a strategic opportunity — but it also comes with important legal, tax, and operational choices. At LCK, we provide a dedicated, end-to-end approach tailored to your needs. We help you:

• Define clear goals and build a practical roadmap

• Select and establish the optimal structures

• Coordinate with expert partners and advisors

• Manage setup, compliance, and operations

• Plan for continuity and future growth

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Whether you’re starting from scratch or relocating an existing office to Cyprus, our role is to ensure clarity, control, and confidence throughout.

If you're exploring Cyprus as a base for your family office — or simply want to understand your options better — LCK is here to help. We combine deep local insight with global awareness to help you set up with purpose, and scale with peace of mind.

Contact us today to schedule a confidential consultation.