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Empowering Cyprus-Based Investors

Learn how to invest with confidence through our library of guides, videos, and FAQs — all designed to support your financial literacy and decision-making.

Featured Guides:

A Featured Guide by J. Knobel Investor Services Limited


Discover Opportunities Right Where You Live

Cyprus offers a unique combination of lifestyle, EU membership, and one of Europe’s most efficient tax systems. Many investors living in Cyprus locals and expatriates alike are discovering that the best investment opportunities are often right at home.

A Regulated and Trusted Investment Environment

Cyprus operates under the Markets in Financial Instruments Directive II (MiFID II), ensuring investor protection, transparency, and professional conduct across all regulated firms.


Investing through a CySEC-regulated Investment Firm (CIF) or its tied agent means your investments are managed under a robust European framework designed for client protection.

Tax Advantages for Cyprus Tax Residents

Cyprus offers one of the most competitive tax regimes in Europe:


  • No capital gains tax on disposal of securities such as shares, bonds, and investment units.[¹]
  • No withholding tax on dividends and interest for non-domiciled residents.[²]
  • 50% income tax exemption for qualifying high-earning individuals relocating to Cyprus.[³]
  • Extensive network of double-tax treaties reducing cross-border taxation.[⁴]

💡 It may no longer make sense to hold your portfolio abroad when Cyprus offers world-class investment conditions locally.

Partnering with a Regulated Investment Firm

Through our partnership with Mega Equity Securities & Financial Services Public Ltd, J. Knobel Investor Services Limited provides access to a wide range of investment services, delivered transparently and in full compliance with CySEC and MiFID II standards.


We help you structure, manage, and grow your portfolio under the advantageous Cypriot tax framework.

Important Information & Disclaimer

This guide is provided for informational purposes only and does not constitute any tax or investment advice, solicitation, or recommendation to buy or sell financial instruments. Investors should always consider their personal circumstances and seek professional guidance. Past performance does not guarantee future results.


Footnotes:

  1. Income Tax Law of Cyprus – Article 8(22): Exemption of profits from disposal of securities.
  2. Special Defence Contribution Law of 2002 (Law 117(I)/2002), as amended – Applies only to domiciled residents.
  3. Income Tax Law – Article 8(23A): 50% exemption for individuals earning over €55,000 per annum (effective from 2022).
  4. Cyprus Ministry of Finance: Double-Tax Treaty Network (>65 active treaties aligned with OECD standards).

Understanding Risk Profiles

Your risk profile reflects how much risk you are willing and able to take when investing. It combines:

  • Financial Capacity – Your income, assets, and ability to absorb losses.
  • Investment Objectives – Your goals (growth, income, capital preservation).
  • Risk Tolerance – Your comfort level with market fluctuations and potential losses.
  • Experience & Knowledge – How familiar you are with financial products and markets.


Why It Matters:


Advisors use your risk profile to recommend suitable investments. For example:

  • Conservative – Focus on capital protection, low volatility.
  • Balanced – Mix of growth and stability.
  • Aggressive – Higher risk for potentially higher returns.


A clear risk profile ensures your portfolio matches your goals and avoids unnecessary stress during market swings.


What is a Tied Agent and How Can They Help Investors?

Definition:
Under MiFID II, a tied agent is a person or company that acts under the full and unconditional responsibility of one investment firm. They promote the firm’s services, provide investment advice, receive and transmit client orders, and help place financial instruments. Tied agents work exclusively for one firm and are registered with the national regulator.


Key Features of Tied Agents

  • Exclusive Relationship: A tied agent represents only one investment firm, ensuring clarity and accountability.
  • Regulatory Oversight: They are listed in a public register and must meet standards of competence and good repute.
  • Full Responsibility: The investment firm remains fully liable for all actions of the tied agent.


How Tied Agents Help Investors

  • Local Access to Global Markets: Tied agents act as your point of contact, making it easier to access regulated investment services without dealing directly with large institutions.
  • Personalized Guidance: They explain products, risks, and costs in line with MiFID II rules, helping you make informed decisions.
  • Compliance Assurance: All advice and transactions follow strict EU investor protection standards, including suitability checks and transparency on fees.
  • Convenience: You can receive advice, place orders, and manage your investments through a single trusted contact.


Important Note

Tied agents provide non-independent advice, meaning recommendations are based on products offered by the investment firm they represent. However, firms like Mega Equity give clients direct access to over 35 regulated exchanges, offering a wide range of instruments for portfolio diversification.

European Union Investor Protections & CySEC’s Role

MiFID II Framework
The EU’s Markets in Financial Instruments Directive II (MiFID II) is designed to make financial markets safer, fairer, and more transparent. It provides strong investor protections through:

  • Clear Information – Firms must disclose all costs, risks, and product details before you invest.
  • Suitability & Appropriateness Checks – Advisors must ensure recommendations match your financial situation, goals, and risk tolerance.
  • Best Execution – Your orders must be executed on the best possible terms available in the market.
  • Conflict of Interest Controls – Rules prevent incentives or commissions that could harm your interests.
  • Asset Safeguarding & Recordkeeping – Firms must protect your assets and keep detailed records of transactions and communications.


CySEC’s Role in Investor Protection
The Cyprus Securities and Exchange Commission (CySEC) enforces MiFID II in Cyprus and adds extra safeguards:


  • Licensing & Supervision – CySEC authorizes and monitors Cyprus Investment Firms (CIFs) and tied agents to ensure compliance.

  • Investor Compensation Fund (ICF) – Provides a safety net for retail clients if a CIF becomes insolvent, compensating eligible investors up to a set limit.
  • Public Registers – CySEC maintains registers of licensed firms and tied agents for transparency.
  • Alignment with EU Standards – CySEC updates its rules to match evolving EU directives and address emerging risks like digital assets.


Why It Matters for You
These protections ensure that when you invest through a CySEC-regulated firm, you benefit from EU-wide standards plus local enforcement, giving you confidence, transparency, and recourse in case of disputes.

How Are Client Cash and Financial Instruments Protected Under EU Laws and CySEC Rules?

1. Segregation of Assets
Under MiFID II, investment firms must keep client funds and financial instruments separate from their own assets. This means your money and securities cannot be mixed with the firm’s resources, reducing the risk of loss if the firm faces financial trouble.


2. Accurate Records & Reconciliation
Firms must maintain detailed records that clearly identify each client’s holdings and regularly reconcile these with third-party custodians. This ensures transparency and traceability of your assets.


3. Third-Party Safeguards
When assets are held by third parties (banks, custodians), they must be in separately identifiable accounts. Firms must exercise due diligence when selecting and monitoring these institutions.


4. Restrictions on Collateral Use
Title Transfer Collateral Arrangements (TTCAs) are prohibited for retail clients, meaning your assets cannot be used as collateral by the firm without your consent.


5. CySEC Oversight & Investor Compensation Fund
In Cyprus, CySEC supervises compliance with these rules and maintains a public register of licensed firms and tied agents. Additionally, the Investor Compensation Fund (ICF) provides a safety net for eligible retail clients if a regulated firm becomes insolvent.

Video Library:

🎥 How We Help You Invest Smarter (Coming Soon)

🎥 The Suitability Assessment Explained (Coming Soon)

🎥 Advisory vs Self-Directed Investing (Coming Soon)

Investor FAQs:

What is MiFID II and how does it protect me as an investor?
MiFID II (Markets in Financial Instruments Directive II) is an EU regulation designed to make financial markets more transparent and safeguard investors. It requires firms to:

  • Assess suitability and appropriateness before giving advice or executing trades.
  • Disclose all costs and risks clearly, so you know what you’re paying for.
  • Prevent conflicts of interest by tightening rules on commissions and incentives.
  • Ensure best execution, meaning your orders are handled at the best possible terms.
  • Protect client assets and communications, including mandatory record-keeping.

These measures aim to ensure fair treatment, informed decisions, and stronger protection for your investments.

How do commissions work when I place an order?
Under MiFID II, all costs and charges—including commissions—must be fully disclosed before you invest. Commissions are fees paid to the investment firm for executing your order. They cannot include hidden costs or inducements that could create conflicts of interest. If research or other services are provided, these must be invoiced and paid separately (unbundled), ensuring transparency. You will always receive a breakdown of:

  • Execution costs (brokerage or dealing fees)
  • Any additional charges (e.g., custody or research fees)
  • Total impact on your investment

This means you know exactly what you pay and why, helping you make informed decisions.

What’s the difference between independent and non-independent advice?
Under MiFID II, firms must tell you whether their advice is independent or non-independent:

  • Independent advice means the advisor considers a broad range of financial instruments from multiple providers, ensuring recommendations are unbiased and not limited to products from their own firm or affiliates.
  • Non-independent advice is restricted to a narrower range, often including products from the advisor’s own firm or related entities.

This distinction matters because independent advisors cannot accept inducements (like commissions from product providers), while non-independent advisors may, provided they disclose this clearly.


Footnote:
As a tied agent, we provide non-independent investment advice, meaning our recommendations are based on products offered through Mega Equity. However, Mega Equity gives you direct access to over 35 regulated exchanges worldwide, ensuring you still have a wide choice of instruments to build a diversified portfolio.

Can I invest without receiving advice?
Yes. Under MiFID II, you can choose execution-only services, meaning you place orders without receiving investment advice or portfolio management. In this case:

  • The firm must check if the product is appropriate for you based on your knowledge and experience.
  • If the product seems inappropriate, you’ll receive a clear warning before proceeding.
  • For certain non-complex products (like plain shares or ETFs), this appropriateness check may be waived if you initiate the transaction yourself.

This gives you flexibility while ensuring you understand the risks involved.

Open an account

J. Knobel Investor Services Limited is a tied agent of Mega Equity Securities & Financial Services Public Ltd, regulated by the Cyprus Securities and Exchange Commission  (CySEC License No. 011/03).  


Please contact J. Knobel Investor Services Limited if you have any questions regarding the account opening process

Application/Account Setup

Downloads

W8-BEN.pdf

Bank Instructions for deposit/withdrawals 

Building Financial Confidence in Our Community

At J. Knobel Investor Services Limited., we believe that financial literacy is the foundation of sound investing. In collaboration with the Career Center of European University Cyprus, we support the Financial Literacy Program, helping young people and future investors gain essential money-management skills and to make informed financial decisions.

The Financial Literacy Program is an educational initiative jointly supported by J. Knobel Investor Services Limited and the Career Center of European University Cyprus. The program is intended solely for educational purposes and does not constitute investment advice, solicitation, or an offer to buy or sell any financial instruments. J. Knobel Investor Services Limited is a tied agent of  Mega Equity Securities & Financial Services Public Ltd, regulated by the Cyprus Securities and Exchange Commission (CySEC License No. 011/03). European University Cyprus does not endorse or promote any specific financial products or services.