What are the capital requirements for a CIF in 2026?

Class 3: €75,000; Class 2: €150,000; Class 1: €750,000.

Cyprus Forex License (CIF) 2026 | Full Guide & Requirements | FINXSOL

CySEC REGULATED · MIFID II · EU PASSPORTING

Cyprus Investment Firm (CIF) License — 2026 Guide

Obtain your CySEC CIF license for EU market access. Accurate 2026 requirements: capital from €75k, 9-14 months end-to-end, 15% corporate tax, MiCA crypto rules.

9-14

months end-to-end

15%

corporate tax (2026+)

€75k

minimum initial capital

Apply for CySEC License →

CIF LICENSING PROCESS

Company IncorporationCyprus Ltd (CIF)

DocumentationBusiness plan, manuals

CySEC Review3–6 months substantive assessment

License ApprovalCySEC CIF certificate

EU passporting (27 member states)

ICF client protection up to €20,000

Forex · CFD · Crypto (MiCA)

No withholding tax on dividends

WHY CYPRUS

Why choose a CySEC license for your brokerage in 2026?

The Cyprus Investment Firm (CIF) license, issued by the Cyprus Securities and Exchange Commission (CySEC) under the Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017), is one of the most sought‑after MiFID II authorizations in the EU. It provides full passporting rights to all 27 EU member states, enabling seamless cross‑border operations.

Cyprus has licensed more CIFs than any other EU jurisdiction — several hundred retail brokers, proprietary trading firms, and asset managers operate under a CySEC license. The jurisdiction offers an English‑language procedure, a pragmatic supervisor, and significantly lower setup costs than Germany or France.

200+

active CIFs — Europe’s forex hub

Factor	Cyprus (CySEC) 2026	Other EU	Offshore
Minimum capital	€75k – €750k	€125k – €1M+	Low / none
End-to-end timeline	9–14 months	12–24 months	2–4 weeks
Corporate tax (2026+)	15% (was 12.5% until Dec 2025)	19–25%	0%
EU passporting	Full (27 member states)	Full	None
Investor Compensation	€20,000 (ICF)	Varies	None

LICENSE COVERAGE

Business activities authorised under CySEC CIF

Forex & CFD Brokerage (Class 2 STP / Class 1 MM)

Full scope for retail and institutional forex brokers, including STP, execution-only, and market making models. Authorised to offer forex, CFDs, commodities, indices, and share CFDs under MiFID II.

Leverage: up to 1:30 (retail) under ESMA
Negative balance protection mandatory
Segregated client accounts required

License requirements (2026)

Class 2 (STP): €150,000 initial capital
Class 1 (Market Maker): €750,000
Physical office in Cyprus
4 directors (2 executive, 2 non-executive), majority Cyprus residents
CySEC application fee: €5,000–€10,000

Crypto Asset Services (MiCA)

Since the full application of MiCA (Markets in Crypto-Assets Regulation), CySEC-regulated CIFs can offer crypto-asset services by submitting a simple notification at least 40 working days in advance – without additional authorisation under MiCA. This covers crypto CFDs and, with appropriate extension, spot crypto exchange and custody services.

MiCA allows CIFs to act as CASPs (Crypto-Asset Service Providers) via notification
Crypto CFDs remain under MiFID II with 1:2 leverage for retail clients
DORA (Digital Operational Resilience Act) applies since January 2025

Capital for crypto activities

Same as forex license tier (Class 2 €150k, Class 1 €750k). MiCA does not impose additional capital for CIFs already meeting MiFID II requirements. A CASP license can also be obtained independently under MiCA.

Portfolio & Investment Management (Class 3)

Authorisation to manage client portfolios, provide investment advice, and offer discretionary asset management services across the EU.

Capital requirement

€75,000 (without holding client funds). Full passporting rights under MiFID II.

Proprietary Trading Firms

Proprietary trading firms can operate under a CIF license. Most prop firms use the Class 2 license (€150k) and operate under an execution-only model, though full market maker (Class 1) is also possible.

Common structure

Class 2 license (€150k) with matched principal or STP execution.

IMPLEMENTATION ROADMAP

CySEC CIF license – end-to-end process (2026)

Consultation & structure

Business model assessment, license tier selection (Class 1/2/3)

Incorporation

Documentation prep

Business plan, internal manuals (AML, risk, compliance), fit‑and‑proper forms, capital evidence

CySEC submission

File via SPIDER portal, pay fees, completeness review (10‑15 days)

Substantive assessment

3–6 months (often longer due to RFIs) – capital verification, director approvals

License issuance

Passive registration number, ICF registration, start EU passporting

Business type	Incorporation	Documentation prep	CySEC review	Total (end-to-end)
Class 3 (Advisory / Portfolio)	2‑3 weeks	2‑3 months	3‑5 months	6‑9 months
Class 2 (STP / Forex Broker)	2‑3 weeks	3‑4 months	4‑6 months	9‑12 months
Class 1 (Market Maker)	2‑3 weeks	4‑5 months	6‑8 months	11‑14 months

Note: The MiFID II statutory timeline is 6 months from a complete file, but real-world applications often take 9–14 months end-to-end depending on CySEC queries and applicant responsiveness.

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FAQs

Cyprus Forex License – frequently asked questions (2026)

What is a Cyprus Investment Firm (CIF) license?+

A CIF license is an authorisation issued by CySEC under Law 87(I)/2017 (transposing MiFID II). It allows firms to provide investment services – including forex/CFD brokerage, portfolio management, and investment advice – across the entire European Economic Area via EU passporting.

What are the current capital requirements (2026)?+

Class 3 (investment advice, no client funds): €75,000. Class 2 (STP/execution‑only): €150,000. Class 1 (Market Maker / own-account dealing): €750,000. Capital must be paid up in cash and held in a Cypriot credit institution ring‑fenced until authorisation.

How long does the licensing process take?+

From start to finish (incorporation, documentation, CySEC review), expect 9–14 months. While CySEC’s substantive assessment targets 6 months for a complete file, real-world timelines are often longer due to requests for additional information.

What is the corporate tax rate for CIFs?+

Since 1 January 2026, the standard corporate income tax rate in Cyprus is 15% (increased from 12.5% as part of the 2025 tax reform). The 12.5% rate applies only to profits earned up to 31 December 2025.

Do I need a physical office and local directors?+

Yes. CySEC requires a fully operational physical office in Cyprus and at least two executive directors who are Cyprus residents and engaged full‑time. The majority of the board (minimum 4 directors: 2 executive, 2 non‑executive) must be Cyprus residents.

Can a non-EU resident obtain a CIF license?+

Yes. Shareholders and directors can be non-EU, provided they pass the fit-and-proper test. However, you must appoint at least two directors resident in Cyprus (can be arranged through nominee services).

Does CySEC allow crypto trading under a CIF?+

Yes. Under MiCA, CIFs can offer crypto-asset services by submitting a simple notification to CySEC at least 40 working days in advance. Crypto CFDs remain under MiFID II with 1:2 leverage for retail clients. Spot crypto exchange and custody may require additional CASP registration under MiCA.

What ongoing compliance is required?+

Annual audits, quarterly financial reports, AML/KYC policies, transaction reporting under MiFID II, ICARA assessments, and DORA compliance for ICT and cyber risk management. CIFs must also maintain a local compliance officer, risk manager, and MLRO.

What is the Investor Compensation Fund (ICF)?+

The ICF protects retail clients up to €20,000 per person if the broker becomes insolvent. Participation is mandatory for all CIFs and covers claims arising from a member’s failure to return client funds or financial instruments.

What are the main benefits of a CySEC license?+

EU passporting to all 27 member states, access to major liquidity providers and payment processors, 15% corporate tax (competitive within EU), ICF protection, and a well‑established regulatory framework that is respected internationally.