Best Structured Finance Lawyers in Famagusta

1. About Structured Finance Law in Famagusta, Cyprus

Structured finance in Cyprus covers securitisation, asset backed financing, and the use of special purpose vehicles (SPVs). In Famagusta, developers, landlords and lenders commonly rely on Cyprus SPVs to pool collateral and issue notes to investors. The legal framework is island wide and EU rules shape Cyprus practice.

Cyprus has established a securitisation framework to support cross border financing while preserving investor protections. SPVs in Cyprus are typically established as local companies under the Companies Law Cap. 113, with additional rules from the Securitisation Law and related EU regulations. Practitioners in Famagusta work with local attorneys or solicitors to structure, register and administer these transactions.

2. Why You May Need a Lawyer

• To form a Cyprus SPV for securitising rental receivables from a Famagusta property development, ensuring true sale and regulatory compliance.
• To draft and negotiate securitisation documents, including the transfer agreement, service agreements and notes prospectus or private placement materials.
• To conduct due diligence on underlying assets in Cyprus and EU jurisdictions, including title searches and lien checks on collateral assets.
• To navigate cross border regulatory requirements with CySEC and Central Bank oversight for SPVs and credit enhancement arrangements.
• To ensure tax efficiency for the SPV and investors, including treaty benefits and withholding tax considerations.
• To handle enforcement and remedies if securitised assets go into default, including timing of collections and bankruptcy procedures.

3. Local Laws Overview

The primary corporate law in Cyprus is The Companies Law Cap. 113. It governs the creation, operation and governance of Cyprus companies, including SPVs used in structured finance. It has been amended multiple times to align with EU standards and market practice.

The Securitisation Law provides a framework for securitisation SPVs and credit risk transfer mechanisms, including true sale and asset transfers. It supports transparency and investor protections in line with EU expectations for securitisation activity in Cyprus.

EU level rules also shape Cyprus practice. The EU Securitisation Regulation, Regulation (EU) 2017/2402, and the related Prospectus Regulation, Regulation (EU) 2017/1129, set cross border disclosure, transparency and risk retention obligations. These rules apply to securitisation transactions involving Cyprus SPVs and investors from elsewhere in the EU.

Cyprus AML and anti money laundering laws remain relevant. The regime requires customer due diligence, beneficial ownership checks and ongoing monitoring for SPVs and securitisation transactions. Updates in recent years have increased alignment with EU AML directives.

The Securitisation Regulation ensures uniform rules across the EU for securitisations. Source: EU Securitisation Regulation

Securitisation activities in the EU require clear disclosure, transparency and risk retention requirements under the EU securitisation framework. Source: European Commission - Securitisation

4. Frequently Asked Questions

What is structured finance in Cyprus?

Structured finance bundles assets and liabilities to create securities. In Cyprus, it commonly uses SPVs to isolate risk and attract investors. This is regulated by Cyprus corporate and securitisation rules.

How do I start securitisation in Famagusta?

Start by defining the asset pool, selecting an SPV structure and engaging a Cyprus solicitor. Then draft the securitisation documentation and coordinate with regulators.

Do I need a local lawyer to set up an SPV in Cyprus?

Yes. A Cyprus solicitor or advocate can help with corporate formation, due diligence, and regulatory compliance. Local knowledge reduces the risk of mis filing.

How much does it cost to hire a structured finance lawyer in Famagusta?

Costs vary by deal size and complexity. Typical fees include initial advisory, due diligence, drafting and negotiation, and closing costs. Expect several thousand to tens of thousands of euros for mid size deals.

How long does a securitisation deal take to close?

Preparation can take 4 to 12 weeks depending on asset complexity, regulatory approvals and investor lead times. Closing may take additional 2 to 6 weeks.

Do I need to register an SPV in Cyprus?

Setting up an SPV in Cyprus is common for securitisations. Registration is handled by the Cyprus authorities and involves corporate formation, directors, and reporting requirements.

What documents are typically required for securitisation?

Typically you need asset schedules, transfer agreements, servicing agreements, investor disclosures, and compliance documentation. Legal counsel should tailor these to the deal.

What is the difference between an SPV and a regular company?

An SPV is created to isolate financial risk for a specific transaction. It has limited purposes and a defined asset pool, different from a general operating company.

Can I securitise real estate receivables in Cyprus?

Yes, securitisation of real estate receivables is common in Cyprus. It requires careful asset transfer documentation and credit risk transfer compliance.

Is Cyprus tax friendly to SPVs?

Cyprus offers favorable regimes for SPVs, including potential tax exemptions on certain income and double taxation treaties. Tax advice is essential for optimal structuring.

What documentation is required for regulatory approval?

Documentation typically includes offering documents, due diligence reports, asset schedules, and compliance confirmations. Requirements vary by deal and regulator.

Should I engage a CySEC regulated adviser for securitisation?

Engaging a regulator supervised adviser helps ensure compliance with disclosure and market rules. It provides additional investor protection in the process.

Do I need to comply with EU regulatory timelines?

Yes. EU timelines govern disclosure, prospectus and investor communications for cross border securitisations. Compliance helps avoid delays and penalties.

5. Additional Resources

• Central Bank of Cyprus - Supervises banks and financial institutions, and provides guidance related to securitisation practices and credit institutions in Cyprus.
• Cyprus Securities and Exchange Commission - Regulates investment services, markets and related securitisation activities in Cyprus.
• European Securities and Markets Authority - EU level authority providing securitisation guidelines, market integrity and investor protection standards.
• European Commission - Securitisation - EU level framework and policy context for securitisation across member states.

6. Next Steps

1. Define your securitisation objective and asset pool. Create a one page deal outline with expected investors and timeline.
2. Identify a qualified Cyprus solicitor or advocate with structured finance experience. Schedule an initial consultation within 2 weeks.
3. Prepare a preliminary structure and gather necessary documents. Allocate 2-3 weeks for initial due diligence and asset review.
4. Engage the SPV formation process and draft essential documents with counsel. Plan for a 3-6 week drafting period depending on complexity.
5. Submit the transaction for regulatory review if required and arrange investor disclosures. Allow 2-8 weeks for regulatory and market processes.
6. Finalize and close the deal. Ensure all legal, tax and regulatory obligations are satisfied before funds release.
7. Post closing, implement ongoing compliance and reporting with your lawyer and service providers. Set quarterly reviews for the SPV.