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Cyprus Alternative Investment Funds (AIF)

 

Investment funds are one of the up and coming sectors within the Cyprus financial services industry. Recent changes in the Cyprus tax legislation and regulatory framework bear testimony to the government’s commitment in aligning Cyprus with what the professionals in the private sector have sought for years, that is to say the placing of Cyprus on the world map of fund friendly jurisdictions. The tax and regulatory synergies are now in place to attract not only the funds themselves but also fund managers and fund investors.  

 

The Alternative Investment Funds Law of 2014 repealed the International Collective Investment Schemes Law (the "ICIS Law") the former legislative framework for investment funds in Cyprus.

 

There are two types of AIFs that can be set up in Cyprus, specifically:

 

  • Alternative Investment Funds (AIF) without limitations as to the number of investors (Public), and
  • Alternative Investment Funds (AIF) with limitations as to the number of investors (Private).

 

You can find a comparison of the above fund types here.

 

Taxation of investors

 

• There are no Cypriot taxes for investors in a Cypriot fund on the disposal or redemption of fund units/shares.

• There are no withholding taxes on distributions made to non-Cypriot investors by a Cypriot fund.

 

Taxation of funds

 

• A fund is exempt from tax on the disposal of its investments in fund units, shares, other equity securities and bonds.

• A fund is exempt from tax on distributions received from investments in funds and shares held either directly or via special purpose vehicles.

• Interest income derived by a fund is subject to 12,5% income tax (net of deductible expenses and foreign tax credits are available).

      

Our services include:

 

Licensing

  • Examining and consulting on the alternative forms that the fund can take in order to best suit your needs 
  • Incorporation of the to be licensed entity
  • Preparation of the application package and submission to the Regulator
  • Assistance on replying to any queries or providing additional information/ clarifications when requested by the Regulator 

Administration

  • Fund Accounting, Management Reporting, Net Asset Valuations and preparation of financial statements in accordance with International Financial reporting Standards
  • Unitholder Dealing and Registration (ie processing share transfers, subscriptions and redemptions etc)
  • Regulatory reporting 

Assurance

  • Annual Audit and Interim reviews

 

Get in touch with us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for a free consultation.

 

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