Cyprus Alternative Investment Fund (AIF)

Alternative Investment Fund Types

Cyprus has been aligned with the European Fund related Directives aimed towards enhanced investor protection and transparency since July 2014 with the enactment of the Alternative Investment Funds (AIF) law.

Through this common European framework, AIFs that are established under domestic Cyprus fund legislation can be sold on a private placement basis or marketed to professional and Qualified investors across the EU under the Alternative Investment Fund Managers Directive (AIFMD) passport.

On July 10, 2018, the Cyprus Parliament approved a new legislation which effectively updates and enhances the existing law regulating Alternative Investment Funds (AIFs).

The introduction of the new legislation, brings about new opportunities with the introduction of a more flexible fund structure (Registered Alternative Investment Fund) while enhancing and clarifying the operating framework for the Funds industry in Cyprus.

Why an AIF in Cyprus?

01

Modern regulatory framework in line with relevant EU Directives

02

No restrictions regarding the type of investments

03

The application process is fairly simple and not time consuming

04

An AIF can be self-managed by its Board of Directors, subject to the approval of the Regulator

05

AIFs can be set-up as umbrella funds with multiple investment compartments, allowing the management of different asset pools with separate investment policies

06

AIFs without limitations as to the number of investors can be listed on the Cyprus Stock Exchange and other recognized EU stock exchanges and if marketed to retail investors can be traded

07

Significant tax incentives including no withholding tax on dividend distributions for foreign Investors

08

The services provided by the Investment Manager and Fund Administrator are not subject to VAT

09

The AIF, having the form of an investment company, can take advantage of the wide double tax treaty network of Cyprus

10

Full transparency through frequent reports to the Regulator and the investors

11

Supervised by a competent, accessible and business friendly Regulator

12

No onerous ongoing reporting requirements to the Regulator

13

Low set up and maintenance costs

Explore Private Client Services in Cyprus

01

Cyprus Alternative Investment Fund (AIF)

02

Cyprus Residency Planning

03

Trust Formation and Trustee Services in Cyprus

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