Cyprus Alternative Investment Funds (AIFs)
Why set up your AIF in Cyprus
Cyprus based AIFMs and AIFs will benefit from the low tax burdens levied on Cyprus based corporations. Further, non-Cypriot investors in Cyprus AIFs will, at the time of a redemption or distribution of a Cyprus AIDF, benefit from an extensive double tax treaty network.
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Set up an AIF in Cyprus and enjoy the benefits
Cyprus is increasingly becoming a favoured destination of choice in EU for Fund Managers and Management Companies seeking new locations for the following reasons:
The Cyprus Securities and Exchange Commissions does not impose any restrictions on the type of investment of an AIF with limited numbers of persons
Opting for licensing of an AIF as an AIFM (or self-managed AIF) under the AIFMD allows the Manager to passport their services across the EU
If a Fund Manager is not necessary Cyprus AIFs can be managed by their Board of Directors
AIFs in Cyprus can be established as umbrella funds with multiple compartments within segregated sub-funds with different investment policies, asset types and investor base
AIFs can be listed on Cyprus Stock Exchange and other recognized EU stock exchanges
AIFs in Cyprus do not have to pay any capital gains tax on disposal or redemption of fund units
Any dividend distributed to the unit holders of a Cyprus AIF is tax exempt
Management services provided by a Fund Manager to a Cyprus AIF are fully exempted from VAT
The regulator in Cyprus is not imposing excessive reporting requirements for the funds or its Fund Manager
The application process is fairly simple and not particularly time consuming
Private and Public AIFs
The Cyprus Law provides for two types of Alternative Investment Funds (AIFs), namely AIFs without limitations as to the number of investors, and AIFs with limited number of persons.
|AIFs||AIFs with Limited Number of Persons (AIFLNP)||Registered AIFs|
|Authority||CySEC||CySEC||No license required, supervision at the level of the Manager by CySEC|
|Available legal structures||Common Fund (CF), Variable Capital Investment Company (VCIC) , Fixed Capital Investment Company (FCIC), Limited Partnership with or without legal personality (LP)||Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Limited Partnership with or without legal personality (LP)||Common Fund (CF), Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Limited Partnership with or without legal personality (LP)
|Number of investors||Unlimited||Up to 50 (with look through provisions)||Unlimited|
|Addressed to||Professional and/or Well-Informed Investors and Retail Investors||Only to Professional/Well-Informed Investors||Only to Professional/Well-Informed Investors|
|Investment restrictions||Apply for liquidity and risk diversification||Non Applicable||Non Applicable|
|Minimum Capital Requirement||If self-managed: €125.000 alternatively if externally managed: N/A||If self-managed: €50.000 alternatively if externally managed: N/A||Not Subject to Minimum Capital Requirement|
|Minimum AUM (within 12 months)||€500,000||€250,000||€500,000|
|Fund management||Can be self-managed (in the case of a company or a limited partnership with separate legal personality) or Appoint a fund manager||Can be self-managed (in the case of a company or a limited partnership with separate legal personality) or Appoint a fund manager||Always required to appoint an external fund manager|
|Who can act as Manager||AIFM licensed in the EU, UCIT Manager licensed in the EU, MiFID Investment Firm ,Cyprus Mini-Manager (to be enacted), EU Sub-threshold AIFM||Third country manager, UCIT Manager licensed in the EU, MiFID Investment Firm, EU Sub-threshold AIFM, AIF not investing in financial instruments: a Company incorporated solely for the purpose of managing the specific AIF, which does not hold any license for portfolio management (to be replaced by the “Mini-Manager” regime).||Externally managed by an AIFM established in Cyprus or within another EU Member State, RAIFs structured as limited liability partnerships may also be externally managed by managers other than AIFMs (i.e. Investment Firms, UCITS Management Companies, sub-threshold AIFM (Mini-Manager). In such event, the RAIF must necessarily be established as a closed-ended scheme and invest more that 70% its assets in illiquid investments.|
Our fund services
At Oneworld ltd, we provide complete solutions in fund administration, rendering middle and back office services to a wide range of investment funds and private vehicles. We have many years of experience and our areas of expertise include the following:
- * Fund Establishment
- * Compliance
- * Fund Accounting and Valuation
- * Company Secretarial Services
- * Internal Audit Services
- * Risk Management and Compliance
- * Domiciliation and Office rental
- * Direct and Indirect tax services
How we can assist you
We offer complete solutions for fund administration.
Oneworld Ltd which employs a team of 75 professionals and corporate administrators provides incorporation, fiduciary, management, banking, accounting, redomiciliation services, as well as setting up and administering private funds and trusts. We advise on tax planning, incorporate and administer companies in zero and low tax jurisdictions and provide boutique services including citizenship and residency services.
Oneworld ltd is licensed by CySEC (license 146/196) as an ASP (Administrative Service Provider).