Flexibility – Transparency – Tax Incentives – Cost Efficient – Regulation
A Cyprus Alternative Investment Fund (AIF) is cost-efficient and simple to set-up, manage and operate. It offers a modern regulatory framework that is in line with relevant EU directives and it is supervised by a competent and accessible regulatory authority. Setting up an AIF in Cyprus provides a solid base and signals trust infrastructure.
It provides full transparency and increased investor protection through annual audited and half yearly reports to CySEC and investors, which include financial statements, borrowing information, portfolio information and Net Asset Value.
There are no restrictions imposed by the regulator on type of investments and, subject to approval, a Cyprus AIF can be self-managed. Cyprus Alternative Investment Funds can be set-up as umbrella funds with multiple compartments and can be listed on CySEC and other recognised EU stock exchanges, provided that the number of investors is not limited.
Cyprus offers a number of important advantages for setting up an AIF:
- Low set up and maintenance costs
- Simple to set-up, manage and operate
- Modern regulatory framework fully in line with relevant EU directives
- Increased flexibility as a number of asset classes can be included in an AIF investment strategy
- Increased investor protection as complete transparency is obligatory
- Subject to the approval of CySEC, the AIF can be self-managed
- Can be set up as umbrella funds with multiple compartments, allowing the management of different asset pools with separate investment policies
- Significant tax incentives offered by the country’s advantageous tax framework
- Supervised by a competent and accessible regulatory authority
- No onerous ongoing reporting requirements to the regulator
- Stable and reliable legal system
- Alternative Investment Funds without limitations as to the number of investors can be listed on Cyprus Stock Exchange and other recognised EU stock exchanges and if marketed to retail investors can be traded.
