Cyprus Profile as an Alternative Investment Funds Center in Europe
Cyprus is now combining its proven tax efficient regime with the required infrastructure for the funds industry to create a new dynamic and competitive European hub for fund management and administration. It now offers a modern and flexible legislative framework to all Alternative Investment funds types within European AIFMD Directive enabling EU Passporting for AIF's. Such features are combined with the half century international business experience of professionals in Cyprus, the UK based legal system, the low cost and business friendly government to create one of the most prominent offerings in the Funds Industry.
Cyprus Fund Benefits
No restrictions on Investments
The regulator in Cyprus (Cyprus Securities Commission) imposes no restrictions in the type of investment of a Cyprus AIF.
Alternative Investment Funds in Cyprus may be managed by their Board of Directors, hence a Fund Manager is not required, saving on ongoing costs and efficiency.
Stock Exchange Listing
Cyprus AIFs may be listed in Cyprus or any other Stock Exchanges or listing of the fund in international information services.
No Capital Gains Tax
Alternative Investment Funds in Cyprus avoid the payment of any capital gains tax (GGT) on disposal or redemption of fund units.
Double Tax Treaty Network
Cyprus AIFs established as "companies" are classified as such in accordance to the 65 DTT's of Cyprus with investment destinations worldwide.
No red tape - no delays
Establishing a Cyprus Fund is quite simple and straight forward with an estimated time for approval of 4-6 weeks.
Fund in Cyprus may be established as umbrella funds with segregated sub-funds with differing investment policies, asset types and investor base.
Simple Regulator Reporting
The regulator in Cyprus is not imposing excessive reporting requirements for the funds or its Fund Manager.
No Withholding Tax on Dividends
Any dividend distributed to the unit holders of the Cyprus AIF is tax exempt and no tax is withheld on such amounts.
No VAT on Fund Managers
All Management Services provided by a Fund Manager to an Alternative Investment Fund in Cyprus are fully exempted from VAT duty.
Setting Up and Licensing
Preparation and submission of an application package to CySEC to obtain a license, including advice on the best way to set up the fund as regards staffing, organisational structure and costs.
Legal and Compliance Services
Establishment of the Legal Entity, ongoing legal support and compliance regarding the affairs, agreements and structuring of the fund and any subsidiary entities.
Administration, Audit and Internal Audit Services
Ongoing provision through our associated companies of Audit, Internal Audit and Administration services.
Provide advice as to the tax structure involved including the structure involved between the fund and the investments in a way as to maintain tax efficiency for the manager and unit holders.
Fiduciary and Custodian Services
Provision of fiduciary services to the fund, its subsidiaries and its unit holders including all custodian services required by the fund in relation to investments in non-regulated financial instruments.