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Cyprus Alternative Investment Funds (AIFs) / Private Funds

Why set up your AIF in Cyprus

  • EU Member State and compliant with EU laws and regulations
  • mature business centre with developed infrastructure and highly qualified professionals
  • minimum formalities
  • wide and efficient network of legal, accounting and banking services
  • competitive setting up and ongoing costs structures and funds in the EU
  • favourable tax regime in the EU, especially for non-residents
  • combination of effective regulations, flexibility and incentives
  • hedge fund and hedge fund managers location
  • AIF, UCITS can be listed on CSE and other recognized EU stock exchanges
  • redomiciliation in and out possible

Cyprus based AIFMs and AIFs will benefit from 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.

Why us?

  • Established, well known professional firm in Cyprus for 30 years
  • Leader in setting up and managing of funds and in financial services advisory
  • Professionals from all disciplines – chartered accountants, tax consultants, business consultants and administrators
  • One stop shop and bespoke services to suit each client’s needs
  • Ability to advise on fund structuring and financial services worldwide
  • Competitive fees

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

Investors who invest over €2,000,000 in a Cyprus AIF are eligible to apply for a Cyprus Citizenship 

Main Features of Cyprus 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
  • Internal Audit Services
  • Risk Management and Compliance
  • Domiciliation and Office rental
  • Direct and Indirect tax services

About us

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)

Contact Us

  • Savvas Shiatis
  • +357 99597339
  • sshiatis@oneworldweb.net
  • Alexandros Philippides
  • +357 99680766
  • aphilippides@oneworldweb.net

Interested in setting up your Alternative Investment Fund in Cyprus?

Contact us today and receive a complimentary consultation with one of our expert advisors.