• info@oneworldweb.net
  • T +357 22 496 000

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

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.

AIFSAIFs with limited number of investors
Legal Forms
  • Common fund.
  • Fixed or Variable Capital Company
  • Investment Limited Partnership
  • Fixed or Variable Capital Company
  • Investment Limited Partnership
Investment Manager
  • Can be self-managed (in the case of a company) or appoint a fund manager
  • Can be self-managed (in the case of a company) or appoint a fund manager
Custodian
  • Can be in the EU or in a third country
  • If total assets of the fund are less than €5mln or the fund has up to 5 investors, then the requirement to appoint a custodian can be waived
Restrictions
  • Certain investment restrictions may be imposed depending on the investor type and the overall investment policy
  • The scheme cannot be marketed to the general public
  • Maximum number of investors less than 75
  • Investors must be professional or well-informed investors
  • Assets under management cannot exceed the AIFMD thresholds (€100 million with leverage or €500 million without leverage and a 5-year lock-up period)

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 expertize 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.

Oneworld

75 Prodromou Avenue,
Oneworld Parkview House,
2063 Nicosia, Cyprus
P.O. Box 25207, Nicosia 1307

CONTACT US

  • info@oneworldweb.net
  • T +357 22 496 000
  • F +357 22 493 000