Cyprus Alternative Investment Fund (AIF)

Benefit from a flexible fund structure, investor protection, EU passporting, an attractive tax regime, and scalability.

General Overview

  • Legal Basis: Governed by the Alternative Investment Funds Law of 2018.
  • Regulatory Oversight: Fully regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC).
  • Target Investors: Open to professional, well-informed, and retail investors.
  • Setup Timeframe: The setup timeframe ranges from 6 to 8 months, though it can vary depending on the complexity of the structure.
     

Key Features

  • Corporate Flexibility: Can be structured as:
    • Common Fund (CF)
    • Variable Capital Investment Company (VCIC)
    • Fixed Capital Investment Company (FCIC)
    • Limited Partnership (LP)
  • Investment Scope: Can invest in any asset class subject to the fund’s rules and CySEC requirements.
  • Umbrella Structure: Can create multiple sub-funds with segregated liability.
  • EU Passporting: If managed by an authorized AIFM, can be marketed across the EU.


Taxation

  • Corporate Tax: Subject to Cyprus’ standard 12.5% corporate tax rate.
  • No Withholding Tax on dividend distributions to non-resident investors.
  • No Subscription Tax on net assets.
  • Access to Cyprus’ Double Tax Treaty Network for tax optimization.

Governance & Service Providers

  • AIFM Requirement: May be managed by an AIFM or internally.
  • Depositary Requirement: Must appoint a depositary.
  • Central Administration: Must be based in Cyprus.
  • Auditor: A Cyprus-registered auditor must be appointed.
     

 

Advantages of a Cyprus AIF

  • Flexible Fund Structure: Can accommodate a broad range of investment strategies.
  • Investor Protection: Fully regulated by CySEC.
  • EU Passporting: Allows cross-border marketing if AIFM is appointed.
  • Attractive Tax Regime: Competitive corporate tax and extensive double tax treaty benefits.
  • Scalability: Suitable for institutional and retail investors depending on structure.

Use Cases

  • Private Equity & Venture Capital Funds
  • Real Estate Investment Vehicles
  • Hedge Funds & Debt Funds
  • Infrastructure Investments
     

Setup & Support by KENDRIS Capital

  • Assistance with AIF structuring and CySEC licensing.
  • Drafting of regulatory documents (Fund Prospectus, Limited Partnership Agreement, etc.).
  • Ongoing fund management, administration, and compliance services

     

Cyprus AIF Factsheet

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Key contact

Nikolas Charalambous
Nikolas Charalambous
Managing Director
MBA, BSc. Accounting
T +357 24 205300
Kyriacos Antonaki
Kyriacos Antonaki
Operations Manager
MBA, BSc. Economics
T +357 24 205300

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