INTRODUCTION

Alternative Investments Funds (AIFs) are entities regulated by law that collect funds from several investors with the main aim to invest these funds collectively in accordance with a pre-determined investment policy and for the benefit of the investors.

Cyprus offers one of the most competitive and attractive alternative investment funds legal frameworks since it offers low registration and administration costs as well as an attractive taxation regime.

LEGAL FORMS:

The legal forms that can take an AIF are the following:

  1. Fixed or Variable Capital Investment Company,
  2. Limited Partnership (with or without a separate legal personality), or
  3. Mutual Fund (not available for AIF-LNP or RAIF).

MAIN ADVANTAGES OF THE AIFs:

AIFs are very flexible in their investment policy, especially they can invest in real estate, private equity, listed equity, renewable energy, shipping, healthcare sectors and many others sectors.

Among others, AIFs can:

It is further noted that the Registered Alternative Investment Funds (RAIFs) do not require any authorization from Cyprus Securities and Exchange Commission (CySEC), and they are authorised and supervised by already approved Alternative Investment Fund Managers.

WHY DOMICILE AIF IN CYPRUS?

Significant growth in the fund industry in Cyprus has occurred in the past few years, both in terms of the value of assets and terms of the number of funds and fund managers, resulting in the establishment of Cyprus as one of the major EU fund jurisdictions.

Overall, Cyprus is the most flexible and cost-efficient fund jurisdiction in the EU and it is a member of the European Securities and Markets Authority (ESMA).

Further, there is an option to make public offerings of shares/ units of AIFs, a possibility of Listing to stock exchanges AMD A Possibility of outsourcing some services.

TAXATION OF AIFs:

HOW SCLAW TEAM CAN HELP:

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