Cyprus fund industry is growing rapidly during the past few years due to the harmonisation with the EU regulatory framework, the attractive tax schemes and the extensive network of highly skilled and educated professional service providers. Globalserve can support you with the following services:
Our aim is to understand the needs of our clients to provide them with the highest quality of investment solutions and advise them on the structuring of their funds after analysing the implications of the AIF/AIFLNP/RAIF regimes.
Fund set up
After deciding the structure and the type of fund that the client needs, we undertake the procedure of obtaining the license from Cysec. The procedure includes the following:
On-going support
Cypriot funds are able to combine transparency along with tax benefits for investors. The fund industry has experienced a significant growth during the past few years in Cyprus, establishing the island as one of the major fund jurisdictions in the EU. Cypriot professionals have developed their skills over the fund sector and are able to provide first class services to those interested in entering the fund industry. Along with the above factors, Cyprus can provide a number of significant benefits to the investors, making the country an attractive business destination.
Benefits offered form the establishment of a Cyprus Investment Fund:
Lower set up and operational costs compared to the largest EU fund hubs, Luxenberg and Ireland.
Harmonization with modern fund legislation:
Modern and transparent legal and regulatory framework.
Offering of transparency and Protection to investors, through obligatory reports to Investors and the Cyprus Security and Exchange Commission (Cysec).
Provision of quality services and support:
Flexibility offered by various fund structures:
Taxation benefit for the fund itself:
1. Capital Gains tax from the sale of corporate titles and other financial instruments
2. Capital Gains tax from the sale of immovable property situated outside Cyprus
Taxation benefit for the Foreign Investors:
Taxation benefit for the Fund Manager:
AIF Alternative Investment Fund |
RAIF Registered Alternative Investment Funds |
AIFLNP Alternative Investment Fund for Limited Number of Persons |
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Regulated – Authorised by CySEC | Regulated through external manager who falls under AIFMD | Lightly regulated - Authorised by CySEC |
No. of investors: Unlimited | No. of investors: Unlimited | No. of investors: Up to 50 |
Type of Investors: Retail, Well informed, Professional | Type of Investors: Well informed, Professional | Type of Investors: Well informed, Professional |
Legal Forms: • Common fund • Investment company • Limited Partnership |
Legal Forms: • Common fund • Investment company • Limited Partnership |
Legal Forms: • Investment company • Limited Partnership |
Initial Capital: • €125,000 for internally managed AIFs • €300,000 for internally managed AIFMs • No requirement for externally managed AIFs |
Initial Capital: No requirement |
Initial Capital: • €50,000 for internally managed • No requirement for externally managed AIFLNPs |
Maximum AUM: • Up to €100M incl. leverage • Up to €500M without leverage & no redemption for 5 yrs (if not under AIFMD) • No restriction if under AIFMD |
Maximum AUM: • Up to €100M incl. leverage • Up to €500M without leverage & no redemption for 5 yrs (if not under AIFMD) • No restriction if managed by AIFM |
Maximum AUM: • Up to €100M incl. leverage • Up to €500M without leverage & no redemption for 5 yrs |
Minimum AUM: €500,000 per compartment within 12 months (or 24 months with CySEC approval). Initial capital cannot be counted. |
Minimum AUM: €500,000 per compartment within 12 months (or 24 months with CySEC approval). |
Minimum AUM: €250,000 per compartment within 12 months (or 24 months with CySEC approval). Initial capital cannot be counted. |
Depositary: Mandatory if under AIFMD | Depositary: Mandatory local depositary | Depositary: Mandatory if under AIFMD |
Time Required: 1 month prep + 6 months CySEC authorisation | Time Required: 1 month prep + 1 month CySEC registration | Time Required: 1 month prep + 6 months CySEC authorisation |
Units can be listed | Units can be listed | Units can be listed |
Management: • Internal management allowed • External by: - AIFM - UCITS Manager - Mini Manager - Investment Firm |
Management: • Only external by: - AIFM - UCITS Manager - Mini Manager - Investment Firm (if LP & ≥70% illiquid assets & closed-ended) |
Management: • Internal management allowed • External by: - Investment Firm - UCITS Manager - Mini Manager - Third-country provider or sole purpose company |
Investment Restrictions: Based on investor type & AIF’s policy |
Investment Restrictions: Based on investor type & AIF’s policy |
Investment Restrictions: No restrictions |
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Globalserve Consultants Ltd can assist you in the funds set up in Cyprus and maintenance.
You can contact us on marketing@globlaserve.com.cy
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