Alternative Investments Funds Brochure – AIFs

A modern legal framework for entrepreneurs and industry players

With the introduction of the new Alternative Investment Funds Law (L.124(I)/2018) Cyprus' legal framework has been duly modernized and provides a competitive alternative to other popular European Fund Hubs. More specifically, there are 3 types of available funds.

|AIFLNP

|AIFUNP

| RAIF

Fund structures at a glance

Taxation

Cyprus tax regime provides numerous tax incentives for the set up and operation of funds. These include the following:

AT FUND LEVEL

• Gains from trading in securities are tax exempt,
• It can benefit from the 12.5% tax on annual net profits earned worldwide,
• Notional Interest Deduction (NID) for new equity may reduce taxable base for interest received by up to 80% (applicable to companies) reducing the effective tax on interest to 2.5%,