The Cyprus Alternative Investment Fund (AIF) scheme is an extremely efficient vehicle, helping companies realise corporate savings. It is also an excellent way to plan for and protect wealth for future generations and generate profits for clients in a regulated way.
Investing in Cyprus provides the possibility to access a range of funds, including one of the most attractive tax regimes in Europe.
Cyprus has strengthened its appeal with international investors as a global domicile for investment funds and asset management, with assets predicted to quadruple to 20 billion within the next 4 years.
Under the full authority of the European Union, regulation and legal provisions are put in place to protect investors money invested in an AIF. Within these parameters, excellent tax incentives can be availed for funds, fund managers and individual investors.
“An investment hub for investors accommodating ground-breaking fund structures, as incisive as those in Luxembourg and Ireland.”
New provisions in the Cyprus Income Tax Laws have enhanced the tax framework for Fund Managers on the island.
The carried interest accrued to individual taxpayers from exercising employment for an AIFM or internally managed fund, or delegated company, at the option of the individual taxpayer is subject to taxation at a flat rate of 8% with a minimum tax liability €10,000 per annum for a 10-year period.
Income tax exemptions dependent on annual remuneration apply to expatriates.
Services are not subject to VAT.
An AIF is a collective investment undertaking that can be made up of traditional asset classes such as equity and real estate, as well as non-traditional asset classes.
AIFLNPs (AIFs for Limited Number of Persons)
AIFs (Alternative investment Funds for an unlimited number of persons)
RAIFs (Registered AIFs)
"Because our clients investment decisions matter to us we take a proactive approach in shaping them."We utilise our key global partners to assist in the cost effective set-up and compliance of any AIF Fund under the provisions of the Republic of Cyprus.
Millwood Kane performs an initial client profiling and recommend the ideal course of action ensuring the upkeep of your overall objectives. Our commitment in preserving long term relationships, ensures we understand our clients’ position in detail and are able to safeguard interests by making the right recommendations.
In association with our acclaimed partners, Millwood Kane takes you through the process of choosing the right legal form for your AIF, preparation and processing of the application package for submission to the regulator and follow up during the processing.
Our partners then ensure a complete package of services pertaining to your fund, ranging from fund administration to corporate, audit and tax services.
Clients who invest €2,000,000 into a fund by way of direct investments into Cyprus and a further €500,000 plus VAT on a residential home, have a right under the Cyprus Alternative Investment Fund Scheme to apply for the Cyprus Investment Programme.
The process is efficient, granting investors the right to obtain full citizenship within a period of approximately 6 to 9 months.
For more details reach out to the Millwood Kane team who can inform you with the benefits of the “Cyprus Investment Programme”
“We adopt a combined approach for best results. We believe good partnerships are ‘life-ships’.”Nish Bhatt - Founder & CEO