Investment funds are one of the up and coming sectors within the Cyprus financial services industry. Recent changes in the Cyprus tax legislation and regulatory framework bear testimony to the government’s commitment in aligning Cyprus with what the professionals in the private sector have sought for years, that is to say the placing of Cyprus on the world map of fund friendly jurisdictions. The tax and regulatory synergies are now in place to attract not only the funds themselves but also fund managers and fund investors.
The Alternative Investment Funds Law of 2014 repealed the International Collective Investment Schemes Law (the “ICIS Law”) the former legislative framework for investment funds in Cyprus.
There are two types of AIFs that can be set up in Cyprus, specifically:
Alternative Investment Funds (AIF) without limitations as to the number of investors (Public), and
Alternative Investment Funds (AIF) with limitations as to the number of investors (Private).