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Taxation of the Fund Taxation of the investors
• Corporation tax at 12,5% on profits
• Excluded from tax:- Dividends received- Profits on sale of securities- Capital gains arising from sale of property abroad- Capital gains from sale of shares of foreign property companies
• Effectively only interest received is taxed at 12,5%
• No subscription tax on the Net Assets of the fund
• Exempted from VAT
The Alternative Investment fund Managers enjoy a 50%of income earned for a ten year period from date of first employment in Cyprus (If salary is over Euro 100.000)
• Foreign Investors:- No withholding tax on dividends- No taxation on redemption of units- No deemed distribution restrictions
• Resident Investors:- A withholding tax of 17% if the investor is a domiciled individual- No taxation on redemption of units- Deemed distribution of 3% instead of 17%
AIF’s AIF’s with limited number of Persons Registered AIF’s
Legal Forms• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
Eligible Investors • Professional and/or Well informed investors or • Retail Investors
• Professional and/or Well informed investors • Professional and/or Well informed investors
Number of Investors • Unlimited • Up to 50 • Unlimited
Minimum Capital Requirement • If self-managed: Euro 125.000 or Euro 300.000 for self–managed AIFM• If externally managed : N/A
• If self-managed : Euro 50.000• If externally managed: N/A
• Not subject to Minimum Capital Requirement
Minimum AUM within 12 months • Euro 500.000 • Euro 250.000 • Euro 500.000
Fund Management • Can be self-managed or appoint a Fund Managerlegal personality (LP) • Can be self-managed or appoint a Fund Manager • Always appoint a fund manager
Asset under Management• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
Depositary
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
• Cyprus, EU or in third country based. • May be waived if one of the following criteria is met:-total Assets of the fund<5 ml-up to 5 Investors-no more than 10% of the total Assets are subject to custody and investors up to 25 and minimum investment per investor at least 50.000 Euro
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
AIF’s AIF’s with limited number of Persons Registered AIF’s
Legal Forms• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
Eligible Investors • Professional and/or Well informed investors or • Retail Investors
• Professional and/or Well informed investors • Professional and/or Well informed investors
Number of Investors • Unlimited • Up to 50 • Unlimited
Minimum Capital Requirement • If self-managed: Euro 125.000 or Euro 300.000 for self–managed AIFM• If externally managed : N/A
• If self-managed : Euro 50.000• If externally managed: N/A
• Not subject to Minimum Capital Requirement
Minimum AUM within 12 months • Euro 500.000 • Euro 250.000 • Euro 500.000
Fund Management • Can be self-managed or appoint a Fund Managerlegal personality (LP) • Can be self-managed or appoint a Fund Manager • Always appoint a fund manager
Asset under Management• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
Depositary
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
• Cyprus, EU or in third country based. • May be waived if one of the following criteria is met:-total Assets of the fund<5 ml-up to 5 Investors-no more than 10% of the total Assets are subject to custody and investors up to 25 and minimum investment per investor at least 50.000 Euro
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
