The results of 2019 indicate that the investment fund sector in Cyprus is growing with positive feedback for further expansion, as the assets under management have now increased to EUR7.7 billion compared to EUR6.8 billion of last year.
The competent authorities in Cyprus established the new, modernized and improved legislation by taking into consideration the best practices of renowned jurisdictions specializing in investment funds with the intention to make the Republic of Cyprus one of the most popular jurisdictions based on European standards.
Cyprus being an EU member, the legislation complies with the EU laws and regulations, its strategic geographical position, the extensive expertise and the favorable tax environment are some of the characteristics that may lead the Republic of Cyprus to become a leader in the funds industry that attracts entrepreneurs and industrials from all over the world.
The Republic of Cyprus is therefore a fascinating jurisdiction for setting up Alternative Investment Funds (AIFs), as it allows for direct investments in the EU and in developing countries throughout the Middle East due to low set-up and maintenance cost, high level of knowledge and an attractive tax regime.
In terms of the number of AIFs, there are currently 42 authorized AIFs, 91 authorized AIFs with a limited number of persons and 18 registered AIFs.
We at Savva & Associates are among the few providers in Cyprus experienced in the establishment and administration of alternative investment funds and the most cost efficient in delivering high level alternative investment fund services in Cyprus. Our dedicated Investment Funds Division has extensive knowledge of financial services, coupled with local legal and tax expertise, ensuring efficiency in establishment, licensing and ongoing management of AIFs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.