Cyprus Registered Alternative Investment Fund (RAIF)

Benefit from a fast and cost-effective set-up, a flexible investment strategy, EU passporting, and an attractive tax regime.

General Overview

  • Legal Basis: Governed by the Alternative Investment Funds Law of 2018.
  • Regulatory Oversight: Not subject to direct supervision by the Cyprus Securities and Exchange
  • Commission (CySEC); oversight is via the appointed Alternative Investment Fund Manager (AIFM).
  • Target Investors: Available to Well-Informed and Professional Investors.
  • Setup Timeframe: The setup timeframe ranges from 4 to 6 weeks, though it can vary depending on the complexity of the structure.
     

Key Features

  • Corporate Flexibility: Can be structured as:
    • Common Fund (CF)
    • Variable Capital Investment Company (VCIC)
    • Fixed Capital Investment Company (FCIC)
    • Limited Partnership (LP)
  • Investment Scope: No investment restrictions unless specified by the AIFM’s policies.
  • No Prior Regulatory Approval: No direct authorisation by CySEC, ensuring a faster launch.
  • Umbrella Structure: Can include multiple sub-funds with separate assets and liabilities.
  • EU Passporting Rights: Managed by an AIFM, allowing marketing across the EU.
     

Taxation

  • Corporate Tax: Standard 12.5% corporate income tax rate.
  • No Withholding Tax on dividend distributions to non-resident investors.
  • No Subscription Tax on net assets.
  • Access to Cyprus’ Double Tax Treaty Network for tax optimization.
     

Governance & Service Providers

  • AIFM Requirement: Must be managed by an authorized AIFM in Cyprus or another EU country.
  • Depositary Requirement: Must appoint a local depositary.
  • Central Administration: Must be based in Cyprus.
  • Auditor: Appointment of a Cyprus-registered auditor is mandatory.
     

 

Advantages of a Cyprus RAIF

  • No Regulatory Approval Needed: Only a notification to CySEC is required.
  • Fast & Cost-Effective Setup: Lower compliance costs than regulated funds.
  • Flexible Investment Strategy: No predefined investment restrictions.
  • EU Passporting: Facilitates cross-border fund distribution.
  • Attractive Tax Regime: Competitive corporate tax and tax treaty benefits.
     

Use Cases

  • Private Equity & Venture Capital Funds
  • Real Estate Investment Vehicles
  • Hedge Funds & Debt Funds
  • Infrastructure Investments
     

Setup & Support by KENDRIS Capital

  • Assistance with RAIF structuring and registration.
  • Drafting of regulatory documents (Fund Prospectus, Limited Partnership Agreement, etc.).
  • Ongoing fund management, administration, and compliance services.
     

Cyprus RAIF Factsheet

Download

Key contact

Nikolas Charalambous
Nikolas Charalambous
Managing Director
MBA, BSc. Accounting
T +357 24 205300
Kyriacos Antonaki
Kyriacos Antonaki
Operations Manager
MBA, BSc. Economics
T +357 24 205300

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