Cyprus AIF · AIFM · EU passport
Cyprus's AIF framework (Law 124(I)/2018 + AIFM Law 56(I)/2013) offers three vehicles — RAIF (1-3 months to launch), AIF-LNP (≤50 investors), or full AIF. Titles exemption (Article 9(1)(g) ITL) means 0% Cyprus tax on portfolio gains. Non-Dom on manager carried interest. EU-wide AIFMD passport. Substantially below Luxembourg or Dublin in cost-to-run.
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
RAIF — fastest to market, no CySEC pre-authorisation, external AIFM required. AIF-LNP — ≤50 well-informed/professional investors, lighter regulatory burden, 2-4 month authorisation. Full AIF — broadest investor base (incl. retail), 4-9 months authorisation. We help pick based on your strategy + investor base + timeline.
Fund: 15% CIT on profits but Article 9(1)(g) titles exemption typically reduces effective rate near 0% on portfolio gains. Manager: 15% CIT on management fees + performance fees; carried-interest characterisation case-specific. Manager owners under Cyprus Non-Dom: 0% SDC on profit distributions for 17 years.
AIFMD-thresholds: AuM ≥ €100M (with leverage) or ≥ €500M unleveraged + 5-yr lock-up → full AIFM authorisation required. Sub-threshold: self-managed or sub-AIFM appointment. We coordinate AIFM appointment with the established Cyprus AIFM ecosystem.
Authorised AIFM can market the AIF to professional investors across all 30 EEA states via notification-based passport (AIFMD Article 32). Substance + governance documented in Cyprus from launch.
— EVERYTHING INCLUDED
— PROCESS
Strategy, target investor base, vehicle choice (RAIF vs AIF vs AIF-LNP), AIFM appointment (self or external), service-provider mapping (depositary, administrator, auditor).
Cyprus Ltd registered. Offering Memorandum + fund rules / Articles + depositary + administration agreements. AIFM agreement (if external).
AIF / AIF-LNP: CySEC application + fit-and-proper + business plan. Authorisation 3-9 months. RAIF: registration only — 4-8 weeks.
Investor subscriptions, AML/KYC, capital call, first NAV. Ongoing: AIFM oversight, quarterly investor reporting, annual audit, Cyprus Tax Department IR4.
Fund launches are too important to fragment. Either we deliver the end-to-end engagement (vehicle + documents + regulator coordination + service-provider onboarding + ongoing compliance) or we refer you to a specialised firm. No half-measures.
— COMMON QUESTIONS
RAIF if speed matters (1-3 months) and you have or can appoint an authorised AIFM. AIF-LNP if you want lighter regulator burden and ≤50 investors. Full AIF if your investor base is broader (incl. retail with appropriate marketing rules). Most professional hedge funds start with RAIF or AIF-LNP.
Yes structurally — Cyprus AIF can issue different share classes for different investor types (US Series, EU Series, etc.). US investors face their own GILTI / PFIC analysis; we coordinate with US-side counsel. Cyprus titles exemption applies at the fund level regardless of investor profile.
AIF management services performed by a CySEC-authorised AIFM are VAT-EXEMPT under Article 135(1)(g) EU VAT Directive — transposed in Cyprus VAT Law 95(I)/2000. Saving vs Luxembourg / Ireland in some scenarios.
Only for fund-management groups with consolidated revenue ≥€750M — i.e., very large multi-strategy hedge fund managers. Smaller managers and single-fund vehicles are sub-threshold and unaffected.
Yes — common pattern. Cyprus management entity (separate Ltd, possibly CySEC-authorised AIFM if AuM crosses threshold) + Cyprus AIF (the fund itself). Manager bills management + performance fees to the fund; structured at arm's length with TP documentation.
Reply within 24 hours from a senior adviser. No obligation, no upfront fee.