Alternative Investment Funds (AIFs) offer notable advantages for end investors :

• Fairly simple and quick application process (up to 3 months)
• Easy and cost efficient to set up and maintain Cyprus AIF funds
• Any asset can be included in the investment strategy of the AIF (under certain conditions)
• An AIF can be set-up as an “umbrella fund” with multiple investment compartments, allowing the management company to utilize tailor-made investment strategies with different categories of assets
• The investment compartments have no initial share capital (for corporate form AIFs)
• Mandatory publication of annual and half yearly financial reports to the CySEC and investors (financial statements, portfolio composition, borrowing, NAV etc.)
• Annual audited financial reports
• Calculation of Net Asset Value (NAV) at least annually or after receiving redemption application forms
• Exemption from tax on the amount invested to the AIF, as well as on the capital gains from the disposal of units/shares of the AIF
• Exemption from tax on profits earned by the AIF from sale of shares or other instruments, as well as from dividends received by companies in which the AIF has invested
• Flat corporate tax (12,5%) on annual net profits for AIFs of corporate form