Moreover, it is predicted that the adoption of this will lead to the relocation of a significant number of Alternative Investment Funds and their managers to cost efficient EU jurisdictions providing them with an attractive legislative, regulatory and tax framework in which to host their operations.
Some of the key advantages offered by Cypriot AIFMs and AIFs is that they provide a gateway to the EU market and are subject to low taxation. Non-Cypriot investors can also benefit from Cyprus’s extensive double-taxation treaty network.
The Cypriot taxation framework has been specifically tweaked with a view to facilitating the island’s competitiveness in the fund industry. Barriers to micro holdings were lifted with the abolition of minimum holding percentages; the redemption of units are reclassified as a disposal. This offers investors tax free income. Indeed, investors resident in Cyprus are subjected to a mere 3% social defence contribution on dividends, previously this was 20%.
Once authorised in Cyprus, an AIF can be marketed in all other EU Member States by the AIFM
ALTUS CITADEL CAN ASSIST WITH THE FOLLOWING:
Re-domiciliation of an EU or non-EU AIFM to Cyprus
Corporate formation and ongoing administration
Promotion of application for authorization
Post licensing outsourcing
Compliance with continuing obligations
Fund administration services
Independent directors
MOREOVER, WE CAN ASSIST EXISTING FUND MANAGERS TO A SMOOTH TRANSITION IN COMPLIANCE WITH NEW REGULATORY FRAMEWORK. SPECIFICALLY, WE CAN:
Asses your current structure and advise if your structure or your activities are affected
Identify potential tax impacts (VAT and transfer pricing) and recommend solutions
Prepare an AIFM compliant analysis and action plan to achieve timely compliance in the most tax efficient manner
Advisory on both authorization requirements as well as continuing obligations
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