Funds

Recent changes in European legislation with regards to investment funds, has led to an increased need for regulation. 

Cyprus can be considered as the jurisdiction of choice as it applies EU regulations which enhance the confidence of the investors, offers a favourable tax treatment for private funds and the application process is relatively simple with a short timeframe for obtaining the license.

The key advantages of setting up a private fund in Cyprus are listed below:

• No restrictions are imposed as regards the type of investments or the type of investors that can invest the fund.
• Directors may act as the Investment manager of the fund, subject to the approval of the Central Bank.
• There is no defined minimum capital requirement.
• There is not withholding tax on dividend distributions and no taxation of capital gains.
• The services provided by the Investment Manager of the fund are not subject to VAT.

PwC’s leading position as a provider to the financial services sector gives you the advantage to talk to people who are experts in this field.  We can assist you with the licensing application by preparing the full application package to be submitted to the Central Bank as well as follow up the process until the license is granted.  We also provide administration services relating to ongoing services (e.g. bookkeeping, accounting, etc), assistance in the calculation of NAV as well as subscription and redemption services.  Our services also include direct and indirect tax support as well as legal support during the application process and during the operation of the fund.