In July 2014 the House of Representatives passed the statute of the Alternative Investment Funds Law of 2014 (the “AIF Law”). The AIF Law follows the Cypriot Investment Funds legal framework with the new developments in the EU, especially with the EU Alternative Investment Fund Managers Directive (the “AIFM Directive”), in association with the Alternative Investment Fund Managers Law of 2013 (the “AIFM Law”).
Following the statute of the Open-Ended Undertakings for Collective Investment (UCI) and the Alternative Investment Funds (AIF) Laws, as changed, Cyprus became one of the most cost-effective and favorable jurisdictions for the establishment of property funds, offering exceptional possibilities for fund managers to structure and grow their enterprise in Europe and beyond.
The Key advantages of a Cyprus UCITS fund are:
- Can be sold to any type of investor, including retail investors.
- Full EU Passporting benefits, letting UCITS to be marketed and sold in other EU constituent states.
- Cost-effective to set-up and run.
- Low financing risk.
- Possibility to set up an umbrella fund.