XCH Business Solutions Ltd. | Investing in Cyprus
Transcript of XCH Business Solutions Ltd. | Investing in Cyprus
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Taxation of the Fund Taxation of the investors
• Corporation tax at 12,5% on profits
• Excluded from tax:- Dividends received- Profits on sale of securities- Capital gains arising from sale of property abroad- Capital gains from sale of shares of foreign property companies
• Effectively only interest received is taxed at 12,5%
• No subscription tax on the Net Assets of the fund
• Exempted from VAT
The Alternative Investment fund Managers enjoy a 50%of income earned for a ten year period from date of first employment in Cyprus (If salary is over Euro 100.000)
• Foreign Investors:- No withholding tax on dividends- No taxation on redemption of units- No deemed distribution restrictions
• Resident Investors:- A withholding tax of 17% if the investor is a domiciled individual- No taxation on redemption of units- Deemed distribution of 3% instead of 17%
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AIF’s AIF’s with limited number of Persons Registered AIF’s
Legal Forms• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
Eligible Investors • Professional and/or Well informed investors or • Retail Investors
• Professional and/or Well informed investors • Professional and/or Well informed investors
Number of Investors • Unlimited • Up to 50 • Unlimited
Minimum Capital Requirement • If self-managed: Euro 125.000 or Euro 300.000 for self–managed AIFM• If externally managed : N/A
• If self-managed : Euro 50.000• If externally managed: N/A
• Not subject to Minimum Capital Requirement
Minimum AUM within 12 months • Euro 500.000 • Euro 250.000 • Euro 500.000
Fund Management • Can be self-managed or appoint a Fund Managerlegal personality (LP) • Can be self-managed or appoint a Fund Manager • Always appoint a fund manager
Asset under Management• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
Depositary
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
• Cyprus, EU or in third country based. • May be waived if one of the following criteria is met:-total Assets of the fund<5 ml-up to 5 Investors-no more than 10% of the total Assets are subject to custody and investors up to 25 and minimum investment per investor at least 50.000 Euro
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
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AIF’s AIF’s with limited number of Persons Registered AIF’s
Legal Forms• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
• Common Fund • Variable Company Investment Company (VCIC)• Fixed Capital Investment Company (FCIC)• Limited Partnership without legal personality (LP)
Eligible Investors • Professional and/or Well informed investors or • Retail Investors
• Professional and/or Well informed investors • Professional and/or Well informed investors
Number of Investors • Unlimited • Up to 50 • Unlimited
Minimum Capital Requirement • If self-managed: Euro 125.000 or Euro 300.000 for self–managed AIFM• If externally managed : N/A
• If self-managed : Euro 50.000• If externally managed: N/A
• Not subject to Minimum Capital Requirement
Minimum AUM within 12 months • Euro 500.000 • Euro 250.000 • Euro 500.000
Fund Management • Can be self-managed or appoint a Fund Managerlegal personality (LP) • Can be self-managed or appoint a Fund Manager • Always appoint a fund manager
Asset under Management• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
• No restrictions if AIFM appointed• Up to 100 ml including leverage or 500ml with no leverage and no redemption rights for 5 years if AIFM appointed
Depositary
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
• Cyprus, EU or in third country based. • May be waived if one of the following criteria is met:-total Assets of the fund<5 ml-up to 5 Investors-no more than 10% of the total Assets are subject to custody and investors up to 25 and minimum investment per investor at least 50.000 Euro
• Mandatory appointment of a local Depositary if managed by an AIFM• Cyprus, EU, or in third Country based if AIFM not appointed
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