Fund Administration in Cyprus
Cyprus is an established EU jurisdiction for alternative investment funds (AIFs), including Registered AIFs (RAIFs), UCITS, and various institutional vehicles. Fund administrators handle setup, licensing, NAV calculation, investor reporting, and regulatory compliance under CySEC supervision, offering cost-efficient alternatives to Luxembourg or Ireland.
Cyprus as a fund domicile
Cyprus has grown as an EU alternative investment fund domicile since 2014, offering full AIFMD compliance, EU passport rights, competitive costs (typically 30-50% lower than Luxembourg equivalent structures), 12.5% corporate tax, extensive treaty network, and English legal system compatibility. CySEC (Cyprus Securities and Exchange Commission) supervises Cyprus fund vehicles.
The main fund types are: AIF with Limited Number of Persons (up to 50 investors, professional and well-informed), AIF with Unlimited Number of Persons (retail-eligible with additional protections), Registered AIF (RAIF, launched 2018 — no CySEC authorisation required, faster launch), UCITS (retail funds fully passportable across EU), and various private/professional structures.
Fund administrator services
Cyprus fund administrators provide: fund setup coordination (structure design, drafting of offering documents, CySEC application preparation), NAV calculation (typically monthly for hedge funds, quarterly for private equity), investor onboarding and KYC/AML, subscription and redemption processing, capital call and distribution administration, investor reporting (statements, K-1 equivalents, tax reports), and regulatory reporting to CySEC (AIFMD Annex IV, quarterly returns, financial statements).
AIFM and depositary requirements
Cyprus AIFs above defined thresholds require an authorised Alternative Investment Fund Manager (AIFM) — either an in-house AIFM licensed by CySEC or an external EU AIFM. Sub-threshold AIFs can operate under lighter registration regime. Depositary (custodian) is required for most AIFs — Cyprus offers licensed depositaries or can appoint EU depositaries. RAIFs require an external EU-authorised AIFM (they cannot be self-managed).
Costs and timelines
Setup costs for Cyprus AIFs range €25,000-€100,000+ depending on complexity, structure, and legal fees. RAIF setup is significantly faster (2-4 months) than fully-authorised AIFs (6-12 months). Annual costs include AIFM fees (typically 30-100bps of NAV), administrator fees (10-30bps or fixed), depositary fees (5-15bps), audit fees, CySEC fees, and legal/tax advisory. Total annual running costs typically 60-200bps depending on fund size and complexity.
Global network members
6 firmsAlexis Joannides
Certified Public Accountant
📍 Nicosia
AGN International LtdAndri Antoniou
Certified Public Accountant
📍 Nicosia
AGN International LtdChrysostomos Stephanou
Certified Public Accountant
📍 Nicosia
AGN International LtdKyprianos Protopapas
Certified Public Accountant
📍 Nicosia
AGN International LtdLefkios Ioannides
Certified Public Accountant
📍 Nicosia
AGN International LtdNtavinia Ioannidou
Certified Public Accountant
📍 Nicosia
AGN International LtdWhere these firms are located
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Frequently asked questions
What is a RAIF?
A Registered Alternative Investment Fund is a Cyprus fund vehicle launched in 2018 that does not require CySEC authorisation before launch — registration only. This significantly reduces launch time (2-4 months vs 6-12 for authorised AIFs). RAIFs must have an external EU-authorised AIFM and can only be marketed to professional investors.
Do I need an AIFM for a Cyprus fund?
AIFs above defined AIFMD thresholds (€100m unleveraged or €500m unleveraged closed-ended) require an authorised AIFM. Sub-threshold funds can operate under lighter registration. RAIFs always require external AIFM. Setting up an in-house Cyprus AIFM is possible but adds significant regulatory overhead.
Can I market a Cyprus fund throughout the EU?
AIFs managed by authorised AIFMs benefit from EU marketing passport for professional investors. UCITS have full EU passport for retail marketing. Sub-threshold AIFs may need country-by-country marketing registrations. Post-Brexit UK marketing requires separate FCA registration.
How does Cyprus fund taxation work?
Cyprus AIFs (whether corporate or partnership structures) are subject to Cyprus corporate tax at 12.5% on Cyprus-source income. Foreign-source income and gains from qualifying participations are largely exempt. Distributions to non-resident investors are typically free from Cyprus withholding tax. Individual investor tax depends on their own jurisdiction.
What fund administrators operate in Cyprus?
Cyprus has a range of licensed fund administrators including Big 4 firms, international administrator groups (Apex, Alter Domus, IQ-EQ), and specialist Cyprus fund service providers. Choice depends on fund size, complexity, investor base, and required service scope.