Investment company formation in Cyprus.
AIF. RAIF. Holding. Efficient.
Cyprus offers regulated and unregulated investment vehicles — from fully licensed AIFs to registered AIFs (RAIFs) and holding company structures — all with 15% CT and 0% dividend withholding.
Investment holding
The most common structure for private investors — hold shares, bonds, real estate and other assets through a Cyprus company. No CGT on listed share disposal.
Unregulated alternative fund
Cyprus RAIF — registered with CySEC but not regulated. Faster to establish than full AIF. Suitable for private investors and family office vehicles.
Regulated alternative fund
Fully licensed AIF under the Cyprus AIFM Law. Suitable for external investors, fund marketing and institutional investment vehicles. EU AIFMD passporting available.
| Vehicle | CT rate | CGT (listed) | Dividend WHT | Suitable for |
|---|---|---|---|---|
| Holding company | 15% | 0% | 0% | Private investors, family office |
| RAIF (fixed capital) | 15% | 0% | 0% | Small funds, sophisticated investors |
| RAIF (variable capital) | Fund-level exemption possible | 0% | 0% | Investment funds, pooled vehicles |
| Licensed AIF | Various | 0% | 0% | Institutional, external investors |
Why Cyprus for investment structuring?
Cyprus has developed a comprehensive investment fund regulatory framework under the Alternative Investment Funds Law (131(I)/2014) — implementing the EU AIFMD in full. This provides Cyprus funds with EU passporting rights, allowing marketing to professional investors across all 27 EU member states.
For private investors not seeking external capital, a simple Cyprus holding company often achieves the same tax efficiency as a formal fund structure at significantly lower cost and complexity. The choice between holding company, RAIF and AIF depends on the number of investors, the investor profile, marketing requirements and the regulatory burden the manager is willing to bear.
Forming an investment vehicle in Cyprus?
Ask Taxerly about AIF, RAIF and holding company formation, regulatory requirements and tax treatment.