09 October 2015,
During the Cyprus Association of Investment Funds (CIFA) Funds Summit that took place in Nicosia October 9th, the president of the association Mr. Aggelos Gregoriades stated that tax incentives are being prepared aiming at attracting investment fund managers.
The incentives will most probably call for:
- A lower tax rate for the income of managers of investment funds so as to be taxed at half the usual rates if their income exceeds €100 thousand;
- A Special Defense Tax (SDT) exemption for fund managers’ income that stems from dividends and interest;
- The additional income a manager earns from the so called “carried interest” to be taxed only at a rate of 7.5%.
These incentives are expected to further strengthen the increased role of Cyprus as a Fund hub, as this is evidenced by the recent licensing of 10 alternative investment funds and the pending applications of 8 more investment funds.