Tax Information 2019 - Cyprus 25 UCITS

The UCI Act defines UCITS as the sole purpose of collectively investing in securities and / or other liquid financial instruments, as referred to in Article 40 (1) of the UCI Law, of public funds, the principle of allocation risks and which units, at the request of investors, are acquired or repurchased, directly or indirectly, from the assets of those companies.

The UCITS may take the following legal forms:

• CF


Taxation of resources:

Funds that are not transparent for tax purposes and which are managed and controlled in Cyprus are tax residents of Cyprus and are subject to the general provisions of the Cyprus tax framework.

In the case of funds having apartments, each apartment is assessed separately for tax purposes in accordance with the provisions of the law.

Depending on the circumstances and depending on the legal form of the fund, some funds may be transparent for tax purposes.

Additional key provisions relating to the Funds are listed below:

Sale of mutual funds units

There is no capital gains tax on gains resulting from the disposal or redemption of equity shares, unless the institution holds real estate in Cyprus.

However, even if he owns real estate in Cyprus, no Capital Gain.

Tax arises if the Fund is listed on a recognized securities exchange.

Stamp Duty: The registration, acquisition, conversion or transfer of shares of a mutual fund should be exempt from the stamp duty in Cyprus.

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