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Cyprus Citizenship
Cyprus Citizenship
By decision of the Council of Ministers of the Republic of Cyprus, 2014, investors can acquire the Cyprus Citizenship by Naturalization.
With over 20 years of experience in the industry, Auditnet can assist its clients in obtaining the Cyprus Citizenship, hassle-free, in an honest, professional and effective manner.
Some of the Main Benefits
- Cyprus offers a sought-after way of life both to its residents and tourists. With its year-round sunny weather, award-winning beaches, exceptional nightlife suitable for all ages and variety of activities, it is certainly a small paradise to live on
- With the passport issued within 3 months from the date of the application being submitted, it is a fast and easy procedure
- The Cyprus passport is not only issued to the Investor but also to his/her spouse and all financially dependent children (up to the age of 28). Next generations can also retain the EU citizenship
- No requirement to reside in Cyprus
- Dual-citizenship is permitted and the acquisition of Cyprus Citizenship is not reported to other countries
- With a great selection of luxurious and pioneering properties designed by leading architects and interior designers, buyers from across the world will certainly find their dream asset, whether it is for an investment or for use a holiday home so they can acquire the Citizenship or Permanent Residence Permit
- Large selection of high-yield investment opportunities available throughout the island
- Investors can move capital within the European Union
- Ability to travel to more than 150 countries with no visa restrictions
- Travel, live or work within the EU without the need to obtain a visa
- With Cypriot Citizenship, it is easy to obtain a visa to travel to non-EU countries
- The Cypriot driving license can be used in other EU member states
- Benefit of free healthcare in public hospitals in Cyprus
- Cyprus is one of the most popular tourist destinations. With all the political turbulence faced by other countries, tourism in Cyprus is growing annually at an unprecedented rate
- Because of the great life style it has to offer, Cyprus has the third highest percentage in the EU of foreign citizens residing in Cyprus making it a truly cosmopolitan island
- Cyprus offers one of the lowest tax rates in the European Union (12.5%)
- Benefit from the European Health Insurance card and pay European Union fees for study in EU-member states
Tax Benefits
By obtaining a Permanent Resident Permit and/or Cyprus Citizenship by Exception does not alone affect the tax status of an individual. An individual is taxed according to residency and domicile status.
A Cyprus tax resident can benefit from a number of tax incentives some of which are:
- Cyprus tax residents but non-domiciled individuals are exempt from paying taxes, including special defense contribution imposed on dividends, interests and rental income
- Personal tax rates are progressive from 20% to 35% with a tax free allowance of €19,500
- Profits from the disposal of securities are exempt from paying taxes
- Any lump sum received as retirement gratuity is exempt from paying taxes
- Pension received from other countries is taxed at a rate of 5% with a fax free allowance of €3,420
- No Capital Gains Tax is imposed upon the disposal of immovable property located abroad or if the immovable asset is located in Cyprus but acquired between 16 July 2015 and 31 December 2016
- No Wealth, Gift, Inheritance Tax or Estate Duty imposed in Cyprus
- An individual who resides abroad before the commencement of employment in Cyprus with earning less than €100,000 per annum can benefit from 20% exemption on the taxable income (with a minimum exemption of €8,550) for the next 5 years (this exemption will only be offered up to the year 2020)
- An individual who resides abroad for at least 3 out of the 5 years immediately before the year of commencement of employment in Cyprus with an annual income of €100,000 or more, can benefit from a 50% tax emption for the next 10 years
On September 13 2016, the Council of Ministers in Cyprus approved the amendments to the Scheme for Naturalization of Investors in Cyprus by Exception. This scheme is based on subsection (2) of section 111A of the Civil Registry Laws of 2002-2015.
The amendments to the law were made by the Cyprus Government to encourage further Foreign Direct Investment in the island by high-net-worth individuals
A. Economic Criteria:
A non-Cypriot citizen who meets one of the following economic criteria (A) either personally or via a company in which he/she is a shareholder (in proportion to the holding percentage) or through investments made by his/her spouse either individually or jointly, or an individual who is a high-ranking manager of a company that meets at least one of the economic criteria (A), can apply to obtain Cypriot citizenship through Naturalization by Exception.
A high-ranking senior manager of a company can apply only if he/she receives remuneration that generates tax revenues of at least €100,000 in the Republic of Cyprus over a period of 3 years and provided that the tax has already been paid or will be prepaid.
The applicant must have made the necessary investments within 3 years before the date of the application and must hold the said investments for a period of not less than 3 years from the date of obtaining Naturalization.
The applicant must fulfill the requirements of the Terms and Condition as set out in Part B.
If, following periodic inspections it is discovered that the criteria and terms and conditions of the Scheme have been breached, then the granted Naturalization may be revoked.
A.1 Investing in Real Estate, Land Development and Infrastructure projects
The applicant must have made an investment of at least €2 million (plus VAT) for the purchase or construction of buildings or for the construction of other land development projects (either residential or commercial developments, or developments in the tourism industry) or other infrastructure projects.
Investing in land under development is permitted, provided that an investment plan for the development of the purchased land is included with the application. It is understood that investment in land situated in a building-zone of zero development is excluded.
A.2 Investing in Financial Assets of Cypriot Companies or in Cypriot Organizations
The applicant must have purchased or have participated in companies or organizations established and operating in the Republic of Cyprus with a total investment of not less than €2 million. These funds must be utilized towards the investment objectives of these companies exclusively in Cyprus based on a specific investment plan.
Applications will be assessed to verify that the companies or organizations have a proven physical presence in Cyprus, with significant activity and annual turnover and must employ at least five (5) Cypriot citizens or citizens of European Union member-states. The minimum number of employees required will increase if more than one applicant invests simultaneously or almost simultaneously in the same company or organization. The said employees must have legally resided in Cyprus continuously for the last five years before the date of the application.
A.3 Investing in Alternative Investment Funds or Financial Assets owned by Cypriot companies or Cypriot organizations licensed by CySec
The applicant must have bought units of at least €2 million from Alternative Investment Funds (AIF) established in the Republic of Cyprus, licensed and regulated by CySec and whose investments are made solely in the Republic of Cyprus in investments that meet the conditions of this Scheme or in areas approved by the Ministry of Finance.
The manager or auditor of the Fund shall confirm in writing to the Ministry of Finance and the Ministry of Interior that the investments meet the criteria of the current Scheme and will be kept for a minimum period of three years. The manager or auditor of the Fund will be required to report on the value of the initial investment an annual basis.
Under this criteria, investors can acquire financial assets (of Cypriot companies or organizations of at least €2 million), such as bonds, bills and securities issued with the approval of CySec by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus and whose purpose is the financing of the specific investment plans of these companies or organizations exclusively in Cyprus.
Note that the purchase of units of other AID’s by an AIF is not permitted under this Scheme.
A.4 Combination of the above Investments
The applicant may submit an application to obtain Cypriot Citizenship by Exception on the basis of investments in combination of the above way, provided that the total investment will not be less than €2 million.
Under this condition (combination of investments) the applicant may also invest in special Government Bonds of the Republic of Cyprus for a sum up to €500,000. The bonds will be issued by the Public Debt Management Office of the Ministry of Finance and the investor must hold these bonds for a minimum period of three years. The characteristics and terms governing these special bonds will be stipulated by the General and Special Issue Terms of the Government Bonds of the Republic of Cyprus. Acquisition of Government Bonds through the secondary market will not be considered as eligible criteria for application to obtain Cypriot Citizenship by Exception.
1. Clean Criminal Record: The applicant must have a clean criminal record. The applicant’s name cannot be included in the list of persons whose assets have been frozen as a result of sanctions within the European Union.
2. Residence in the Republic of Cyprus: In all schemes listed in Part A, the applicant must own a permanent, privately-owned residence in the Republic of Cyprus with the purchase price of the property being at least €500,000 (plus V.A.T.).
Members of the same family, who submit a separate application as investors, can collectively obtain the residency if the total value of the property purchased will be equal to €500,000 per applicant.
If the purchase value of the permanent, privately-owned residence is greater than €500,000, then part of this additional sum can be used for supplementing the total amount of the investment as per the criteria of Part A.
Further, if the applicant has invested in real estate, land development and infrastructure projects as per criteria A.1, then it will not be necessary to purchase another permanent residence in Cyprus if one of the housing units purchased is worth not less than €500,000 (plus VAT) on the condition that the applicant holds this residence indefinitely.
3. Residence Permit in Cyprus: Prior to the submission of the application for Naturalization as a Cypriot Citizen, the applicant must hold a valid residence permit in Cyprus. If the applicant does not already hold a residence permit, then he/she can apply for an Immigration Permit as per Regulation 6 (2) of the Aliens and Immigration Law, at the same time as submission of application for Naturalization. If the application for obtaining an immigration permit is made only for the purpose of obtaining Cypriot citizenship in accordance with the provisions of this Scheme, then there are no other conditions other than those stated in Part A and Part B. This applies to all adult members of the member of the Investor’s family who will apply for Naturalization.
Note that if for whatever reason the application for Naturalization is rejected, then the Immigration Permit obtained in accordance with the provisions of this Scheme will also be revoked.
Some of the Benefits
- Category F 6(2) Immigration Permit gives you, a Non-EU national, the right to permanently reside in Cyprus
- Exemption from immigration entry procedures (i.e. no need to obtain a Visitor’s Visa)
- The applicant’s family (married spouse, children under the age of 18 and any financially dependent children under the age of 25) can also benefit from obtaining the PRP
- As of February 2016, the applicant’s parents and parent’s in-law can also obtain the PRP as dependents
Terms and Conditions
- Applicants must:
- Purchase one or two new properties in Cyprus with the total purchase cost of at least €300,000 (excluding VAT). These properties can be 2 residences, or 1 residence and 1 office, or 1 residence and 1 shop. At least €200,000 of the purchase cost must be settled.
- Have a secure and steady source of income transferred on a regular basis from abroad to a bank operating in Cyprus. This income must originate from other sources other than employment in Cyprus. These funds need to be deposited in a 3-year Fixed Deposit Account
- Confirm that he/she will not will or be engaged in any form of business in Cyprus
- Visit Cyprus at least once every 2 years
- Have a clean criminal record from Country of origin
- Submit with their application a copy of their Birth Certificate
- Submit with their application a copy of their Passport
- Submit with their application a Curriculum Vitae (CV)
- Submit with their application a Medical Insurance Certificate
- All applications are reviewed by the Civil Registry and Migration Department and approval is granted by the Ministry of Interior
- The time needed to process applications is 2 months
How we can help you
- Offer consultation on the requirements of the application process to make this process as smooth and simple as possible for you
- Assist in drafting the required documents
- Assist with the legal overview of the purchase agreement of the immovable properties and/or other relevant documentation
- Assist with due diligence in relation to real estate
- Examination of the tax implications in relation to the investment made
- Review of the application to ensure that all documentation meets necessary quality standards
- Submit the complete application to the relevant authorities
- We will become the liaison with the relevant authorities during their review of the application
- Monitor the status of the application and brief you accordingly
- Escort you and your dependents to the Civil Registry and Migration Department
Our goal is to make certain that this process will be smooth and effective and our experienced team can provide you with the exceptional service necessary to ensure that your application will be successful.
Should you decide to apply for Cypriot Citizenship or a Permanent Residence Permit, we will take care of every detail for you and you will not have to worry about anything!
- We will lease with the authorities and assist you acquiring all relevant documentation.
- We have excellent working relationships with some of the island’s leading property developers so we can offer you a large variety of investment options to choose from.
- Together, we can evaluate your options so you can reach a wholly informed decision.
- We will assist with other relevant matters such as for opening bank accounts, forming a new company, book-keeping, auditing and tax related matters.
- Should you wish to visit Cyprus, then we can make the necessary travel, accommodation and transportation arrangements.
- We will explore your investment options with you and offer you guidance.
- We can help you manage your investment (if you wish to rent it or resell the property).
If you use Auditnet, we will do our utmost to provide you with quality service for all your needs relating to your application for Cyprus Citizenship.
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