Advantages of Cyprus

ADVANTAGES OF CYPRUS

Choosing the Republic of Cyprus as the place of your future residence effectively opens the door to a welcoming environment; a modern world where you have the freedom to select among a plethora of opportunities. It provides an ideal combination of strong business prospects and an enviable lifestyle for your family. These options coexist within a cutting edge international business centre, which provides you with the right ingredients to live and operate in safety.

If you are looking for a refreshing change from chaotic locations, this is the ideal place.

Cyprus Flag

GEOGRAPHIC LOCATION: 
An island in the Mediterranean Sea which links three continents: Europe, Africa and Asia. 

POPULATION: 
Approximately 1,189,085 (2018). 

WEATHER: 
A warm Mediterranean climate with 300 days of sunshine and mild winters (with a mean daily minimum between 5°C and 13°C) and sunny, dry summers (between 25°C and 40°C).

DIVISION:
Cyprus was declared an independent Country in 1960, however since 1974, the island is de facto divided into two main parts:

  • The area under the effective control of the Republic of Cyprus (comprising of about 59% of the island’s area); and
  • The North which is administered by the self-declared Turkish Republic of Northern Cyprus (covering about 36% of the island’s area).

As the European Union does not recognise the self-declared Turkish Republic of Northern Cyprus as an independent state, it is currently exempt from European legislation. As a result, the Euro does not officially circulate in the North. The United Nations’ Security Council has so far passed numerous Resolutions that underline the non-recognition of the military government in Northern Cyprus internationally. 

WHAT ARE THE RISKS FOR INVESTORS?
Based on this political/legal regime, the exploitation of Greek Cypriot properties by Turkey in occupied areas has been deemed by the Courts as constituting a criminal offence. Since Northern Cyprus was invaded illegally by Turkey in 1974, the land in the North is still owned by Cypriot refugees and/or their descendants. This means that there are pitfalls to purchasing property in Northern Cyprus, as it can lead to the future payment of damages, demolition of any property erected, blocking of the property from further disposal, and in some instances even prison through an international arrest warrant.

POLITICS:
The Government is divided into three bodies:

  • President: Elected every 5 years by universal vote and he appoints the Council of Ministers to exercise the Executive Authority;
  • House of Representatives: Members are elected by universal vote every 5 years and exercise the Legislative Authority; and
  • Judiciary: A separate and independent body responsible for the administration of Justice. The Members of the Supreme Court are appointed by the President.

EUROPEAN MEMBERSHIP:
The Republic of Cyprus became a full Member of the European Union (“E.U.“) on the 01st of May, 2004 (without the North part of Cyprus) and in 2008, joined the European Monetary Union, leveraging a robust economic performance and adopting the Euro as the national currency.

Being Europe’s eastern intersection of important transport/communications channels, Cyprus provides a secure gateway for European enterprises into the Middle East, Africa and Asia, while offering non-European businesses and entrepreneurs possibilities for investment in Europe.

INTERNATIONAL MEMBERSHIPS:
The Republic of Cyprus is represented through diplomatic missions in over 40 countries and, also, is a member of the following international organizations:

  • European Union and Eurozone;
  • The World Trade Organization;
  • The International Monetary Fund (“IMF”);
  • The World Bank;
  • The Commonwealth;
  • The Council of Europe;
  • The United Nations.

SAFETY:
The Republic of Cyprus is the 5th safest country in the world, according to a Value Penguin 2015 survey, making it a great place for a family to reside in.

LANGUAGES:
The official languages in Cyprus are Greek and Turkish. Greek is spoken predominantly in the South of Cyprus, while Turkish is spoken in the North. The Greek language which is spoken is a Cypriot dialect of Greek. English is spoken in almost all places, while Russian is quite frequent.

HEALTH AND WELFARE:
With world-class health professionals, the Republic of Cyprus is in a position to provide modernised health infrastructure. It promotes great co-operation in the international medical field, encouraging the establishment of private clinics/hospitals, while offering opportunities for foreign doctors to relocate and conduct operations in Cyprus.

In parallel, the island is known for being a wellness destination, providing luxury spa resorts and rural retreats, addressed to wellness orientated tourists. Investment in both medical and wellness tourism constitutes a serious opportunity for investors, as this sector has immense potential for development, with the recent growth in demand from tourists.

EDUCATION:
The Island is becoming an international education/research centre of excellence. The current educational system is comprised of:

  • Pre-Primary education: Compulsory for all children between 4 – 5 years old;
  • Primary Education: Compulsory for all children over the age of 5 and has a duration of 6 years;
  • Secondary Education: Offers two cycles of education to pupils between the ages of 12 and 18:
    – Gymnasium (Pre-High School); and
    – Lyceum or Secondary Technical and Vocational Education (High School).
  • Higher Education: State universities, private universities and colleges.

INFRASTRUCTURE:
There are two multi-purpose deep sea ports located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo, while offering logistics solutions through advanced facilities for cost-effective transport and processing. In addition, the port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships. The Larnaca port on the other hand, deals with freight cargo only.

Two modern international airports in Larnaca and Paphos offer their services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world.

With its advanced technical infrastructure and skilled human resources, the Republic of Cyprus has become a major communications’ and transport centre, and is also fast developing into an energy hub in the Eastern Mediterranean.

REAL ESTATE:
This sector has shown strong performance over the last few years mainly due to the Cyprus Investment Program, which was introduced by the Government to attract Foreign Investors and Entrepreneurs. This upward trend in real estate sales has been steadily rising since 2014, with the volume of transactions skyrocketing since then. Being a historically key pillar of the island’s economy, the real estate and construction sectors have experienced remarkable growth recently. This growth is manifested in the increased demand, prestigious large-scale projects, incentives and an influx of foreign investment.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

The Republic of Cyprus offers significant international tax planning incentives, being one of the most favourable tax regimes in Europe.

An indicative LIST OF PRIVILEGES is detailed below:

  • Approved by the Organisation for Economic Co-operation and Development (OECD) and fully E.U. compliant.
  • Extensive network of advantageous Double Tax Treaties with more than 60 countries.
  • One of the lowest corporate tax rates in the European Union at 12.5% on the yearly profits.
  • Most international transactions are exempt from VAT.
  • Possibility to obtain tax rulings in advance, for better flexibility and minimisation of tax risks.
  • Advantageous tax system for pensioners and expatriates.
  • No required special contribution for defence from non-Cyprus tax residents.
  • No taxation on dividend income received by Cyprus Companies.
  • No wealth or inheritance taxes. Only minimal stamp and local taxes.
  • No withholding tax is applied on the dividends paid to non-resident shareholders, nor on the distribution of profit, except those arising from the disposal of property in Cyprus or profits arising from the disposal of the shares of a Company which owns real estate in Cyprus.
  • No capital gains tax is applied on profits arising from the sale of securities or after the liquidation of the Company.
  • According to “Non-dom” rules, non-domiciled individuals are exempt from the special defence tax, the taxation on dividends, and any passive interest that they receive.
  • With the Cyprus IP Box regime, Companies can achieve an effective tax rate of 2.5% (or less) on qualifying profits earned from exploiting qualifying IP. Non-qualifying incomes are taxable at an effective tax rate of 12.5% (or less).

ESTABLISHMENT OF I.T. COMPANIES:
The tax regime in the Republic of Cyprus is very attractive because:

  • The services of I.T. are standard rated and carry a corporation tax of 12.5% (on profits).
  • The Owner of the I.T. Company, if individual (i.e Non-Domiciled Cyprus or Non-Cyprus resident), will not be subject to defence tax on dividends.
  • The dividends will be taxed subject to the Owner’s Country of origin, based on that Country’s tax schemes.
  • Companies which are residents in Cyprus and Companies which are not residents in Cyprus but maintain a permanent establishment in Cyprus, are entitled to a Notional Interest Deduction with the effective tax rate reduced to 2.5% for the amount contributed as equity.

CORPORATE STRUCTURES WITH A CYPRUS HOLDING COMPANY:
The Republic of Cyprus is in the top tier of Holding Company jurisdictions, which is the reason many of the Group ownership structures around the globe include a Cyprus Holding/Finance Company. This type of Company enjoys all the benefits of Cyprus’ aforementioned favourable tax regime and can be involved in various business activities, from commercial to financial aspects, with no limitation.

WHAT IS A “HOLDING” COMPANY?
It is either a private or public Company, which participates as a Shareholder in other Companies (called “Subsidiaries”). Such a Holding Company does not produce goods/services, but manages or simply holds the shares in the Subsidiaries instead.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

In accordance with section 20(1) of the Aliens and Immigration Law Cap. 105 and Regulations 5(F) (“Category F”), 6(2) (“Permanent Residence”) of the Aliens and Immigration Regulations, the below table is a comprehensive comparison of the two ways which lead to the acquisition of “Immigration Permits” by Non-E.U. citizens (namely the Permits which give the right to Non-E.U. citizens to reside permanently in the Republic of Cyprus via real estate transactions):

PARAMETERS "CATEGORY F" "PERMANENT RESIDENCE"
ISSUANCE Can take 8 to 12 months. Issued within 2 months (Fast Track).
TYPE OF PROPERTY/NATURE OF TRANSACTION 1) Purchase of new or resale Property (including land); or

2) Rental.

 Purchase of "new" Property (only).
*No right to rent;
*No right to purchase land;
*No right to purchase resale Property.
PRICE Any. Over €300.000 + VAT.
ANNUAL INCOME 1) Applicant: €9,568.17;
2) Dependants: €4,613.22		 1) Applicant: €30,000;
2) Spouse: €5,000;
3) Per Child: €5,000;
4) Per Parent: €8,000.
COMMON PARAMETERS
AMOUNT/PERIOD OF BANK PLEDGE €30,000 for 3 years.
APPLICANTS 1) Applicant; or
2) Spouse; or
3) Via Company (if they are direct Shareholders or Ultimate Beneficial Owners).
PERSONS TO BE GRANTED PERMITS (HOLDERS) 1) Applicant;
2) Spouse;
3) Dependants (children and parents).
TIMELINE OF VALIDITY Endless - Does not expire.
ADVANTAGES 1) Please refer to the tabs above;
2) No entry visa needed for the Republic of Cyprus;
3) After 7 years, the Holders can apply for Cypriot Citizenship.
RESTRICTIONS 1) The Holders must come to Cyprus for a permanent establishment within 1 year from the date of issuance of the Immigration Permit;
2) Every 2 years, the Holders must come at least once to Cyprus (no minimum duration);
3) The Holders do not have the right to work in the Republic of Cyprus;
4) The source of income for the said transactions must come from abroad (e.g. pension, deposits, rents, business, interests, dividends, salary).

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

CYPRUS AT A GLANCE

GEOGRAPHIC LOCATION: 
An island in the Mediterranean Sea which links three continents: Europe, Africa and Asia. 

POPULATION: 
Approximately 1,189,085 (2018). 

WEATHER: 
A warm Mediterranean climate with 300 days of sunshine and mild winters (with a mean daily minimum between 5°C and 13°C) and sunny, dry summers (between 25°C and 40°C).

DIVISION:
Cyprus was declared an independent Country in 1960, however since 1974, the island is de facto divided into two main parts:

  • The area under the effective control of the Republic of Cyprus (comprising of about 59% of the island’s area); and
  • The North which is administered by the self-declared Turkish Republic of Northern Cyprus (covering about 36% of the island’s area).

As the European Union does not recognise the self-declared Turkish Republic of Northern Cyprus as an independent state, it is currently exempt from European legislation. As a result, the Euro does not officially circulate in the North. The United Nations’ Security Council has so far passed numerous Resolutions that underline the non-recognition of the military government in Northern Cyprus internationally. 

WHAT ARE THE RISKS FOR INVESTORS?
Based on this political/legal regime, the exploitation of Greek Cypriot properties by Turkey in occupied areas has been deemed by the Courts as constituting a criminal offence. Since Northern Cyprus was invaded illegally by Turkey in 1974, the land in the North is still owned by Cypriot refugees and/or their descendants. This means that there are pitfalls to purchasing property in Northern Cyprus, as it can lead to the future payment of damages, demolition of any property erected, blocking of the property from further disposal, and in some instances even prison through an international arrest warrant.

POLITICS:
The Government is divided into three bodies:

  • President: Elected every 5 years by universal vote and he appoints the Council of Ministers to exercise the Executive Authority;
  • House of Representatives: Members are elected by universal vote every 5 years and exercise the Legislative Authority; and
  • Judiciary: A separate and independent body responsible for the administration of Justice. The Members of the Supreme Court are appointed by the President.
WHY CYPRUS

EUROPEAN MEMBERSHIP:
The Republic of Cyprus became a full Member of the European Union (“E.U.“) on the 01st of May, 2004 (without the North part of Cyprus) and in 2008, joined the European Monetary Union, leveraging a robust economic performance and adopting the Euro as the national currency.

Being Europe’s eastern intersection of important transport/communications channels, Cyprus provides a secure gateway for European enterprises into the Middle East, Africa and Asia, while offering non-European businesses and entrepreneurs possibilities for investment in Europe.

INTERNATIONAL MEMBERSHIPS:
The Republic of Cyprus is represented through diplomatic missions in over 40 countries and, also, is a member of the following international organizations:

  • European Union and Eurozone;
  • The World Trade Organization;
  • The International Monetary Fund (“IMF”);
  • The World Bank;
  • The Commonwealth;
  • The Council of Europe;
  • The United Nations.

SAFETY:
The Republic of Cyprus is the 5th safest country in the world, according to a Value Penguin 2015 survey, making it a great place for a family to reside in.

LANGUAGES:
The official languages in Cyprus are Greek and Turkish. Greek is spoken predominantly in the South of Cyprus, while Turkish is spoken in the North. The Greek language which is spoken is a Cypriot dialect of Greek. English is spoken in almost all places, while Russian is quite frequent.

HEALTH AND WELFARE:
With world-class health professionals, the Republic of Cyprus is in a position to provide modernised health infrastructure. It promotes great co-operation in the international medical field, encouraging the establishment of private clinics/hospitals, while offering opportunities for foreign doctors to relocate and conduct operations in Cyprus.

In parallel, the island is known for being a wellness destination, providing luxury spa resorts and rural retreats, addressed to wellness orientated tourists. Investment in both medical and wellness tourism constitutes a serious opportunity for investors, as this sector has immense potential for development, with the recent growth in demand from tourists.

EDUCATION:
The Island is becoming an international education/research centre of excellence. The current educational system is comprised of:

  • Pre-Primary education: Compulsory for all children between 4 – 5 years old;
  • Primary Education: Compulsory for all children over the age of 5 and has a duration of 6 years;
  • Secondary Education: Offers two cycles of education to pupils between the ages of 12 and 18:
    – Gymnasium (Pre-High School); and
    – Lyceum or Secondary Technical and Vocational Education (High School).
  • Higher Education: State universities, private universities and colleges.

INFRASTRUCTURE:
There are two multi-purpose deep sea ports located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo, while offering logistics solutions through advanced facilities for cost-effective transport and processing. In addition, the port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships. The Larnaca port on the other hand, deals with freight cargo only.

Two modern international airports in Larnaca and Paphos offer their services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world.

With its advanced technical infrastructure and skilled human resources, the Republic of Cyprus has become a major communications’ and transport centre, and is also fast developing into an energy hub in the Eastern Mediterranean.

REAL ESTATE:
This sector has shown strong performance over the last few years mainly due to the Cyprus Investment Program, which was introduced by the Government to attract Foreign Investors and Entrepreneurs. This upward trend in real estate sales has been steadily rising since 2014, with the volume of transactions skyrocketing since then. Being a historically key pillar of the island’s economy, the real estate and construction sectors have experienced remarkable growth recently. This growth is manifested in the increased demand, prestigious large-scale projects, incentives and an influx of foreign investment.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

TAX & CORPORATE BENEFITS

The Republic of Cyprus offers significant international tax planning incentives, being one of the most favourable tax regimes in Europe.

An indicative LIST OF PRIVILEGES is detailed below:

  • Approved by the Organisation for Economic Co-operation and Development (OECD) and fully E.U. compliant.
  • Extensive network of advantageous Double Tax Treaties with more than 60 countries.
  • One of the lowest corporate tax rates in the European Union at 12.5% on the yearly profits.
  • Most international transactions are exempt from VAT.
  • Possibility to obtain tax rulings in advance, for better flexibility and minimisation of tax risks.
  • Advantageous tax system for pensioners and expatriates.
  • No required special contribution for defence from non-Cyprus tax residents.
  • No taxation on dividend income received by Cyprus Companies.
  • No wealth or inheritance taxes. Only minimal stamp and local taxes.
  • No withholding tax is applied on the dividends paid to non-resident shareholders, nor on the distribution of profit, except those arising from the disposal of property in Cyprus or profits arising from the disposal of the shares of a Company which owns real estate in Cyprus.
  • No capital gains tax is applied on profits arising from the sale of securities or after the liquidation of the Company.
  • According to “Non-dom” rules, non-domiciled individuals are exempt from the special defence tax, the taxation on dividends, and any passive interest that they receive.
  • With the Cyprus IP Box regime, Companies can achieve an effective tax rate of 2.5% (or less) on qualifying profits earned from exploiting qualifying IP. Non-qualifying incomes are taxable at an effective tax rate of 12.5% (or less).

ESTABLISHMENT OF I.T. COMPANIES:
The tax regime in the Republic of Cyprus is very attractive because:

  • The services of I.T. are standard rated and carry a corporation tax of 12.5% (on profits).
  • The Owner of the I.T. Company, if individual (i.e Non-Domiciled Cyprus or Non-Cyprus resident), will not be subject to defence tax on dividends.
  • The dividends will be taxed subject to the Owner’s Country of origin, based on that Country’s tax schemes.
  • Companies which are residents in Cyprus and Companies which are not residents in Cyprus but maintain a permanent establishment in Cyprus, are entitled to a Notional Interest Deduction with the effective tax rate reduced to 2.5% for the amount contributed as equity.

CORPORATE STRUCTURES WITH A CYPRUS HOLDING COMPANY:
The Republic of Cyprus is in the top tier of Holding Company jurisdictions, which is the reason many of the Group ownership structures around the globe include a Cyprus Holding/Finance Company. This type of Company enjoys all the benefits of Cyprus’ aforementioned favourable tax regime and can be involved in various business activities, from commercial to financial aspects, with no limitation.

WHAT IS A “HOLDING” COMPANY?
It is either a private or public Company, which participates as a Shareholder in other Companies (called “Subsidiaries”). Such a Holding Company does not produce goods/services, but manages or simply holds the shares in the Subsidiaries instead.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

IMMIGRATION PERMITS

In accordance with section 20(1) of the Aliens and Immigration Law Cap. 105 and Regulations 5(F) (“Category F”), 6(2) (“Permanent Residence”) of the Aliens and Immigration Regulations, the below table is a comprehensive comparison of the two ways which lead to the acquisition of “Immigration Permits” by Non-E.U. citizens (namely the Permits which give the right to Non-E.U. citizens to reside permanently in the Republic of Cyprus via real estate transactions):

PARAMETERS "CATEGORY F" "PERMANENT RESIDENCE"
ISSUANCE Can take 8 to 12 months. Issued within 2 months (Fast Track).
TYPE OF PROPERTY/NATURE OF TRANSACTION 1) Purchase of new or resale Property (including land); or

2) Rental.

 Purchase of "new" Property (only).
*No right to rent;
*No right to purchase land;
*No right to purchase resale Property.
PRICE Any. Over €300.000 + VAT.
ANNUAL INCOME 1) Applicant: €9,568.17;
2) Dependants: €4,613.22		 1) Applicant: €30,000;
2) Spouse: €5,000;
3) Per Child: €5,000;
4) Per Parent: €8,000.
COMMON PARAMETERS
AMOUNT/PERIOD OF BANK PLEDGE €30,000 for 3 years.
APPLICANTS 1) Applicant; or
2) Spouse; or
3) Via Company (if they are direct Shareholders or Ultimate Beneficial Owners).
PERSONS TO BE GRANTED PERMITS (HOLDERS) 1) Applicant;
2) Spouse;
3) Dependants (children and parents).
TIMELINE OF VALIDITY Endless - Does not expire.
ADVANTAGES 1) Please refer to the tabs above;
2) No entry visa needed for the Republic of Cyprus;
3) After 7 years, the Holders can apply for Cypriot Citizenship.
RESTRICTIONS 1) The Holders must come to Cyprus for a permanent establishment within 1 year from the date of issuance of the Immigration Permit;
2) Every 2 years, the Holders must come at least once to Cyprus (no minimum duration);
3) The Holders do not have the right to work in the Republic of Cyprus;
4) The source of income for the said transactions must come from abroad (e.g. pension, deposits, rents, business, interests, dividends, salary).

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

GEOGRAPHIC LOCATION: 
An island in the Mediterranean Sea which links three continents: Europe, Africa and Asia. 

POPULATION: 
Approximately 1,189,085 (2018). 

WEATHER: 
A warm Mediterranean climate with 300 days of sunshine and mild winters (with a mean daily minimum between 5°C and 13°C) and sunny, dry summers (between 25°C and 40°C).

DIVISION:
Cyprus was declared an independent Country in 1960, however since 1974, the island is de facto divided into two main parts:

  • The area under the effective control of the Republic of Cyprus (comprising of about 59% of the island’s area); and
  • The North which is administered by the self-declared Turkish Republic of Northern Cyprus (covering about 36% of the island’s area).

As the European Union does not recognise the self-declared Turkish Republic of Northern Cyprus as an independent state, it is currently exempt from European legislation. As a result, the Euro does not officially circulate in the North. The United Nations’ Security Council has so far passed numerous Resolutions that underline the non-recognition of the military government in Northern Cyprus internationally. 

WHAT ARE THE RISKS FOR INVESTORS?
Based on this political/legal regime, the exploitation of Greek Cypriot properties by Turkey in occupied areas has been deemed by the Courts as constituting a criminal offence. Since Northern Cyprus was invaded illegally by Turkey in 1974, the land in the North is still owned by Cypriot refugees and/or their descendants. This means that there are pitfalls to purchasing property in Northern Cyprus, as it can lead to the future payment of damages, demolition of any property erected, blocking of the property from further disposal, and in some instances even prison through an international arrest warrant.

POLITICS:
The Government is divided into three bodies:

  • President: Elected every 5 years by universal vote and he appoints the Council of Ministers to exercise the Executive Authority;
  • House of Representatives: Members are elected by universal vote every 5 years and exercise the Legislative Authority; and
  • Judiciary: A separate and independent body responsible for the administration of Justice. The Members of the Supreme Court are appointed by the President.

EUROPEAN MEMBERSHIP:
The Republic of Cyprus became a full Member of the European Union (“E.U.“) on the 01st of May, 2004 (without the North part of Cyprus) and in 2008, joined the European Monetary Union, leveraging a robust economic performance and adopting the Euro as the national currency.

Being Europe’s eastern intersection of important transport/communications channels, Cyprus provides a secure gateway for European enterprises into the Middle East, Africa and Asia, while offering non-European businesses and entrepreneurs possibilities for investment in Europe.

INTERNATIONAL MEMBERSHIPS:
The Republic of Cyprus is represented through diplomatic missions in over 40 countries and, also, is a member of the following international organizations:

  • European Union and Eurozone;
  • The World Trade Organization;
  • The International Monetary Fund (“IMF”);
  • The World Bank;
  • The Commonwealth;
  • The Council of Europe;
  • The United Nations.

SAFETY:
The Republic of Cyprus is the 5th safest country in the world, according to a Value Penguin 2015 survey, making it a great place for a family to reside in.

LANGUAGES:
The official languages in Cyprus are Greek and Turkish. Greek is spoken predominantly in the South of Cyprus, while Turkish is spoken in the North. The Greek language which is spoken is a Cypriot dialect of Greek. English is spoken in almost all places, while Russian is quite frequent.

HEALTH AND WELFARE:
With world-class health professionals, the Republic of Cyprus is in a position to provide modernised health infrastructure. It promotes great co-operation in the international medical field, encouraging the establishment of private clinics/hospitals, while offering opportunities for foreign doctors to relocate and conduct operations in Cyprus.

In parallel, the island is known for being a wellness destination, providing luxury spa resorts and rural retreats, addressed to wellness orientated tourists. Investment in both medical and wellness tourism constitutes a serious opportunity for investors, as this sector has immense potential for development, with the recent growth in demand from tourists.

EDUCATION:
The Island is becoming an international education/research centre of excellence. The current educational system is comprised of:

  • Pre-Primary education: Compulsory for all children between 4 – 5 years old;
  • Primary Education: Compulsory for all children over the age of 5 and has a duration of 6 years;
  • Secondary Education: Offers two cycles of education to pupils between the ages of 12 and 18:
    – Gymnasium (Pre-High School); and
    – Lyceum or Secondary Technical and Vocational Education (High School).
  • Higher Education: State universities, private universities and colleges.

INFRASTRUCTURE:
There are two multi-purpose deep sea ports located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo, while offering logistics solutions through advanced facilities for cost-effective transport and processing. In addition, the port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships. The Larnaca port on the other hand, deals with freight cargo only.

Two modern international airports in Larnaca and Paphos offer their services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world.

With its advanced technical infrastructure and skilled human resources, the Republic of Cyprus has become a major communications’ and transport centre, and is also fast developing into an energy hub in the Eastern Mediterranean.

REAL ESTATE:
This sector has shown strong performance over the last few years mainly due to the Cyprus Investment Program, which was introduced by the Government to attract Foreign Investors and Entrepreneurs. This upward trend in real estate sales has been steadily rising since 2014, with the volume of transactions skyrocketing since then. Being a historically key pillar of the island’s economy, the real estate and construction sectors have experienced remarkable growth recently. This growth is manifested in the increased demand, prestigious large-scale projects, incentives and an influx of foreign investment.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

The Republic of Cyprus offers significant international tax planning incentives, being one of the most favourable tax regimes in Europe.

An indicative LIST OF PRIVILEGES is detailed below:

  • Approved by the Organisation for Economic Co-operation and Development (OECD) and fully E.U. compliant.
  • Extensive network of advantageous Double Tax Treaties with more than 60 countries.
  • One of the lowest corporate tax rates in the European Union at 12.5% on the yearly profits.
  • Most international transactions are exempt from VAT.
  • Possibility to obtain tax rulings in advance, for better flexibility and minimisation of tax risks.
  • Advantageous tax system for pensioners and expatriates.
  • No required special contribution for defence from non-Cyprus tax residents.
  • No taxation on dividend income received by Cyprus Companies.
  • No wealth or inheritance taxes. Only minimal stamp and local taxes.
  • No withholding tax is applied on the dividends paid to non-resident shareholders, nor on the distribution of profit, except those arising from the disposal of property in Cyprus or profits arising from the disposal of the shares of a Company which owns real estate in Cyprus.
  • No capital gains tax is applied on profits arising from the sale of securities or after the liquidation of the Company.
  • According to “Non-dom” rules, non-domiciled individuals are exempt from the special defence tax, the taxation on dividends, and any passive interest that they receive.
  • With the Cyprus IP Box regime, Companies can achieve an effective tax rate of 2.5% (or less) on qualifying profits earned from exploiting qualifying IP. Non-qualifying incomes are taxable at an effective tax rate of 12.5% (or less).

ESTABLISHMENT OF I.T. COMPANIES:
The tax regime in the Republic of Cyprus is very attractive because:

  • The services of I.T. are standard rated and carry a corporation tax of 12.5% (on profits).
  • The Owner of the I.T. Company, if individual (i.e Non-Domiciled Cyprus or Non-Cyprus resident), will not be subject to defence tax on dividends.
  • The dividends will be taxed subject to the Owner’s Country of origin, based on that Country’s tax schemes.
  • Companies which are residents in Cyprus and Companies which are not residents in Cyprus but maintain a permanent establishment in Cyprus, are entitled to a Notional Interest Deduction with the effective tax rate reduced to 2.5% for the amount contributed as equity.

CORPORATE STRUCTURES WITH A CYPRUS HOLDING COMPANY:
The Republic of Cyprus is in the top tier of Holding Company jurisdictions, which is the reason many of the Group ownership structures around the globe include a Cyprus Holding/Finance Company. This type of Company enjoys all the benefits of Cyprus’ aforementioned favourable tax regime and can be involved in various business activities, from commercial to financial aspects, with no limitation.

WHAT IS A “HOLDING” COMPANY?
It is either a private or public Company, which participates as a Shareholder in other Companies (called “Subsidiaries”). Such a Holding Company does not produce goods/services, but manages or simply holds the shares in the Subsidiaries instead.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

In accordance with section 20(1) of the Aliens and Immigration Law Cap. 105 and Regulations 5(F) (“Category F”), 6(2) (“Permanent Residence”) of the Aliens and Immigration Regulations, the below table is a comprehensive comparison of the two ways which lead to the acquisition of “Immigration Permits” by Non-E.U. citizens (namely the Permits which give the right to Non-E.U. citizens to reside permanently in the Republic of Cyprus via real estate transactions):

PARAMETERS "CATEGORY F" "PERMANENT RESIDENCE"
ISSUANCE Can take 8 to 12 months. Issued within 2 months (Fast Track).
TYPE OF PROPERTY/NATURE OF TRANSACTION 1) Purchase of new or resale Property (including land); or
2) Rental.		 Purchase of "new" Property (only).
*No right to rent;
*No right to purchase land;
*No right to purchase resale Property.
PRICE Any. Over €300.000 + VAT.
ANNUAL INCOME 1) Applicant: €9,568.17;
2) Dependants: €4,613.22		 1) Applicant: €30,000;
2) Spouse: €5,000;
3) Per Child: €5,000;
4) Per Parent: €8,000.
COMMON PARAMETERS
AMOUNT/PERIOD OF BANK PLEDGE €30,000 for 3 years.
APPLICANTS 1) Applicant; or
2) Spouse; or
3) Via Company (if they are direct Shareholders or Ultimate Beneficial Owners).
PERSONS TO BE GRANTED PERMITS (HOLDERS) 1) Applicant;
2) Spouse;
3) Dependants (children and parents).
TIMELINE OF VALIDITY Endless - Does not expire.
ADVANTAGES 1) Please refer to the tabs above;
2) No entry visa needed for the Republic of Cyprus;
3) After 7 years, the Holders can apply for Cypriot Citizenship.
RESTRICTIONS 1) The Holders must come to Cyprus for a permanent establishment within 1 year from the date of issuance of the Immigration Permit;
2) Every 2 years, the Holders must come at least once to Cyprus (no minimum duration);
3) The Holders do not have the right to work in the Republic of Cyprus;
4) The source of income for the said transactions must come from abroad (e.g. pension, deposits, rents, business, interests, dividends, salary).

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

WHO CAN APPLY?
1. A non-Cypriot citizen Investor;
2. Who either invested:

  • Personally – directly; or
  • Through a Company / Group, in which he participates as a Shareholder (depending on his holding percentage); or
  • Through his Spouse (jointly/severally); or
  • As a high-ranking Senior Manager of a Company, which meets one of the financial criteria of section 2 (a – d) below, provided that:
    a) He receives such a remuneration that it generates tax revenues for the Country of at least €100,000 over a three (3) year period; and
    b) This tax has already been paid or prepaid. In this case, the Applicant must comply with the requirement to buy a residential house in the Republic, at market value of at least €500.000 plus VAT (if any).

WHEN?
1. The investment must be effected at any point during the three (3) years prior to the date of filing the Application; and
2. Must be retained for at least five (5) years from the date of the granting of the Citizenship.

Notes:

  • During this five (5) year period, the Investor will be entitled to change his investment into other forms, provided that he obtains consent from the Ministry of Finance.
  • In the case where, following a periodic inspection, it has been ascertained that any condition is being circumvented, the Naturalisation may be revoked.

HOW CAN AN APPLICANT EFFECT AN INVESTMENT? (FINANCIAL CRITERIA)

1. DONATION:

The Applicant must donate (at least):

  1. €75,000 to the Research and Innovation Foundation;
  2. €75,000 to the Cyprus Land Development Corporation.

    Note:
  • Any additional amount donated will be used to supplement the total amount of the investment required in section 2 (a – d) below.

2. INVESTMENT IN (Any of the Below): 

(A) IMMOVABLE PROPERTY:
The Applicant must invest (at least) €2,000,000 for the purchase/construction of:

  • Buildings;
  • Land Development Projects (i.e. Residential or Commercial Developments, Developments in the Tourism Sector) or other Infrastructure Projects (including resale properties).

Notes:

  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.
  • A Planning Permit must already be issued.
  • Investment in Land which is under development is permitted, provided that an Investment Business Plan is included in the Application.
  • If the Applicant has invested in housing units, the purchase of another Permanent Residence in the Republic of Cyprus (as required in the Terms & Conditions point 4 below) is of excess, and will not be required only if at least one of these housing units is worth at least €500,000 plus VAT, and provided that the Applicant retains the possession of the residence for life. However, if the Applicant has invested in housing units which have already been used for the purpose of acquiring a Cypriot citizenship via the Programme, the above provision will be in force, provided that the total amount of the investments, including the privately-owned residence, is at least €2,500,000. 

(B) SHARES:
The Applicant must invest (at least) €2,000,000 for the purchase of the whole/partial shareholding in one or more Companies: 

Notes:

  • The Companies must be incorporated and actually operating (i.e. have substance) in the Republic of Cyprus.
  • The Companies must prove substantial economic activity/turnover and employ at least 5 (five) Cypriot citizens or citizens of the European Union.
  • The funds invested must be channelled towards the financing of the investment objectives of these Companies.
  • An Investment Business Plan is required.
  • Investments in the shipping sector are eligible.
  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.

(C) ALTERNATIVE INVESTMENT FUNDS:
The Applicant must have invested (at least) €2,000,000 in units of Alternative Investment Funds (“AIFs”) or in Registered Alternative Investment Funds (“RAIFs”).

Notes:

  • The AIFs and/or RAIFs must be established in the Republic of Cyprus, while also being licensed, registered, and supervised by the Cyprus Securities and Exchange Commission (“CySEC”).
  • The funds invested must be for investments exclusively in the Republic of Cyprus, in investments that meet the criteria of this Programme or in areas approved by the Minister of Finance.
  • The Investor can also purchase other financial assets of Cyprus Companies (such as bonds, bills and securities).
  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price. 

(D) COMBINATION:
The Applicant may proceed with a combination of the above investments (i.e. any of the options in points a, b and c) provided that the total investment will amount to at least €2,000,000. Once again, in the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.

 

TERMS & CONDITIONS:

1. Provision of a Clean Criminal Record from the country of origin and the country of residence (if the latter is different from the former). Moreover, the Investor’s name must not be included in the list of individuals whose assets (which are located in the EU) have been frozen as a result of sanctions. This is also applicable to the Family Members of the Investor that are eligible to apply for the acquisition of the Cypriot citizenship.

2. If an Applicant had previously applied for citizenship in any other Member State of the European Union and had been rejected, they will not be eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme. This is also applicable to the Family Members of the Investor that are eligible to apply for the acquisition of the Cypriot citizenship.

3. Schengen Visa: The Applicant must hold a valid Schengen visa prior to submitting his application. European citizens, as well as Third-Country nationals who do not require an entry visa when travelling in the European Union, are excluded from this obligation.

What is a Schengen Visa?
A Schengen Visa is an ‘up to 90 day stay visa’, which permits a person to travel to any Country which is a Member of the Schengen Area for tourism or business purposes. It enables its Holder to enter and travel freely within the Schengen zone. The list of all Schengen Members can be found here. 

4. Permanent Residence: In all of the cases listed in section 2 (a – d) above, the Applicant must acquire a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be (at least) €500.000 plus VAT.

Notes:

  • Members of the same family, who apply separately as Investors, can collectively acquire a residence, provided that the total value of this home/property covers the amount required of €500.000 for each Applicant.
  • In cases where the purchase price of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, this additional amount can be used towards the total amount of the investment made on the basis of section 2 (a – d) above.

5. Residence Permit: The Applicant, prior to his naturalisation as a Cypriot citizen, must hold a Residence Permit in Cyprus for a period of at least six (6) months.

Notes:

  • If the Applicant (or any adult Member of his family, who will apply for naturalisation) does not already hold a Residence Permit, he may apply for an Immigration Permit on the basis of Regulation 6(2) of the Aliens and Immigration Regulation, simultaneously with the Application for naturalisation.
  • In the event that the Application for naturalisation is rejected for any reason, the immigration permit, which was obtained in accordance with the provisions of the application, will be cancelled immediately.
  • The requirement of holding a Residence Permit for six months also applies to any adult Member of the Applicant’s family who will apply for naturalisation.
CYPRUS AT A GLANCE

GEOGRAPHIC LOCATION: 
An island in the Mediterranean Sea which links three continents: Europe, Africa and Asia. 

POPULATION: 
Approximately 1,189,085 (2018). 

WEATHER: 
A warm Mediterranean climate with 300 days of sunshine and mild winters (with a mean daily minimum between 5°C and 13°C) and sunny, dry summers (between 25°C and 40°C).

DIVISION:
Cyprus was declared an independent Country in 1960, however since 1974, the island is de facto divided into two main parts:

  • The area under the effective control of the Republic of Cyprus (comprising of about 59% of the island’s area); and
  • The North which is administered by the self-declared Turkish Republic of Northern Cyprus (covering about 36% of the island’s area).

As the European Union does not recognise the self-declared Turkish Republic of Northern Cyprus as an independent state, it is currently exempt from European legislation. As a result, the Euro does not officially circulate in the North. The United Nations’ Security Council has so far passed numerous Resolutions that underline the non-recognition of the military government in Northern Cyprus internationally. 

WHAT ARE THE RISKS FOR INVESTORS?
Based on this political/legal regime, the exploitation of Greek Cypriot properties by Turkey in occupied areas has been deemed by the Courts as constituting a criminal offence. Since Northern Cyprus was invaded illegally by Turkey in 1974, the land in the North is still owned by Cypriot refugees and/or their descendants. This means that there are pitfalls to purchasing property in Northern Cyprus, as it can lead to the future payment of damages, demolition of any property erected, blocking of the property from further disposal, and in some instances even prison through an international arrest warrant.

POLITICS:
The Government is divided into three bodies:

  • President: Elected every 5 years by universal vote and he appoints the Council of Ministers to exercise the Executive Authority;
  • House of Representatives: Members are elected by universal vote every 5 years and exercise the Legislative Authority; and
  • Judiciary: A separate and independent body responsible for the administration of Justice. The Members of the Supreme Court are appointed by the President.
WHY CYPRUS

EUROPEAN MEMBERSHIP:
The Republic of Cyprus became a full Member of the European Union (“E.U.“) on the 01st of May, 2004 (without the North part of Cyprus) and in 2008, joined the European Monetary Union, leveraging a robust economic performance and adopting the Euro as the national currency.

Being Europe’s eastern intersection of important transport/communications channels, Cyprus provides a secure gateway for European enterprises into the Middle East, Africa and Asia, while offering non-European businesses and entrepreneurs possibilities for investment in Europe.

INTERNATIONAL MEMBERSHIPS:
The Republic of Cyprus is represented through diplomatic missions in over 40 countries and, also, is a member of the following international organizations:

  • European Union and Eurozone;
  • The World Trade Organization;
  • The International Monetary Fund (“IMF”);
  • The World Bank;
  • The Commonwealth;
  • The Council of Europe;
  • The United Nations.

SAFETY:
The Republic of Cyprus is the 5th safest country in the world, according to a Value Penguin 2015 survey, making it a great place for a family to reside in.

LANGUAGES:
The official languages in Cyprus are Greek and Turkish. Greek is spoken predominantly in the South of Cyprus, while Turkish is spoken in the North. The Greek language which is spoken is a Cypriot dialect of Greek. English is spoken in almost all places, while Russian is quite frequent.

HEALTH AND WELFARE:
With world-class health professionals, the Republic of Cyprus is in a position to provide modernised health infrastructure. It promotes great co-operation in the international medical field, encouraging the establishment of private clinics/hospitals, while offering opportunities for foreign doctors to relocate and conduct operations in Cyprus.

In parallel, the island is known for being a wellness destination, providing luxury spa resorts and rural retreats, addressed to wellness orientated tourists. Investment in both medical and wellness tourism constitutes a serious opportunity for investors, as this sector has immense potential for development, with the recent growth in demand from tourists.

EDUCATION:
The Island is becoming an international education/research centre of excellence. The current educational system is comprised of:

  • Pre-Primary education: Compulsory for all children between 4 – 5 years old;
  • Primary Education: Compulsory for all children over the age of 5 and has a duration of 6 years;
  • Secondary Education: Offers two cycles of education to pupils between the ages of 12 and 18:
    – Gymnasium (Pre-High School); and
    – Lyceum or Secondary Technical and Vocational Education (High School).
  • Higher Education: State universities, private universities and colleges.

INFRASTRUCTURE:
There are two multi-purpose deep sea ports located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo, while offering logistics solutions through advanced facilities for cost-effective transport and processing. In addition, the port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships. The Larnaca port on the other hand, deals with freight cargo only.

Two modern international airports in Larnaca and Paphos offer their services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world.

With its advanced technical infrastructure and skilled human resources, the Republic of Cyprus has become a major communications’ and transport centre, and is also fast developing into an energy hub in the Eastern Mediterranean.

REAL ESTATE:
This sector has shown strong performance over the last few years mainly due to the Cyprus Investment Program, which was introduced by the Government to attract Foreign Investors and Entrepreneurs. This upward trend in real estate sales has been steadily rising since 2014, with the volume of transactions skyrocketing since then. Being a historically key pillar of the island’s economy, the real estate and construction sectors have experienced remarkable growth recently. This growth is manifested in the increased demand, prestigious large-scale projects, incentives and an influx of foreign investment.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

TAX & CORPORATE BENEFITS

The Republic of Cyprus offers significant international tax planning incentives, being one of the most favourable tax regimes in Europe.

An indicative LIST OF PRIVILEGES is detailed below:

  • Approved by the Organisation for Economic Co-operation and Development (OECD) and fully E.U. compliant.
  • Extensive network of advantageous Double Tax Treaties with more than 60 countries.
  • One of the lowest corporate tax rates in the European Union at 12.5% on the yearly profits.
  • Most international transactions are exempt from VAT.
  • Possibility to obtain tax rulings in advance, for better flexibility and minimisation of tax risks.
  • Advantageous tax system for pensioners and expatriates.
  • No required special contribution for defence from non-Cyprus tax residents.
  • No taxation on dividend income received by Cyprus Companies.
  • No wealth or inheritance taxes. Only minimal stamp and local taxes.
  • No withholding tax is applied on the dividends paid to non-resident shareholders, nor on the distribution of profit, except those arising from the disposal of property in Cyprus or profits arising from the disposal of the shares of a Company which owns real estate in Cyprus.
  • No capital gains tax is applied on profits arising from the sale of securities or after the liquidation of the Company.
  • According to “Non-dom” rules, non-domiciled individuals are exempt from the special defence tax, the taxation on dividends, and any passive interest that they receive.
  • With the Cyprus IP Box regime, Companies can achieve an effective tax rate of 2.5% (or less) on qualifying profits earned from exploiting qualifying IP. Non-qualifying incomes are taxable at an effective tax rate of 12.5% (or less).

ESTABLISHMENT OF I.T. COMPANIES:
The tax regime in the Republic of Cyprus is very attractive because:

  • The services of I.T. are standard rated and carry a corporation tax of 12.5% (on profits).
  • The Owner of the I.T. Company, if individual (i.e Non-Domiciled Cyprus or Non-Cyprus resident), will not be subject to defence tax on dividends.
  • The dividends will be taxed subject to the Owner’s Country of origin, based on that Country’s tax schemes.
  • Companies which are residents in Cyprus and Companies which are not residents in Cyprus but maintain a permanent establishment in Cyprus, are entitled to a Notional Interest Deduction with the effective tax rate reduced to 2.5% for the amount contributed as equity.

CORPORATE STRUCTURES WITH A CYPRUS HOLDING COMPANY:
The Republic of Cyprus is in the top tier of Holding Company jurisdictions, which is the reason many of the Group ownership structures around the globe include a Cyprus Holding/Finance Company. This type of Company enjoys all the benefits of Cyprus’ aforementioned favourable tax regime and can be involved in various business activities, from commercial to financial aspects, with no limitation.

WHAT IS A “HOLDING” COMPANY?
It is either a private or public Company, which participates as a Shareholder in other Companies (called “Subsidiaries”). Such a Holding Company does not produce goods/services, but manages or simply holds the shares in the Subsidiaries instead.

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

IMMIGRATION PERMITS

In accordance with section 20(1) of the Aliens and Immigration Law Cap. 105 and Regulations 5(F) (“Category F”), 6(2) (“Permanent Residence”) of the Aliens and Immigration Regulations, the below table is a comprehensive comparison of the two ways which lead to the acquisition of “Immigration Permits” by Non-E.U. citizens (namely the Permits which give the right to Non-E.U. citizens to reside permanently in the Republic of Cyprus via real estate transactions):

PARAMETERS "CATEGORY F" "PERMANENT RESIDENCE"
ISSUANCE Can take 8 to 12 months. Issued within 2 months (Fast Track).
TYPE OF PROPERTY/NATURE OF TRANSACTION 1) Purchase of new or resale Property (including land); or
2) Rental.		 Purchase of "new" Property (only).
*No right to rent;
*No right to purchase land;
*No right to purchase resale Property.
PRICE Any. Over €300.000 + VAT.
ANNUAL INCOME 1) Applicant: €9,568.17;
2) Dependants: €4,613.22		 1) Applicant: €30,000;
2) Spouse: €5,000;
3) Per Child: €5,000;
4) Per Parent: €8,000.
COMMON PARAMETERS
AMOUNT/PERIOD OF BANK PLEDGE €30,000 for 3 years.
APPLICANTS 1) Applicant; or
2) Spouse; or
3) Via Company (if they are direct Shareholders or Ultimate Beneficial Owners).
PERSONS TO BE GRANTED PERMITS (HOLDERS) 1) Applicant;
2) Spouse;
3) Dependants (children and parents).
TIMELINE OF VALIDITY Endless - Does not expire.
ADVANTAGES 1) Please refer to the tabs above;
2) No entry visa needed for the Republic of Cyprus;
3) After 7 years, the Holders can apply for Cypriot Citizenship.
RESTRICTIONS 1) The Holders must come to Cyprus for a permanent establishment within 1 year from the date of issuance of the Immigration Permit;
2) Every 2 years, the Holders must come at least once to Cyprus (no minimum duration);
3) The Holders do not have the right to work in the Republic of Cyprus;
4) The source of income for the said transactions must come from abroad (e.g. pension, deposits, rents, business, interests, dividends, salary).

If professional advice is required, G.C Charalambous & Co LLC would be glad to assist you in this respect. 

CYPRUS INVESTMENT PROGRAMME

WHO CAN APPLY?
1. A non-Cypriot citizen Investor;
2. Who either invested:

  • Personally – directly; or
  • Through a Company / Group, in which he participates as a Shareholder (depending on his holding percentage); or
  • Through his Spouse (jointly/severally); or
  • As a high-ranking Senior Manager of a Company, which meets one of the financial criteria of section 2 (a – d) below, provided that:
    a) He receives such a remuneration that it generates tax revenues for the Country of at least €100,000 over a three (3) year period; and
    b) This tax has already been paid or prepaid. In this case, the Applicant must comply with the requirement to buy a residential house in the Republic, at market value of at least €500.000 plus VAT (if any).

WHEN?
1. The investment must be effected at any point during the three (3) years prior to the date of filing the Application; and
2. Must be retained for at least five (5) years from the date of the granting of the Citizenship.

Notes:

  • During this five (5) year period, the Investor will be entitled to change his investment into other forms, provided that he obtains consent from the Ministry of Finance.
  • In the case where, following a periodic inspection, it has been ascertained that any condition is being circumvented, the Naturalisation may be revoked.

HOW CAN AN APPLICANT EFFECT AN INVESTMENT? (FINANCIAL CRITERIA)

1. DONATION:

The Applicant must donate (at least):

  1. €75,000 to the Research and Innovation Foundation;
  2. €75,000 to the Cyprus Land Development Corporation.

    Note:
  • Any additional amount donated will be used to supplement the total amount of the investment required in section 2 (a – d) below.

2. INVESTMENT IN (Any of the Below): 

(A) IMMOVABLE PROPERTY:
The Applicant must invest (at least) €2,000,000 for the purchase/construction of:

  • Buildings;
  • Land Development Projects (i.e. Residential or Commercial Developments, Developments in the Tourism Sector) or other Infrastructure Projects (including resale properties).

Notes:

  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.
  • A Planning Permit must already be issued.
  • Investment in Land which is under development is permitted, provided that an Investment Business Plan is included in the Application.
  • If the Applicant has invested in housing units, the purchase of another Permanent Residence in the Republic of Cyprus (as required in the Terms & Conditions point 4 below) is of excess, and will not be required only if at least one of these housing units is worth at least €500,000 plus VAT, and provided that the Applicant retains the possession of the residence for life. However, if the Applicant has invested in housing units which have already been used for the purpose of acquiring a Cypriot citizenship via the Programme, the above provision will be in force, provided that the total amount of the investments, including the privately-owned residence, is at least €2,500,000. 

(B) SHARES:
The Applicant must invest (at least) €2,000,000 for the purchase of the whole/partial shareholding in one or more Companies: 

Notes:

  • The Companies must be incorporated and actually operating (i.e. have substance) in the Republic of Cyprus.
  • The Companies must prove substantial economic activity/turnover and employ at least 5 (five) Cypriot citizens or citizens of the European Union.
  • The funds invested must be channelled towards the financing of the investment objectives of these Companies.
  • An Investment Business Plan is required.
  • Investments in the shipping sector are eligible.
  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.

(C) ALTERNATIVE INVESTMENT FUNDS:
The Applicant must have invested (at least) €2,000,000 in units of Alternative Investment Funds (“AIFs”) or in Registered Alternative Investment Funds (“RAIFs”).

Notes:

  • The AIFs and/or RAIFs must be established in the Republic of Cyprus, while also being licensed, registered, and supervised by the Cyprus Securities and Exchange Commission (“CySEC”).
  • The funds invested must be for investments exclusively in the Republic of Cyprus, in investments that meet the criteria of this Programme or in areas approved by the Minister of Finance.
  • The Investor can also purchase other financial assets of Cyprus Companies (such as bonds, bills and securities).
  • In the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price. 

(D) COMBINATION:
The Applicant may proceed with a combination of the above investments (i.e. any of the options in points a, b and c) provided that the total investment will amount to at least €2,000,000. Once again, in the case of investment funds, the Investor must not include the amount of VAT and/or any transfer fees to the total investment price.

 

TERMS & CONDITIONS:

1. Provision of a Clean Criminal Record from the country of origin and the country of residence (if the latter is different from the former). Moreover, the Investor’s name must not be included in the list of individuals whose assets (which are located in the EU) have been frozen as a result of sanctions. This is also applicable to the Family Members of the Investor that are eligible to apply for the acquisition of the Cypriot citizenship.

2. If an Applicant had previously applied for citizenship in any other Member State of the European Union and had been rejected, they will not be eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme. This is also applicable to the Family Members of the Investor that are eligible to apply for the acquisition of the Cypriot citizenship.

3. Schengen Visa: The Applicant must hold a valid Schengen visa prior to submitting his application. European citizens, as well as Third-Country nationals who do not require an entry visa when travelling in the European Union, are excluded from this obligation.

What is a Schengen Visa?
A Schengen Visa is an ‘up to 90 day stay visa’, which permits a person to travel to any Country which is a Member of the Schengen Area for tourism or business purposes. It enables its Holder to enter and travel freely within the Schengen zone. The list of all Schengen Members can be found here. 

4. Permanent Residence: In all of the cases listed in section 2 (a – d) above, the Applicant must acquire a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be (at least) €500.000 plus VAT.

Notes:

  • Members of the same family, who apply separately as Investors, can collectively acquire a residence, provided that the total value of this home/property covers the amount required of €500.000 for each Applicant.
  • In cases where the purchase price of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, this additional amount can be used towards the total amount of the investment made on the basis of section 2 (a – d) above.

5. Residence Permit: The Applicant, prior to his naturalisation as a Cypriot citizen, must hold a Residence Permit in Cyprus for a period of at least six (6) months.

Notes:

  • If the Applicant (or any adult Member of his family, who will apply for naturalisation) does not already hold a Residence Permit, he may apply for an Immigration Permit on the basis of Regulation 6(2) of the Aliens and Immigration Regulation, simultaneously with the Application for naturalisation.
  • In the event that the Application for naturalisation is rejected for any reason, the immigration permit, which was obtained in accordance with the provisions of the application, will be cancelled immediately.
  • The requirement of holding a Residence Permit for six months also applies to any adult Member of the Applicant’s family who will apply for naturalisation.
Right Menu Icon