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Cyprus

Naturalization of Investors by exception

The Naturalization of Investors by Exception Scheme is established under the subsection (2) of section 111A of the Civil Registry Laws of 2002-2015. The Scheme was set on 2013 to encourage foreign direct investment and attract high net worth individuals to relocate to Cyprus and establish their business activities in the country. On September 2016, the scheme was amended, introducing some criterion changes, new incentives and reducing required investments amounts.

investment


Start or Participate in a Business operating in Cyprus

€2 million in the purchase, creation or participation in businesses or companies based and operating in Cyprus. These businesses or companies must have a tangible presence in Cyprus, significant activity and turnover, and employ at least five Cypriot citizens or European citizens (legally and continuously resided in Cyprus during the five years preceding the application submission date)-

Investment must be made during the three years preceding the date of the application and must retain the said investments for a period of at least three years as from the date of the naturalization.

Investments can be made personally or through a company, of which the applicant participates as a shareholder, in proportion to his or her holding percentage, or of which the applicant is a high-ranking senior manager that generates for the country tax revenues of €100,000 over a three-year period and tax has been paid or pre-paid. Investments can also be made jointly with the spouse

Residence Purchase
To be granted as citizen, you must own a permanent privately-owned residence in Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.

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 of €500,000 per each applicant. If the purchased property value exceeds the amount of €500,000, this additional amount can be used for purposes of supplementing the total amount of the qualifying investment explained above.

Residence Permit
Prior your naturalization as a Cypriot citizen, you must hold a residence permit in Cyprus. If you do not hold a residence permit, you may apply for an immigration permit based on Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization. There are no additional conditions to apply for residence permit. If the naturalization is rejected, the immigration permit will be canceled immediately.

Dependents
Spouse may apply for citizenship simultaneously for no additional amount.
Minor children may apply after the investor has acquired the citizenship.
Adult children (students up to the age of 28 that are attending an institution of higher education or children with severe physical or mental disability) may apply after the investor has acquired the citizenship.
Parents may apply for citizenship after the investor has acquired the citizenship, provided that they own a permanent privately-owned residence in the country, the purchase price of which must be at least €500.000, plus V.A.T.
Investors and parents may collectively purchase a residence, provided that the total value of the property is at least €1,000,000 plus V.A.T.

Requirements


- Residence Permit (explained above).
- Residence Purchase (explained above).
- Not to be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions.
- Good health.
- Not to be likely to cause disrepute to Cyprus.
- Not to be denied a Visa to a country where Cyprus has visa-free access.
- Not to be a potential national security threat.
- Real estate, land development and infrastructure projects Contract of Sale.
- Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.
- Proof of payment of the agreed purchase price.
- Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.
- An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

Documents regarding Business purchase
Purchase or Establishment or Participation in Cypriot Companies or Businesses
Contract of sale.
- Proof of payment of the agreed purchase price.
- Certificate of shareholders by the Registrar of Companies.
- Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.
- Specific investment plan.
- Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.
Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.
- Copy of the Social Insurance Contributions for every Cypriot or European Union citizen employee.
- Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.


Documents regarding investment through company (if applicable)
- Certificate of Registration of the company/ companies by the Registrar of Companies.
- Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies.
- Audited accounts of the company (or companies) for the last three years preceding the year of the application.
- If the applicant is a high-ranking senior manager, the submission of the employment contract and the receipt from the Department of Inland Revenue are additionally required.

Restricted Nationalities


No nationality is officially restricted

dual citizenship


Dual citizenship is recognized in Cyprus. You are not required to renounce your previous nationality to become a citizen of Cyprus.


Documents Required


  • Contract of Sale of Real Estate
  • Title Deeds or Proof of Registration of Real Estate
  • Proof of Payment of Real Estate
  • Copy of the wire transfer of Real Estate purchase
  • Evaluation certificate from a registered land surveyor
  • Original Police Clearance Certificate
  • Original or Certified copy of Birth Certificate (if applicable)
  • Certified copy of passport
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Copies of advertisements in a daily newspaper two consecutive posts
  • Two passport-size photos
  • Curriculum Vitae
  • Certificate of the registrar of companies (if applicable)
  • Certificate of shareholders by the Registrar of Companies (if applicable)
  • Audited accounts of the company (3 years) (if applicable)
  • Employment contract (if applicable)
  • Medical Certificate
  • Photograph and Signature Certificate
  • Statement of Source of Funds
  • Proof of payment of nonrefundable processing and due diligence fees
  • Proof of Payment of Business Purchase
  • Certified copy of Business License or Incorporation documents
  • Copy of wire transfer for Business Purchase
  • Investment Plan
  • Employment contracts of Cypriot citizens
  • Confirmation from the Social Insurance regarding employees
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required Yes
  • Language skills required No
  • Interview required No
  • Investment Single €2,000,000
  • Investment Family 4 €2,000,000
  • Minimum annual income -
  • Time to citizenship 6
  • Time to permanent residency 1
  • Visa-free countries 158
  • Financing available No

Fees

processing fees main applicant €2,570
passport fee €250
certificate issuance fee €5,000 (Adult) 0 (Minor Child)
total fees main applicant €7,820
processing fees spouse €2,070
passport fee €250
certificate issuance fee €5,000 (Adult) 0 (Minor Child)
total fees spouse €7,320
processing fees dependents -18 €150
passport fee €250
certificate issuance fee €5,000 (Adult) 0 (Minor Child)
total fees dependent -18 $400
processing fees dependents 18-25 €2,070
passport fee €250
certificate issuance fee €5,000 (Adult) 0 (Minor Child)
total fees dependent 18-25 €7,320
processing fees dependents +65 €2,070
passport fee €250
certificate issuance fee €5,000 (Adult) 0 (Minor Child)
total fees dependent +65 €7,320 (parents, no matter age)

Country details

Cyprus
EUR
357
Nicosia
Europe
Greek Turkish
1102677
Cyprus is a former UK colony and currently a Member State of the European Union. It is located in the island of the same name, in the Mediterranean Sea, 113 km south of Turkey, 120 km west of Syria, and 150 km east of the Greek island of Kastellorizo. It has about 1.2 million people and its capital and financial hub is Nicosia. Its official languages are Greek and Turkish, although English is widely spoken. Since 2008, its official currency is the Euro (EUR).

Visa Free Travel

With your new passport from Cyprus you'll be able to access 158 countries visa free
>

Taxes

Becoming a Cypriot citizen does not make you liable to any kind of taxes. To be a Cypriot tax resident you must spend more than 183 days in a year in the country.

Tax residents in Cyprus are subject to personal income tax on their worldwide income. Rates are progressive up to 35% for annual income in excess of €60,000. Capital gains, other than those relating to Cyprus-located immovable property are tax-exempt. Rental income is subject to tax at standard rates, although 20% of the gross rental income for rental of buildings is tax exempt.

Dividend and interest income are not subject to personal income tax, although individuals both residents and domiciled in Cyprus for tax purposes are subject to the Special Defence Contribution (SDC), which taxes dividends at a flat rate of 17% and interest at 30%. SDC also taxes rental income at an effective 2.25% tax rate.

Profits from disposals of shares, bonds, debentures, founders’ shares, and other titles of companies or other legal persons incorporated in Cyprus or abroad and options thereon, are unconditionally exempt from income tax.

Capital Gains accrued by individuals on the disposal of immovable property are subject to a capital gains tax of 20%. A minimum exempted applies to capital gains from the disposal of private residence, agricultural land by a farmer, gifts between spouses, children and third degree relatives, family companies, gifts to charities, exchange of properties, among others. Capital Gains from the disposal of shares in companies that own Cyprus-situated immovable property, when at least 50% of market value of the shares derives from immovable property, are subject to capital gains tax.

There are no Controlled Foreign Companies (CFC) provisions in Cyprus, which means that profits retained in foreign companies owned by tax-residents may not be subject to taxation.

The standard VAT rate in Cyprus is 19%. Reduced rates of 9% and 5% applies to certain goods and services.

There are no net wealth, inheritance and estate duties in Cyprus. There is a stamp duty on all documents related to property.

On corporate taxation, Cyprus has one of the lowest tax rates in the European Union. Resident companies are taxed on their worldwide income at a corporate tax rate of 12.5%.

Dividends received are usually not subject to taxation. Capital Gains derived from the sales of shares are tax-exempt, those from immovable property may be taxed at a 20% rate.

In addition, under the intellectual property (IP) regime, 80% of the net profit for the exploitation of intellectual property may be tax-exempt.

There are no withholding taxes in Cyprus on payments on dividends and interests.

Due to this favorable tax regime, Cyprus is the gateway to the European common market chosen by many non-EU companies and a portal for investment from the West into Russia, Middle-east, Asia and South America. Learn more about Cyprus corporate taxation, legal framework and tax treaties at incorporations.io/Cyprus.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax No
  • Transfer tax Yes
  • Inheritance tax No
  • Net worth tax No
  • CFC law No
  • Tax residency days 183
  • Personal income tax rate 35%
  • Capital Gains tax rate 20%
  • Investment income tax rate 0%
  • Territorial taxation No

Procedures

Flag Theory | Passports.IO and our qualified lawyers in Cyprus, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.

First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program and your application will be approved. Then, we will provide you access to our network of advisors and developers in Cyprus to choose the most suitable investment options and support through the investment process. Once, the investment is done, we will send you the application forms and provide assistance to complete the questionnaires and legalize documents, both for residence permit and naturalization. You must do a medical examination (we may recommend clinics in your jurisdiction) and provide the medical assessment.

Then, fees will be paid and we will submit the application and all supporting documents, which will be sent to the Ministry of Finance that will proceed the examination. Simultaneously the Ministry of Interior will conduct a due diligence check, and the Council of Ministers will take the final decision.

Once the application is approved you will be able to get the Citizenship and the issue of a Cypriot passport. The procedure to get the Cypriot citizenship will be completed, provided that the you hold a residence permit for a period of at least 6 months, if not you will have to wait until the period is completed. Afterwards, the Civil Registry and Migration Department issues the Certificate of Naturalization, following payment of the amount of €5,000 of the issuing fee. Subsequently, you will need to give the Oath of Faith to the Cypriot Republic before a Registrar of a Cypriot court or a consular officer of the Republic of Cyprus.

Once this procedure is completed you will be able to get a Cypriot passport and Identity Card. The whole process takes approximately between 70 and 90 days (provided that you get the residence permit 3 months’ prior citizenship application).

For further information on Cyprus citizenship by investment program and detailed procedures, contact us for a free private consultation.

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