Cyprus Citizenship by Investment

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Mervyn Haynes
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1 Cyprus Citizenship by Investment Criteria and benefits of the: - Cyprus citizenship programme - Cyprus permanent residence October

Cyprus, the right place to live the right time to invest Situated at the north-eastern end of the Mediterranean basin, Cyprus is the third largest island in the region just at the crossroad of three

2 Cyprus, the right place to live the right time to invest Situated at the north-eastern end of the Mediterranean basin, Cyprus is the third largest island in the region just at the crossroad of three continents. This strategic location played an important role in establishing this small country as a very popular tourist destination and a main international business center, attracting major investors from all around the world. Cyprus became a full member of the European Union on May 1, 2004 and joined the European Monetary Union in January of 2008 adopting the Euro as its national currency. This beautiful island offers a unique living experience as it combines a comfortable and easy way of life in a relatively business oriented environment. With a modern and sophisticated character, ideal for people who seek the perfect balance between work and pleasure, Cyprus is according to statistics the safest small country in the world. Cyprus also offers an attractive and transparent tax regime, fully compliant with the EU, OECD and international laws and regulations. In an effort to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus, the Cypriot Government has established and revised a "Scheme for Naturalization of non-cypriot investors by exception". Within this framework and taking into account the strong investor interest, Cyprus has managed to overcome the economical crisis of the past years and is now steadily heading towards a new period of major developments and further growth. Challenged by these new possibilities addressed to both individuals and businesses, we are ready to guide you through the process of making Cyprus your second home, an upgrade for you and your family in a blessed paradise inside Europe. I hope the context of this brochure will reveal all opportunities and possibilities you can benefit today by acquiring the Cyprus citizenship. Stavros Papadouris General Manager CYPRUS FACTSHEET LOCATION Middle East, island in the Mediterranean Sea East of Greece and South of Turkey CAPITAL Nicosia DIFFERENCE UTC+2 TOTAL AREA 9,251 sq. km. POPULATION AND GROWTH inhabitants Pop. Growth: 1.38% AGE DEMOGRAPHICS 0-14: 15.58%, 15-24: 14.37%, 25-54: 46.99%, 55-64: 11.26%, 65+: 11.8% LANGUAGE Greek (official), Turkish (official), English, Russian GOVERNMENT TYPE Republic of Cyprus: Presidential democracy CURRENCY Euro (EUR)

3 Cyprus Citizenship by Investment Criteria Investment in real estate, land development and infrastructure projects The applicant must have made an investment of at least 2,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector) or other infrastructure projects. It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded. Purchase or Establishment or Participation in Cypriot Companies or Businesses The applicant should have made a purchase or should have participated in companies or organizations established and operating in the Republic of Cyprus with investment costs of at least 2,0 million. The invested funds shall be channeled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan. The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five (5) Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company. In addition, the employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date. Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec The applicant should have bought units of at least 2,0 million from alternative investment funds (AIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Scheme or in areas approved by the Minister of Finance. In order to confirm that the investments that meet the criteria of the current Scheme will be kept for at least three years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministries of Finance and Interior with reference to the value of the initial investment. The purchase of financial assets of Cypriot companies or organizations of at least 2,0 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion. Combination of the aforementioned investments The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least 2,0 million. Within this criterion (combination of investments) the applicant may purchase special government bonds of the Republic of Cyprus, up to , which will be issued by the Public Debt Management Office of the Ministry of Finance, on condition that the investor will retain these bonds for a three year period. The characteristics and the terms of these special bonds will be determined by the General and Special Issue Terms of the Government Bonds of the Republic of Cyprus. Investments in government bonds through the secondary market are not considered eligible.

4 Additional Terms and Conditions Clean Criminal Record The applicant must have a clean criminal record. Furthermore, his name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions. Residence in the Republic of Cyprus In all criteria cases, the applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least (excl. VAT). It is noted that 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 per each applicant. It is also noted that if the applicant has invested in housing units, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is of a worth of at least 500,000 (excl. VAT), provided that the applicant retains the possession of the residence for life. Residence Permit in Cyprus The applicant, prior to the naturalization as a Cypriot citizen, must hold a residence permit in Cyprus. If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this Scheme, there are no other conditions to be fulfilled than the criteria and additional terms mentioned above. Other useful notes The investor is obliged to retain the investment for at least 3 years following the acquisition of the Cyprus citizenship but must retain possession of a permanent residence of at least (excl. VAT) for life. If the investor chooses to dispose the permanent residence at any time this needs to be substituted with another property of an equal or higher purchase price. The investor s parents are entitled to apply for the Cyprus citizenship provided they are owners of a permanent residence of at least (excl. VAT). For this purpose the investor and his/her parents may consider acquiring a single co-owned residential property of a total value of at least 1 million (excl. VAT). The investor s minor children, as well as his/her adult financially dependent children up to the age of 28 are entitled to apply for the Cyprus citizenship.

5 Benefits of receiving The Cyprus Citizenship Express procedure in obtaining an EU passport. Just 90 days. Low personal and corporate tax. No inheritance tax. Double Tax Treaties with more than 50 countries. The investment can be as low as 2m according to the type of investment. Unrestricted right to live, work and study in any EU country. No requirement to reside in Cyprus after obtaining the Cyprus passport. Dual-citizenship permitted while the acquisition of citizenship in Cyprus is not reported to other countries. Citizenship is granted to the parents, spouse and dependent children of the investor. Any investment made other than the permanent residence must be retained only for three years. VISA free access to travel to over 150 countries worldwide. Cyprus citizenship has not time frame, it is valid for life.

6 Permanent Residence in Cyprus Benefits As a Non-EU national Cyprus permanent residence gives you the right to permanently reside in Cyprus, a country that is a full EU Member. You are exempted from any immigration entry procedures (ie Visitor s Visa). Your family can also obtain the Cyprus Permanent Residence (married spouse, children under 18 years old and financially dependent children up to 25 years old). As of February 2016 the parents of the investor and/or of his/her spouse can also obtain Permanent Residence as dependants. A very fast procedure that only takes approximately two months for the Permanent Residence Permit to be issued. Criteria The applicant should purchase a property of a minimum market value of 300,000 (Excluding VAT) and provide proof of payment for at least 200,000 (Excluding VAT). Applications for the fast track route will require the purchase of property/ies being sold for the first time. For resale properties the normal route can be followed. Title deed or purchase agreement of a residential property, issued on the name of the applicant is required. Evidence of a steady income from abroad of at least 30,000, from sources other than employment in Cyprus. The capital should be deposited to a local Cypriot Bank and it should be pledged for at least a period of three years. The necessary minimum income, is increased by 5,000 for the spouse and for each child and by 8,000 for each parent of the main applicant and/or the spouse of the main applicant. The VAT rate of 5% is applied for first residences with a total area not exceeding 275 square meters in accordance with the architectural plans (after the exception of up to 88 square meters for common areas). The first 200 sq. meters are subject to 5% VAT and anything above 200 sq. meters is subject to the standard rate of VAT, currently 19%. Statement from applicant confirming that he/she has no intention to work or be engaged in any form of active business in Cyprus. Clean criminal record. Applicants should visit Cyprus at least once every two years.

7 About us Cyprus Residence is an alliance of professionals specialized in Citizen and Residence planning. Our group covers all aspects of Immigration & Corporate law, Real Estate & Developing and Audit & Tax solutions. You can rely on us for a total independent advice on how you and your family can benefit the advantages the Cyprus citizenship can offer today. Our fully devoted team can guide you through the whole process of residence planning. Starting from the preparation of documentation needed for your application, advising on the kind of investment you wish to make and following up the process until you are granted the Cyprus citizenship and Permanent residence status, no task is too difficult for us to handle. Using our services can result in a fast and stress free procedure as we can act as your professional liaison between you and the local authorities. Gain from our many years of experience resulting to excellent customer service and responsiveness, paired with outstanding results. Main Office A: 2 Amathountos Avenue Emerald Complex, 4532, Agios Tychonas Limassol - Cyprus, P. O. Box: 51544, CY-3506 Main Contacts Mr. Stavros Papadouris Managing Director T: (English) F: E: stavros@cyprusresidence.com.cy Ms. Olga Konstantinova T: (Russian) E: info@cyprusresidence.com.cy You can contact us for a personal briefing. Let us open a new door for your next place to call home!!! The information contained in this brochure is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. We strongly advise all interested parties to seek for professional advice prior to any steps towards applying for the Cyprus Citizenship or Permanent Residence.

SCHEME FOR NATURALISATION OF INVESTORS IN CYPRUS BY EXCEPTION on the basis of subsection (2) of section 111A of the Civil Registry Laws of

SCHEME FOR NATURALISATION OF INVESTORS IN CYPRUS BY EXCEPTION on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015 One of the main objectives of the economic policy of