PRIVATE CLIENT PRACTICE PRIVATE CLIENT LAW FIRM. cclex.com

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1 PRIVATE CLIENT PRACTICE PRIVATE CLIENT LAW FIRM cclex.com

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3 CONTENTS The Law Firm Our Private Clients Practice Services Track Record Meet the Team Key Contacts Profiles Why Chetcuti Cauchi Private Client Services Our Private Client practice advises and assists with the following core matters: Immigration Residence & domicile Corporate relocation Economic citizenship & residency Employment Advice Inward Investment Tax Planning Pre-immigration tax planning Personal tax planning Structuring of inward investment Succession planning Concierge & Family Office Investment Control Property Location & Sourcing Property management Design & architectural services Private Client Law Firm Our Private Client practice adopts a rounded approach to the legal needs of our clients by tapping into our wider, fully integrated firm-wide services. We start by identifying our clients personal and commercial objectives. We ensure that any domestic or international wealth structuring, family wealth issues or disputes, real estate and commercial transactions, family office matters or philanthropic intentions are aligned with such objectives. Trusts & Estates Asset protection structures Charity, philanthropy & not-for-profit Company formation & services Estate Planning Fiduciary services Trust management & protectorship Wills & probate Wealth protection Business Families Civil partnerships Family Business Governance Family Business Succession Pre-/Post-Nups Trusts, foundations, companies & other wealth management vehicles Overseas pensions schemes & remuneration trusts We also work closely with our Corporate and Tax teams to offer an all-inclusive service to our clients with their intricate personal and business legal requirements. In a typical scenario, it is our role to ensure that such clients familiarise themselves with Malta or Cyprus. We project manage their setting up from a legal, corporate and logistical aspect and assist them in compliance and ongoing matters. High Value Assets Art & cultural property Aircraft Intellectual property Shipping Super yachts Real estate CHETCUTI CAUCHI Private Client 3

4 Track Record Our Private Client practice is renowned for its problem-solving stance. We seek to tackle issues through a pragmatic and organised approach, hence ensuring the success of our plan of action. We thrive on challenge and its demands on our knowledge and judgement. Malta Citizenship by Investment Malta s Individual Investor Programme allows affluent persons of impeccable standing and repute to be naturalised and to receive Maltese citizenship on the basis of a contribution to and investment in Malta. The firm represented the first group of HNW and UHNW family applicants as part of the pilot programme launched by Identity Malta, the agency responsible for the launch and administration of the programme. The firm was the very first law firm to be granted approved agent status by Identity Malta and saw the first Malta Citizenship approvals ever being issued under the Malta citizenship by investment programme. The nationalities represented to date originated amongst others from the Middle-East, Russia and the CIS, China, India, Bangladesh, Philippines, France and the US. The firm provides VIP treatment to clients applying under this programme, offering end-to-end process management and concierge services, handholding the client and family members throughout the application process and project managing any personal relocation processes. Cyprus Citizenship by Investment Cyprus citizenship is available to HNWIs who own a house in Cyprus and who invest at least 2.5m to 5m in bank deposits in Cyprus, Cyprus Government bonds or Cypriot companies, real estate in Cyprus or Cypriot companies employing at least 5 Cypriot citizens, or a combination of the above. We have represented a number of investors, assisting in the petition for citizenship as well as the structuring and conveyancing related to the investment eligible for the grant of citizenship in Cyprus. Dominica Citizenship by Investment The Commonwealth of Dominica, also known as the Nature Island of the Caribbean is an independent state situated near the islands of Martinique and Guadeloupe. The Dominica Citizenship by Investment Programme grants citizenship to investors and their families in just months. Citizenship obtained under this programme grants the right to citizenship for life and can be passed on to future generations. The Programme is considered to be one of the most cost effective in the world, requiring an investment of US$ 200,000 in real estate or US$100,000 in Dominica s Economic Diversification Fund (EDF). Monaco Residence Programme The Monaco Residence Programme offers applicants and their families an ideal place of residence due the safe European location, high-class leisure facilities, pleasant climate and favourable tax system. Monaco residents benefit from no personal income tax, making the principality a main choice for high-net worth individuals wishing to relocate to Monaco as their main place of residence. One may become eligible for the Programme upon the purchase or rent of Property in Monaco, and fulfilment of other criteria such as a clean police record and bank reference. Switzerland Residence Permit Since time immemorial, Switzerland has been synonymous with peace & prosperity - and to date, it has lived up to expectations, attracting many retirees, business people, and health tourists alike. The political stability and unmatched security in the country, makes it an attractive destination for settlement. The Swiss Residency Programme offers a highly favourable tax regime, and it is valid for 5 years. Besides being available to the applicant & family, the Programme may lead to Permanent Residency status as well as to Citizenship, and it is open to both EU as well as Non-EU nationals. CHETCUTI CAUCHI Private Client 4

5 Highly Qualified Employees and Corporate Relocation We provide corporate relocation services to some of the largest players in Malta s financial services and online gaming scene. A typical example is a young Swedish family we recently assisted in relocating to Malta on the husband being appointed CTO of a large tech company. As part of our pre-immigration tax planning, we assisted the family in organising its banking and wealth management structure to ensure the desired tax results in line with Malta s source and remittance basis of taxation for non-dom residents of Malta. Our tax and immigration lawyers identified the Highly Qualified Persons rules as the most suitable route to taking up employment and residency in Malta, benefiting from a 15% flat rate on all employment income. Second Residency in Malta Over the years, we have assisted individuals and families from all corners of the world take up an alternative residence permit in Malta, taking advantage of Malta s membership of the European Union since 2004 and importantly Malta s Schengen status since The firm boasts the largest number of successful applications handled under the Malta Global Residence Programme since its inception when it was first known as the Permanent Residence Scheme and later the HNWI Rules. The firm s partners remain instrumental in advising the government on an on-going basis in the reform and tweaking of Maltese immigration law, directly and through the professional bodies they represent. The Global Residence Programme allows non- EU nationals to obtain residency in Malta on the basis of the rental or purchase of property in Malta. Beneficiaries of the GRP benefit from a flat rate on foreign source income of 15% subject to a minimum annual tax of 15,000 covering the whole family. The programme does not impose a minimum residence requirement. We recently assisted a South African family obtain Maltese residency under the Global Residence Programme. Due to security concerns, our clients wished to enjoy the comfort of having an alternative place they could also consider home, which offered a warm climate similar to South Africa, the opportunities for water sports and diving, but the benefits of personal safety and political stability. We provided legal representation to the family in obtaining a home loan to cover the acquisition of their home in Malta. We conducted the legal and compliance due diligence on the property and drafted the relative preliminary and final deeds, highlighting planning irregularities and rectifying legal discrepancies that we discovered in the process. We also assisted with arranging schooling for the couple s three year old and seven year old children. Client also entrusted us with dealing with his bankers to establish accounts outside Malta on which he could draw tax-free, transferring money to purchase the Maltese property at the right time without adverse Malta tax consequences. We prepared wills to ensure that the family was protected if anything should happen to the father. Expatriation A highly successful British entrepreneur, wished to transfer his business and move to Malta. His intention was to become non-resident for capital gains tax purposes. He and his wife had already spent a large number of years in Malta and owned an apartment on the island. Our Private Client advisers explained the steps involved and helped them explore their options. We took care of all the formalities for residency, including the opening of bank accounts, introduction of real estate agents, liaison with medical doctors and hospitals, insurance companies and vets (they owned 3 lovely dogs!) We were also aware of the many pitfalls that stand in the way of becoming non-resident for UK tax. Therefore we liaised with our UK tax associates to ensure that this was done in the best manner possible. Family Business Advisory An entrepreneur, died aged 59, leaving a widow and three daughters in their early 20s. He had various manufacturing businesses, with two main headquarters buildings, a number of apartments and houses and a factory. His widow wished to reside in one of the houses and all three daughters wished to continue their father s business. CHETCUTI CAUCHI Private Client 5

6 Our in-house family business advisor and mediator worked with our Private Client advisors, carrying out various meetings to analyse the situation from a familial, business and private point of view. Unfortunately, no family constitution had been put in place before the father died and after various discussions it became clear soon after the father s death that the daughters had very different ideas from each other about how to manage the businesses. Although a family constitution and partnership would have been the ideal solution, this was not possible. We were eventually able to arrange for the widow to remain in one of the main properties, whilst giving each daughter a different business area each and some of the properties split between the three of them. We incorporated the factory business, giving each daughter a differential shareholding to balance the values of the other assets that each were allocated. Work Permits for non-eu nationals In conjunction with a citizenship by investment application, a Middle Eastern client decided to set up an IT call centre in Malta to provide redundancy and a European solution to complement the other centres he runs in Asia and Eastern Europe. We advised client on how this operation would best fit within the overall structure of his group and assisted in grouping all entities worldwide under one holding company incorporated by us in Malta and setting up the necessary subsidiary that would conduct this business and employ the staff complement to be based in Malta. The client wished to recruit a staff compliment of sixty to a hundred local employees. However the client also wished to relocate fifteen executives and management personnel from another centre to Malta. These would form the management team and would essentially also train local personnel. For the non-eu recruits, we applied for the relative employment licence. EU nationals (except citizens of Croatia), EEA and Swiss nationals did not require an employment licence to work in Malta. Employment licences must be applied for on behalf of the employer and not the jobseeker. We worked with the employer company and handled all the application processes involved, compiled and submitted all supporting documentation, liaised with the authorities and assisted client in demonstrating that he could not recruit EEA / Swiss / Maltese candidates for the role. We also assisted with the rental of accommodation for the new recruits, opening personal bank accounts for them, liaised with insurance companies, drafted employment contracts and to date, we still handle the payroll for the company. Our Private Client Practice Led by Dr Jean-Philippe Chetcuti, the firm s managing partner, our Private Client practice serves wealthy individuals and families, and their trustees and family offices, private banks and other wealth management service providers. Our lawyers and tax advisers provide personal tax planning and compliance, citizenship and residency planning, wills and estates and international wealth structuring advice. We also provide structures for the holding and VAT minimization of high value assets including aircraft, super yachts and art. Interview of IdentityMalta CEO, Malta Justice Minister and IIP Attorney Jean-Philippe Chetcuti by Radio Television Suisse Corporate Relocation We provide full corporate relocation services to international companies requiring project management of the relocation of key staff, advice on immigration law, taxation, property law, wills and estates. Breath of Private Client Experience Our Private Client practice offers the resources of lawyers and other professional advisers with expertise in tax, succession, estate planning, immigration, family business governance and succession, banking, real estate, philanthropy, pensions and dispute resolution. CHETCUTI CAUCHI Private Client 6

7 Specialist Immigration Team Our Private Client practice vaunts a team with a difference. Besides being one of the very first immigration-specialised teams in Malta, our members seek to be always highly commercially aware, speedy, accurate and commercially astute. With advisers spanning the legal, accounting and tax professions, we boast a commitment to quality whist at the same time emphasising responsiveness and paramount client service. Lawyer-Client Privilege Chetcuti Cauchi Advocates is a licensed law firm bound by professional secrecy: lawyer-client privilege is fully protected under Maltese law (unlike other non-law firm agents working in this sector.) Who We Help Our Private Client practice provides a range of specialist, high-quality services to the following typical clients: Family businesses High net worth individuals & families Trusts & Foundations Legal & tax advisers Banks, credit & financial institutions Family offices & asset managers Sports and leisure organisations Charities and philanthropic constructions Museums & galleries The Law Firm Trusted Advisers Our cross-functional approach appeals to discerning clients that range from High Net Worth individuals and families, entrepreneurs as well as blue chip companies. The firm serves as a trusted adviser to international law firms, tax advisers, accountants, private bankers and family offices worldwide. We maintain key strengths in corporate law, international tax, intellectual property, immigration law, property law and trusts. Despite being a top five law firm by size, the partners and seniors continue the firm s tradition of providing specialised legal services of unrivalled quality: responsively. Despite being a top-five law firm by size, the partners and seniors continue the firm s tradition of providing specialised legal services of unrivalled quality, responsively. Through this approach, we have created a personalised environment built around our clients private or commercial realities. Commercially Aware The firm has built a name for serving today s and tomorrow s industries with significant commercial awareness, including the financial services, online gambling, pharma, life-sciences, digital games, aviation and super-yacht industries, combining specialist business law and international private wealth advice. We are renowned for technical excellence, sensitivity and common sense. Chetcuti Cauchi is a law firm serving successful entrepreneurs, business families and institutions using the financial centres of Malta and Cyprus, and their advisors around the globe. With offices in Malta, Cyprus and London, we advise clients seamlessly on their business and private legal needs both at home and abroad. Multi-Disciplinary Our unique multi-disciplinary set-up of over seventy lawyers, tax advisors, accountants, company administrators and relocation advisors allows us to provide the full spectrum of legal, tax, company formation, immigration, corporate relocation and fiduciary services to clients using Malta and Cyprus in international tax planning, cross-border business structuring and wealth management solutions. CHETCUTI CAUCHI Private Client 7

8 Meet the Team Partners Lawyers and Paralegals Dr Jean-Philippe Chetcuti Tax, Immigration Partner Ms Marouska Farrugia Sr Private Client Advisor Dr Maria Chetcuti-Cauchi Art, Cultural Property Partner Mr Antoine Saliba-Haig Legal Associate Dr Priscilla Mifsud-Parker Tax, Trusts, Estates Partner Ms Pauline Gouder Private Client Advisor Mr Kenneth Camilleri Tax, Aviation Partner Ms Ekaterina Zammit Legal Associate Dr Silvana Zammit Partner Ms Diane Henwood Private Client Advisor Mr Charles Savva Tax, Immigration Cyprus Partner Dr Stephanie Bonello Legal Associate Client Relationship Executives Ms Claudia Cilia-Buhagiar Client Relationship Executive Ms Roberta Anastasi Client Relationship Executive CHETCUTI CAUCHI Private Client 8

9 Key Contacts Profiles Dr Jean-Philippe Chetcuti Tax, Immigration Partner Dr Maria Chetcuti-Cauchi Art, Cultural Property Partner Tax & Immigration Lawyer, advisor to HNWIs, their advisors & Family Offices. Managing partner, CCA Member, AILA American Immigration Lawyers Association (International Chapter) Member, IBA International Bar Association (Immigration & Nationality Law Committee) Member, Malta Chamber of Advocates, Malta Chamber of Commerce, International Tax Planning Association, International Fiscal Association. Chairman, STEP Society of Trust & Estate Practitioners Dr Priscilla Mifsud-Parker Tax, Trusts, Estates Partner Regulated Business, IP, Art & Cultural Property Lawyer Senior partner, CCA Registered trademark & patent attorney in Malta & in the EU Approved EPO European Patent Attorney Member, Institute of Financial Services Practitioners, Society for Trusts & Estates Practitioners, Chamber of Advocates Member, International Trademark Association, Remote Gaming Council Government Advisor, Malta Remote Gaming Regulations Engaged by Government for the Digitalisation of the Domestic Patent Database for Malta Enterprise Advisor, Malta Enterprise on the Roche Bolar Exemption for the Pharma Industry Advisor, Malta Council for Science & Technology Author & speaker, IPR law matters: ACTA, European Patents Convention & Patent Cooperation Treaty, Roche Bolar Exemption. Executive Committee Member, IFSP Institute of Financial Services Practitioners Co-founder, Secretary, MAFE Malta Association of Family Enterprises, which he represents at the European Family Business Association. Private clients lawyer specialising in immigration law and in trusts and estates. Partner, CCA Member, Maltese Chamber of Advocates Technical, STEP Society of Trust & Estate Practitioners Member, IFSP Institute of Financial Services Practitioners Mr Kenneth Camilleri Tax, Aviation Partner Tax advisor & CPA Partner at CCA Member, IFSP Institute of Financial Services Practitioners, Tax Subcommittee. Member, MIT Malta Institute of Taxation, MIA Malta Institute of Accountants Member, ITPA International Tax Planning Association CHETCUTI CAUCHI Private Client

10 Key Contacts Profiles Dr Silvana Zammit Commercial Law, Partner Mr Charles Savva Cyprus Tax, Immigration Partner Partner, CCA Commercial lawyer specialising in gaming law and transport matters Member, Chamber of Advocates Member, Malta Association of Family Enterprise (Co-Founder and Secretary) Member, Finance Malta Foundation Member, International Fiscal Association Member, Malta Institute of Taxation Member, International Tax Planning Association Member, Institute of Financial Services Practitioners Member, Society for Trusts & Estate Practitioners (STEP) Malta Branch Partner, CCA Managing Partner, Cyprus UK Chartered Accountant Head, Cyprus tax advisory & immigration practice Board Member, Cyprus-Canada Business Association Member, Society of Trust and Estate Practitioners CHETCUTI CAUCHI Private Client 10

11 Why Chetcuti Cauchi The below credentials highlight the importance we give to our Private Client practice within the larger, multi-disciplinary environment we work in. Recognition Our partners are regularly consulted by the Government on immigration law reform, antibureaucracy reform and revisions of Malta s tax law. Dr Chetcuti was interviewed by Radio Television Suisse & featured in Euronews documentary on private equity, citizenship by investment and the legal framework for professional investor funds. Our lawyers represent Malta / Cyprus at international fora, seminars and lectures internationally & write and publish extensively on private client matters, immigration law, trusts and estates and family business governance Achievements Dr Jean-Philippe Chetcuti, Managing Partner at CCA, was the first to be authorised by Identity Malta Agency (licence no. IIP 001) under the IIP Regulations. Chetcuti Cauchi Advisors Ltd is a licensed Authorised Registered Mandatory (ARM), a requirement for residence applications under Maltese law. The firm filed the first applications under the Citizenship by Investment Programme and received the very first approvals of such applicants. Awards Experience Chetcuti Cauchi enjoys a sterling reputation in the areas of citizenship and residence planning, in the handling of legal and tax matters relevant to the structuring & planning of personal wealth and personal interests & business worldwide. Over ten years experience in citizenship and residency applications, specialising exclusively on Malta and Cyprus in an international context. A 100% success rate in residence and citizenship applications, through an honest professional assessment of applicants prior to filing and a problem solving approach. Licences & Certifications Dr Jean-Philippe Chetcuti is an authorised Accredited Person by Identity Malta Agency (licence no. IIP 001). Chetcuti Cauchi Advisors Ltd is a licensed Authorised Registered Mandatory (ARM00103) to act as the sole channel between the Government of Malta or the Commissioner of Inland Revenue, and the applicant. Dr Jean Philippe Chetcuti was admitted to the bar and awarded his warrant to practise as an advocate before the Maltese Courts in All our lawyers and accountants are warranted and certified to practise in their respective professions. Our trust company, Claris Capital Ltd. (Reg. No. C-39315) is a authorised and regulated by the Malta Financial Services Authority in terms of the Trusts & Trustees Act to provide full fiduciary and trustee services as well as acting as an administrator on foundations. Awarded full Service Law Firm of the Year in Malta, Global Award Corp INTL 2011 Awarded the INTL Immigration Law Firm of the Year in Malta Award 2013 and 2014 CHETCUTI CAUCHI Private Client 11

12 Client & Directories Testimonials Below is a snapshot of what clients, firms, and independent directories say about us: Marie Joyce Group Commercial Director at NTR plc Gamescale Advanced Gaming Solutions Jean-Philippe was a key advisor to me on the general European and in particular Maltese related tax, legal, accounting and secretarial aspects of a rather complex corporate group structure. We were operating in an extremely dynamic situation, and I was most grateful for his patience and understanding when we had to scrap the last idea and start all over again. He is highly professional, responsive and is excellent at finding practical solutions to difficult situations, whatever the time of day or night. He also has an excellent relationship with his team, and the service provided by his firm is intelligent, joined up and seamless. He is good humoured and imminently likeable and I look forward to working with him again in the future. CC has demonstrated superior performance during the licensing process, negotiations with clients and a careful strategic planning of our operations. The execution of the services provided to our group of companies all around the world in several different languages is an excellent demonstration of the high quality personnel engaged in and at CC. We feel proud to be part of the CC family. Where others failed or gave up you with great confidence succeeded. I want to express my sincere gratitude to you and your staff for all the time, patience and expertise you devoted to our different and diverse legal issues. I am grateful for the excellent outcome. Legal 500 Directory Legal 500 Directory Chetcuti Cauchi Advocates professional and responsive team is recommended for its great technical and regulatory knowledge, which it uses to advise fund managers, investments advisers and forex brokers. Practice head Charles Cassar shows innate understanding of the requirements to get the job done. Chetcuti Cauchi Advocates attracts praise for its team of highly experienced and knowledgeable property practitioners, whose input enables smooth and problem-free completion of transactions. In 2013, it advised Melita Business Centre on the conversion of two properties from temporary to perpetual ground rent. Managing partner Jean- Philippe Chetcuti heads the team, which includes the practical Silvana Zammit, who has very good negotiating skills. CHETCUTI CAUCHI Private Client 12

13 CONTACT DETAILS For more information, contact: Dr. Jean-Philippe Chetcuti Dip.Tax, Dip.ITM, B.A., LL.M.(Warwick), LL.D., TEP Partner, Private Clients Skype: chetcuticauchi.malta E: W: MALTA 120 Lower St Ursula Street Valletta VLT1236 Malta Tel: CYPRUS 1st Floor Office Prodromou Avenue Nicosia 2063 Cyprus Tel: LONDON 259 Temple Chambers 3-7 Temple Avenue London EC4Y 0HP UK Tel: DISCLAIMER: The materials contained in this document are provided for general information purposes only and are not intended to provide legal or other professional advice. We accept no responsibility for any direct, indirect or consequential loss or damage which may arise from reliance on information contained in this document. Readers are advised to seek confirmation of statements made herein before acting upon them; specialist advice should also be sought on your particular cases. Please feel free to contact us at your convenience. COPYRIGHT NOTICE: Reproduction in whole or in part is strictly forbidden, except with the prior written consent of Chetcuti Cauchi. CHETCUTI CAUCHI Private Client 13

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15 EU Citizenship by Investment Malta & Cyprus Citizenship by Investment Programmes cclex.com

16 CONTENTS MALTA... 4 Benefits of Malta Citizenship... 4 Eligibility for Maltese Citizenship by Investment...4 Taxation of New Citizens... 6 Malta Citizenship Application Process... 7 CYPRUS... 8 Benefits of Cyprus Citizenship... 8 Eligibility for Cyprus Citizenship by Investment.. 9 Cyprus Citizenship Application Process Why Chetcuti Cauchi...11 Meet the Team Key Contacts Testimonials CHETCUTI CAUCHI Citizenship 2

17 MALTA Benefits of Malta Citizenship Schengen Residence status for 1 yr prior to issue of passport, issued on application European Union Member State. 160 Visa-free destinations inc. US, UK. Passport issued within 1 year. Clear, objective rules for eligibility. Maltese Citizenship Rights The Republic of Malta enjoys a stable political climate and a bi-partisan political scene that is largely convergent on issues of national and economic importance. Malta has weathered the financial crises well and shared the limelight with Germany as the only two states maintaining economic growth in the Euro Zone. Malta s banks have been ranked amongst the top 5 soundest banks in the world. Malta has been a member of the European Union since 2004 and is part of Schengen since Citizenship obtained under this programme grants the rights of full citizenship for life and can be passed on to future generations by descent. Maltese citizenship grants access to all investment opportunities in Malta and throughout the European Union open to Maltese and European Union citizens. Legal Basis for Maltese Citizenship by Investment Maltese Citizenship by Investment is granted under an amendment passed in November 2013 to the Maltese Citizenship Act, Chapter 188 of the Laws of Malta. These amendments provided the framework for the enactment of LN 47 of The Malta Individual Investor Programme (MIIP) rules provide for affluent persons of impeccable standing and repute to be naturalised and to receive Maltese citizenship on the basis of a contribution to and investment in Malta. Eligibility for Maltese Citizenship by Investment To qualify under the regulations, a Main Applicant for citizenship must be at least 18 years of age and must meet the requirements outlined in this factsheet. The main applicant may also add dependents to a citizenship application. The spouse, children and parents or grandparents, may be included in the application under certain conditions in order to benefit under the Malta Citizenship by Investment Programme. Beneficiaries under the Global Residence Programme may also additionally apply for citizenship under this Programme. Fit and proper Test Applicants must show they are in good standing and repute and will undergo a fit and proper test. The Government of Malta is committed to the highest standard of due diligence to ensure only deserving and reputable applicants are allowed to proceed for the grant of Maltese citizenship. A four-tier due diligence process is carried out directly by the Government that assesses applicants, processes and approves applications at various stages. Applicants must demonstrate a clean criminal record, with checks being conducted with the International Criminal Court, INTERPOL and various other authorities and sources. Applicants must provide a police certificate which may be submitted subsequently to the submission of the application but at all times prior to approval. CHETCUTI CAUCHI Citizenship 3

18 Good Health Applicants must demonstrate that they do not suffer from any contagious disease or any health condition that could become a significant burden on the Maltese health system. Contribution to the National Development & Social Fund To qualify for Maltese citizenship by investment, the main applicant is required to contribute at least 650,000 to Malta. Of this contribution, 70 per cent will go into the Fund set up by the Government of Malta and run by a board of trustees. The rest goes to the consolidated fund. The Fund finances projects linked to education, public health, innovation, job creation and social projects. Spouses and children are required to contribute 25,000; unmarried children between 18 and 25 and dependent parents must contribute 50,000 each. Property Purchase or Rental Applicants are required to make a property investment of at least 350,000 or enter a property rental contract for at least 16,000 p.a. both on 5-year contracts Residence Status Malta is the only Citizenship by Investment Programme that enjoys EU approval. The basis for obtaining this endorsement by the European Commission was the introduction of a genuine link requirement, or the one year residence requirement. This period starts running from the first visit of the applicant who is issued a one year residence permit within an impressively short timeframe. It is understood that HNWIs lead very international lives and would find it difficult spend a full year in any one country. Styled on the experience of the European Court of Justice, the genuine link test ensures that main and dependent applicants are able to demonstrate a genuine connection with the jurisdiction in their personal, social, philanthropic and commercial activities. Persons being resident in Malta one year prior to IIP approval already satisfy this requirement. Eligibility for Malta Citizenship Fit & Proper - clean criminal conduct, in good health Non-refundable contribution of 650,000 to Government Fund Investment in Government Bonds 150,000 for 5 years Investment in Property min. 350,000 for 5 years OR Rental of Property min. 16,000 for 5 years Genuine Link with Malta for 1 Year Eligible Dependents inc. unmarried children up to 25 yrs, parents over 55 yrs Investment in Bonds/Shares Applicants are required to invest at least 150,000 in bonds or shares which are approved by the Maltese Government from time to time. The shares/bonds are to be kept for at least five years and must be invested in stocks sanctioned by the government as beneficial to the Island. CHETCUTI CAUCHI Citizenship 4

19 Grounds for Refusal Providing false information Having a criminal record or being subject of a criminal record Potential national security threat Likely to cause disrepute to Malta Denied a visa to a country Notwithstanding the above, Identity Malta will regard applicants on a case by case basis and may be satisfied that the applicant is still worthy of being considered for approval due to special circumstances. In the case of approval, Identity Malta must provide reasoned opinion why applicant should still be considered for approval and should refer the case to the Minister who has sole authority to approve. Grounds for Revocation of Maltese Citizenship by Investment The revocation ( deprivation ) from Maltese citizenship is well regulated and is governed by the Maltese Citizenship Act. Legitimate grounds for deprivation of citizenship would be that: citizenship was acquired by means of fraud, false representation or the concealment of any material fact or such citizen would have spoken or acted in a disloyal manner towards the President or the Government of Malta or such citizen had engaged, unlawfully traded or communicated with an enemy or been engaged in or associated with any business that was motivated by willingness to assist an enemy in that war. Various authorities on constitutional law have expressed their position on this subject, largely to the effect that it would be contrary to fundamental human rights for any government to issue a blanket revocation of citizenship based on its grant under IIP. Taxation of New Citizens The Maltese tax system subjects persons to tax on the basis of domicile and residence not citizenship. The grant of Maltese citizenship to a non-domiciliary of Malta does not of itself, cause the beneficiary to acquire a new domicile of choice in Malta. Residence for tax purposes is established by demonstrating an intention to reside in Malta indefinitely and definitely on the basis of a day count of 183 days. Remittance Basis of Taxation Tax residents of Malta who are not domiciled in Malta are taxable on a remittance basis. Accordingly, non-doms who are resident in Malta are not taxable on foreign source income not received in Malta, nor on any capital gains arising outside Malta whether remitted or not. Tax is due only on a sources basis on income and capital gains arising in Malta. A nonresident citizen of Malta is only taxable in Malta on Malta source income. Sale of Property After the lapse of the obligatory 5 year period, property in Malta can be sold completely exempt from tax if such property is held for a period of 3 years as the resident s sole and ordinary residence. If sold before the lapse of 3 years, a final property tax of 12% is chargeable on the selling price Other Tax Considerations No inheritance or death taxes No estate duty No net worth or wealth taxes No rates, municipal / real estate taxes. CHETCUTI CAUCHI Citizenship 5

20 Malta Citizenship Application Process Application Time Line & Payments 1. Apply for Residence: applicants who are not already resident in Malta are advised to start the process of residency to set the clock ticking on the 1 year residency requirement. A deposit on account of the 650K contribution is due at this stage: 5,000 for main applicant. 1,000 per dependent. 2. Day 0: Formal Application by Accredited Person: An application is formally submitted to Identity Malta with the essential supporting documents. Payments due now include the due diligence fees, passport fees and a deposit of 10,000 on account of the 650K contribution, less any payments made on applying for residency. Evidence of source of funds to be presented. 3. Day 90: Identity Malta confirms whether the documentation submitted is formally in order, subject to a further month of further verifications. 4. Day 120: This is the approval of the process conditional only to the fulfilment of the obligations undertaken under the IIP. 5. Day 125:Identity Malta requests payment of remaining balance on contribution & passport fee. 6. Day 145: Deadline for paying balance on contribution. 7. Day 240 Final Compliance: Provide evidence of Property Purchase / Rental & 150K investment. 8. Day 183; Issue of Certificate of Naturalisation (maximum time to issue: 2 years). Subject to: Oath of Allegiance, 1 Year residence. Our Malta Citizenship Services Approved Agent Applications for Maltese Citizenship by Investment are to be made to and processed wholly by Identity Malta. Applicants must be represented by an Accredited Person that is a licensed Maltese Authorised Registered Mandatory (ARM). Dr Jean-Philippe Chetcuti (Chetcuti Cauchi Advisors Ltd) holds licence no. IIP 001 and has satisfied the additional requirements imposed by the IIP Regulations over and above the requirements for ARMs under other legislation. The programme imposes more responsibilities on ARMs to ensure the highest standards of quality are maintained throughout the application process, for the protection and benefit of applicants and the reputation of the Maltese citizenship by investment programme. Application Services advising you on your chances of success before filing your application; providing you with pre-immigration legal and tax advice; guiding you with the preparation of supporting documentation; vetting and preparing all supporting documentation for submission; corresponding and liaising with the government authorities on your behalf during the application process; application progress updates; Other Malta Services handling applications for work permits, uniform residence permits, HNWI and Global Residence Programme residence permits; legal and notarial representation on purchase, rental and re-sale of property in Malta including applications for AIP permits (foreigners need AIP permit to purchase property in Malta), reviews of your contract. co-ordination of architectural surveys & planning applications, referral to leading interior designers & turnkey providers for property conversions; personal and corporate international tax planning; dealing with all periodical tax matters including annual returns and tax payments; drawing up of wills, international probate; administration of estates, foundations, trusts; advice on the formation & management of trading & holding companies in Malta; yacht registration under the Malta flag & VAT planning. CHETCUTI CAUCHI Citizenship 6

21 CYPRUS Legal Basis for Cyprus Citizenship by Investment Cyprus Citizenship by Investment is available to investors pursuant to the Scheme for Naturalisation of Investors in Cyprus by Exception on the basis of Section 111A (2) of the Civil Registry Laws of , based on a Council of Ministers decision dated 19th March By virtue of this law, the Cyprus Council of Ministers may grant citizenship by naturalization to foreign entrepreneurs. Introduction to Cyprus Cyprus has recently been ranked the 5th best relocation destination in the world by an international lifestyle review (source: 2014 report by Knight Frank, a leading independent, global real estate consultancy firm). Ranked by key business and leisure indicators, Cyprus was the only European country alongside Switzerland to make it into the top five ahead of London, Madrid and Monaco. Cyprus ranked highly because of its favourable tax regime for new residents, particularly high net worth individuals. With at least 320 days of sunshine a year, Cyprus was classified the sunniest European location. Also noteworthy, are recent studies conducted by global immigration experts, ranking the Cyprus Citizenship by Investment program among the top ten best in the world. Recent changes to Cypriot immigration policy and legal framework now enable non-eu applicants to obtain Cypriot citizenship on an expedited basis. There are a number of reasons the Cyprus Citizenship by Investment program is now considered to be one the most attractive in Europe. Benefits of Cyprus Citizenship Approval within 3 months No donations to the government are required only approved investments. No presence or residence required before/ after approval. Cyprus nationals enjoy 157 Visa-free destinations. Additionally, the law provides for the granting of the Cypriot citizenship by investment to the spouse as well as financially dependent adult children of the investor. Neither the spouse nor the children are obliged to meet any additional financial criteria. Benefits of Cyprus Citizenship Free Movement of Persons The whole family can obtain Cyprus Citizenship i.e. the main applicant, his/her spouse, children under 18 years, and adult dependents (ages 18 to 28) and they can all travel, reside and work freely within the EU. Free Movement of Services Individual citizens and their companies can offer services within EU Member States without any obstacles. Free Movement of Capital Cypriot passport holders can transfer funds between EU Member States, purchase property in any preferred EU country and invest in any type of activities. Free Movement of Goods All goods produced in EU Member States can be freely transferred between countries of the EU. No requirement to physically reside in Cyprus The applicant and his/her dependants are not required to reside in Cyprus; neither before the filing of an application, nor after obtaining Cypriot Citizenship Attractive Tax System Cyprus is an attractive financial centre due to its highly favourable tax system and strategic location at the crossroads of three continents Europe, Africa and Asia. CHETCUTI CAUCHI Citizenship 7

22 High standard of living Cyprus presents a high standard of living with access to reputable private schools, trustworthy private medical facilities and among the lowest crime rates within Europe. Visa Free Travel Cypriot passport holders may travel freely within the EU, and they may also travel without a visa to many non-eu countries. Eligibility for Cyprus Citizenship by Investment To qualify under the regulations, a Main Applicant for citizenship must be at least 18 years of age and must meet the requirements outlined below. The main applicant may also add dependents to a citizenship application including his/her spouse and children, under certain conditions, to benefit under the Cyprus Citizenship by Investment Programme. Eligibility for Cyprus Citizenship Clean criminal conduct A vast choice of investment opportunities Investment in Property of a value of minimum 500,000 plus VAT and fully paid Documents supporting the source and origin of the declared funds for investment Investor s name must not be included on the list of persons whose property is ordered to be frozen by the EU Visit Cyprus at least once upon approval Children includes those up to the age of 18 and children from the ages of if they are financially dependent on the main applicant. Additionally, an investors child with severe physical or mental disability that makes him or her unable to work is also considered as financially dependent. Eligible Investments The applicant can choose between the following available investment options: Bank Deposits Hold deposits in banks operating in Cyprus for a minimum amount of 5 million and fixed for a 3 year period. The list of eligible banks includes local banks and subsidiaries of foreign banks operating in Cyprus, but excludes branches; or Direct Investments Invest in direct investments in Cyprus for a minimum amount of 5 million in any of the following ways: Purchase of Cyprus Government Bonds with a minimum maturity of three years; Invest in bonds or debentures registered and issued by Cyprus companies or businesses or organizations, with a minimum maturity of three years; Invest in real estate development projects including housing or commercial development projects, tourist industry developments or other infrastructure projects (excluding undeveloped land); CHETCUTI CAUCHI Citizenship 8

23 Cyprus Citizenship Application Process Application Time Line & Payments 1. Evaluation: The Ministry of Finance evaluates whether the applicant meets the financial criteria as established by the Council of Ministers. Purchase, incorporate or be part of businesses and companies that are based and operate in Cyprus. Such companies are required to have a physical presence in Cyprus and to employ at least five Cypriot citizens. This criterion includes share participation in a Cyprus bank, and applies to foreign investors who have been holding shares (directly or indirectly) in Cyprus companies, or have been appointed as Executive Managers therein for three years prior to their application for Citizenship, earning remuneration resulting in tax revenue for the Republic of at least 100,000 and provided they maintain their investment in the said companies for another three years from the date the Citizenship is granted; or Combination of Criteria One can decide on a combination of any of the criteria listed in the above two schemes; or Major Collective Investments Invest in any of the Direct Investments listed above in the amount of 2.5 million per investor, where the total value of the major collective investment is at least 12.5 million; or Impaired Deposits If the applicant has impaired deposits amounting to a minimum of 3 million in the Bank of Cyprus and/or in the Popular Bank. In case of impaired deposits of less than 3 million, the applicant can proceed to make additional investments under one of the above criteria. An investment through a company, fund or foundation is eligible provided that there is a proven correlation between the investor and the company, fund or foundation. 2. Investigation: Simultaneously, the Ministry of Interior investigates whether the applicant meets the other conditions for the granting of the citizenship including, acquisition of the residential property in Cyprus, and a clean criminal record etc. 3. Processing: Provided the applicant meets the financial criteria and all the conditions for the granting of the citizenship, the Ministry of Interior presents the case to the Council of Ministers for final decision. 4. Approval: Once the application is approved, the Civil Registry and Migration Department issues the Certificate of Naturalization, following the 5,000 payment that constitutes the Naturalization Certificate issuing fee. Our Cyprus Citizenship Services Applications for Citizenship by Investment are to be made to and processed wholly by the Ministry of the Interior. Chetcuti Cauchi has long established itself as a leader in the field of immigration services, and we are well positioned to assist high net worth individuals interested in Cyprus citizenship. We are pleased to be amongst the very few providers in Cyprus with actual experience preparing and submitting successful citizenship applications. We are also well positioned to facilitate the provision of additional services to clients filing their citizenship applications, including legal assistance, drafting and review of property acquisition agreements, organising property valuations and any other related services. Through our extensive and well established network of property experts and real estate agents, we are also able to assist our clients with finding the right property matching their criteria, and ensure they are presented with properties that are good value for money. Unfortunately, this is the area where most pitfalls exist. CHETCUTI CAUCHI Citizenship 9

24 Application Services advising you on your chances of success before filing your application; providing you with pre-immigration legal and tax advice; guiding you with the preparation of supporting documentation; vetting and preparing all supporting documentation for submission; corresponding and liaising with the government authorities on your behalf during the application process; application progress updates. Other Services handling applications for work permits, and any type of residence permits; legal and notarial representation on purchase, rental and re-sale of property in Cyprus, reviews of your contract; co-ordination of architectural surveys & planning applications, referral to leading interior designers & turnkey providers for property conversions; personal and corporate international tax planning; dealing with all periodical tax matters including annual returns and tax payments; drawing up of wills, international probate; administration of estates, foundations, trusts; advice on the formation & management of trading & holding companies in Cyprus; yacht registration under the Cyprus flag & VAT planning. Why Chetcuti Cauchi Below is a point form introduction to our credentials in this area and highlights the importance we give to our citizenship and residence practice within the larger, full service environment we work in: Fully Authorised by Government Dr Jean-Philippe Chetcuti, Managing Partner at CCA, was the first to be authorised by Identity Malta Agency (licence no. 001) under IIP Regulations. Chetcuti Cauchi Advisors Ltd is also a licensed Authorised Registered Mandatory (ARM), a requirement for residence applications under Maltese law. The firm was the first to be granted the status of Approved Agent by Identity Malta Agency. Law Firm Chetcuti Cauchi Advocates is a licensed law firm bound by professional secrecy: lawyerclient privilege is fully protected under Maltese law (unlike other non-law firm agents working in this space.) Offices within 1 minutes walk from Identity Malta Agency offices in Valletta. Quality Service Full partner attention on all matters. Full concierge services available in a friendly and personalised environment. Full-service multi-disciplinary law firm specialising in using Malta in international legal and tax planning, company & trust formation & management. Experience: Chetcuti Cauchi enjoys a sterling reputation in the areas of citizenship and residence planning, in the handling of legal and tax matters relevant to the structuring & planning of personal wealth and personal interests & business worldwide. Our Citizenship & Residence Planning team is led by partners Jean-Philippe Chetcuti, Priscilla Mifsud Parker & Kenneth Camilleri. Over ten years experience in citizenship and residency applications, specialising in Malta planning in an international context. A 100% success rate in residence and citizenship applications, through an honest & professional pre-filing assessment of applicants & a problem solving approach. CHETCUTI CAUCHI Citizenship 10

25 Meet the Team Partners Lawyers and Paralegals Dr Jean-Philippe Chetcuti Tax, Immigration Partner Ms Marouska Farrugia Sr Private Client Advisor Dr Maria Chetcuti-Cauchi Art, Cultural Property Partner Mr Antoine Saliba-Haig Legal Associate Dr Priscilla Mifsud-Parker Tax, Trusts, Estates Partner Ms Pauline Gouder Private Client Advisor Mr Kenneth Camilleri Tax, Aviation Partner Ms Ekaterina Zammit Legal Associate Dr Silvana Zammit Commercial Law, Partner Ms Diane Henwood Private Client Advisor Mr Charles Savva Cyprus Tax, Immigration Partner Dr Stephanie Bonello Legal Associate Client Relationship Executives Ms Claudia Cilia-Buhagiar Client Relationship Executive Ms Roberta Anastasi Client Relationship Executive CHETCUTI CAUCHI Citizenship 11

26 Key Contacts Profiles Dr Jean-Philippe Chetcuti Tax, Immigration Partner Dr Maria Chetcuti-Cauchi Art, Cultural Property Partner Tax & Immigration Lawyer, advisor to HNWIs, their advisors & Family Offices. Managing partner, CCA Member, AILA American Immigration Lawyers Association (International Chapter) Member, IBA International Bar Association (Immigration & Nationality Law Committee) Member, Malta Chamber of Advocates, Malta Chamber of Commerce, International Tax Planning Association, International Fiscal Association. Chairman, STEP Society of Trust & Estate Practitioners Dr Priscilla Mifsud-Parker Tax, Trusts, Estates Partner Regulated Business, IP, Art & Cultural Property Lawyer Senior partner, CCA Registered trademark & patent attorney in Malta & in the EU Approved EPO European Patent Attorney Member, Institute of Financial Services Practitioners, Society for Trusts & Estates Practitioners, Chamber of Advocates Member, International Trademark Association, Remote Gaming Council Government Advisor, Malta Remote Gaming Regulations Engaged by Government for the Digitalisation of the Domestic Patent Database for Malta Enterprise Advisor, Malta Enterprise on the Roche Bolar Exemption for the Pharma Industry Advisor, Malta Council for Science & Technology Author & speaker, IPR law matters: ACTA, European Patents Convention & Patent Cooperation Treaty, Roche Bolar Exemption. Executive Committee Member, IFSP Institute of Financial Services Practitioners Co-founder, Secretary, MAFE Malta Association of Family Enterprises, which he represents at the European Family Business Association. Private clients lawyer specialising in immigration law and in trusts and estates. Partner, CCA Member, Maltese Chamber of Advocates Technical, STEP Society of Trust & Estate Practitioners Member, IFSP Institute of Financial Services Practitioners Mr Kenneth Camilleri Tax, Aviation Partner Tax advisor & CPA Partner at CCA Member, IFSP Institute of Financial Services Practitioners, Tax Subcommittee. Member, MIT Malta Institute of Taxation, MIA Malta Institute of Accountants Member, ITPA International Tax Planning Association CHETCUTI CAUCHI Citizenship 12

27 Key Contacts Profiles Dr Silvana Zammit Commercial Law, Partner Mr Charles Savva Cyprus Tax, Immigration Partner Partner, CCA Commercial lawyer specialising in gaming law and transport matters Member, Chamber of Advocates Member, Malta Association of Family Enterprise (Co-Founder and Secretary) Member, Finance Malta Foundation Member, International Fiscal Association Member, Malta Institute of Taxation Member, International Tax Planning Association Member, Institute of Financial Services Practitioners Member, Society for Trusts & Estate Practitioners (STEP) Malta Branch Partner, CCA Managing Partner, Cyprus UK Chartered Accountant Head, Cyprus tax advisory & immigration practice Board Member, Cyprus-Canada Business Association Member, Society of Trust and Estate Practitioners CHETCUTI CAUCHI Citizenship 13

28 Testimonials Below is a snapshot of what clients, firms, and independent directories say about us: Jean-Philippe was a key advisor to me on the general European and in particular Maltese related tax, legal, accounting and secretarial aspects of a rather complex corporate group structure. We were operating in an extremely dynamic situation, and I was most grateful for his patience and understanding when we had to scrap the last idea and start all over again. He is highly professional, responsive and is excellent at finding practical solutions to difficult situations, whatever the time of day or night. He also has an excellent relationship with his team, and the service provided by his firm is intelligent, joined up and seamless. He is good humoured and imminently likeable and I look forward to working with him again in the future. Marie Joyce Group Commercial Director at NTR plc Chetcuti Cauchi Advocates attracts praise for its team of highly experienced and knowledgeable property practitioners, whose input enables smooth and problem-free completion of transactions. In 2013, it advised Melita Business Centre on the conversion of two properties from temporary to perpetual ground rent. Managing partner Jean-Philippe Chetcuti heads the team, which includes the practical Silvana Zammit, who has very good negotiating skills. Legal 500 Directory Chetcuti Cauchi Advocates professional and responsive team is recommended for its great technical and regulatory knowledge, which it uses to advise fund managers, investments advisers and forex brokers. Practice head Charles Cassar shows innate understanding of the requirements to get the job done. Legal 500 Directory Perfect profile for servicing private client needs, with a very high level of professional services and quick reaction to queries. One of the best providers to work with in Malta. Elene Bruggisser, Managing Director at Family Office Services (FOS) Pte Ltd CHETCUTI CAUCHI Citizenship 14