Residency programs; Montenegro, Greece & Cyprus. Panos Diallinas Bojana Peric September 2017

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1 Residency programs; Montenegro, Greece & Cyprus Panos Diallinas Bojana Peric September 2017

2 Agenda Residency in Montenegro Residency of Greece Cyprus Residency Program

3 A few words about Eurofast Eurofast is a regional business advisory organisation employing local advisors in over 21 cities in South East Europe and Middle East (SEEME). We are uniquely positioned as one stop shop for investors and companies looking professional services in the SEEME region. Our team of advisors are capable of efficiently addressing all client needs in one single meeting, using one single language for all the countries in the Region.

4 What we are good at Our Services International Tax Mergers & Acquisitions and Transactional Advisory Transfer pricing Accounting services Financial services Outsourced Payroll and Employment solutions Corporate services Citizenship & Residency services HR administration Banking and Financial services Business Restructuring & Insolvency IT specialized services Tax Planning & Tax Compliance Real Estate tax Shipping Tax Energy Tax Intellectual property market entry services Bringing value to clients with our service

5 Where you can find us

6 All our Eurofast offices: Fully fledged Have local team members Connected via telephone extensions Connected via video Follow the ISO procedure Eurofast offices

7 What others think about us What others think about us International Tax Review: The only authoritative and genuine awards in taxation worldwide!

8 Credentials

9 Credentials

10 Credentials

11 Credentials

12 Credentials

13 RESIDENCY IN MONTENEGRO

geographic position, with exit to the sea Qualified human resources Favorable tax climate (corporate

14 Why Invest in Montenegro? Dynamic economic growth and development Multi-ethnic harmony and political stability Strategic geographic position, with exit to the sea Qualified human resources Favorable tax climate (corporate tax 9%) Pro-business Government Treatment of foreign and domestic investors on the same basis Hub for regional business Easy business start-up Young population with multilingual talent

15 Montenegro Tax Residency criteria TAX RESIDENCY - INDIVIDUALS: Tax Resident of Montenegro is individual that has Montenegro residency or Montenegro is center of his business and personal interest. Tax Resident of Montenegro is individual that spends in Montenegro above 183 days during calendar year Both income gained in Montenegro and worldwide tax will be subject to taxation Income that is NOT CONSIDERED AS taxable income: Pensions Income from insurance Income from Social welfare Income from Games of Chances

16 Montenegro Tax Residency criteria TAX RESIDENCY BUSINESS: Tax Residents of Montenegro is business that is registered in Montenegro OR has actual management and control unit in Montenegro Tax Resident of Montenegro is nonresident business that has actual management and control unit outside of Montenegro but has branch in the country. Subject of taxation for residents is gained income in Montenegro as well as worldwide. Income that is gained in Montenegro by nonresident business is taxed in Montenegro Taxable source of income are: Income from selling of goods and services Interest gained in Montenegro Dividends paid by resident companies Income related to real estate

17 TEMPORARY RESIDENCE Reasons for Temporary Residence Permits (TRP) issuance: - Employment - Ownership on immovable property - Family reunion - Education, specialization or students exchange programs - Scientific work - Health recovery - Humanitarian reasons - Religious reasons Temporary residence permit are issued for period of 1 year with possible extension.

18 EMPLOYMENT TEMPORARY RESIDENCE TRP based on employment includes Work. Quota (number of issued TRPs) of TRP is adopted by Government on annual basis for all employees except Executive Directors Temporary residence permit based on employment shall be issued for a period of 1 year and it can be extended up to 3 years. New Law on Foreigners that will be implemented as of Jan 2018.

REQUIRED DOCUMENTS Certificate of Company Registration Statement on Clear Criminal Record University (or high school) diploma Transcript of

19 REQUIRED DOCUMENTS Certificate of Company Registration Statement on Clear Criminal Record University (or high school) diploma Transcript of grades Lease agreement as proof of residency address Labor Agreement as proof of available funds for covering living costs Travel insurance

20 OWNERSHIP OF REAL ESTATE Should be apartment, house, condo, hotel or restaurant There is no limitation in value or size of the property. Does not authorize nonresidents to work in Montenegro. Issued for period of one year and can be extended as long as ownership on immovable property exits.

21 LIMITATIONS Temporary Residence Permit based on employment or ownership are not leading towards permanent residency or citizenship. Nonresidents with TRP are not able to use advantage of Schengen agreement on traveling in EU countries without visas.

22 RESIDENCY IN GREECE

23 Why Invest in Greece? Privileged geographic location Access to high-growth and emerging regional markets High quality logistics and communication infrastructures Wide selection of natural resources Desirable place to live Highly skilled & low cost workforce

24 Greece Tax Residency Criteria Individuals Individual is being considered to be a tax resident in Greece, provided that: a) He/she maintains a permanent or principal residence or usual adobe or center of living interests, namely his personal or financial or social relations, in Greece, or b) is a consular or diplomatic or public official of similar status or public servant having the Greek nationality and serves abroad c) is constantly present in Greece for a period of exceeding 183 days, including short periods of living abroad and is considered a tax resident in Greece from his first day of presence in Greece. This provision does not exclude the application of paras a) and b) above. Exceptions from the 183 days rule: Present in Greece for touristic, medical, curing, or similar private purposes and not over 365 days.

25 Greece Tax Residency Criteria Companies According to art. 4 of the Law 4172/2013 Income Taxation Code a legal person or legal entity is considered to be Tax Resident as long as, It is established or incorporated, according to the Greek Legislation It has its registered seat in Greece or Its place of effective management is situated in Greece at any time during the fiscal year concerned. The place of effective management in Greece is based on real facts and circumstances and when determining it, especially the following criteria shall be taken into consideration: The place of daily management The place of taking strategic decisions The place of the ordinary general meeting of shareholders or partners The place where the books and records are kept The place where the BoD or any other executive organ holds its meetings The residence of BoD Members or any other executives. Coupled with the above facts or circumstances it is possible to take into consideration also the residence of the majority of the shareholders or the partners

MAIN CRITERIA/ OWNERS OF REAL ESTATE PROPERTY Special

country of legal residence A real estate property in

time-sharing contract of a minimum value of EUR250,000;

tourist accommodation (houses) of a minimum value of

. Full health insurance with a private insurance agency

long as the Non-EU citizen keeps the ownership of the

26 MAIN CRITERIA/ OWNERS OF REAL ESTATE PROPERTY Special visa C or D from the Greek consulate/ embassy in the country of legal residence A real estate property in Greece with a minimum value of EUR250,000; or 10 - year time-sharing contract of a minimum value of EUR250,000; or 10-year lease of hotel accommodations or furnished tourist accommodation (houses) of a minimum value of EUR250,000.. Full health insurance with a private insurance agency Residence permit term : 5 years and renewable 5 years as long as the Non-EU citizen keeps the ownership of the property / contracts Family Members entitled to residence permit No right to access any type of employment. Procedure takes up to 2 months

27 MAIN CRITERIA/ FINANCIALLY INDEPENDENT PERSONS Special visa D from the Greek consulate/ embassy in the country of legal residence; Sufficient funds EUR 2000 per month (additional funds, 20% for a spouse, 15% for each child); Full health insurance with a private insurance agency; Term of Residence permit two years which can be renewed every three years. Family Members entitled to residence permit No right to access to any type of employment. *

Investment activity Investment with positive impact on national growth and the economy of a minimum value EUR 250, 000 Entry to and residence in Greece allowed to the investor no

28 Investment activity Investment with positive impact on national growth and the economy of a minimum value EUR 250, 000 Entry to and residence in Greece allowed to the investor no more than ten Non EU, depending on the value of the investment. Term of residence permit: five years / renewable Family Members entitled to residence permit (family reunification)

Strategic Investments a. Total cost of investment above EUR100.000.000 or b. Total cost of investment above EUR15.000.000 in the industrial sector within organized sockets or EUR3.000.000 for investment approved within the JESSICA Fund Program c.

29 Strategic Investments a. Total cost of investment above EUR or b. Total cost of investment above EUR in the industrial sector within organized sockets or EUR for investment approved within the JESSICA Fund Program c. Total cost of investment EUR and 120 new employment posts d. From the investment 150 employment posts are created or 600 employment posts are maintained through a viable way or the total cost of investment is above EUR for Investments for the development of Business Parks of Law 3982 /11

30 The Investor and not more than 10 Non EU Nationals are entitled to residence/work permit 1. VISA issued free of charge 2. Residence /Work Permit Residence Permit issued by the Directorate for Migration of the Ministry of Interior within five days from the application and Term of the Residence Permit : 10 Years renewable for 10 years Family Members are also entitled to residence permit Strategic Investments

31 Special Purpose Residency Permit A. Management level employees of - Greek Companies with at least 25 employees, as well as - subsidiaries of foreign shareholders and branches of foreign companies Foreign press correspondents Athletes or coaches Intellectual people Teachers for foreign schools etc. B. Purpose : Special legislation, interstate agreements, public or cultural or athletic interest, national economic interest C. Family members D. 2 years or more dependent on the contract duration, renewable 3 years

32 CYPRUS RESIDENCY PROGRAM WHAT MAKES CYPRUS YOUR FUTURE FOREVER HOME?

33 Competitive tax regime; Modern and simple tax system and low tax rates. Significant network of Agreements for Avoidance of Double Taxation (58 as of today) Cyprus legal system is modelled on the English legal system and European Law; Unique geopolitical location Highly qualified workforce High quality professional services: legal, accounting ; audit and related services Educational benefits for you and your children WHY INVEST IN CYPRUS?

Tax Residence in Cyprus Both legal and physical persons can become Tax citizens of Cyprus by fulfilling few requirements: Companies can become Tax residents of Cyprus by

34 Tax Residence in Cyprus Both legal and physical persons can become Tax citizens of Cyprus by fulfilling few requirements: Companies can become Tax residents of Cyprus by moving to Cyprus their Management and control. Individuals can become Tax residents of Cyprus by: living in Cyprus no less than 183 days over the year; or NEW 60 day rule

35 CYPRUS RESIDENCY Category F permanent residence permit: No need for visa, resident permit renewal or re-entry permit Applies to persons who possess and have fully and freely at their disposal a secured annual income, high enough to give them a decent living in Cyprus. Permits are valid for five years. All family members may acquire a permanent residence permit simultaneously Each case is decided on its own merits. Procedure takes around 2-8 months.

Cyprus Tax Residency criteria Individuals New law in Cyprus Change in definition of individual tax resident to cover persons who do not reside in another country for more than 183 days and are not

36 Cyprus Tax Residency criteria Individuals New law in Cyprus Change in definition of individual tax resident to cover persons who do not reside in another country for more than 183 days and are not tax resident in another country and who meets ALL of the following criteria: - resides in Cyprus for at least 60 days in the tax year under review; AND - owns a business or is a director or is employee by a Cyprus tax resident AND - maintains permanent house in Cyprus which is owned or rented by the individual In effect since 1 January 2017

37 REQUIREMENTS; F CATEGORY Permanent Residence Permit Fast procedure: A minimum annual personal income, sourced from overseas - at least EUR 30,000 and EUR 5,000 for each dependents. Real Estate properties with a total cost of at least 300,000 +VAT must be purchased. At least EUR200,000 of the purchase cost must be settled. Deposit of EUR 30,000 for a fix period of three years in a Cyprus Bank, transferred from abroad. Normal procedure: A minimum annual personal income, sourced from overseas must be at least EUR9,560 and EUR4,613 for each dependent.

38 REQUIRED DOCUMENTS Copy of valid passport of Investor Copy of valid temporary residence permit (if the applicant resides in Cyprus) C.V (including academic qualifications) Income tax returns for all years (original or true copy), if applies Bank Accounts Statements (original) Income declara on from sources (original documents and affidavit) Title of ownership or rental agreement (original or true copy). If the title of ownership has not been obtained yet, the applicant must submit the deed of sale and proof of payment. Health Insurance for the applicant and his dependants Criminal Record Cer ficate for the applicant and his spouse/dependants Marriage Cer ficate (official transla on duly validated) Children s Birth Cer ficates (official transla on duly validated)

than the country of nationality) If a resident of Cyprus has not

39 Revocation of the Residency Permit If a resident of Cyprus has acquired a permanent residence permit in another country (other than the country of nationality) If a resident of Cyprus has not been visiting Cyprus for a period longer than 2 years continuously

40 A bit of Statistics Cyprus granted citizenship to 3,322 people in 2015, of which 34.3 per cent were of Russian origin, 8.8 per cent were from the UK and 8.0 per cent were from Greece, according to data released on Friday by Eurostat. When compared with the total resident population of each member state, the highest numbers of citizenship granted per 1,000 resident population were recorded in Luxembourg (5.6), Sweden (5.0), and Cyprus (3.9). The average at EU level was 1.7 citizenships granted per 1,000 inhabitants. In 2015, some 840,000 people acquired EU citizenship, compared with 890,000 in 2014 and 980,000 in Since 2010, more than five million people received the nationality of an EU Member State. Of the total number of people who acquired the citizenship of one of the EU Member States in 2015, some 87 per cent were citizens from outside the EU.

1 O u r P h i l o s o p h y C u s t o m e r s S a t i s f a c t i o n!

1 O u r P h i l o s o p h y C u s t o m e r s S a t i s f a c t i o n! CONTENTS Cyprus Facts 02 About our firm 03 Our services 04 Citizenship 05 PR VISA 06 TR VISA 07 CY Company 08 While in Cyprus 11 CYPRUS