Cyprus Citizenship by Investment Program

Advantages of acquiring the Cyprus Citizenship by Investment

• Recent studies conducted by global immigration experts, rank the CIP among the 10 (ten) best in the world.
• Cyprus citizens are entitled to live and work in any country in the EU without applying for a visa.
• Cyprus citizens can travel to over 140 countries without having to apply for a visa.
• Cyprus citizens can obtain visas quickly to other countries.
• Cyprus citizenship provides access to the best educational & health care institutions within the EU.
• Right to own immovable property in any EU member state.
• No language requirements.
• Cyprus allows for individuals to have dual citizenship.
• Approval of citizenship application within approximately 6 (six) – 8 (eight) months.
• Simultaneous submission of residency and citizenship applications.
• The investor’s spouse, minor children (under the age of 18) and financially dependent children under the age of 28 (unmarried and in full-time education or disabled children unable to work) are also granted the right to citizenship without any additional investment.
• The investor’s parents and the parents of the investor’s spouse/cohabitee are also granted the right to citizenship provided they hold a permanently privately-owned residence in Cyprus the purchase price of which is at least €500,000 (Five Hundred Thousand Euro) plus VAT, respectively.
• Main applicant and all eligible family members may apply jointly.
• All CIP licensed service providers have to follow a strict Code of Conduct.

Acquiring Cyprus Citizenship major benefits

Ranked 5th best place to relocate globally / High living standard / Sophisticated infrastructure / Strong educational system / Strong legal system based on the UK legal system / Safe place to live / Advanced healthcare /Tax-friendly regime / EU member

Investment Options to become Cyprus Citizen

1. Fulfill the following two contributions

The applicant must proceed with:

It is noted that the obligation to make a donation to the Research and Innovation Foundation is lifted in case the applicant make an investment in the context of the
02 (b) investment option below, via purchasing or incorporating or participating in Cyprus businesses or companies of a total amount equal at least with the 20% of the required amount of investment i.e.: EUR400,000 (Four Hundred Thousand Euro) based on the provided financial criterion which have activities in the primary or secondary sector of economy, with the exception of the construction sector of which have activities in the sectors of research and technology, education, health, and (or) renewable sources of energy.

It is further noted that if the applicant wishes to donate an amount higher than the minimum of €100,000 (One Hundred Thousand Euro), in any of the above, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the below investment options.

2. Choose one of the following investment options Apart from the donations mentioned in point 1 the applicant has to choose one of the following investment options:

It is noted that a foreign businessman or investor may not proceed to the incorporation of a development company with the purpose of channeling the investment.

3. Residence in the Republic of Cyprus

 
An additional requirement that applies, irrespective of the investment option chosen by the applicant, is the purchase of a residential property that will be declared as the applicant’s permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500,000 (Five Hundred Thousand Euro) plus V.A.T.
In the case that the applicant has invested in housing unit/ units on the basis of the aforementioned real estate option (02 (a.), the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least €500,000 (Five Hundred Thousand Euro) plus VAT.
However, if the applicant has invested in housing units that are already being used for the purpose of acquiring the Cypriot citizenship via the programme, the above provision will be in force provided that the total amount of the investments including the privately-owned residence, is at least €2,500,000 (Two Million and Five Hundred Thousand Euro).
In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000 (Five Hundred Thousand Euro), this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria 2.(a)-(d) above.

Terms & conditions

–  Clean Criminal Record from the country of origin and the country of residence (if different).
–  Not to be included in the list of persons whose assets are ordered to be frozen within the EU.
–  Must hold a valid Schengen Visa: Third-Country nationals that do not require an entry visa for the European Union member states are excluded.
–  Has no rejection from any other member-state of the EU.
–  Possess a residency permit in the Republic of Cyprus, for a period of at least 6 (six) months before being granted the Cypriot citizenship.
–  Privately owned residence in the Republic of Cyprus of minimum value of €500,000 (Five Hundred Thousand Euro) plus VAT. The residence must be kept for life. 
–  Investments need to be kept for at least 5 (five) years from the date of naturalization.

Taxation

An individual is tax resident of Cyprus if present in Cyprus for more than 183 days in a year in a tax year.

An individual not living in any other country more than 183 days and who is not a tax resident in any other country is considered a tax resident of Cyprus when the following criteria are cumulatively satisfied:
– Stays in Cyprus for at least 60 days in a tax year.
– Carries on any business in Cyprus and/or is employed in Cyprus and/or holds an office (director) in a company which is tax resident in Cyprus at any time in the tax year.
– Maintains a permanent house in Cyprus which is either owned or rented by the individual.

A tax resident of Cyprus is subject to tax on worldwide income under both the income tax law and the special defence contribution (SDC). Under SDC the individual is taxed on dividends (17%), passive interest (30%) and rental income (3%).
However with the introduction of the non-domicile regime, with effect from 16 July 2015 a Cyprus tax resident individual with non-domicile status will not be subject to SDC on dividend, passive interest and rental income wherever arising.

Who can qualify for the non-domicile status?

VARDIKOS & VARDIKOS greatly assist international clients to appraise the investment opportunity and choose Cyprus Citizenship by Investment Program and Residency Scheme.

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