CITIZENSHIP AND PERMANENT RESIDENCY PROGRAMS

Transcription

1 CYPRUS CITIZENSHIP - NATURALISATION OF INVESTORS BY EXCEPTION As part of its policy to attract foreign investors to Cyprus, in early in 2014 the Council of Ministers issued a decision outlining the process by which non-cypriot citizens, who meet one of the economic criteria listed below, either personally or through a company/ies in which they participate as a shareholder, may apply for the acquisition of Cyprus citizenship. Investment in Government Bonds: An applicant must have purchased state bonds of the Republic of Cyprus to the value of at least EUR5 million. From the 1 st of August 2014 only bonds purchased from the primary market (i.e. directly from the primary market not bonds purchased from existing owners) are eligible. Direct Investments: The applicant should have direct investments in Cyprus exceeding EUR 5 million. Direct investments include the following: a) The purchase or construction of buildings or the construction of other land development projects (residential or commercial developments, developments in the tourism sector or other infrastructure projects); b) The purchase, registration or participation in business or companies that are based and are active in the Republic of Cyprus, and which must employ at least five (5) Cyprus citizens; Purchase of financial assets of Cypriot companies or Cypriot organizations (bonds/ securities/ debentures registered and issued in the Republic of Cyprus) c) Participation in a company/consortium of companies that has undertaken to carry out a public project. Deposits in Banks: The applicant must have personal fixed term deposits for three (3) years in Cypriot Banks or deposits of privately owned companies or trusts (in which he/she is the beneficiary owner) in the Republic of Cyprus of at least EUR 5 million. Or 1

2 Combination of Investment in Government Bonds, Direct Investment and Deposits in Cypriot Banks: The applicant is required to have a combination of the above amounting to at least EUR 5 million. Business activities Persons whose deposits with the Bank of Cyprus or Popular Bank have been impaired due to the measures implemented in both Banks after the 15 th March 2013 The applicant has incurred an impairment in deposits on one or both of the abovementioned Banks amounting to a total of at least EUR 3 million. In the case where the applicant has incurred an impairment in his deposits in one or both of the abovementioned Banks under EUR 3 million he may apply having made an additional Direct investment for the balance of the required amount of the said criterion. Major Collective Investments: The Council of Ministers shall have the right on special occasions, to reduce the above criteria (Investment in Government Bonds, Investment in financial assets of Cypriot companies or Cypriot organizations, Investment in real estate, land development or infrastructure projects and Purchase or creation or participation in Cypriot businesses and companies) to EUR2,5 million for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least EUR12,5 million. VAT and transfer duties, taxes and/or other charges are not included in the amount of an investment. The purchase value of an applicant s permanent residence is also not included in the amount of the investment unless the applicant invests in the purchase of a privately owned residence solely, of a purchase price either 5,0 million, or of 2,5 million. Other conditions: a) The applicant must hold a permanent privately-owned residence in the republic of Cyprus, the market value of which must be at least EURO , plus V.A.T. 2

3 b) The applicant must have a clean criminal record. Furthermore, his name must not be included on the list of persons whose property is ordered to be frozen within the boundaries of the European Union. c) In the case where following a periodic inspection it has been ascertained that any condition is being circumvented, the naturalization may be revoked Once the applicant is successful Cypriot citizenship will be granted to his spouse as well as to his dependents up to the age of 28 (twenty eight) dependent adult children (eighteen years old or above) are also included. Neither the spouse nor the children are obliged to meet any further financial criteria. The spouse of the non-cypriot investor has the right to apply for citizenship simultaneously with the investor. Applications by the financially dependent adult children of the applicant may only be made after the investor has acquired the Cypriot citizenship. Time A period of approximately three (3) months is needed for the determination and issuance of a Cyprus Citizenship/Passport under the abovementioned process of Naturalisation by Exception. None of the above affects the right of the Council of Ministers to decide at its absolute discretion. The above criteria and conditions will be in force until the final amendment of the relevant Regulations. Naturalised citizens have the same rights and commitments as any other citizens including voting rights, payment of taxes etc. PERMANENT RESIDENCY IN CYPRUS - NEW FAST TRACK PROCEDURES The Minister of the Interior has issued a decision granting Immigration Permits for permanent retirement residency to applicants, who are third country nationals, provided that they fulfill the following criteria: a) The applicant must prove that he has at his disposal a secured minimum annual income of , from sources other than employment in Cyprus. The required income of could derive from salaries of employment abroad and not in 3

4 Cyprus, pensions, stock shares, rents, etc. The necessary minimum annual income is increased by for each dependent person. (b) The applicant must submit the application form accompanied with a Title of ownership or contract of sale, of a property in Cyprus, a house, apartment or other building, of a minimum market value of and proof of payment for at least 200,000. The contract of sale should already have been submitted to the Department of Lands and Surveys. (c) The applicant must submit a confirmation letter from a Cypriot Bank stating that he has deposited a minimum capital of in an account, which will be pledged at least for a three year period. It is noted that the amounts mentioned in paragraphs (b) and (c) should be proven to have been transferred to Cyprus from abroad. (d) The applicant must submit a Criminal Record Certificate (if the applicant resides abroad), which must be issued by the Authorities in his country of origin, and he should not constitute in general any threat against public order or security in Cyprus. (e) The applicant should submit a Statement that he does not intent to work or be engaged in any form of business in Cyprus. (f) The applicants should visit Cyprus at least once every two years. Each case is examined on its own merits depending on the personal circumstances of the applicant. The residence applies to husband and wife and all children under the age of 18, however for other cases such as children older than 18, however for other cases such as children older than 18 or grandparents a family unification application can be made for them to live as permanent residents in Cyprus also. BENEFITS OF CYPRUS CITIZENSHIP and PERMANENT RESIDENCY (a) Cyprus passport and citizenship may be issued within three (3) months; 4

5 (b) (c) (d) (e) (f) (g) (h) Citizenship granted to spouse and dependents up to the age of 28 under the naturalization by exemption process; Permanent residency may be acquired within two (2) months and covers the whole family; Access to the European Union; Professional financial and tax planning services based on British practices; No inheritance tax; Low Corporate tax; One of the lowest property taxes in the world. The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. 5