CYPRUS EUROPE S BEST KEPT SECRET

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1 CYPRUS EUROPE S BEST KEPT SECRET

2 CYPRUS OVERVIEW POLIS NICOSIA AYIA NAPA TROODOS LARNACA PAFOS PISSOURI LIMASSOL Lowest corporate tax regime in the EU (12,5%) Strategic location: at the crossroads of three continents (Africa, Asia and Europe) Lowest crime rate in Europe - 5th safest country in the world (Value Penguin 2015) Daily flights from all of Moscow s International Airports and from another 18 regional Russian Airports to Cyprus Established and thriving Russian community with strong business network and local media (newspapers, magazines, radio stations) International Russian subsidiary banks operating in Cyprus Rich cultural history with ancient sites and Christian Orthodox monasteries Significant Natural Gas reserves in Cyprus exclusive economic zone Professional and quality services Foreign direct investment for both EU and non-eu nationals Attractive tax system (Double taxation agreements with 52 countries) Most blue-flag beaches per coastline in the world with the cleanest bathing waters in Europe

3 CYPRUS A RESILIENT ECONOMY CYPRUS ACHIEVED A FASTER COMEBACK TO INTERNATIONAL FINANCIAL MARKETS FROM ALL BAILED-OUT COUNTRIES IN THE HISTORY OF THE EURO DEBT CRISIS, AND HAS NOW OFFICIALLY EXITED RECESSION.

4 CYPRUS CURRENT AND FUTURE CYPRUS RETURNED TO INTERNATIONAL FINANCIAL MARKETS IN RECORD TIME Banks have been recapitalized through foreign investors and EBRD Cyprus attracted 2.4 million tourist in 2014, 20% increase expected in 2015 Return to positive growth in first six months of Current annual growth at 0.9%. Projected growth to reach 1.5% in Fitch Ratings Agency upgraded Cyprus, revising its outlook from stable to positive FDI s into Cyprus exceeded 2 Billion in 2014 During the First Quarter of 2015, Cyprus achieved the 3 rd highest GDP growth in the EU Cyprus has firmly placed itself on the Mediterranean energy map and is now shifting from exploration to exploitation of its significant oil and gas reserves Standard & Poor has raised its longterm foreign and local currency sovereign credit rating in Cyprus to B+ citing its strong budgetary performance; the outlook is stable

5 * PROJECTED FORECAST SOURCE: EUROSTAT CYPRUS GDP GROWTH (% CHANGE) *

6 REAL ESTATE MARKET (CURRENT AND FUTURE SITUATION) Cyprus, with its year-round sunshine, high quality of life, and convenient location between three continents, has long been a magnet for international investors, expats, retirees and those looking to enjoy a second home in a mild and hospitable climate. A recent Knight Frank Global Lifestyle Review ranks Cyprus as the fifth best place in the world to relocate, and in May 2014 the island ranked 11th out of 40 countries in the Top of the Props chart, which records the most searched for overseas destinations to buy property. Prices in Cyprus rose by 2.5% in third quarter of 2015 compared to the 2 nd quarter of 2015 Unit sales in 2015 to foreign buyers increased by 11% compared with Fall in Interest Rates of up to 3.5% following European Central Bank Key Rates 4 Unit sales in 2016 are projected to increase by 6%-10%

7 GOVERNMENT INCENTIVES ON REAL ESTATE THE CYPRUS GOVERNMENT HAS INTRODUCED A NUMBER OF ADDITIONAL MEASURES TO BOOST THE REAL ESTATE SECTOR REDUCED TRANSFER FEES VAT REDUCTION SCHEME CAPITAL GAINS TAX TRANSFER FEE REDUCTION AND EXEMPTION SCHEME (Applicable until ) 0% transfer fee on property with VAT 50% fee reduction on property without VAT VAT REDUCTION SCHEME (Applicable until ) 5% VAT charged on the first 200sqm of the first and main permanent residence property. Subsequent properties, or additional meters charged at the prevailing rate of 19%. CAPITAL GAINS TAX INCENTIVE (Applicable until ) 0% tax on capital gains NO INHERITANCE TAX

8 CYPRUS CITIZENSHIP SCHEME AT A GLANCE THE FREEDOM TO LIVE, WORK AND TRAVEL ANYWHERE IN EUROPE FREE MOVEMENT OF CAPITAL, PERSONS, SERVICES AND GOODS THE FREEDOM TO TRAVEL IN ANOTHER 157 COUNTRIES VISA FREE TWO OPTIONS FOR INVESTORS 2.5M / 3M COLLECTIVE INVESTMENT SCHEME 5M STANDALONE INVESTMENT TERMS AND CONDITIONS Clean Criminal Record Cyprus Residence with purchase value of 500,000+ (plus VAT) Investment held for 3 years

9 Property in Cyprus is FREEHOLD FAST AND SIMPLE Cypriot Citizenship by Investment can be obtained within 3 months NO RESIDENCE REQUIREMENTS Investors must visit Cyprus one time in every 7 years Free movement of goods, services and capital Visa-free travel to over 157 countries including the EU and Canada VALID FOR LIFE Citizenship can be passed to future generations by descent DUAL CITIZENSHIP No need to renounce previous nationality as dual citizenship is allowed CYPRUS CITIZENSHIP SCHEME BENEFITS FREE MOVEMENT Citizens have the right to live, work and get an education within the European Union PROTECTION Protection by the diplomatic or consular authorities of any EU country RIGHT TO VOTE and stand for European Parliament Elections NO LANGUAGE REQUIREMENTS

10 WHY CYPRUS ( Top Reasons to live in Cyprus ) 1 Member of the European Union 2 High quality of life and low crime rate 3 Temperate climate with 340 days of sunshine 4 English Speaking Population 5 Uncongested and unpolluted environment 6 Crystal clear seas and beaches 7 Fresh locally- Grown produce 8 Excellent healthcare 9 Excellent infrastructure

11 WHY CYPRUS ( Top Reasons to live in Cyprus ) 10 A Safe and Cosmopolitan lifestyle 11 Convenient airline connections and good telecoms 12 Regional HUB for the EU, Asia Middle East 13 Highly skilled workforce 14 A very easy Business Environment 15 Pro-business government 16 Easy access to decision makers 17 Uncongested and unpolluted environment 18 Advantageous tax regimes

12 INTERNATIONAL RANKINGS 32 nd Open Markets Index 2015 International Chamber of Commerce (out of 75 countries) GDP PER CAPITA 20,400 (2015) GDP GROWTH 1.2% (2015) Estimate 2% In 2017 INFLATION -1.6% (2015) Estimate 1.3% In th Global Innovation Index 2015 INSEAD and World Intellectual Property Organization (out of 141 countries)+ World Economic Forum Report (out of 144 countries) GDP by Sector 4 th Higher education and training 28 th Goods market efficiency 34 th Labour market efficiency TOTAL GDP (at current market prices ) 17.4 billion (2014)

13 CRIME 0.92 Per 100 persons CORPORATE TAX 12.5% (2015) SOVEREIGN RATING (December 2015) BB+ B+ B1 Standard &Poor s Fitch Moody s Cyprus has moved up places in World Bank s 2016 Doing Business Report to rank 47 th out of 189 economies 1st 1 st among smaller Countries 5 th Worldwide Value Penguin Safest Countries in the World Study th 5 th best relocation destination Knight Frank Global Lifestyle Review (2013) ( out of 23 countries)

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