A non-Cypriot citizen, who meets one of the following economic criteria (A), either personally or through a company/ companies in which he/she participates as a shareholder - proportionally based on the percentage of participation, or even as a high-ranking senior manager of a company/companies that meets one of economic criteria (A), may apply for the acquisition of the Cypriot citizenship through Naturalization by exception.
A high-ranking senior manager may apply, provided that he/she receives such a remuneration that generates for the Republic tax revenue of at least €100,000 for a three year period and provided that this tax has already been paid or prepaid.
The applicant should have concluded the necessary investments during the three years preceding the date of the application and must retain the said investments for a period of at least three years since the date of the Naturalization.
In addition, the applicant must fulfill the Terms and Conditions set out in Part B.
In the case where, following a periodic inspection, it has been ascertained that any condition is being circumvented, the Naturalization may be revoked.
Α. CRITERIA
Α.1 Investment in government bonds:
The applicant must have purchased state bonds of the Republic of Cyprus of at least €5,0 million.
or
Α.2 Investment in financial assets of Cypriot companies or Cypriot organizations:
The applicant must have purchased financial assets of Cypriot companies or Cypriot organizations (bonds/ securities/ debentures registered and issued in the Republic of Cyprus) of at least €5,0 million.
It is noted that these financial assets can be purchased either at issuance, or subsequently by the market.
Α.3 Investment in real estate, land development and infrastructure projects:
The applicant must have made an investment of at least €5,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector or other infrastructure projects).
Α.4 Purchase or creation or participation in Cypriot businesses or companies:
The applicant must have made an investment of at least €5,0 million in the purchase, creation or participation in businesses or companies, that are based and operating in the Republic. These businesses or companies should evidently have a tangible presence in Cyprus and employ at least five (5) Cypriot citizens.
It is noted that the mandatory conversion of deposits into shares is included in this criterion.
Α.5 Deposits in Cypriot banks:
The applicant must have personal fixed term deposits for three 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 €5,0 million.
Α.6 Combination of the aforementioned criteria Α.1 (Investment in government bonds), Α.2 (Investment in financial assets of Cypriot companies or organizations), Α.3 (Investment in real estate, land development and infrastructure projects), Α.4 (Purchase or creation or participation in Cypriot businesses or companies) και Α.5 (Deposits in Cypriot banks):
The applicant is required to have a combination of the above amounting to at least €5,0 million.
Α.7 Persons whose deposits with the Popular Bank Public Company Ltd have been impaired due to the measures implemented after the 15th March 2013:
The applicant has incurred an impairment in deposits amounting to a total of at least €3,0 million.
In the case where the applicant has incurred an impairment in his/her deposits under €3,0 million he/she may apply, having made an additional investment through the criteria A.1 (Investment in Government bonds), A.2 (Investment in financial assets of Cypriot companies or Cypriot organizations), A3 (Investment in real estate, land development or infrastructure projects), A.4 (Purchase or creation or participation in Cypriot businesses and companies) and A.5 (Deposits in Cypriot Banks) for the balance of the required amount of the aforementioned criteria.
Α.8 Major Collective Investments:
The Council of Ministers shall have the right on special occasions, to reduce the above criteria (Α.1 (Investment in Government Bonds), Α.2 (Investment in financial assets of Cypriot companies or Cypriot organizations), Α.3 (Investment in real estate, land development or infrastructure projects) and Α.4 (Purchase or creation or participation in Cypriot businesses and companies):
I.To €2,5 millions for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least €12,5 millions.
II.To €2,0 millions for investors who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is more than €12.5 millions. It is noted that this present provision (I), will be in force until the 1st of June 2014.
In addition, it is noted that for the above mentioned provisions (Ι) and (ΙΙ), the investment for the Criteria Α1 until Α4 may be realized through a different salesman/provider (physical or legal entity).
B.TERMS AND CONDITIONS
1.Clean Criminal Record: 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.
2. Residence in the Republic of Cyprus: In all cases listed in Part A, the applicant must hold a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.
It is noted that members of the same family, which apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of € 500.000 per each applicant.
C.SUBMISSION OF DOCUMENTS
In order to examine any applications the submission of the form (M127) and of the following is required:
1.Clean Criminal Record:
Certificate of Clean Criminal Record from the country of origin and the country of residence (if it differs).
2.Residence in the Republic of Cyprus:
(a) Contract of Sale.
(b) Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department
(c) Receipts for paying the agreed purchase price
(d) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company
As for the investment Criteria the following are required, depending on the case:
(a) Certificate of Registration of the company/ companies by the Registrar of Companies
(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies
(c) Audited Accounts of the company (or companies) for the last three years preceding the year of the application
(d) If the applicant is a high-ranking senior manager the submission of the employment contract and the receipt from the Department of Inland Revenue is additionally required.
Any other document that might be requested either by the Ministry of Interior, or by the Ministry of Finance.
Furthermore, depending on the case, the following are required:
1.Investment in Government bonds
(a) Receipts from the Treasury of the Republic of Cyprus for the purchase of the Government bonds.
2.Investment in financial assets of Cypriot companies or Cypriot organizations
(a) Title/titles and other documents regarding the financial assets.
(b) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization
3.Investment in real estate, land development or infrastructure projects
(a) Contract of sale.
4.Purchase or creation or participation in Cypriot businesses and companies
(b) Receipts for paying the agreed purchase price
(c) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies
(d) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization
(e) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot employees in the company
(f) Confirmation from the Inland Revenues Department as to the taxable income of the Cypriot employees in the companies or businesses that the applicant invested in.
5.Deposits in Cypriot banks
(a) Confirmation from Cypriot banks as to the fixed term deposits for three years of the applicant or the companies in which he is the beneficiary owner or of the trust in which he is the beneficiary owner
(b) Copy of the wire transfer in the Cypriot commercial banking institution
6.Impairment of deposits in the Popular Bank
(a) Confirmation as to the level and the time of the impairment of the deposits
(b) In the case of deposits of companies of which the applicant is the beneficiary owner, the Certificate of Registration of the Company by the Registrar of Companies and/or any other evidence, along with a declaration from the trustee of the funds confirming the beneficial owner is to be attached
In addition to the above, the following documents should also be provided:
Letter in which the investment and criterion under which the application is submitted, are briefly explained;
Application form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer;
Certificate of birth;
Marriage certificate;
Copy of passport;
2 passport size photographs
Curriculum vitae
Clean criminal record from the country of origin and the country of residence , if it differs;
Letter of introduction ie CV, details of residence, family status (married, children) description of business activities, assets worldwide etc;
Title deed or contract of sale;
Confirmation that the contract of sale has been submitted to the Land Registry;
Receipt that the house has been paid in full;
Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company;
Arrival and departure dates from the Republic of Cyprus in order to reveal a connection with the Republic, although this is not a requirement;
Evidence of the monetary requirements, as stated above.
Copies of advertisements in a daily newspaper two consecutive posts
If the applicant is a high-ranking senior manager the following documents:
(a)Copy of the employment contract
(b)Copy of the receipt by the Inland Revenue Department
There is no requirement that the house is of a minimum size or that the applicant has ever reside in the house. Actually the house does not need to be ready to live in at the time of the application but each applicant must own his own house. The value of the house is not included in the €5.0 millions if the applicant is applying under the Direct Investments or Combination of Direct Investments, Business Activities and Deposits in Banks, but not if he is applying under the Deposits in Banks.
BENEFITS:
A person who is a Cypriot citizen can travel without any restrictions to the EU countries but not to the Schengen area – Iceland, Norway and Switzerland - since Cyprus has not yet implemented the Schengen agreement.
The spouse of the applicant automatically is naturalized as a Cypriot national.
His juvenile children, as well as any children above 18 that are considered dependants of the applicant, they are also naturalized as Cypriot citizens after following a very simple procedure and provided the applicant has been approved.
A child of a person that is granted the Cypriot citizenship, who is over 18 years and is not considered as a dependant of the applicant, is also allowed to stay in Cyprus after following a simple procedure for the gaining of entry and residence permit.
The fact that a person is granted the Cyprus citizenship does not mean that he is considered a Cyprus Tax Resident. An individual is considered to be tax resident, if he is present in the Republic for a period exceeding 183 days in a tax year.
BUSINESS BENEFITS:
Cyprus has become a centre through which many leading international companies conduct their business activities. Among the benefits which accrue in using Cyprus as a corporate vehicle are the lowest corporate tax rate in Europe, the extensive double tax treaty network, the secure environment, its reputation, infrastructure and favorable tax provisions.
Any application is subject to the absolute discretion of the Council of Ministers in taking a decision.
The above is brief and general in nature. Kindly contact our professionals for an in depth analysis and advice.
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