Access to EU Citizenship and the Freedom to Live, Work and Study in the EU
THE CYPRUS CITIZENSHIP PROGRAMME
Cyprus is a popular destination due to friendly climate and central location for leisure and business travellers alike. It is also an attractive tax destination and a transparent regulatory and legal framework.
The Cyprus investor programme allows investors to acquire a European Citizenship within 6 – 7 months, giving them full rights as an EU national.
As an EU national, one has the right to live, work and study anywhere in the EU.
There are no residence periods, no language test and no physical stay requirements in order to acquire Cyprus citizenship through investment.
Please contact us to speak to a private client advisor: info@lio-global.com
INTERESTING INFORMATION
Cyprus is known as the mythical birthplace of Aphrodite.
People drive on the left hand side in Cyprus.
OFFICIAL LANGUAGE
Greek (official), Turkish (official), English
MEMBER
UN, EU, Eurozone, Commonwealth
CURRENCY
Euro
POPULATION
1.141 million (2013 est.)
TOTAL AREA
9 251 km² (3 572 sq mi)
DIALING CODE
+357
REQUIREMENTS
ACQUIRING CITIZENSHIP IN CYPRUS –
BACKGROUND INFORMATION
The Cyprus citizenship by investment programme was launched by the Government of Cyprus in order to attract foreign investment from wealthy business owners and entrepreneurs and bring foreign capital into the country. The legislative framework provides an opportunity for investors looking to obtain a European Union citizenship with a straightforward application process and minimal requirements.
Forming part of the country’s policies the Council of Ministers revised the “Scheme for Naturalisation of Non-Cyprus Investors by Exception” and established a new framework and process for entrepreneurs and investors to acquire Cyprus citizenship by investment.
INVESTMENT REQUIREMENTS
Investors who wish to apply for citizenship must meet the prescribed investment options as set out below:
1. Donation of EUR 75 000 to the Government’s Research, and Development fund and EUR 75 000 to the Land Development Organisation;
AND
2. Property: 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.
In addition, the investor must select one of the prescribed investment options as set out below:
Investment in real estate, developments and infrastructure projects:
A minimum investment of €2 million is required. The purchase or construction of buildings or other land development projects is accepted.
Purchase of Republic of Cyprus Government Bonds:
The requirement is a minimum investment of €2 million. These can be purchased from the primary or secondary market.
Purchase of financial assets of Cyprus companies or Cyprus Organizations:
The required minimum investment is €2 million and includes bonds, securities, debentures. This includes the creation, participation or establishment in Cyprus businesses.
Combination of the above investment options provided the minimum is €2 million.
REQUIREMENTS
In order to renew the Golden Residence Permit, the following requirements must be adhered to:
Year 1: Initial permit – Visit for 7 days during the first year
Year 3: First Renewal – Visit for 14 days during the subsequent 2 years
Year 5: Second Renewal – Visit for 14 days during the subsequent 2 years
Requirements include physical stay of an average of 7 days per year as well as a language test. The initial permit is valid for 1 year after which it can be renewed for another 2 years, and again in year 3 for another 2 years. In order to renew the residency applicants must adhere to the minimum stay requirements. At the end of year 5 the applicant can apply for permanent residency and in year 6 each family member can apply for citizenship provided the requirements are met.
CITIZENSHIP, TRAVEL AND BENEFITS
Cyprus allows dual citizenship.
A Cyprus citizenship offers the investor and his family the right to live, study and work anywhere in the European Union. Cyprus is a full EU member and therefore with a Cyprus citizenship, investors and their families have the full rights as EU nationals.
With a Cyprus passport, one can travel visa free to 159 countries including the UK, Canada, and Hong Kong.
No residence required and citizenship granted within 180 days.
TAX
Cyprus has always been an attractive tax and structuring destination due to its transparent and effective regime. Cyprus is fully compliant with the European Union laws and regulations.
Corporate tax rate is 12.5%, 0% Transfer Tax, 0% Inheritance Tax, 0% Property Tax. Income tax is progressive with a maximum of 30%.
VAT is 19%. If you are purchasing your first property for personal use, then the VAT is 5%. If you are looking to rent the property out, then 19%.
To date, Cyprus has double taxation agreements with more than 50 countries, including South Africa. Dividend income is exempt and there is no withholding tax on dividends, interest as well as royalty payments paid from Cyprus. We highly encourage clients to meet with a professional tax consultant and have partnerships with some of the world’s leading firms. Ask your adviser for an introduction.
PROCESS AND TIMELINES
Step 1: Investment
Review and select qualifying investment option. The process for obtaining approval for citizenship is typically 3 months with the real estate option.
Step 2: Application
Collect documents and complete application
Step 3: Pre-approval
Step 4: Submit Citizenship and Immigration Permit applications
A visit is required to complete the biometric data.
Step 5: Cyprus citizenship certificate
The Immigration Permit must be held for 6 months before visiting Cyprus for the issuance of the passport and citizenship certificate.
CYPRUS - COUNTRY INFORMATION
Cyprus, officially the Republic of Cyprus, is an island country in the Eastern Mediterranean Sea. Cyprus, a member state of the European Union, is both the third largest as well as the third most populous island in the Mediterranean. Located south of Turkey and east of Greece, Cyprus enjoys a beautiful climate year round.
Cyprus has an interesting history, with the earliest known human activity dating back to around the 10th Millennium BC. The country was originally settled by the Mycenaean Greeks in the 2nd millennium BC. Cyprus was placed under British administration in 1878 until it was granted independence in 1960 and then becoming a member of the Commonwealth one year later.
Cyprus is a very popular tourist destination with beautiful beaches and water sports. It joined the EU on 1 May 2004 and has both an advanced high income economy as well as a very high human development index rating. On 1 January 2008 Cyprus joined the Eurozone.
CONTACT US TO MEET WITH A PRIVATE CLIENT ADVISOR: cyprus@lio-global.com
RESOURCES
Government of Cyprus: http://www.cyprus.gov.cy/
Cyprus tourism: http://www.visitcyprus.com/
