Cyprus a financial center at the crossroads of three continents. “Cyprus is a European Blossom,...
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Transcript of Cyprus a financial center at the crossroads of three continents. “Cyprus is a European Blossom,...
Cyprus a financial center at the crossroads of three continents.
“Cyprus is a European Blossom, conveniently situated in the
Mediterranean sea at the crossroads of Europe, Africa and
Asia.”
“Cyprus provides the nectar and is used as a hive through which
businessmen produce their refined honey with the sweet aftertaste
of low taxation.”
Yiannos Georgiades
Advocate & Legal Consultant
PERMANENT RESIDENCE PERMIT IN CYPRUS WITHOUT RIGHT TO WORK
Concerns Non EU Citizens
It is granted to the applicant and/or his spouse
It is granted to their minor children till the age of 18 (exceptional till the age of 25 years)
Criteria for acquiring an immigration permit for Non - EU nationals
INVESTMENT / FINANCIAL CRITERIA
Statement from a Cyprus financial institution showing that an amount of at least €30,000 has been transferred from abroad and deposited in a reserve account, for a period of at least 3 years.
Applicant and spouse shall have at their disposal a secured annual income of at least €30,000 increased by €5,000 for each dependent.
Filing a title deed or purchase contract in applicant’s and/or its spouse name, at the Department of Lands and Surveys, for a residential or other building, of a market value of at least €300,000 (excluding VAT) and official proof of payment of at least €200,000 (excluding VAT), provided that the remaining value will be paid from foreign funds.
NOTE! • House purchase will be accepted even when made in the name of a Company provided that :• It is registered in Cyprus• It is registered in the name of the applicant and/or of his spouse • The Applicant and/or his spouse are only shareholders of the Company
Applicant and/or a couple may buy:
up to two housing units (apartments or houses) ora housing unit and a store with an area of 100 sq.m.,
or a housing unit and an office with an area of 250 sq.m.
Conditions• Total purchase price more than €300,000• Property must be new – resale is not accepted• If two properties are separate they must be purchased from the
same developer• Not be accepted purchase of more than two properties by the
couple (including purchase by the Company)
Dependent Adult Children
Conditions• Age 18-25• Financially dependent on the applicant• Proven students• Parents should present additional annual income of €5,000 for
each dependent child• All required documents must be submitted with the
application
Independent Adult Children
Conditions• Over 18 • Not financially dependent on the applicant• For each child there must be an attributable market value of
the acquired property of at least €300,00• Certificate of payment of at least 66% of the the total
purchase price of the property
QUALITY CRITERIA
• Submission of a certificate of a clear criminal record from the country of residency
• Applicant and spouse will attest that are not employed in Cyprus NOTE! They can be shareholders in a company registered in
Cyprus and receive dividends from its profit!
• Visiting Cyprus at least once every two years
• Supporting documents and their translation must be duly certified
PROCEDURE FOR SUBMISSION AND EXAMINATION OF APPLICATION
Applications must be submitted to the Civil Registry and Migration Department (CRMD) personally or through a representative with non-refundable fee of €500.
The application shall be processed by the CRMD and submitted to the Minister of Interior.
The Ministry of Interior will inform the applicant or his representative and the CRMD on the decision of the Minister of Interior.
The examination period of the application from the date of its submission will not exceed 2 months.
Required Documentation – Certificates (1)
Application form (M67)
Copy of valid passport of the applicant and his dependants.
Copy of valid temporary residence permit (if the applicant resides in Cyprus).
Curriculum Vitae (including academic qualifications).
Original Letter from a financial institution in Cyprus (Bank, Coop) of a deposit of €30.000, pledged for three years.
Declaration of a secured annual income from abroad of €30.000 at least, (original documents and affidavit or declaration).
Title of ownership or contract of sale of a built property in Cyprus of a minimum market value of €300.000 (original or true copy). If the title of ownership has not been obtained yet, the applicant must submit the contract of sale duly stamped by the Stamps Commissioner and the Department of Lands & Surveys and proof of payment for at least €200,000.
Required Documentation – Certificates (2)
Official Statement by the applicant and his/her spouse that he/she does not intent to work or be engaged in any form of business in Cyprus.
Health Insurance Policy for the applicant and his dependants
Original Criminal Record Certificate duly certified for the applicant and his spouse (if the applicant resides abroad, the certificate must be issued from his country of residence, and submitted with an official and certified translation).
Marriage Certificate duly certified (official and certified translation).
Children’s Birth Certificates dully certified (official and certified translation).
Other documents which are submitted with the application.
Required Documents/Certificates for Dependent adult children18-25 years old
Copy of valid passport of the applicant. Copy of valid temporary residence permit (if the applicant resides in Cyprus). Curriculum Vitae (including academic qualifications).
Declaration of a secured annual income of the parent from abroad of at least €30.000, (original documents and affidavit or declaration). The necessary annual income is increased by €5.000 for each person dependent to the parent.
Official Statement by the applicant that he/she does not intent to work or be engaged in any form of business in Cyprus.
Health Insurance Policy for the applicant
Original Criminal Record Certificate duly certified for the applicant (if the applicant resides abroad, the certificate must be issued from his country of residence, and submitted with an official and certified translation
Birth Certificate of the applicant dully certified (official and certified translation)
Letter from the school/university that the applicant is a registered student.
Revocation of the Residency Permit
Acquiring a permanent residence permit in another country (other than the country of nationality)
Not visiting Cyprus for a period longer than 2 years continuously
NATIONALITY IN CYPRUS
Decision of Council of Ministers dated 19/03/2014
Revised the criteria and conditions for the Naturalization of investors in Cyprus by way of an exemption under s(2) of S. 111A of the Civil Registry Laws of 2002-2013.
Cypriot citizenship is granted to the spouse as well as the financially dependent adult children
Neither the spouse nor the children are obliged to meet any financial criteria.
Non-Cypriot citizens may apply for the attainment of Cypriot citizenship if they have:
Clean Criminal Record Residency in the Republic of Cyprus, the market value of which must be
at least €500,000.00 plus V.A.T.
Investment in government bonds or Investment in financial assets of Cypriot companies or Investment in real estate, land development and infrastructure projects
or Participation in Cypriot businesses or Deposits in Cypriot banks or Persons whose deposits with the Popular bank Public Company Ltd
have been impaired due to the measures implements after the 15th March 2013 or
Major Collective Investments.
Investment in government bonds
Applicant must have purchased state bonds of the Republic of Cyprus of at least €5,0 million
Documentation:
Receipts from the Treasury of the Republic of Cyprus for the
purchase of the Government bonds.
Investment in financial assets of Cypriot companies Applicant must have purchased financial assets of Cypriot
companies or organizations (bonds/ securities/ debentures registered and issued in the Republic of Cyprus) of at least €5,0 million.
Documentation : Titles and other documents regarding the financial assets.
Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization
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.
Documentation: Contract of sale. Title Deeds/ Receipt for lodging the contract with the Lands
and Surveys Department Receipts for paying the agreed purchase price Copy of the wire transfer in the Cypriot commercial banking
institution in the name of the seller or the seller’s company
Purchase or creation or participation in Cypriot businesses Applicant must have made an investment of at least € 5,0 million in the purchase,
creation or participation in businesses, that are based and operating in the Republic. and employ at least 5 Cypriot citizens.
Documentation: Contract of sale.
Receipts for paying the agreed purchase price
Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the companies
Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company
Confirmation from the Social Insurance Department as to the insurable income of the Cypriot employees in the company
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.
Deposits in Cypriot banks
Applicant must have personal fixed term deposits for 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 €5,0 million
Documentation: 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
Copy of the wire transfer in the Cypriot commercial banking institution
Deposits with the Popular bank Public Company Ltd have been impaired due to the measures implements after the 15th March 2013
Applicant has incurred an impairment in deposits amounting to a total of at least €3,0 million.
For an impairment in deposits under €3,0 million, applications are accepted, if an additional investment has been made for the balance of the required amount of the aforementioned criteria.
Documentation: Confirmation as to the level and the time of the impairment of
the deposits
Major Collective Investments
The Council of Ministers shall have the right on special occasions, to reduce the above 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.
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.
NOTE!
This present provision, will be in force until 01/06/2014.
Submission of an Application
At the Ministry of Interior Fees of €2.000 Original documents should be submitted, along with a photocopy of all the
following documents:
Letter by the applicant or representative of the applicant, 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
Birth Certificate Copy of passport Certificate of criminal record from the country of origin, as well as the country of
residence of the applicant Marriage Certificate Copies of advertisements in a daily newspaper two consecutive posts Two passport size photographs Curriculum Vitae
Relevant Documentation (2)
Documents concerning the permanent privately-owned residence of the applicant in Cyprus:
Contract of Sale Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department Receipts for paying the agreed purchase price Copy of the wire transfer in the Cypriot commercial banking institution in the name of
the seller or the seller’s company
Documents evidencing the investments of the applicant in the Republic. These documents may include:
Certificate of Registration of the company/ companies by the Registrar of Companies
Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies
Audited Accounts of the company (or companies) for the last three years preceding the year of the application
Examination Procedure of an Application
Evaluation of documents relating to business activities and investment of the applicant by the Ministry of Finance
Investigation of the other conditions by the Ministry of Interior
Presentation of the application to the Council of Ministers for final decision
Issuing of a Certification of Naturalization by the Civil Registry and Migration Department, following payment of the issuing fee of €5.000.
SALE & PURCHASE OF PROPERTY IN CYPRUS FOR NON EU CITIZENS
Permission to acquire immovable properties from the Council of Ministers, only for non EU Citizens.
All procedural restrictions were lifted for EU Citizens initially in May 2004 and then in May 2009.
When non EU Citizens decide to buy immovable property they have the same rights as Cypriot Citizens.
Contract of sale binds both parties. The Seller who signs the agreement must be the registered
owner of the property.
Legal Safeguards
Upon signing of the contract the purchaser is liable to pay stamp fee and then it is advisable for the contract of sale to be registered within 2 months of the contract date at the District Land and Surveys Department.
Sale of Land (Specific Performance Law) Law 81(I)/2011 – requires the sale & purchase agreement to be submitted to the Cyprus Land Registry – right for specific performance.
Stamp Duty
Property value (EURO) Stamp Duty (0/1000)
€ 1.00 -€ 5,000.00 0
€ 5,001.00 -€ 170,860.00 1.5 per thousand
Over € 170 ,860.00 - 2 per thousand
Transfer Fee
Property value (EURO) Tranfer Fee Rate (%)
0 -€ 85,430.00 3
€ 85,431.00 -€ 170,860.00 5
€ 170 ,860.00 and over 8
.NOTE! For properties owned by joint names, the tranfer fees are charged on 50% of the property value for each, providing an advantage for any property value exceeding a value of € 85,430.00
Inheritance tax Inheritance tax has been abolished
VAT payable on property Has been introduced on May 2004. Applications which were filed before
1 May 2004 are VAT-exempt.
Capital gains tax Should the purchaser decide to sell the property, capital gains tax will be
payable at the rate of 20% on the gain. However, the first €17,000.08 of the gain is tax-exempted. If the property is jointly owned by a couple, then €34,017.00 of the gain is tax-exempt.
In a case whereby the property has been used by the Vendor as a residence for at least 5 years prior to the sale, then up to €85,430.00 is tax-exempt.
SERVICES PROVIDED BY OUR FIRM
Our law firm can handle all legal formalities on behalf of the prospective purchaser and guide them through all the stages of property acquisition.
Specifically, our services include, inter alia: Advising and assisting for the requirements and procedures to be followed. Preparation & Completion of the relevant applications with the supporting documents and
follow up. Preparing the contract of sale (drafting and printing) Visiting the Department of Inland Revenue to stamp the contract of sale. Visiting the District Land and Surveys Department to deposit the contract of sale. Preparing the application to the Council of Ministers with supporting documents and
follow up. Visiting the District Land and Surveys Department to effect the transfer of the property. Obtaining authority from the Central Bank. Amending the contract of sale. Cancelling the contract of sale, where necessary.
NOT JUST YOUR ADVISORS - WE ARE YOUR PARTNERS
Thank you for attending our conference.
We have provided you with general information, but this should not be taken as legal advice.
For detailed analysis and advice specific to your business needs please contact our office for a personal meeting.
FURTHER INFORMATION
Our folder contain information guides regarding:
Residency in Cyprus Nationality in Cyprus Buying Property in Cyprus International Collective Investments Schemes Investment Services and Activities
LEGAL & BUSINESS SOLUTIONS FOR YOU AROUND THE GLOBE
GEORGIADES & ASSOCIATES
2 AYIOS PAVLOS & KADMOS STREET
WISDOM TOWER, 3RD FLOOR
1105 NICOSIA
CYPRUS
TEL: 00 357 22 819 292
FAX: 00 357 22 778 444
WEB: WWW.GMADVOCATES.COM
EMAIL: [email protected]