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Cyprus

CYPRUS FACTS
Overview:
Cyprus is a well-developed country that enjoys a perfect geographical location. Surrounded by three
continents, Europe, Asia and Africa, it rises up the fact that business people and individuals can enjoy
travel as well as business opportunities the country is offering. The climate of Cyprus is considered to
be among the best in the world, while the life in all cities is characterized by its cosmopolitan touch
and high standard facilities.
European Cyprus, a modern destination for all people offers great business opportunities as well as
company taxation advantages. The safe environment, along with the political and economic stability
of the country create the feeling that Cyprus is a unique and ideal business and residential destination

CITIZENSHIP BY INVESTMENT IN CYPRUS:
Cyprus is a very well respected European member state in eastern Mediterranean. The country is a
major hub for international trade and Cyprus is a full EU member country. Cyprus Government has
established a number of incentives to attract foreign direct investment into the country. In 2017, the
Government of Cyprus made changes to the citizenship-by-investment program in Cyprus. One of
these is a citizenship-by-investment program that grants full Cypriot citizenship to those that invest
more than EUR 2 million in real estate and who meet certain other requirements. Successful
applicants gain the right to live, work and study in all 28 EU member countries.

Benefits of Permenent Resident in Cyprus:

1.Work and Study with No Restriction.
2.Travel work and Study in All Europe.
3.100% Shareholding in a Company.
4.Cyprus Passport ranked 14th in the World.
5.Visa Free for 152 Countries.

CITIZENSHIP BY INVESTMENT IN CYPRUS:
Cyprus is a very well respected European member state in eastern Mediterranean. The country is a
major hub for international trade and Cyprus is a full EU member country. Cyprus Government has
established a number of incentives to attract foreign direct investment into the country. In 2017, the
Government of Cyprus made changes to the citizenship-by-investment program in Cyprus. One of
these is a citizenship-by-investment program that grants full Cypriot citizenship to those that invest
more than EUR 2 million in real estate and who meet certain other requirements. Successful
applicants gain the right to live, work and study in all 28 EU member countries.

FINANCIAL CRITERIA:

Eligible persons who meet one of the following financial criteria may apply for the acquisition of the Cypriot Citizenship:
➢ Investment in real estate, land development and infrastructure projects of at least €2m
➢ Investment in financial assets of Cypriot companies or organizations of at least €2m
➢ Investment in Alternative Investment Funds or financial assets of Cypriot companies/
organizations that are licensed by the Cyprus Securities and Exchange Commission of at least
€2m
➢ Combination of the above criteria, which can also include investment in government bonds
of up to €500.000

Cyprus Permanent Residency scheme:

The Cyprus PR program offers non-EU nationals guaranteed permanent residency within 1 to 2 months
through a real estate investment of €300,000. PR applies to the investor, spouse and dependent
children up to age 25 and the parents of the applicant and spouse. This scheme lets all the nationalities
obtain PR in Cyprus without language proficiency, education background and medical tests.

FINANCIAL CRITERIA:
➢ Purchase a new residential Property with the value of at least €300.000 (+VAT)
➢ Provide a declaration with supporting documentation of a secured annual income from a
legitimate source, driving from outside Cyprus. The minimum annual income per applicant is
€30.000 (+€5.000 for every dependent person – spouse and children – and €8.000 for every
dependent parent or parent-in-law)
➢ A statement of deposit must be provided showing a €30,000 minimum deposit in a Cypriot
bank account of the applicant, which will be locked for a period of 3 years. After the expiration
of this period the money will be released without restriction.

CYPRUS COMPANY:
Cyprus is considered as an established, trust-worthy and reputable business and financial centre. The
Island currently presents a number of opportunities to international investors and business people.
The Republic of Cyprus became a full member of the EU on May 1st, 2004.
➢ On 1st January 2008 Cyprus joined the European Union and adopted its official currency the
Euro.
➢ Cyprus Companies are taxed at the flat rate of 12,5% on their taxable income.
➢ Wide network of Double Tax Treaties
➢ EU Directives are available
➢ Strong political and economic relations with the major economies of the World such as the
Russian Federation, China, India, USA and the UK.
➢ Excellent Accounting, Legal and Banking Services
The main structures useful to the investors who are willing to invest to Cyprus or through Cyprus are
the following:
The Cyprus Holding Company
➢ Finance Company
➢ Intellectual Property Company
➢ Trading Company

ADVANTAGES OF CYPRUS COMPANY:
➢ 12.5% corporate tax on trading profits
➢ No withholding tax on outward payments(Dividends-Interest-Royalties)
➢ No participation exemption and no holding period exists.
➢ No CFC rules
➢ No thin capitalization rules

➢ Capital gains from the sale of immovable property situated outside Cyprus is tax exempt
➢ Taxable losses carried forward indefinitely; from 2012, a temporary limitation of five years is
introduced in the tax
➢ system under which, losses will be allowed to be carried forward for offsetting future taxable
income, for a period of five years from the year to which the profits relate.
➢ Capital gains on sale of securities: 100% exemption unless immovable property in Cyprus is
involved
➢ Group relief availability (75% holding)
➢ Tax free re-organizations (cross border permitted)
➢ Foreign PE profits exempt
➢ Tax free corporate re-domiciliation permitted
➢ Possibility for establishing an SE (European Company)
➢ Applicability of all EU directives
➢ Extensive Double Tax Treaty network
➢ Advance ruling practice exists
➢ Easy to open bank account worldwide on the Cyprus company
➢ Secure destination for holding of investments, assets, intellectual property etc.