Cyprus Citizenship

Cyprus Citizenship


Citizenship – Naturalisation of Investors by Exception


naturalization

Investors (non-Cypriot citizens) can acquire the Cyprus Citizenship by Naturalization, on the basis of the Decision by the Council of Ministers of the Republic of Cyprus in 2013.

Benefits

  • European Cyprus Citizenship for applicant and family.
  • Excellent rental yield from investments
  • European Union citizen rights, employment, medical and schooling
  • Free Movement – Freely travel and reside (and work) within the EU
  • Freedom to establish a business in a European country
  • Free Movement of Capital
  • Free Movement of Services Establishment and free movement of services
  • No requirement to physically reside in Cyprus
  • Dual Citizenship for applicant and family
  • Ease of travel to other European countries and non-European countries.

The ‘fast track’ process, the investment eventually allows the applicant (and eventually his wife and children) to hold a Cyprus EU member state country passport within 90 days.

The Cyprus Citizenship program is currently one of the most desirable immigration programs in Europe attracting a huge response due to the very attractive key benefits

Key points:

  • Passports will be issued within a period of approximately 180 days
  • Passports will be issued to the investor, their married spouse and dependent children up to age 28, provided they are in full-time education.
  • No requirement to physically reside in Cyprus.
  • It enables access to excellent education and healthcare institutes
  • FREEHOLD residential and FREEHOLD commercial properties with an excellent rental yield

Cyprus allows dual citizenship

It is very beneficial to have dual citizenship, particularly EU, for many reasons including:

  • Cypriot citizens enjoy the freedom to live, work and travel throughout Europe
  • Cypriot passport holders are entitled to travel visa-free to more than 140 countries
  • Cypriot passport holders can quickly and cost-effectively obtain visas for other countries, such as the USA

Tax benefits

An applicant does not become a tax resident in Cyprus unless he/she spends more than 183 days in any one calendar year.

Requirements

. A mandatory donation of € 75,000 to the Foundation for Research and Innovation to promote the creation of an entrepreneurial innovation ecosystem, an obligation that can be waived under certain conditions, ie where the investor shall invest in an innovative business (which has acquired a relevant certificate by the ministry of finance) or in a certified social company (πιστοποιημένη κοινωνική εταιρεία). The mandatory donation is also waived where the applicant has made an investment under the criterion “Purchase or Establishment or Participation in Cypriot Companies or Businesses” amounting to at least 20% of the investment cost of the prerequisite amount (ie € 400,000 ) to a company operating in the primary sector of the economy or in the secondary sector of the economy, or in one of the fields of research and technology, education, health, and renewable energy.

  1. A mandatory donation of € 75,000 to the Cyprus Land Development Corporation, aiming at the

contribution to the integrated housing policy, specifically for the purpose of implementing affordable

housing projects and the implementation of other housing plans/measures.

The applicant can make a direct investment into the Republic of Cyprus amounting to at least  €2.5 million  (plus Vat if any) in residential real-estate. This must be held for a minimum period of 5 years.

  1. A €2.5 million (plus Vat if any) Investment in a selection of Residential Properties, out of which one property is to be used as a privately-owned permanent residence of a minimum value of €500,000. The remaining € 1.5 million can be invested in a range of residential properties only, which may be resold after 5 years.
  2. The applicant’s parents are also entitled to apply for a Cypriot Passport / EU Citizenship by the exception provided that they own a lifetime resident of at least €500.000 (excluding VAT). The application is submitted after the investor has acquired the Cypriot citizenship.
  3. The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus. If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6(2) of the Aliens and Immigration Law, simultaneously with the application for naturalization.

The criteria for applying for the reduced 5% VAT are as follows:

Property cannot exceed 275 sq.m. of total covered areas.

Total covered areas include the following:

  • 5 sq.m. for mechanical installations rooms
  • 7 sq.m. of storage rooms
  • 36 sq.m. of covered car parking spaces
  • 40 sq.m. of covered verandas

If the property meets the above criteria then the first 200 sq.m of total covered areas can qualify for the reduced rate.

Furniture, white goods, the garden, etc cannot be included in the purchase price.

In case the client will take advantage of  the VAT Regulation, then the following restrictions are in effect:

  • Cannot rent the property for a period of ten (10) years.
  • Cannot sell the property for a period of ten (10) years.

It is noted that if he/she wishes to sell the property before the lapse of ten years then a proportion of the VAT saved initially will have to be paid.