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Cyprus Citizenshipfor Foreign Investors
www.pwc.com.cy
January 2016
Financial Criteria and other required conditions
Legal Basis On the basis of a Council of Ministers’ Decision (dated 19/03/2014), non Cypriot Investors, can acquire the Cyprus Citizenship by Naturalization (by exception on the basis of the Civil Registry Laws 2002-2013).
Key Benefits • Free Movement of People - Freely travel and reside (and work) within the EU
• All family members can obtain Cyprus citizenship i.e spouse of applicant, children aged under 18 years, and adult dependent children (aged over 18 years and up to 27 years)
• Free Movement of Capital - Transfer any amount of money from any EU Member State to another, purchase
of property in any EU Member State of choice and invest in any activities of choice
• Free Movement of Services
- Establishment and free movement of services - individual citizens and companies can offer services without hindrance in all EU Member States
• Free Movement of Goods - All goods produced in EU Member States can be transferred freely from any
Member State to another
The following economic criteria* must be met:
• At least €5 mln investment in: - Government Bonds or - Financial Assets of Cyprus companies/organisations or - Real Estate, Land Development and Infrastructure Projects or - Purchase or creation or participation in Cyprus business/companies with a Head
Office and business activities in Cyprus or - Deposits in Banks operating in Cyprus of €5 mln or
• Combination of the above criteria amounting to €5 mln or
• Impaired Deposits in the Popular Bank of at least €3 mln In case of impaired deposits of less than €3 mln, the applicant can apply after making additional investments or
• Large Collective Investments - Investment reduced to: - €2.5 mln per investor for investments of at least €12.5 mln
• In addition to the criteria mentioned above, the applicant must fulfill the following Terms and Conditions*:
- Clear Criminal Record. Not to be included in the list of persons whose property is ordered to be frozen within the EU
- Privately owned residence in the Republic of Cyprus, the cost of which must exceed the amount of €500.000 excluding VAT. The residence must be kept for life.
All above mentioned investments need to be kept for at least three years from the date of naturalisation.
All investments for the purposes of the Citizenship application need to be concluded with fresh funds of the investor.
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.
In case an investor purchases solely a residence of minimum €5 mln, or €2.5 mln (under the relevant criteria) he/she is not obliged to buy an additional residence of €500.000.
*The above are in accordance with the Council of Ministers’ relevant Decision and the Frequently Asked Questions & Answers issued by the Ministry of Interior.
Key information to have in mind
• Applicant does not become a tax resident in Cyprus, unless he/she spends more than 183 days in any one calendar year
• The approval of Citizenship under the relevant Decision is granted by the Cyprus Council of Ministers
• The application package is submitted to the Ministry of Interior. The Ministry of Finance assesses the economic criteria
• Main applicant and his/her spouse apply jointly. Upon approval, children’s applications follow
• After examination by the two Ministries, the application is presented to the Council of Ministers
• The application processing usually takes 3-4 months
• The Council of Ministers has complete discretionary power regarding these decisions
How we can supportOur services include (and are not limited) to the following:
• Advise on the required economic criteria and conditions as well as the required steps (approval process)and application requirements
• Examine specific circumstances of the applicant to establish the most effective way to meet the criteria
• Assist with identifying alternative options for investment
• Assist with the legal overview of purchase agreement and / or of relevant documents
• Assist with the Real Estate due diligence
• Assist with examining tax implications from the investment
• Run a pre-clearance check with the responsible Ministries
• Assistance on setting up vehicles to hold the investments (including regulated fund)
• Assist with the preparation of required documents
• Check the citizenship application packs prepared to ensure they are within the required quality standard
• On-going monitoring of the status of the applications and continuous follow up with personal interventions
• Continuous briefing of the investor on the progress of the application
• Once Citizenship is granted, we will assist with the process of obtaining a Cyprus Passport and Identity Card for all family members
• In-depth knowledge of the relevant legislation and procedures to ensure successful applications
• Vast experience in successful preparation and processing of citizenship applications
• Close collaboration with the relevant Authorities (by senior members of our team)
• Confidentiality
• Peace of mind - our team will help you address all issues. We provide a tailored service ensuring all regulatory requirements are met
What you can expect from us
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2016 PricewaterhouseCoopers Ltd. All rights reserved. PwC refers to the Cyprus member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Theo C ParperisPartnerHead of Tax & Legal [email protected]
Philippos C SoseilosPartnerIn charge of [email protected]
Tony HadjiloucasPartnerIn charge of Wealth Management [email protected]
Phryni [email protected]
Contact us
PricewaterhouseCoopers Ltd
PwC Central, 43 Demostheni Severi Avenue,CY-1080 Nicosia, CyprusP O Box 21612, CY-1591 Nicosia, CyprusTel:+357 - 22 555 000, Fax:+357 - 22 555 001
City House, 6 Karaiskakis Street, CY-3032 Limassol, CyprusP O Box 53034, CY-3300 Limassol, CyprusTel. +357 - 25 555 000, Fax +357 - 25 555 001
