Transcript Slide 1

About Cyprus
Official Name: Rep. of Cyprus
Population: 838,900
Capital: Nicosia
Currency: Euro
Languages: Greek & English
Timezone: GMT+2
Member of: EU, UN & British
Commonwealth
About Cyprus
• Cyprus is an island situated in
Eastern Mediterranean and has been
the crossing point between Europe,
Asia and Africa
• People living in the island enjoy the
warm Mediterranean climate, the
high standard living, excellent health
care, safety, low crime rate,
sophisticated infrastructure and
much more
About Cyprus
On the 1st May, 2004, Cyprus
became a full member of the
European Union. Cyprus' new EU
path brings with it the added
benefits of heightened security,
increasing employment
opportunities and the lowest
property prices for comparable EU
locations. Investing in Cyprus has
long proved to be a sound decision
as prices have been steadily on the
increase.
Cyprus Culture
FAMILY ORIENTED
STRONG BONDS BETWEEN
FAMILY MEMBERS
HIGH LEVEL EDUCATED
PEOPLE
HOSPITABLE PEOPLE
VERY FRIENDLY TO FOREIGNERS
CULTURE
EATING HABITS FOR
CYPRIOTS SIMILAR AS
CHINESE
RELIGION
PEOPLE ARE FREETO WOSHIP
ANY RELIGION THEY WISH
MORE THAN 20 DIFFERENT
PLATTER
MOST CYPRIOTS ARE GREEK
ORTHODOX
ARTS / MUSIC
Cyprus Advantages
•Member of the European Union
•Strategic Geographic Location Europe, Asia and Africa
•Warm Mediterranean Island with 320
days of sunshine
•New Marinas & Golf courses
•Sophisticated infrastructure
•Free hold property ownership
•English-speaking population
•Upgraded Airline connections and
Telecommunications
• Good business and financial services
ECONOMY
Tourism
More than 2 m/ year
Energy
Real Estate
Gaz extraction more
than 30 billion
30 % of the local
market
International
Trade
Point of exchange
between Europe,
Asia and Africa
Top Reasons to Invest in Cyprus
•EU & EUROZONE
•STRATEGIC LOCATION
•TAXATION
•HUMAN TALENT
•VALUE FOR MONEY
•LEGAL FRAMEWORK
•WELL – DEVELOPED
INFRASTRUCTURE
•EASE OF DOING BUSINESS
•QUALITY OF LIFE
•WELL DEVELOPED EDUCATION
PROGRAM
•DOUBLE TAX TREATIES WITH 40
COUNTRIES
Education
The Ministry of Education and Culture is
harmonizing the Education System in line
with the European Standards and
guidelines for quality assurance.
Schools, Colleges and Universities
•2 Public Universities
•4 Private Universities
•Many private colleges offering international
studies
•More than 400 public and private primary
schools (english and greek speaking)
•More than 200 public and private secondary
schools (english and greek speaking)
Schools, Colleges and Universities are
located in all Cyprus cities.
All Universities are English speaking and
teaching and cooperate with well known
European Universities in order to offer
programs for study abroad the masters and
doctoral degrees.
Permanent Residence Permit
What is a permanent residence permit?

Official authorization recognizing to its
holder a legal right to permanently
reside in the country issuing the permit
subject to certain conditions.
Why apply for a permanent residence
permit in Cyprus?

Expedited processing: Permit issued no
more than two (2) months from the date
of submission of the complete
application

Lifts travelling restrictions and visa
requirements from a number of
European countries

Subject to certain residency
requirements, it may lead to the
acquisition of a Cyprus (EU) passport.

It can facilitate travelling in some
European countries without issuing VISA
* Cyprus is currently in the process of
becoming part of the Schengen Area (a
Schengen candidate). This will entitle
Cyprus residents to travel to other Schengen
member countries without being subjected
to border checks.
Eligible applicants
Any third country national (and his/her
spouse)who:has a clean criminal record and otherwise not
considered a threat to public safety/order
declares the intention not to be employed in
Cyprus
wires from abroad and maintains a fixed term
deposit account in Cyprus of €30,000 for at
least three (3) years
proves a secured annual income of at least
€30,000 generated from sources abroad (plus
€5,000 per dependent person)
buys a residence in Cyprus sold for the first
time market value of at least €300,000
Permit and residency requirements:
To maintain permit and residency
requirements
•
the individual must visit Cyprus once
every two years
•
To convert the permanent residence
permit into a Cypriot (EU) passport the
individual must stay in Cyprus for seven (7)
years, out of which the last 12 months
preceding the Cypriot (EU) passport
application must be continuous
Citizenship by investment
What is citizenship by investment?

A process whereby a country, by way of
exception, grants citizenship to

eligible applicants that make a certain
significant investment into its local

economy.

• Citizenship in return for economic
investment.
Why the Cyprus citizenship by investment
program
•
•
•

Lifts travelling restrictions
•
•
•
•
•
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Limits time consuming travelling
formalities – no visa application required
•
Why is second citizenship important?

Flexible and efficient foundation for tax
structuring and planning

Can be passed on to a next generation.
Sound legal right to EU citizenship to the
applicant and his dependents as of right;
Passport issued within 4 to 6 months;
Existing passport need not be relinquished (i.e.
more than one passport is legal in Cyprus);
No residence requirements;
No language test requirements;
No family planning laws;
Common law jurisdiction;
Quality of life, education and access to medical
facilities;
Through our personal contacts, we can
guarantee an expedited process which can lead
to a successful approval of the application in just
a few months.
Eligible applicants

Any third country national who:-

has a clean criminal record; and,

provides all necessary documentation
(i.e. birth certificate, marriage

certificate, passport pictures); and,

buys a house in Cyprus worth at least
€500,000; and,

makes an investment in Cyprus of such
amount as required under the
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investment medium citizenship is
sought
.
Investment
amount
How to invest
€2.5 million
€2 million for the purchase the shares and/or bonds in a state owned
investment company to be incorporated; and,
€500.000 donated (i.e. non refundable) to the Research and
Technology Fund.
OR
€5 million
Entire amount deposited in a three (3) year fixed term bank account
with a bank in the Republic of Cyprus, same being either in the name of:- the applicant (personal account); or
- a company or a trust (corporate account), of which the applicant is the
ultimate beneficial owner of.
OR
Entire amount spent by the applicant for:
- purchase of immovable properties (private residences, offices, shops,
hotels or establishments of similar nature excluding undeveloped land);
and/or,
- acquisition of businesses or companies based and engaged in
activities in Cyprus; and/or,
- purchase of shares of companies registered in the Republic of Cyprus
- purchase of financial assets
- participation in a company or a consortium of companies that has
undertaken a public project.
OR
€5 million
€5 million
Variable amount
€3 million
Accumulated & combined use of any of the abovesaid investment
mediums.
OR
Paid by local companies belonging to the applicant in the public purse
annually by way of taxes, fees for local professional services etc over a
period of three years. The amount will depend on the number of local
employees engaged by the local company.
OR
Confined to a special class of persons whose bank deposits in Cyprus
Popular Bank and Bank of Cyprus were affected by the Government
Decree of 15.3.2013.
Tax and fee savings on acquisition of property
New VAT Rules
•The new law introduces a reduced rate of
5% applicable for any purchase of a
property
•The current full rate of VAT is 19%
•So SAVE 14% VAT on the selling price
•For example for a house of €300000 plus
VAT you save 14% which means € 42000
No transfer fees
•Upon receiving a title deed for your
property normally transfer fees apply
•If you buy now or before the end of 2014
you will pay no transfer fees and save
thousands
•For example for a house of €300000 plus
VAT you save transfer fees of more than €
17000
Properties offered
Through our exclusive partners we
can offer the following type of
properties to support the clients
application for Cyprus residency or
citizenship:
i)
Villas, apartments and any
other type of dwelling;
ii)
Commercial buildings;
iii)
Building plots with all local
permits for residential OR
commercial construction;
iv)
Land for future development.
The properties are located
throughout Cyprus and visiting
tours can be easily arranged.
In case of interest in any particular
type of property, we can provide
separate property presentation
including photographs and
descriptions.
Corporate and Tax Presence
TYPES OF CORPORATION
The types of corporations that can be established in Cyprus is a private
limited company, a public company or a company limited by guarantee.
Private Limited Company
The minimum number of members is one and the maximum is limited to
fifty. And there can be no invitation to the public to subscribe for any
shares or debentures.
This is the most popular type of companies in the business world and
their general characteristics are the following:
 The minimum number of members is one and the maximum is fifty;
 The liability of every member is limited to the amount of their
subscribed shares;
 No bearer shares can be issued (however nominee services can be
offered);
 Preferential shares or different classes of shares can be issued;
 The right to transfer shares is restricted;
 The word “limited” must appear at the end of the name of the
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company
There can be only one Director who can be either Cypriot or foreigner
and the Board Meetings can be held anywhere in the world;
The company must have a registered address in Cyprus and a
company secretary;
The Secretary maintains the Register of Members, the Minute Book
recording all the Board Meetings and Resolutions, the Register of
Charges, the Register of Directors and Secretary and the Company
seal (under its custody);
any charges against the company must be registered with the
Company Registrar in order to ensure priority and protection against
other creditors of the Company.
What is important to note is that the identity of beneficial owners in a
Cyprus private limited company may remain confidential through
nominee holding. This confidentiality is maintained as long as the
company and its ultimate beneficial owners are not involved in any
criminal activity.
Public Limited Company
Public companies need seven or more founder members, they can invite
the public to subscribe for their shares or debentures and do not restrict
share transfers.
Company Limited by Guarantee
The liability of each member is limited to the amount agreed on the
Memorandum of Association to be contributed in the event the
company goes into liquidation. In the majority of cases these companies
are incorporated as non-profit making organisations under section 20 of
Cap 113.
Tax Presence
In order for a company to secure a Cyprus tax resident status, the
management and control must be exercised in Cyprus. This is usually
accomplished by simply appointing Cyprus nominee directors.
A Cyprus tax resident company enjoy the benefits of the popular Cyprus
tax regime.
Income tax
For individuals
Where an individual is a resident in the Republic, tax is imposed on
income accruing or arising from sources both within and outside the
Republic.
Relevant tax rates are as follows:
Taxable
Income
€
%
0 - 19.500
0
19.501 - 28.000 20
28.001 - 36.300 25
36.301 - 60.000 30
60.001 and over
Tax rates
Tax
Rate
€
0
1.700
2.075
7.110
35
Tax
Cumulative
Tax
€
0
1.700
3.775
10.885
For corporations
Where a company is resident in the Republic, tax is imposed on
income accruing or arising both from sources in and outside the
Republic.
Where a company is not a resident in the Republic, tax is imposed
on income accruing or arising only from sources in the Republic.
Resident in the Republic is a company that is managed and
Controlled in the Republic.
The Tax rate is fixed at 12.5%
FOR BOTH, INDIVIDUALS AND CORPORATIONS, THERE ARE
NUMEROUS EXEMPTIONS AND DEDUCTIONS WHICH CAN BE USED
TO REDUCE THE TAXABLE INCOME, BEFORE APPLYING THE ABOVE
RATES
Social Insurance costs for individuals
SPECIAL CONTRIBUTIONS
Each employee, self-employed, or person operating in the private sector
receiving a pension, shall pay a special contribution to the Republic in
order to strengthen public finances. The contribution is a percentage
levied on the gross earnings as shown in the table below.
Gross monthly salary €
Up to 1.500
1.501 - 2.500
Special Contribution %
0
2,5 (with a minimum amount
of special contribution of €10)
2.501 - 3.500
3
3.501 and over
3,5
The above special contribution is calculated on the total gross earnings
with no restriction or maximum limit on the amount of the levy.
SOCIAL SECURITY CONTRIBUTIONS
Contributions
Employer
%
Social Insurance 7,8
Redundancy Fund 1,2
Industrial Training 0,5
Social Cohesion
Fund
2,0*
Employee
%
7,8
-
Self
employed
%
14,6
-
-
-
Upper limits for employees
Weekly employees
Monthly employees
per week
from 7/1/2013
€
1.046
-
per month
€
4.533
* The amount of contribution to Social Cohesion Fund is
calculated on the total emoluments with no upper limit
per annum
€
54.392
54.396