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CyprusJune 2013

The Council of Ministers decided to implement the so-called “economic citizenship program” (in accordance with paragraph 2 (F) third table of Civil Registry and Migration Law) on the receipt of Cypriot citizenship by applicants who meet any of the criteria set out below.

Criterias:

1. Gross investment and donations to State fund:

a: The applicant should at least have purchased with the amount of € 2000 000 shares or bonds of an investment company which is under incorporation that belongs to the State. This amount should be deposited at the Treasury of the State until the shares or bonds are issued.

b: Minimum amount of €500 000 as a gift to the Research and Technology fund of the State.

OR

2. Direct Investments:

a: The applicant should have direct investments at least of €5 000 000 including the acquisition of immovable property (acquisition of land without development does not comply), purchase of house, office, shop hotel, acquisition of business or companies, shares of the public companies, acquisition of financial instruments, participation in a joint venture or the company which has undertaken the execution of the project on the territory of Cyprus, the applicant should keep this assets for at least 3 years.

b:  Furthermore, the Minister of the Interior has the right for the period ending 30 June 2014 to reduce the above mentioned amount from €5 000 000 to €2 000 000 for non Cypriot Citizens that can prove that are participating as a team in a special project of real estate, that will include the purchase of real estate at the ground of the Republic of Cyprus which is controlled by the Cyprus Government and the value of this is not les than €10 000 000.

OR

3. Deposits in Cyprus Banks:

The applicant should have personal deposits of at least €5 000 000 in Cyprus Banks, in the Republic of Cyprus. This deposits can also be under a private company which is owned by the applicant and will not expire at least for the next three years.

OR

4. Combination of grossed investments and donations to State funds (1), Direct Investments (2) and Deposits in Cyprus Banks (3).  

The applicant must have a combination of the above amounting to €5 000 000.

OR

5. Business Activity:

The applicant must be a shareholder or ultimate beneficial owner of a Company or group of companies and the administration of this company is carried out from Cyprus and during the last 3 years before the application has paid corporate tax, VAT and other taxes of the Cyprus government and also the fees of the company which should include accounting fees, audit fees, legal and administration fees total minimum €500,000 per year, can apply for Cyprus citizenship.

Furthermore if the individual is a shareholder or ultimate beneficial owner in a company with significant business activity in Cyprus (Cyprus or foreign company) and whose offices are located in Cyprus, which employs at least 5 Cypriot citizens then the minimum amount that should pay in corporate tax, VAT and other taxes of the Cyprus government is reduced by €350,000 per year instead of €500,000. besides the above mentioned, if a Cyprus Company or group of companies employs at least 10 Cyprus citizens then the amount per year is reduced to €200,000 For such companies, maximum 2 shareholders can apply for a Cypriot citizenship. In cases that the applicant has paid to the Cyprus economy direct revenues or fees (as described above) with a smaller amount, then a combination can be made with criteria’s 1, 2, and 3 above.

OR

6. Deposits in Bank of Cyprus and Laiki Bank:

Any foreign person who was the holder of deposits in Bank of Cyprus or in Laiki Bank on the 15th  of March 2013 and incurred losses of over €3 million as a result of the measures imposed during the March 2013 may apply for the citizenship if this person makes an additional investment according to (1) and (2) above.

Terms and conditions:

The applicant must have:

(a)clean criminal record;

(b)Owes an immovable property in Cyprus with the market value of not less than €500 000 or more.

The applicant must complete and submit to the authorities the M127 form together with the supporting documents according to each criteria.

Eurofast Taxand, Cyprus
info@eurofast.eu
Tel. +357 22 699 222
www.eurofast.eu