Cyprus offers many key benefits to foreign investors and their dependent family members who are looking for a jurisdiction that offers financial stability, a gateway to Europe and a quality standard of living for their families.

 

As Rotsas & Co we are offering support to such investors on a selective basis.

 

The obtainment of a Permanent Residence Permit and/or Cyprus Citizenship by Exception does not in itself influence the taxability of an individual. Tax is imposed based on the residency and domicile of an individual.  In general, a Cyprus tax resident individual can benefit from a number of tax incentives as follows:

 

A Cyprus tax resident but non-domicile individual is exempt from all taxes on dividend and interest income and from special contribution for defence on rental income.

 

An individual who was resident outside of Cyprus before commencement of employment in Cyprus earning € 100.000 or more can benefit from a 50% exemption from tax for the first 5 years (expected to be extended to 10 years).

 

An individual who was resident outside of Cyprus before commencement of employment in Cyprus earnings less than € 100.000, can benefit from a 20% exemption from tax (with a maximum exemption of € 8.550) for the first 3 years (expected to be extended to 5 years).

 

Personal tax rates are progressive from 20% to 35% after allowing for a tax free amount of € 19.500.

 

Profits from the disposal of securities, are exempt from taxation.

 

Any lump sum received as a retirement gratuity is exempt from tax.

 

Pension received from abroad is taxed at a flat tax rate of 5% on amounts in excess of € 3.420.

 

There is no Capital Gains Tax on the disposal of immovable property situated abroad or if situated in Cyprus was acquired between 16 July 2015 and 31 December 2016.

 

There is no Estate Duty, Wealth, Gift or Inheritance Tax in Cyprus.

 

The applicant should have concluded the necessary investments during the three years preceding the date of the Naturalization.

 

One of the following Economic Criteria (or a combination where applicable) must be met by the main applicant:

 

 

• 1.Investment in government bonds:

 

The applicant must have purchased state bonds of the Republic of Cyprus of at least € 5 million.

 

OR

 

• 2.Investment in financial assets of Cypriot companies or Cypriot organizations:

 

The applicant must have purchased financial assets of Cypriot companies or Cypriot organizations (bonds/ securities/ debentures registered and issued in the Republic of Cyprus) of at least €5 million.

 

It is noted that these financial assets can be purchased either at issuance, or subsequently by the market.

            

             OR

• 3.Investment in real estate, land development and infrastructure projects:

 

The applicant must have made an investment of at least € 5 million for the purchase or consideration of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector or other infrastructure projects).

OR

• 4.Purchase or creation or participation in Cypriot businesses or companies:

The applicant must have made an investment of at least €5 million in the purchase, creation or participation in businesses or companies, that are based and operating in the Republic.  These businesses or companies should evidently have a tangible presence in Cyprus and employ at least 5 Cypriot citizens.

 

It is noted that the mandatory conversion of deposits into shares is included in this criterion.

 

OR

 

•  5.Deposits in Cypriot banks:

The applicant must have personal fixed terms deposits for three years in Cypriot banks or deposits of privately owned companies or trusts (in which he/she is the beneficiary owner) in the Republic of Cyprus of at least € 5 million.

 

         OR

 

•  6.Compination of the aforementioned criteria 1,2,3,4 and 5.

The applicant is required to have a combination of the above accounting to at least € 5 million.

 

• 7.Persons whose deposits with the Popular Bank Public Company Ltd have been impaired due to the measures implements after the 15th March 2013:

 

The applicant has incurred an impairment in deposits amounting to a total of at least € 3 million.

 

In the case where the applicant has incurred an impairment in his /her deposits under €3 million he/she may apply, having made an additional investment through the criteria 1,2,3,4 and 5for the balance of the required amount of the aforementioned criteria.

 

OR

 

• 8.Major Collective Investments:

 

The Council of Ministers shall have the right on special occasions, to reduce the above criteria (1 Investment in Government Bonds) 2(Investment in financial assets of Cypriot companies or Cypriot organizations) 3 (Investment in real estate, land development or infrastructure projects) and 4 (Purchase or creation or participation in Cypriot businesses and companies):

 

To € 2.5 million for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least € 12.5 million.

 

In addition, it is noted that for the above mentioned provision, the Investment for the Criteria 1 until 4 may be realized through a different salesman/provider (physical or legal entity).

 

In addition to the criteria mentioned above, the investor must fulfil the following Terms and Conditions:

 

Clean Criminal Record issued at the country of origin or the Country of residence if it differs (to be obtained by the applicants).

 

Confirmation that the applicants name is not included in the list off persons whose property is ordered to be frozen within the boundaries of the European Union (the responsibility to obtain this is with the Ministry of Interior).

Own a permanent private residence in the Republic of Cyprus, the purchase cost of which must exceed the amount of € 500.000 plus VAT and must be fully paid. The residence must be kept for life.

 

If through periodic inspections by Authorities, it is ascertained that any condition is violated, the Cyprus naturalisation may be revoked. It is advisable that the investor pays one visit to Cyprus before application.