An introduction to and its immigration programmes

Christos Vezouvios Advocate/Partner Andreas Neocleous & Co LLC

Cyprus immigration programs

There are two government immigration programmes for non-Cypriots who invest in Cyprus

• Economic programme provides a fast track application process leading to Cypriot citizenship and Cypriot passport and identity card.

• Permanent Residence program (Permanent Residence Permit program) provides a fast track application procedure for the issue (within two months) of an Immigration Permit allowing the holder and his or her family members to reside in Cyprus with no restrictions on the duration of stay

What are citizenship schemes? Citizenship • Refers to the status of an individual (the citizen) that is recognized under the law of the state concerned. • It allows the citizen to exercise the rights and privileges of citizenship (eg to vote or to enjoy social benefits); and obliges the citizen to adhere to and carry out particular duties (eg military service).

Naturalization • Refers to the legal process by which a non-citizen acquires the citizenship of another country

Citizenship scheme • There are a variety of reasons why particular individuals would want to obtain citizenship of another country; • Similarly, many countries would like to attract particular individuals (especially high net worth individuals)

Incentives to apply for a citizenship scheme • Personal factors – Family reunification – Higher quality of life – Lower crime levels • Financial factors – Tax planning benefits – Opportunities for business expansion – New markets or exploration of new business ventures • Opportunities for movement – Unrestricted movement or reduced visa formalities in various countries

Alternatives to citizenship schemes

Resident visa • Allows individuals the privilege of residing within a country of which the person is not a citizen

Permanent resident visa • Allows the privilege of residing indefinitely within a country of which the person is not a citizen

 Both offer only limited rights compared to citizenship schemes

Cyprus

The Scheme for Naturalization of Investors in Cyprus by Exception

• 2011: Cyprus introduces a fast-track option allowing qualifying individuals to obtain Cypriot citizenship by naturalization

• 13 September 2016: Council of Ministers introduces the revised Scheme for Naturalization of Investors in Cyprus by Exception, which came into force on 1st November 2016

Main criteria

• Investment of at least €2 million (plus VAT if applicable) • Eligible investments can also be investments effected up to three years prior to the application date • The investment must remain for at least 3 years after citizenship is granted • Clean criminal record • Applicants must also own a private residence in Cyprus for the minimum amount of €500,000 (plus VAT if applicable)

Eligible investments

• Investments in immovable property, developments and infrastructure projects • Purchase, establishment or participation in a business or company active in Cyprus • Investments in Alternative Investment Funds, which hold qualifying investments for the purposes of the Programme • Investment in Government Bonds issued by Public Debt Management Office for the maximum amount of €500,000 • Combination of any of the above

Eligible investments Immovable property • The applicant must invest not less than €2 million for the purchase or development of immovable properties or other developments (residential or commercial or other infrastructure projects) • Undeveloped land does qualify as a valid investment for the purposes of the program, provided that an investment plan to develop the land is submitted. The land must be under a zone which allows development. • The VAT, transfer fees, stamp duty are not deemed part of the investment. • A resale property is eligible for the purposes of the programme • The purchase of a single residential unit over €2 million, investing purely in residential units eliminates the necessity to purchase an additional residence for the minimum amount of €500,000, provided that one unit was purchased for the minimum amount of €500,000 and will be the applicant’s main residence in Cyprus

Eligible investments Alternative Investment Funds

• The applicant must invest not less than €2 million for the purchase bonds or units in AIF in Cyprus • Securities and bonds must be issued in Cyprus by Companies which are incorporated and have activities in Cyprus • The AIF must be registered and Regulated by the Cyprus Securities and Exchange Commission • If the investment is purchase of units in an AIF, then the Fund’s investment must be in an eligible investment under the programme

Eligible investments Establishment or participation in companies

• The applicant must invest at least €2 million in purchasing, establishing or participating in a business or company or companies established in Cyprus • The company(ies) must have business activities in the Republic of Cyprus • The businesses or companies must have a physical presence in Cyprus • The businesses or companies must employ at least 5 Cypriot citizens or EU nationals which already had a legal stay in Cyprus for the past 3 years.

General provisions

• An investor may choose to invest in Cyprus in a combination of areas and the investments will be accepted as valid for the purposes of the programme as long as the prescribed threshold is reached • The investments, including the private residence, may be purchased either personally, or through corporate structures, trusts, foundations and the like, as long as the applicant can show that he or she is the ultimate beneficial owner of the investment or the relevant part of it. • The applicant will receive the citizenship after six months from the date of receiving the Permanent Residence Permit, for which the applicant applies for simultaneously with the application to receive the citizenship

General provisions

• Applicants up to the second degree of relationship who filed separate applications can purchase a residential property jointly provided that the residence has a minimum value of €500,000 multiplied by the number of applicants

• A high-ranking senior manager may apply even if he or she is not the UBO of the investment, provided that he or she receives remuneration that generates tax revenue for Cyprus of at least €100,000 over a three year period and provided that this tax has already been paid or is prepaid.

Who receives citizenship?

• The main applicant • The spouse of the applicant • Children under the age of 18 (through simple registration) • Adult children of the applicant between the age of 18 and 28, provided that they are dependents of the main applicants and are enrolled students at a recognized academic institution (excluding courses leading to professional qualifications) • The spouse will receive citizenship simultaneously with the main applicant. The children will receive it after the main applicant receives his or her passport • Parents of the applicant, provided that they also own a private residence in Cyprus, which was purchased for the minimum amount of €500,000

Why choose the Cyprus economic citizenship programme? • Transparent and trustworthy • High quality of life – Cyprus is prominently in surveys and research on the list of countries that are best to operate, live, work or retire in • Cyprus is an EU member state – EU citizenship for all the members of the family of the applicant (spouse, children under the age of 18 and qualifying children up to 28 years old, plus the parents of the applicant – Right to live, work and study in any other EU country with privileges of a citizen – Multiple nationalities (passports) are allowed under Cyprus Law • Freedom of movement – Schengen area and more than 150 countries around the world

Permanent residence permit programme

Main criteria • Acquire a property with a minimum purchase price of €300,000 (plus VAT ) in Cyprus • The property must be purchased from a developer • The property must be sold for the first time • Deposit a minimum of €30,000 in a Cyprus bank; • Annual income of at least €30,000 (additional €5,000 for every dependent person and €8,000 for each parent of either main applicant or parent of the applicant’s spouse).

Permanent residence permit Who will receive the permanent residence permit? • The main applicant • The applicant’s spouse • Children under the age of 18 • Adult children of the applicant up to the age of 25, provided that they are dependents of the main applicant and are enrolled students at a recognized university • Parents of both the applicant and spouse • All the members of the family will receive the permanent residence permit simultaneously

General provisions

• None of the members of the family, including the main applicant will be allowed to work in Cyprus • Although access to employment is prohibited, the holder may establish a Cyprus company through which he or she may engage in business activities as a shareholder, but not as an employee • Application may be filed without the applicant having to be present in Cyprus • The holder of a permanent residence permit must visit Cyprus within 12 months after the permit was granted (no minimum stay) • He or she must thereafter continue to visit Cyprus before two years have lapsed since the last exit from Cyprus

Malta Individual Investor Program (MIIP)

Criteria: • Contribution of €650,000 to the National Development Fund; or • Purchase and ownership of property valued €350,000+; or • Rent a property with a minimum annual rent of €16,000 per year for at least 5 years; • No criminal record; • Residency in the country for a minimum of year; • Global health insurance policy

Malta Advantages Disadvantages • EU citizenship • Low standards of scrutiny • Commonwealth • Heavily criticized from citizenship EU for setting low • Visa free travel requirements • Lenient • Passport after 12 months • Must prove residency

St Kitts & Nevis and Antigua & Barbuda $290.000 Investment for both Jurisdictions

Advantages Disadvantages • Dual citizenship • citizenship citizenship • No EU access • Visa free travel

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