A Glimpse Into Cyprus Immigration Law With An Emphasis On Citizenship

Cyprus constitutes the ideal destination for those seeking to embark upon a new and desirable habitat. The island offers high living standards, extraordinary outdoor attractions and sceneries, a Mediterranean climate in conjunction with a stable, sound and contemporary business environment with quality infrastructure. In this way, the island signifies a suitable destination for a wide range of individuals either seeking a permanent oasis or potential business and employment opportunities. In combination with its ideal location, Cyprus offers a considerably advantageous gateway to Europe.

The third largest Mediterranean island after Sicily and Sardinia, Cyprus is located in the North – Eastern Basin of the Mediterranean Sea, at the crossroads of 3 major continents, namely Europe, Asia and Africa. It is widely accepted that the crucial position of the Country along with the existence of a dynamic and flexible entrepreneurship and a highly educated labour force has to a great extent fostered its prospects for financial development.

The Council of Ministers decision dated 19/03/2014, by virtue of which amendments were made to the Scheme for Naturalization of Investors in Cyprus by Exception, as intended by the Cyprus Government, has proved to be attractive to foreign investors. Consequently, the interest expressed by foreign Investors regarding the aforesaid has increased substantially over the past year. This is firstly, due to the benefits attached to Cyprus citizenship including but not limited to free movement within the European Union and secondly, the attractiveness and flexibility offered by the said scheme.

The primary financial requirement entails an investment of at least €5.000.000 in Cyprus Government bonds (Criteria Α.1 ) or Financial assets of Cypriot companies or Cypriot organizations (Criteria Α.2)  or Real Estate, Land Development and Infrastructure Projects (Criteria Α.3)  or Purchase or Creation or Participation in Cypriot businesses or companies (Criteria Α.4) or Deposits in Cypriot banks (Criteria Α.5). It is further permitted to proceed with a combination of the above described Criteria, provided that the total amount of the investment equals €5.000.000. The said decision also provides for the option of proceeding with a Major Collective Investment. Specifically, an investment of at least €2.500.000 in either of the Criterions A.1 – A.4 is required for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least €12.500.000.

In brief, the benefits of acquiring Cyprus Citizenship include inter alia, the following:

• Citizenship is granted to the applicant & his/her dependent family members.
• The timeframe for the completion of the examination procedure is approximately 3 (three) months from the date of submission of the applications.
• There are no Greek language proficiency requirements and no obligation to reside in Cyprus.
• Freedom of movement and establishment within the EU.
• Free movement of capital, services and goods.
• The acquisition of Cyprus citizenship does not require the renouncement of existing citizenship, which may thereby be retained.
• A combination of investments is available hence, allowing the investor to spread investment risks.

• The investments are required to be maintained for no longer than 3 (three) years from the date of approval of the application by the Council of Ministers.
• The island offers high standard of living and Education as well as a Mediterranean Climate
• Cyprus is characterized by a modern legal framework rooted in UK Common Law.
• The Republic of Cyprus has managed to facilitate exceptional diplomatic and economic associations with not only Europe, but also with jurisdictions such as Russia, China, India, North America and the Middle East.

• Large network of Double tax treaties.

It is further noted that in pursuance of the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of Interior has decided to issue Permanent Residency Permits to applicants from third countries that satisfy certain financial criteria. Cyprus Permanent Residency is granted to the applicant & his/her dependent family members, the estimated timeframe for issuance of the permit is 2 (two) months from the date of submission of the applications. Lastly, it is noted that the Permit is granted on a permanent basis and thereby, renewal is not required.

In addition, it is noted that recently, representatives voted on significant amendments to the Cyprus tax laws thereby, further improving the long established comprehensive and transparent character of the Cypriot tax system.

The amendments of primary significance are as follows:

• For property acquisitions taking place prior to the31/12/2016 the transfer fees payable at the Land Registry are reduced by 50% and totally abolished for those properties carrying VAT.
• For property acquisitions taking place prior to 31/12/2016, no Capital Gains Tax is payable whenever this property is subsequently sold.
• After obtaining citizenship or residency the holder may opt to become a Cyprus tax resident by residing in Cyprus for more than 183 days per annum. Albeit he may so elect, he will still remain exempted from the Special Defence Contribution tax on any dividends received from any corporate entity.

As a Firm, we have for many years been involved in the provision of immigration services and our primary objective has always been the provision of high standard services characterized by immense professionalism and tailored to the specific necessities of each Client. With regards to the acquisition of Cyprus citizenship or residency, our Firm is a fully equipped “one stop shop”, with separate Real Estate, Legal, Corporate and Banking Departments.  Evidently, our Firm may undertake the entire procedure as at the commencement of all initial investment proceedings until the final conclusion of the naturalization process for both the investor and his family. Hard work, a Client based service, a constant personal relationship, high speed response, flexible and competitive pricing but most of all honesty and trust, allow us to fully satisfy the expectations of our Clients. Our local knowledge and professional expertise are at your disposal.

Iosif Frangos

Advocate (LLB, LLM)

Executive Partner

BYBLOSERVE MANAGEMENT LIMITED

Iosif Frangos is the managing attorney of I.Frangos & Associates LLC, a Cyprus Bar Association licensed law firm, mainly engaged in corporate, tax, commercial, insurance, tort and banking law. Frangos, is the founder of I.Frangos & Associates LLC, a purely litigation law firm and its subsidiary Bybloserve Management Ltd which is specifically designed to provide a specialized fiduciary and corporate management service to international corporate clients.

He is a graduate of UCL London (LLB) and LSE London (LLM), a member of the Cyprus Bar Association and the International Tax Planning Association.