August 2020 changes into force:

• The parents of the applicant, as well as the parents of the applicant’s spouse are eligible to apply for the acquisition of the Cypriot Citizenship with a supplementary investment of €500.000 plus VAT (if applicable), individually or collectively 1-million-euro.
• Dependent adult family members (18 to 28 years old) can now apply for the acquisition of the Cypriot Citizenship through naturalization by exception, simultaneously with the main investor. This is a major change since it reduces dramatically the application waiting time.
• Financial dependent adult children between the ages of 18 – 28 years old, which are married, are no longer qualified to apply under their parents’ application. If they wish to be eligible to apply for the acquisition of the Cypriot citizenship, then they must process a separate application and fulfill all the requirements of the program as stated by the Civil Registry Laws of the Cyprus Investment Programme.
• Applicants are no longer eligible to apply for the acquisition of the Cypriot Citizenship through the incorporation of a development company and/or investment in own development project.
• If an applicant chooses to invest in a Cypriot company, then it must employ at least nine (9) Cypriot or EU citizens in order to be eligible to apply.
• The donation amounts to the Research and Innovation Foundation, as well as to the Cyprus Land Development Corporation, changed from €75.000 euro to €100.000 euro each. Donation is now settled to €200.000 in total.
• According to the regulation provisions of the program, all funds related with the fulfillment of the investment criteria of the Cyprus Investment Programme, including the purchase of the permanent private residence of the applicant and Republic payments for the investments, should be wired from the applicant’s overseas bank account or the applicant’s company / companies to a licensed Cyprus Financial institution that is controlled by the Central Bank of Cyprus. It is noted that all wired transfer copies should be attached to investor’s application upon submission.
• The police clearance certificate must be no more than six (6) months old.
• Political Exposed Persons (PEPs) should not have held public office up to a year before the time of their application, in order to be eligible to apply. It should be stressed that this change from five (5) to one (1) year applies only when PEPs did not occupy important political positions i.e. ministers or their deputies, ambassadors, heads of states or governments, cities mayors etc.
• Applicants that were convicted with a serious criminal offence with a sentence over five (5) years, or any other offence of similar severity, are not eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme. This restriction applies also if an applicant is convicted for a specific crime in another country, that crime is considered to be a crime held in the Republic of Cyprus, with a resembling imprisonment sentence.
• Additionally, applicants that are under criminal investigation with a possible sentence of minimum five (5) years are not qualified to submit an application for the acquisition of the Cypriot Citizenship through naturalization by exception.

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Chambersfield Economides Kranos immigration experts can assist in all your immigration matters by providing the right consultation and handling all the processes of your application, in order for you and your family to find the home of your heart.

Our team of lawyers can lead the way in making your dreams come true and open the door to the world for you.

The right way to do that is through Government Approved Immigration Schemes and your trusted Legal Firm’s guidance.

There are plenty of ways for someone to obtain the “ticket” for a new life in a different destination but complicated as it is, they will need the professional assistance of an experienced law firm.

The journey to a whole new life starts with answering the questions: Where? Which? How?

Where?

Imagine…deep blue sea, multi-awarded beaches, amazing cuisine, countless business opportunities, safety, high quality of life. Cyprus is the place to live, do business, grow old and the island’s Investment Program is one of the most powerful, as it ranks 7^th in the world.

Being the crossroad for three (3) continents, it is only natural for Cyprus to turn into a business power among strong players in the surrounding area, especially during the last decade.

Which?

Chambersfield Economides Kranos can assist you explore all the available options when seeking Relocation in a foreign country as well as the type of migration suitable for your case.

Depending on the migration option, the criteria and processing time vary from case to case.

Firstly, Cyprus Investment Program (*special conditions apply) is one of the most important schemes as it is a real, intangible asset, transferable to the next generation. An additional nationality allows owners to benefit from its great advantages as

• acquisition of a visa free regime in more than 170+ countries
• safety
• open market driven economy
• the right to live, work and conduct business in a favorable corporate jurisdiction
• flexibility in tax restructuring
• reliable legislative and regulatory framework
• access to its own educational and medical system
• highly specialize human capita
• right to open bank accounts, etc.

Another option is the Permanent Residence Scheme (*special conditions apply), through which individuals can apply for a nationality after a certain period of time residing in Cyprus, so as to enhance the overall quality of their family’s life, lift possible travelling restrictions and visa requirements.

Additionally, with Cyprus Permanent Residence scheme, non – Cypriot citizens safeguard their family by migrating in a country with political stability, low criminality levels, modern infrastructure etc. while simultaneously continue to be citizen of their country of origin.

Naturalization based on years of residence is the third option. Applicants can be foreign nationals who have completed seven (7) years of legal residence in Cyprus prior to their application.   When applicants are either children or parents of Cypriot citizens, legal residence time required is five (5) years.

In both cases, applicants must have lived legally and continuously in the island for the twelve months preceding the application (*special conditions apply).

Additionally, non-EU workforce is entitled to receive Cyprus residence and work permits under special provisions for Cyprus companies with foreign interest.

There are three (3) categories of staff which are entitled to receive Immigration Work Permits, upper management staff, middle management staff and supporting staff. For each category, criteria for applying vary and prior to approval, the Cyprus company of foreign interest must be approved by the Migration Department as a company of foreign interest.

Also, nationals from third countries wishing to stay in Cyprus more than three (3) months, can apply for the Temporary Residence Permit as a Visitor, with no employment rights (*special conditions apply).

Under this category, applicants can either be third country nationals who married Cypriot citizens as well as their minor children, third country nationals who wish to extent their temporary residence permit and have adequate financial resources from abroad and third country nationals who wish to obtain their temporary residence permit because they will marry a Cypriot or an EU citizen.

Additionally, anyone who wishes to enter the Republic of Cyprus for ninety (90) days or less and originates from third countries that not special treaties are being signed, must apply and obtain a Visa as visitors for either business or pleasure (*special conditions apply).

There are various categories for Visa applications, such as Airport Transit Visa (category A), Short-stay Visa for 1 to 90 days (Category C), Multiple entry Visa for up to 5 years (Category C), Visa issued at the border (Category C), Visa Extension (Category C) and Long-Stay Visa (Category D). Keep in mind that having a valid visa does not grant its owner the absolute right of entry to the Republic of Cyprus and applicants will be required to provide specific evidence upon arrival.

Nationality as a spouse of a Cypriot citizen enables third country nationals for Nationality acquisition (*special conditions apply), provided that they have completed three (3) years married and two (2) years as residents in Cyprus (prior to the application).

Last but not least, Family members of Cypriot citizen who are not citizens of a Member-State, can be eligible for Residence Card which must be submitted by their family members within four months from the entry date into Cyprus (*special conditions apply).

How?

Whichever the situation, applying for naturalization can be time-consuming and quite complicating procedure which requires expert and thorough approach. To avoid mistakes which may lead to major problems with your application or even possible rejection, refer to an experienced and trusted Legal Firm in order to get the professional guidance you require and handle your case.

Chambersfield Economides Kranos, International Law Firm, can offer its professional services on all aspects of Immigration Law for EU and Non-EU nationals in order to unburden you from all the stressful immigration matters and long processes.

Whether you are an individual or a family or an entrepreneur or a business entity, immigration still remains a personal issue and should be addressed in the most professional way.

Spend your valuable time with your loved ones as we built a better future for you in the beautiful island of Cyprus.

The post Immigration Services appeared first on Chambersfield Economides Kranos.

This superb world recognition only adds value to the island’s ranking as the 5^th safest country in the world for 2020. Travelers from around the globe are seeing Cyprus as one of their best options to travel to, after being locked down for several weeks, where COVID-19 is under control and restriction measures are basically fundamental hygiene routines which should always be applied.

The island’s ranking was a result of various factors taken into consideration, such as transport, natural disasters, effectiveness of healthcare system and terrorist threat and crime levels.

Just in a few months and in the middle of a worldwide chaos, a small island in the Mediterranean rose through the mess and managed to come up as a TOP tourist and investment destination.

Cyprus Investment Program and Permanent Residence Scheme

Being an established business hub for many decades, Cyprus naturally attracts numerous high net worth individuals and investors to register their companies in the island as well as exploit the Cyprus Investment Program and Permanent Residence Scheme and gain from the relevant benefits of both programs.

The Cyprus Investment Program is quite beneficial for the applicants as numerous advantages will add value to their business transactions.  Non – Cypriot citizens that apply for the acquisition of the Cypriot citizenship through naturalization by exception, may gain Visa free travel to 174 countries including all EU countries, Canada, Japan, Singapore etc. Additionally, they have the right to live, work and study in EU countries as well as gain access to full residence status with employment all over Europe. What is more, Cyprus Investment Program allows for free trade within the European Union with low tax rates and increased profit margin.

Permanent Residence, on the other side, has the privilege of continuing benefit from your current citizenship status, while, under certain residency requirements, can be converted to Nationality. PR Scheme minimizes requirements of entry in EU while the owner is entitled to permanently reside in Cyprus and eases access to Schengen Zone countries.

Real Estate is the preferred industry among investors as this particular sector is one of the most renowned, long-term type of investment for various significant reasons.

Investing in properties never goes “out of style” as people will never stop looking for properties and the demand for new or renovated properties will always be high.

Through their properties, owners can generate a steady passive income, either short-term or long-term, with minimum expenses through the years; not to mention high rates of Return on Investment.

The overall industry is quite stable and that makes Real Estate a relatively low risk investment with high rates of recovery through time. Various market researches have proved that Real Estate ALWAYS recovers after an economic recession and prices go back up in a short period of time.

Properties are also depreciable thus less income taxes payable, and also, they can be renovated, resold, demolished and recreated which can increase their value significantly and endlessly.

Following a widely accepted successful strategy for the prevention of the pandemic spread, Cyprus Government issued detailed protocols for the safe re-opening of the island, so that tourists, investors and locals stay safe during the transition period, from the re-opening to the return to normalcy.

Protocol letter, in the form of Questions and Answers, was sent to the island’s partners abroad to initiate the overall promotional strategy and attract visitors on numerous points as listed below:

Island Entry

Countries are separated into  categories, Source Countries Category A (Malta, Greece, Bulgaria, Norway, Austria, Finland, Slovakia, Hungary, Israel, Denmark, Germany, Slovenia, Lithuania) and Source Countries Category B (Switzerland, Czech Republic, Poland, Romania, Croatia,Estonia) based on internationally available epidemiological data. As from June 20, travellers from countries in category A will not need a health certificate for COVID-19.

On the contrary, travellers from category B countries are required to provide a PCR test certificate at the source country 72 hours prior to travel. If their country is unable to make a PCR testing widely available to the public, compulsory testing will be required upon arrival at Cyprus airports, at a cost of 60 euros per person.

Tourists and visitors from source countries not featured in the two categories, will be allowed only in extraordinary occasions and only after they have received prior approval by the Cyprus Government. This will also be applied for transit travel via these countries.

Necessary Documentation

COVID-19 Traveler Declaration (available on the Cyprus Foreign Ministry`s website) which will be requested prior to boarding and at border control at the destination.

Additionally, the Traveler Declaration will include information regarding the travelers trips up to 14 days before arrival in the island, confirmation that the traveler has not visited or resided in a country excluded from categories A and B, confirmation that has not shown any COVID- 19 related symptoms for a period up to 72 hours before the flight and that they did not have any contact with COVID-19 patients 14 days before the flight.

A disclaimer stating that the traveler is coming to Cyprus at their own responsibility and that the Republic of Cyprus and business operating within, cannot be held liable for infection during the travel period. Furthermore, they must provide a disclaimer upon return to their country of origin, a person will notify the Health Authorities of Cyprus, should they display COVID-19 symptoms in the 14 days leaving the island.

Transport protocols

Prior to boarding, travelers will need to present a valid PCR test certificate (when applicable) and “COVID-19 Traveler Declaration”. Travelers’ temperature may possibly be taken prior to boarding. Wearing of masks may be made compulsory during the flight.

Arriving at the Cyprus airports, entrance will only be allowed to travelers and working staff. Travelers will also have their temperature taken at border control.

Destination protocols

• All hospitality establishments have devised enhanced health and safety protocols and their staff will undergo extensive training.
• Physical distancing measures will also be required for people from different travel groups (2sq. meters outdoors and 3sq. meters indoors).
• In cases where physical distance is not possible (public transport, airports etc.), wearing a mask is compulsory for staff and visitors.
• All indoor spaces should frequently be aerated in order to enhance air conditioning with fresh air regularly.
• All establishments will be equipped with antibacterial gel.

Buses/rental vehicles / taxi / diving and safari jeeps

• Frequent aeriation and disinfection of buses and rentals (after their return).
• Disinfection of all touch points after every route for taxi and safari / diving jeeps.

Archaeological sites, museums, theme parks, mini cruises, diving sites, water sports

• Disinfection of all touch points after every route

Swimming pools, beaches and water parks

• Disinfection of umbrellas, safe boxes and sunbeds after every use.
• 4m distance between umbrellas and 2 meters between sunbeds for people from different groups.
• Lifeguards who are called on a life-saving incident, are not obliged to physical distancing.

Accommodation establishments

• Use of masks for all cleaning staff and other staff.
• Spreading of guests at group check-in.
• Allocations of rooms will only be made after a certain period of time has passed (appropriate cleaning, disinfection and aeriation).
• Disinfection of room key cards after every departure and prior to arrival.
• On self-service stations, where food and drinks are placed, hand disinfection stations as well as sneeze guards will be created.

Restaurants, bars, cafes, pubs and nightclubs

• It is required of all staff to wear mask and use proper hand hygiene but, however, not mandatory for staff serving outdoors during the daytime because of the intense heat.
• The set party size number of people is 10 people.
• Minimum distance between tables of people from different groups set to 2 meters.
• After every use, the menus will be disinfected (when they are not disposable).
• Card payments will be encouraged instead of cash payments.
• Disinfection of all touch points after every use.
• Towels and table linens will preferably be disposable.
• At the entrance, there will be an information notice, displaying the maximum number of people allowed in the place at any given time.

COVID-19 Testing

Regardless of country of origin, randomly picked travelers will be tested for the new COVID-19 when they arrive in Cyprus and the government will bear the cost of the test.

If a visitor tests positive, they will receive the necessary medical care for free (the cost of lodging, food, drinks and medication will be born from the Republic of Cyprus) and they will only pay for the cost of returning ticket.

A hospital especially for COVID-19 will be available only for travelers who tested positive during their stay in Cyprus. Dedicated quarantine hotels (approximately 500 beds) will be available for the close contacts of the COVID-19 positive travelers.

The above protocols aim at continuing the successful virus spread prevention strategy, Cyprus Government followed during the lockdown period of March – May 2020.

Taking everything into account, now is the time for a general restart, economy wise as well as business wise.

What is better than a thriving economy back on its feet, with excellent investment opportunities and an ideal destination for vacation?

The post A Superb, Worldwide First for Cyprus appeared first on Chambersfield Economides Kranos.

Why?

Because for investors, additional citizenships are considered to be valuable assets for them and their families due to the fact that citizenships offer them the opportunity of enhancing their quality of life and gain them access to additional jurisdictions without getting a visa.

However, time is of great importance, since particular citizenship schemes may not be continued forever and therefore, investors wishing to obtain additional citizenships should move forward with their CBI program selection without any delays.

Ultra – High – net worth (UHNW) and High-net-worth (HNW) individuals consider dual Citizenship an excellent investment opportunity because of the scheme’s benefits for them, their families and businesses.

• Firstly, their overall quality of life will be enhanced as dual citizenship represents a lifetime asset and has an immediate impact on their life.
• Secondly, the mobility offered by the additional citizenship is an important advantage for investors as they will instantly acquire a visa free regime for a number of countries.
• Thirdly, the owners of the additional citizenship have the opportunity to live, work or make business in the second country because they instantly gain the same rights as a local individual. For example, access to educational system, business operation, holding of bank accounts, property ownership, medical system and a lot more.
• Fourthly, through the visa free regime, dual citizenship owners can travel between countries, without having to acquire a long-stay visa or asked about the purpose of their travel (subject conditions).

One jurisdiction that is considered to be heaven on earth is Cyprus. The geographical position, business and professional infrastructure, the sunny weather and awarded, renowned beaches make it a popular business and vacation destination in the Mediterranean. The island country operates in an open and market driven economy, where foreign investors are allowed to own property and establish business entities under favorable conditions that are regulated by the Republic of Cyprus.

Known as a center for foreign investments, offshore businesses and activities, Cyprus is a tax heaven jurisdiction, since it offers one of the lowest corporate taxes in Europe, 12.5%.  Additionally, Cyprus has one of the lowest crime rates in the world.

The local economy has a diversified power through drawing resources from various activities.  A high percentage of Cyprus GDP results from tourist services, financial services and the shipping industry.  The Republic of Cyprus is concentrating on developing all these sectors by promoting a low tax scheme regime, among others.

The key factors that make Cyprus an attractive destination for investment are the highly specialized human capital, reliable legislative and regulatory framework, straight forward tax system, safe and stable conditions prevailing in the country.

Along with Cyprus, Caribbean Islands are also beneficial jurisdictions when it comes to additional citizenships through investment.  Antiqua and Barbuda, St. Kitts & Nevis, Grenada and Dominica are some of the Caribbean Islands offering dual citizenships with many advantages for the Ultra – High – net worth (UHNW) and High-net-worth (HNW) individuals, who want to invest in order to get the additional citizenships.

Investors will highly benefit from the Citizenship by Investment schemes for many reasons such as:

1. Dual citizenship privilege
2. No physical residence requirements before or after citizenship (subject to conditions)
3. Estimated time 2 – 6 months
4. Visa–free regime to more than 110 countries including EU, Schengen Zone, Japan, Singapore etc (subject to conditions of each jurisdiction)
5. Inclusion of dependent children or grandparents (subject to conditions of each jurisdiction)
6. No interview requirement
7. No foreign income, inheritance tax, gift or capital gains tax (subject to conditions)
8. Transferable to the next generation (subject to conditions)
9. Full Residence status

Cyprus and Caribbean Islands Investment programs are an alternative way of investing in something which, besides the financial benefits, can open the door to an entirely new world of opportunities, both business and personal.

Our internationally awarded law firm, Chambersfield Economides Kranos has a great expertise in proposing Government approved Citizenship by Investment schemes to Ultra – High – net worth (UHNW) and High-net-worth (HNW) individuals, as well as business investors, around the globe.

The firm’s legal team is constantly updated to the latest modifications and changes in regards to the citizenship by investment programs. It will be your trusted partner through the whole process and documentation while you start dreaming a brighter future, for you and your family.

The post CBI | An investment scheme worth looking into! appeared first on Chambersfield Economides Kranos.

On the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2019

One of the main objectives of the economic policy of the Republic of Cyprus is to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and conduct their business in Cyprus. Key factors that make Cyprus an attractive destination for investment, is the highly specialized human capital, the reliable legislative and regulatory framework, the stable tax system and the safety and stability conditions prevailing in the country.

Within this framework and taking into account the strong investor interest, the Government of Cyprus has established and revised the “Cyprus Investment Programme” (Programme) on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2019, with specific incentives, terms and conditions and control procedures in order to prevent abuse.

On the basis of the Programme, a non-Cypriot citizen may apply for the acquisition of the Cypriot citizenship through naturalization by exception, if he/she fulfills the financial criterion A.1 and one of the financial criteria A.2-A.5, either personally or through a company/ companies in which he/she participates as a shareholder – in proportion to his/her holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/ companies that fulfills the financial criterion A.1 and one of the financial criteria A.2-A.5.

Moreover, a high-ranking senior manager may apply, provided that he/she receives such a remuneration that generates for the Republic tax revenues of at least €100,000 over a three-year period and provided that this tax has already been paid or prepaid.

The applicant should have made the necessary investments during the (3) three years preceding the date of the application and must retain the said investments for a period of at least (5) five years as from the date of the naturalization. It is understood that the investor may replace the investment during the said five-year period, provided that he/she has obtained beforehand an approval by the Ministry of Finance.

In addition, the applicant must fulfill the Terms and Conditions set out in Part B.

In case where, following a periodic inspection, it has been established that a Criterion, Term or Condition of the Programme has been breached, the granted naturalization may be revoked.

None of the clauses mentioned in the Programme affects the absolute discretion of the Cabinet of Ministers on making a decision.

Α. FINANCIAL CRITERIA

Α.1 Donation to the Research and Innovation Foundation and the Cyprus Land Development

         Corporation:

(a)  The applicant must have donated at least €75.000 to the Research and Innovation Foundation. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75.000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria A.2-A.5.

Furthermore, the aforementioned obligation is lifted, if the applicant has invested at least €75.000 in a certified innovative enterprise (i.e. an enterprise that had acquired the relevant certificate by the Ministry of Finance) or a certified social enterprise.

In addition, the obligation is lifted, if the applicant has made an investment under the criterion A.3 (Purchase or Establishment or Participation in Cypriot Companies or Businesses) of a total amount equal to the 20% of the required investment amount (i.e. €400.000) of the above-mentioned criterion A.3 in a company whose operations fall within the primary sector of the economy, or the secondary sector of the economy (excluding constructions), or in the sectors of research and development, education, health and renewable energy sources.

(b)  The applicant must have donated at least €75.000 to the Cyprus Land Development Corporation for the financing of housing schemes for affordable housing, but also for the materialization of other housing schemes/measures. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75.000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria A.2-A.5.

Α.2Investment in real estate, land development and infrastructure projects:

The applicant must have made an investment of at least €2,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector) or other infrastructure projects.

It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded.

Α.3 Purchase or Establishment or Participation in Cypriot Companies or Businesses:

The applicant must have invested at least €2,0 million for the purchase or participation in companies or organizations established and operating in the Republic of Cyprus with investment costs of. The invested funds shall be channeled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan.

Moreover, investments in the shipping sector are eligible on the basis of measurable criteria that will be determined jointly by the Ministry of Finance and the Shipping Deputy Ministry.

The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least (5) five Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company.

Α.4 Investment in Alternative Investment Funds or Registered Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus Securities and Exchange Commission:

The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) or Registered Alternative Investment Funds (RAIF) established in the Republic of Cyprus, licensed/registered and supervised by the Cyprus Securities and Exchange Commission (CySec) and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Programme or in areas approved by the Minister of Finance. It is permitted for these AIFs or RAIFs to invest in secondary market stock-market values of the Cyprus Stock Exchange an amount that does not exceed the €200.000.

In order to confirm that the investments that meet the criteria of the current Programme will be retained for at least 5 (five) years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministry of Finance with reference to the value of the initial investment.

The purchase of financial assets of Cypriot companies or organizations of at least €2,0 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion.

It is noted that the purchase by an AIF or RAIF of units of other AIFs or RAIFs is not considered eligible.

Α.5 Combination of the aforementioned investments:

The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least €2,0 million.

B.  TERMS AND CONDITIONS

1. Clean Criminal Record:

The applicant must have a clean criminal record. Furthermore, his / her name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions.

Moreover, an applicant whose application for citizenship in any other member-state of the European Union had been rejected, is not eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme.

2. Schengen Visa:

The applicant must hold a valid Schengen visa. Third-Country nationals that do not require an entry visa for travelling in European Union member-states, as well as citizens of European Union Member States are excluded from this obligation.

It is noted that all the aforementioned in paragraphs 1 and 2 also apply for the family members of the investor that are eligible to apply for the acquisition of Cypriot citizenship.

3. Residence in the Republic of Cyprus:

In all cases listed in Part A, the applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.

It is noted that members of the same family, who apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of €500.000 per each applicant.

In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria of Part A above.

Additionally, it is noted that if the applicant has invested in housing unit/units on the basis of the aforementioned criterion A.2, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least €500,000, plus VAT, provided that the applicant retains the possession of the residence for life.

However, if the applicant has invested in housing units that have already being used for the purpose of acquiring the Cypriot citizenship via the Programme, the above provision will be in force provided that the total amount of the investments, including the privately-owned residence, is at least €2,5 million.

4. Residence Permit in Cyprus:

The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus in Cyprus for a period of at least 6 (six) months.

If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6(2) of the Aliens and Immigration Law, simultaneously with the application for naturalization. The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus for a period of at least 6 (six) months.

If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this Programme, there are no other conditions than those stated in both Part A and Part B of this Programme.

It is noted that all of the above also apply for the adult members of the family of the investor, who will apply for naturalization.

In case the application for naturalization is rejected for any reason, the immigration permit, obtained in accordance with the provisions of this decision, will be canceled immediately.

C.  SUBMISSION OF DOCUMENTS

For the evaluation of the applications the form (M127) as well as the following documents must be submitted:

1.Clean Criminal Record:

(a) Certificate of Clean Criminal Record from the country of origin and the country of residence (if different).

(b) Due Diligence Report issued through an internationally accepted database ensured through a subscription (e.g. Wolrd Check, LexisNexis Diligence, Regulatory DataCorp Inc. etc.). The report must be dated no later than thirty days from the date of its submission.

(c) Declaration by the applicant concerning any citizenship applications he/she may have submitted in any other member-state or member-states of the European Union.

2. Schengen Visa:

Copy of a valid Schengen Visa

3. Residence in the Republic of Cyprus:

(a) Contract of Sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.

(c) Proof of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

(f) Town-planning permit, provided that it is required by the Town and Country Planning Law.

(g) Declaration by the mortgage lender in the benefit of whom the purchased property or properties is mortgaged that will waive the mortgage, provided that the investor or the seller will pay the lender the amount conscribed in the declaration (bank waiver).

(h) Project completion certificate signed by the architect of the project. If the purchased property is under construction it is required either to maintain an amount equal to the 5% of the purchase value in a special account or for the seller to issue in the benefit of the purchaser a performance bank guarantee equal to the 5% of the purchase value.

3. Criteria regarding the investment (when applicable):

(a) Certificate of Registration of the company/ companies by the Registrar of Companies.

(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies.

(c) Audited accounts of the company (or companies) for the last three years preceding the year of the application.

(d) If the applicant is a high-ranking senior manager, the submission of the employment contract and the receipt from the Department of Inland Revenue are additionally required.

(e) If the investment is made by the spouse of the applicant or jointly, a marriage certificate is required.

Furthermore, depending on the case, the following are required:

1. Donation to the Research and Innovation Foundation and the Cyprus Land Development Corporation

(a) Copy of the wire transfer of the donation to the Research and Innovation Foundation to an account in a Cypriot commercial banking institution in the name of the Foundation.

(b) Copy of the wire transfer of the donation to the Cyprus Land Development Corporation to an account in a Cypriot commercial banking institution in the name of the Corporation.

(c) Innovative enterprise certificate.

(d) Investment Agreement in Cypriot company or companies.

(e) Proof of payment of the agreed amount.

(f) Certificate of shareholders by the Registrar of Companies.

(g) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(h) Specific investment plan.

(i) Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.

(j) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.

(k) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.

2. Investment in real estate, land development and infrastructure projects

(a) Contract of sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department. (c) Proofs of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

(f) Investment Plan for the development of the purchased land, if the investment involves the purchase of land under development.

(g) Town-planning permit, provided that it is required by the Town and Country Planning Law.

(h) Declaration by the mortgage lender in the benefit of whom the purchased property or properties is mortgaged that will waive the mortgage, provided that the investor or the seller will pay the lender the amount conscribed in the declaration (bank waiver).

(i) Project completion certificate signed by the architect of the project. If the purchased property is under construction it is required either to maintain an amount equal to the 5% of the purchase value in a special account or for the seller to issue in the benefit of the purchaser a performance bank guarantee equal to the 5% of the purchase value.

3. Purchase or Establishment or Participation in Cypriot Companies or Businesses

(a) Investment Agreement in Cypriot company or companies.

(b) Proof of payment of the agreed amount.

(c) Certificate of shareholders by the Registrar of Companies.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(e) Specific investment plan.

(f) Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.

(g) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.

(h) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.

3. Investment in Alternative Investment Funds or Registered Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus Securities and Exchange Commission:

(a) Title/Titles and other relevant documents of the financial assets / units purchased.

(b) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(c) Specific investment plan.

(d) Confirmation by the CySec.

Source: Ministry of Interior
28.2.2019

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What are investors’ main objectives?

What do investors examine before proceeding with the investment?

What are the best investments in Cyprus?

The list of questions is endless and the answers always vary, depending on the uniqueness of each case. Investments, as a concept, refer to any activity that intends to exploit new opportunities with the sole purpose of capital increase.

So, when an investment is materialized, the outcome should result in profit and capital increase, otherwise it is considered as spending. Consequently, investors seek a return on their capital, either on a long-term basis or as traders on a short-term basis.

The combinations of opportunities and options in the international market are limitless and no-one can list them all, per se, since they differ considerably.

My experience as a lawyer and CEO of the international law firm Chambersfield Economides Kranos has helped me identify many and varied promising investment opportunities in Cyprus. Before naming and analyzing them, I would like to mention a tendency that I have come across in the past few years, usually observed among young investors/entrepreneurs.  It is usually referred to as “analysis paralysis” and describes the way investors tend to over-think and over-analyze an investment opportunity, resulting in them taking no action. This is quite often found among start-ups, which are themselves considered high-risk investments. In their attempt to minimize their risks, start-up entrepreneurs over-analyze their options, resulting in an idea that is never realized.

Despite this, I must also say that, in the past few years, Cyprus has accomplished the impossible and is, in my opinion, among the ‘fighters’ of our era, earning the respect of the international market. After the financial and banking crises in 2013, the bailout programme agreed between the Government and the Troika (the European Commission, the European Central Bank and the International Monetary Fund), the downgrading to “junk” status by the credit rating agencies and the implementation of the AML Directives, Cyprus has managed to rise up and thrive once more, earning a place among the most dynamic and stable business centres in the world, with a growing economy that attracts international investments. Cyprus, as a European Union member state and a business hub, offers various investment opportunities.

Below, I identify some of these, from both traditional and emerging industries.

Top Three Traditional Cyprus Investments

1 Real Estate

The Real Estate industry is again thriving in Cyprus. The Cyprus Investment Programme is a significant booster which, when successfully implemented, encourages foreign direct investment (FDI) and attracts High Net Worth Individuals to settle and conduct their business activities in Cyprus. Today, there are numerous attractive opportunities in real estate, both commercial and residential units, all over Cyprus that promise a relatively secure initial capital investment, an excellent Return on Investment (ROI) and capital appreciation.

2 Tourism

According to the World Data Atlas, “In 2017, the contribution of travel and tourism to GDP for Cyprus was 22.3 %.” Moreover, Deputy Minister of Tourism Savvas Perdios has stated that “the tourism industry has the long-term potential to contribute to Cyprus’s economy by 25%.” Tourism is one of the strongest industries in the Cyprus economy and it is continuously increasing its competitiveness, through new developments and strategies. Therefore, investments on this sector are considered premium, especially when investors target large-scale projects such as the construction of marinas, luxury resorts, etc.

3 Shipping

Cyprus is renowned for its high-quality maritime services, as well as for its reliable operational infrastructure and appealing legal framework. As a result, Cyprus is the third largest ship management jurisdiction in the EU and possesses a large merchant fleet market share on a worldwide basis. An investment in this industry, through the establishment of a Cyprus entity, is considered very promising since services, registration fees and taxes are very competitive, compared to other EU member states. Additionally, it is worth noting Cyprus’ EU-approved Tonnage Tax System, which is a major advantage that should be taken into consideration by investors.

Top Three Emerging Cyprus Investments

1 StartUps

In the last few years there has been a substantial increase in the number of startups in Cyprus. The highly educated workforce and eligible human capital, incentives provided by the government (e.g. the startup visa regime), as well as the straightforward legislative incorporation framework and attractive tax system are just some of the main factors that have contributed to the startup sector’s growth. Major players in the field of technology have proven that Cyprus is a very favourable jurisdiction for startups, since, after their establishment in Cyprus, they have successfully run multi-million international businesses.

2 Investment Funds

Investment funds represent the new emerging market that Cyprus is seeking to expand and, to this end, it is continuously upgrading its regulatory and legislative framework in order to attract foreign direct investment and has already formed various Alternative Investment Funds (AIFs) and Undertakings for the Collective Investment in Transferable Securities (UCITS). Of course, this target would have been unreachable if the professional services sector was not so strong and well-educated to support this expansion. In my opinion, investors should take a closer look at Cyprus Investment Funds opportunities, since a lot of effort and support is being provided by the legislator and other supervisory authorities.

3 Energy

The discovery of hydrocarbons marked the start of a very promising new era for Cyprus in the energy industry. Energy giants have since approached Cyprus and formed strategical alliances, upgrading the jurisdiction to that of a developing oil and gas hub for the region. Of course, from the energy industry we should not omit the growth in renewable energy that Cyprus has experienced over the past few years, mainly in the areas of wind power and solar energy. I personally advise professional investors to monitor activities in the country’s energy industry very closely, since it holds great promise and enormous future potential for development and expansion. Cyprus is a country that has a lot of investment opportunities to offer. Potential investors are therefore advised to establish cooperation with law firms that can consult and assist them in selecting the best possible combinations of investment, determining risk tolerances and the capital required to achieve a successful portfolio allocation.

Info: Michalis Economides is CEO, Advocate & Legal Consultant, Chambersfield Economides Kranos Law Firm.

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on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015

The Council of Ministers of the Republic of Cyprus, on the 13th of September 2016 has issued an amended Regulation in relation to the Scheme for Naturalisation (Citizenship) of Investors in Cyprus by Exception.

One of the main objectives of the economic policy of the Republic of Cyprus is to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus.

Key factors that make Cyprus an attractive destination for investment, is the highly specialized human capital, the reliable legislative and regulatory framework, the stable tax system and the safety and stability conditions prevailing in the country.

Within this framework and taking into account the strong investor interest, the Government of Cyprus has established and revised a “Scheme for Naturalization of non-Cypriot investors by exception” on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015, with specific incentives, terms and conditions and control procedures in order to prevent abuse.

The changes are considered to be more attractive to investors that wish to obtain an EU/Cyprus citizenship.

The threshold of investment has been reduced to €2 million all together (if the investor has invested in housing properties and the value of at least one of them is at least €500.000. If the main investment is not in housing properties then the investment is €2m plus a residential unit of €500.000).

Another important positive change is that the parents of the main applicant are also eligible to apply and obtain the Cyprus/EU citizenship provided that they purchase a housing property of at least €500.000 (therefore they will not need to proceed with any main additional investment).

The “collective” scheme has been abolished by the new Regulation.

On the basis of the Scheme, a non-Cypriot citizen, who meets one of the following economic criteria (A), either personally or through a company/ companies in which he/ she participates as a shareholder – in proportion to his holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/ companies that meets one of the economic criteria (A), may apply for the acquisition of the Cypriot citizenship through naturalization by exception.

Α. CRITERIA

Α.1 Investment in real estate, land development and infrastructure projects:

The applicant must have made an investment of at least €2,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector) or other infrastructure projects.

It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded.

Α.2 Purchase or Establishment or Participation in Cypriot Companies or Businesses:

The applicant should have made a purchase or should have participated in companies or organizations established and operating in the Republic of Cyprus with investment costs of at least €2,0 million. The invested funds shall be channeled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan.

The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five (5) Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company. In addition, the employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date.

Α.3 Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec :

The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Scheme or in areas approved by the Minister of Finance.

In order to confirm that the investments that meet the criteria of the current Scheme will be kept for at least three years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministries of Finance and Interior with reference to the value of the initial investment.

The purchase of financial assets of Cypriot companies or organizations of at least €2,0 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion.

It is noted that the purchase by an AIF of units of other AIFs is not considered eligible.

Α.4 Combination of the aforementioned investments:

The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least €2,0 million.

Within this criterion (combination of investments) the applicant may purchase special government bonds of the Republic of Cyprus, up to €500.000, which will be issued by the Public Debt Management Office of the Ministry of Finance, on condition that the investor will retain these bonds for a three year period. The characteristics and the terms of these special bonds will be determined by the General and Special Issue Terms of the Government Bonds of the Republic of Cyprus. Investments in government bonds through the secondary market are not considered eligible.

B. TERMS AND CONDITIONS

1. Clean Criminal Record: the applicant must have a clean criminal record. Furthermore, his name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions.

2. Residence in the Republic of Cyprus: In all cases listed in Part A, the applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.

It is noted that members of the same family, who apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of €500.000 per each applicant.

In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, part of this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria of Part A above.

Additionally, it is noted that if the applicant has invested in housing unit/units on the basis of the aforementioned criterion A.1, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least €500,000, plus VAT, provided that the applicant retains the possession of the residence for life.

3. Residence Permit in Cyprus: The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus.

If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization. If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this Scheme, there are no other conditions than those stated in both Part A and Part B of this Scheme.

It is noted that all of the above also apply for the adult members of the family of the investor, who will apply for naturalization.

In case the application for naturalization is rejected for any reason, the immigration permit, obtained in accordance with the provisions of this Decision, will be canceled immediately.

C. SUBMISSION OF DOCUMENTS

For the evaluation of the applications the form (M127) as well as the following documents must be submitted:

1. Clean Criminal Record:

Certificate of Clean Criminal Record from the country of origin and the country of residence (if different).

2. Residence in the Republic of Cyprus:

(a) Contract of Sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.

(c) Proof of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

3. Criteria regarding the investment (when applicable):

(a) Certificate of Registration of the company/ companies by the Registrar of Companies.

(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies.

(c) Audited accounts of the company (or companies) for the last three years preceding the year of the application.

(d) If the applicant is a high-ranking senior manager, the submission of the employment contract and the receipt from the Department of Inland Revenue are additionally required.

(e) If the investment is made by the spouse of the applicant or jointly, a marriage certificate is required.

Furthermore, depending on the case, the following are required:

1. Investment in real estate, land development and infrastructure projects

(a) Contract of sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department. (c) Proofs of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

(f) Investment Plan for the development of the purchased land, if the investment involves the purchase of land under development

2. Purchase or Establishment or Participation in Cypriot Companies or Businesses

(a) Contract of sale.

(b) Proof of payment of the agreed purchase price.

(c) Certificate of shareholders by the Registrar of Companies.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(e) Specific investment plan.

(f) Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.

(g) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.

(h) Copy of the Social Insurance Contributions for every Cypriot or European Union citizen employee.

(i) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.

3. Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec:

(a) Title/Titles and other relevant documents of the financial assets / units purchased.

(b) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(c) Specific investment plan.

(d) Confirmation by the CySec.

4. Investment in government bonds:

(a) Proof from the Public Debt Management Office for the purchase of special government bonds.

(b) Copy of the wire transfer into a bank account of the Treasury of the Republic of Cyprus.

Any other document that might be requested either by the Ministry of Interior, or by the Ministry of Finance.

None of the above affects the absolute discretion of the Cabinet of Ministers on taking a decision.

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