The first step in the trademark registration process is to conduct a trademark search to ensure that the proposed trademark is not already in use or registered by another party. This can be done through the Trademark Office of the Cyprus Industrial Property Office.

Once the trademark search has been completed, the next step is to file a trademark application with the Cyprus Industrial Property Office. The application must include the proposed trademark, a description of the goods and services for which the trademark will be used, and the necessary fees.

It is important to note that trademarks are registered on a per-class basis, and the fee for each class must be paid separately. There are 45 different classes of goods and services recognized by the International Classification of Goods and Services.

After the trademark application has been filed, it will undergo a formal examination to ensure that it complies with the relevant laws and regulations. If the trademark is approved, it will be published in the Official Gazette of the Cyprus Industrial Property Office.

Once the trademark has been published, interested parties have a three-month period in which to file an opposition to the trademark registration. If no opposition is filed or if the opposition is unsuccessful, the trademark registration will be granted.

In conclusion, the process of registering a trademark in Cyprus is straightforward and can provide valuable protection for a business’s brand and reputation. It is advisable to seek the services of a legal advisor who is experienced in trademark law and can guide businesses through the registration process and ensure that all necessary steps are taken to protect their trademark.

The post Trademark Registration Cyprus appeared first on Chambersfield Economides Kranos.

A new strategy aiming to attract foreign businesses to establish and expand their activities in Cyprus through a plan, was presented by the Cypriot Government and will be implemented from January 1, 2022.

The plan targets areas or fields interrelated to, inter alia, High Technology Companies, Innovation Companies, Shipping Companies, Pharmaceutical Companies, Biogenetics and Biotechnology Companies.

This plan aims to make Cyprus a Sustainable Business and Trade Center of the wider area and Europe that will be fully in line with the guidelines of the European Commission and the Recovery and Resilience Facility.

In this context, several incentives were prepared in order to attract foreign Companies to operate and/or relocate their headquarters and/or expand their business activities in Cyprus, which can be summarized as follows:

1. Business Facilitation Unit

A Business Facilitation Unit will be established which will act as the central point of contact for all Companies of international interest, which operate in Cyprus and/or relocate their headquarters and/or expand their business activities in Cyprus in specific areas of economy activity.

1. Company creation (Company registration, name approval, registration in the Social Insurance register, Registration in the VAT register and in the Income Tax)
2. Guidance for relevant permits for activation in Cyprus

• Acceleration in the issuance and renewal of residence and employment permits

2. Revised Policy for the issuance of Temporary Residence and Employment Permits to third country nationals employed in Companies of foreign interests operating in Cyprus

The Government of Cyprus has revised the existing policy for the employment of staff from third-countries who is employed by Companies of foreign interests operating in the Republic of Cyprus and/or Companies of foreign interest which intend to operate and/or relocate their headquarters in Cyprus and/or expand their business activities in Cyprus and have a physical presence in Cyprus including establishment/ operation of independent offices that are separate from any private residence.

Furthermore, the issuance of employment permits is facilitated, and work permits will be issued immediately within 1 month from the submission of the application and will last up to 3 years.

The eligible Companies are the following:

• Cypriot shipping Companies.
• Cypriot high technology / innovation Companies.
• Cypriot pharmaceutical Companies or Companies operating in the fields of biogenetics and biotechnology.

The necessary preconditions for the third country nationals to be employed in Cyprus are the following:

2. Minimum gross monthly salary of €2.500,00.
3. Possession of a university diploma or degree or equivalent qualification or certificate of relevant experience in a corresponding employment position of a 2-year duration and that the employee in question is presented with an employment contract of not less than two years.

The maximum number of third-country nationals that can be employed is set at 70% of the total number of employees of the Company over a period of 5 years.

The Company is also allowed to employ third-country nationals as support staff provided that it does not exceed 30% of the overall support staff. The aforementioned applies if there is a duly validated employment contract between the third country national and the employer in question which is in accordance with current legislation.

In addition, there is the right of family reunification of third country nationals who are part of the Business Facilitation Unit. Through this very Mechanism, the Labor Market will be directly and freely accessible to the Spouses of Employees who have Residency and Work Permits in the Republic. Said access will be limited however, to the Spouses who receive a minimum monthly salary of €2500, while, it does not apply at all to the family of the support staff.

3. Digital Nomad Visa

It should be noted that the Action Plan introduced the initiative of the “Digital Nomad Visa” according to which, Visas are granted to an initial maximum limit of 100 beneficiaries.

The Digital Nomad Visa concerns only residency permits in the Republic of Cyprus and not work permits, for people who live in Cyprus but work in Companies operating abroad.

Beneficiaries of the “Digital Nomad Visa” scheme, will be third-country nationals who are self-employed and/or are employees who work remotely using information and communication technology in order to communicate with their employers and/or clients. Said employers and/or clients must not be residents of the Republic.  The Visa is valid for a period of 12 months, with the right of renewal for another 2 years once said 12-month period has lapsed.

The holders of Digital Nomad Visa can be accompanied by their family members, who are granted, upon their request, a residence permit that expires at the same time as the beneficiaries’ does, but are not granted a work permit.

Moreover, if they have been residents of the Republic of Cyprus for a period of time which in total exceeds 183 days within the same tax year, then they are considered tax residents of Cyprus meaning they are not tax residents in any other Country.

They also have to present evidence which clearly indicate that they have sufficient resources, at a fixed income level, to cover their living expenses during their stay in Cyprus. The amount of resources required is set at €3.500.00 per month, together with medical coverage and a clear criminal record from the country of residence.

4. Tax Incentives

The possibility of extending the 50% tax exemption for investment in certified innovative Companies and by corporate investors is being considered. The regime that was in force until the end of June 2021 allowed tax exemptions only to natural persons. For this purpose, the opinion of the Directorate-General for Competition of the European Commission is expected and subsequently, the approval of the relevant bill is also expected by the Parliament.

In addition, the plan provides for the following:

• The extension of the tax exemption that applies to employees in the Republic, provided that they were non-residents of the Republic before starting their employment, for a period of 17 years.

• The expansion of the existing tax exemption to cover new residents-employees with a salary from employment of €55,000 and above with a tax exemption of 50%.

• Existing employees have the opportunity to extend the benefit from 10 to 17 years. Potential beneficiaries are persons with income (€55,000- € 100,000) for the remaining period of 17 years.

• At the same time, the abolition of the existing tax provision of 20% exemption from employment exercised in the Republic or €8,550 – whichever is lower – will be promoted, since incomes over €55,000 will receive a 50% income tax exemption.

• An increased deduction will also be granted for research and development costs and a deduction of taxable income equal to 120% of the actual cost.

These tax incentives also apply to Cypriots who have lived abroad for at least ten years, in order to persuade them to repatriate back to the Republic.

5. Naturalization

Furthermore, the right to apply for naturalization will be given to the employees of these Companies after five years of residence and work in the Republic or after four years if they meet the criterion of holding a recognized certificate of very good knowledge of the Greek language.

6. Social Insurance

Additionally, the transfer of social security contributions will be ensured so that when third-country nationals who have paid social security contributions in Cyprus, wish to return for permanent residence in their country, they will be entitled to transfer the contributions they paid, provided that they did not acquire any right in regards to age pension and/or disability etc.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject-matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Mrs. Stephanie Nicolaou, Advocate, Mediator, Legal Consultant & Certified AML Compliance Officer (CySEC) at the Law Firm CHAMBERSFIELD ECONOMIDES KRANOS, in Limassol Cyprus, # +357 25 356 800 or email at s.nicolaou@eklawyers.com, info@eklawyers.com.

The post Cyprus: New pioneer plan for attracting foreign businesses appeared first on Chambersfield Economides Kranos.

1. the definition of tax and the residency for companies incorporated in Cyprus,
2. the introduction of withholding taxes on payments of royalties, dividends, and interest to a company tax resident in a country included on the EU blacklist or to a company incorporate dinany of the EU back listed countries which is not considered tax resident anywhere.

Both laws are coming into force on December 31^st, 2022.

Until today, a company was considered as tax resident of Cyprus if its management and control is exercised in Cyprus. After this amendment, any company incorporated or registered in Cyprus whose management and control is exercised outside Cyprus will still be considered as tax resident of Cyprus, unless this company is considered as tax resident in any other state. As a result, a Cyprus-incorporated company can no longer be considered not to be tax resident anywhere. Unless a company is tax resident in a country included in the EU black list or if the company is incorporated in a country not included on the list, it is not tax resident in any jurisdiction

Royalties

The 10% withholding tax will apply to royalty payments made to a company that does not have a residence in Cyprus but which has a residence in a country that is included in the EU blacklist of non-cooperative jurisdictions, or to a company incorporated in such a backlisted country which is not tax resident anywhere, regardless of whether the assets for which the royalty is paid will be used in Cyprus or elsewhere.

Dividends

Dividends paid by Cypriot tax resident companies to companies tax resident in countries included in the EU black list of non-cooperative jurisdictions or to companies incorporated in such countries which are not tax residents anywhere will be subject to a 17% special defense contribution (“SDC”).

The above does not apply to companies listed on a recognized stock exchange.

Interests

The SDC rate on interest paid to a company that is not tax resident of Cyprus but tax resident in a country that is listed on the EU blacklist of non-cooperative jurisdictions, or to a company incorporated in one of those countries that is not considered tax resident anywhere, will be 30%.

The above does not apply to interest paid on securities listed on a recognized stock exchange.

Black listed countries

The list is adopted by EU on the 5^th of October 2021 and consists of the below countries

American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.

The post Cyprus: Amendments on Income Tax Law & SDC Law appeared first on Chambersfield Economides Kranos.

By: Christos G. Georgiou at Chambersfield Economides Kranos

The Cypriot legal and judicial system is currently undergoing one of its greatest reforms in the recent years, with the introduction of new civil procedural rules, laws, regulations and possible structural changes to the Court system itself. The aforementioned changes were deemed necessary in order to modernize the Court System of Cyprus and, inter alia, to integrate and to use the advantages brought about by modern technology and also to bring the Cypriot Courts vis-à-vis with the rise of the digital age.

The abovementioned reform will affect and bring fundamental changes not only to the Courts, the Judges, and the legal professionals, but also to various other stakeholders as well. Thus, many groups, including the House of Representatives (the Cypriot Parliament), are observing and trying to become involved in the said reform.

On that matter, on the 11^th of October 2021, the Plenary Session of the Supreme Court unanimously ruled on its per curiam Opinion that the Law passed by the House of Representatives on the 4^th of February 2021, titled “The Law (Amending) on Court of 2021”, was unconstitutional.[1]

The above Law specifically provided for the parallel filing of all court documents (including pleadings, affidavits, exhibits, etc.) in printed physical and electronic digital forms at the Court Registrars.[2]

Following the passing of the Law, the President of the Republic, based on the powers given to him by Article 140 of the Constitution of the Republic of Cyprus,[3] referenced the Law to the Supreme Court to give its Opinion as to the constitutionality of the Law passed by the Parliament, which affected the operations and workings of the Judiciary.

In its Opinion, the Supreme Court ruled that the law “The Law (Amending) on Court of 2021″ is contrary and inconsistent with Articles 61, 80.2, 163 and 179 of the Constitution[4] and with the principle of the Separation of Powers, a principle which derives from the Constitution itself.

Specifically, the Supreme Court ruled that the Law:

• Constitutes an interference with the judicial power of the Supreme Court by another Power (the Legislative Power),
• Is contrary to the provisions of the Constitution, and
• Violates the Constitution-derived Principle of the Separation of Powers, which ensures the functional independence of each of the three Powers (executive, legislative and judiciary).

This important ruling by the Supreme Court reaffirms the principle of the separation of powers as fundamental to the constitution and the workings of the Cypriot State. Finally, and more importantly, it is also a showcase by the Judiciary to both the Citizens of the Republic of Cyprus and to any other foreign physical person, legal entity or governmental body which looks to them in order to receive justice, that the Cypriot Courts are firmly independent and that the integrity and independence of the Courts will be defended and protected, no matter who tries to violate it.

* The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject-matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Mr. Christos G. Georgiou, Advocate, Mediator & Legal Consultant at the Law Firm CHAMBERSFIELD ECONOMIDES KRANOS, in Limassol Cyprus, # +357 25 356 800 or email at c.georgiou@eklawyers.com, info@eklawyers.com.

[1] https://www.pio.gov.cy/assets/pdf/newsroom/2021/10/Apofasi%20Anotatou-O%20peri%20Dikastirion%20Tropopoiitikos%20Nomos%202021_121021.pdf

[2] https://www.nomoplatform.cy/wp-content/uploads/2021/02/%CE%A0%CF%81%CF%8C%CF%84%CE%B1%CF%83%CE%B7-%CE%9D%CF%8C%CE%BC%CE%BF%CF%85-10.pdf

[3] http://www.cylaw.org/nomoi/enop/ind/syntagma/section-sc1200a230-2366-02c2-2492-690a6cca0027.html

[4] http://www.cylaw.org/nomoi/enop/non-ind/syntagma/full.html

The post Per Curiam Opinion on the separation of Power in Cyprus appeared first on Chambersfield Economides Kranos.

Mediation is an Alternative Dispute Resolution Method (ADR Method) which can be an alternative option for resolving a dispute between two (or more parties), other than through the Courts.

Mediation, like other ADR Methods (such as Arbitration), has advantages over a court process: it is faster, more cost-effective, and involves the confidentiality of the process, as opposed to a trial which is a general procedure open to the public.

In addition, Mediation, has the added advantage of being a more conciliatory and peaceful way of resolving a dispute between two parties, without necessarily causing the two parties to derail and terminate the relationship and/or cooperation of the two parties, as is almost always the case when a dispute leads to Trial or Arbitration.

In terms of its practical application, it is a structured process (regardless of the name), in which two or more parties try to reach an agreement on resolving their dispute voluntarily with the help of a Mediator, as a third, a neutral, independent and impartial party.

This impartial third party is a Certified Mediator, who is selected jointly and with the consent of all parties involved in a dispute.

Ways, the Disputing Parties, can enter into a Mediation process in Cyprus:

Under the current legal regime in Cyprus, there are three ways for the disputing parties to enter into a Mediation process:

1) By a voluntary agreement of the parties when a dispute arises

2)  Through a Mediation Clause in a Contract signed between the parties

3) During a court case, when both parties agree or when one party requests it and the Court deems that this is the best course of action in this particular case (rare application).

Informatively, it should be noted that in other countries, such as Greece and Italy, there is a mandatory pre-trial mediation procedure prior to the adjudication of the civil action, something which is not currently applied in the Cypriot legal system.

The Stages of Mediation:

When and if the disputing parties enter into a Mediation process, then the Mediation process is divided into the following five stages:

1)Preparation:  Where any possible conflict of interest of the Mediator is examined, e.g., if he had previously cooperated with one of the parties of the dispute (as it also happens in an Arbitration process for the selection of an Arbitrator), the acceptance of his appointment, the drafting and signing of the agreement affiliating the dispute to Mediation, the Mediator’s briefing, the appointment of the session, the venue, and the authorizations by the parties.

2) Opening Statements: Both of the Mediator (where he outlines his role, the way the procedure is conducted and the ultimate goal which is the resolve of the dispute) and of the Parties (where each party expresses its position on the dispute being mediated).

3) Investigation: Where separate confidential discussions take place between the Mediator and the parties, questions, investigation of the history of the dispute and the pursuit of interests.

4) Negotiations: Where the parties with the help of the Mediator create options and solutions for the dispute with proposals and dialogue between them.

5) Dispute Settlement Agreement: In case of a successful mediation process, the dispute is closed with the «Mediation Settlement Agreement» signing.

Mediation Settlement Agreement

«The Mediation Settlement Agreement» is probably the most crucial part of Mediation, as the Mediation process (and what has been agreed in it) is not binding until the two parties sign the Mediation Settlement Agreement.

The Mediation Settlement Agreement is drafted up by the Mediator, where what has been agreed is recorded in writing. It is then signed by him, and the parties and a true copy is given to each party of the Mediation. In this case, any party involved can file and register the Mediation Settlement Agreement in Court (as it is the case with an Arbitral Award) and then an Implementing Order is issued, and the Mediation becomes fullybinding.

 Laws and Procedures governing Mediation in Cyprus

The Laws governing Mediation in Cyprus are the following:

Law on Certain Matters of Mediation in Civil Disputes of 2012 (159 (I)/2012), which is the national law that governs the application and the procedure of Mediation in Cyprus, as well as the qualifications that a potential certified Mediator should possess.

Additionally, the above law stipulates the existence of two separate Registers of Mediators which are kept by the Ministry of Justice of the Republic of Cyprus:

Register of Mediators for Commercial Disputes

 Register of Mediators for Civil Disputes other than Commercial Disputes

Directive 2008/52/EC of the European Parliament and of the Council, of 21 May 2008, on certain aspects of mediation on civil and commercial matters, where this European Directive applies in the event of cross-border disputes in civil and commercial matters other than certain rights and obligations which the parties are unable to decide on the basis of the applicable law, and which dispute may be referred to Mediation as an ADR.

The European Code of Conduct for Mediators, which is currently the applicable Code of Conduct for Mediators in Cyprus, as the Cyprus Code of Conduct for Mediators has not yet been created.

Law on Family Disputes Mediation of 2019 (Ν. 62(Ι)/2019), which regulates issues that fall within the scope of Family Law such as Property Disputes, Alimony, and the Use of the Family House. Matters concerning Divorce and Child Custody remain in the exclusive jurisdiction of the Family Court.

Furthermore, informatively, due to the peculiarity of Family Mediation, discussions and actions have been taken to create a third separate Register of Mediators for Family Disputes.

The Future of Mediation in Cyprus: 

In recent years the number of registered Mediators in Cyprus has increased dramatically and the interest of the business and commercial world in finding an ADR Method, both from the Court and from Arbitration, which is not confrontational, has turned the eyes of several stakeholders to Mediation as an economic, speedy confidential and peaceful option to resolve a dispute between 2 two parties.

*Το περιεχόμενο του παρόντος άρθρου έχει ισχύει κατά την ημερομηνία της πρώτης έκδοσής του. Αποσκοπεί στο στα παρέχει μια γενική εισαγωγή και καθοδήγηση στον εν λόγω θέμα και σε καμία περίπτωση δεν συνιστά νομική συμβουλή. Σας συνιστούμε να αναζητήσετε επαγγελματικές συμβουλές σχετικά με το συγκεκριμένο σας θέμα προτού προχωρήσετε σε οποιαδήποτε ενέργεια με γνώμονα τις πληροφορίες που περιέχονται στο πιο άνω κείμενο. Για περισσότερες πληροφορίες ή συμβουλές, παρακαλώ επικοινωνήστε με τον Ko. Χρίστο Γ. Γεωργίου, Δικηγόρο, Διαμεσολαβητή & Νομικό Σύμβουλο στην δικηγορική εταιρεία CHAMBERSFIELD ECONOMIDES KRANOS, στην Λεμεσό, τηλ. +357 25 356 800 ή στα emails c.georgiou@eklawyers.com, info@eklawyers.com.   

* The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject-matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Mr. Christos G. Georgiou, Advocate, Mediator & Legal Consultant at the Law Firm CHAMBERSFIELD ECONOMIDES KRANOS, in Limassol Cyprus, # +357 25 356 800 or email at c.georgiou@eklawyers.com, info@eklawyers.com.

The post Mediation in Cyprus: Legal, Procedural and Practical Application appeared first on Chambersfield Economides Kranos.

Michalis Economides, a distinguished approved Barrister of the Cyprus Bar Association and Barrister of the United Kingdom and Wales founded the multi-awarded international law firm.  Chambersfield Economides Kranos has a physical presence in more than nine jurisdictions and undertakes a wide range of internationally complex, integrated, legal, corporate, and consulting services.

The Firm focuses on providing legal and advisory services in civil, political, maritime, commercial, banking, corporate, labor, energy, European, immigration, family, criminal law, liquidation, and issues resolution of commercial disputes and mediation.

The Great Britain-Cyprus Business Association is a business association based in Great Britain that helps to promote both Cypriot and British companies and allows its members and subscribers to view any future potential of cooperation between the two countries. The Association is often organizing business events, roadshows, and private business meetings for networking.

Mr. Michalis Economides stated that he is pleased for the Firm to be part of this distinguished Association and is looking forward to an excellent cooperation ahead.

The post Chambersfield Economides Kranos joins the Great Britain Cyprus Association appeared first on Chambersfield Economides Kranos.

In summary, the significant changes are as per below:
• The requirement to maintain a €30,000 deposit in a Cypriot Financial Institution (Bank) has been withdrawn.

• In addition to residential properties, commercial properties (new and resale) are also eligible for applying through the Cyprus Permanent Investment Scheme.
• Applicants can invest in real estate properties, in other types of real estate units (i.e., offices, shops, hotels, etc.), the share capital of a Cyprus Company, and share Cyprus Collective Investment Funds (type A.I.F., AIFLNP, RAIF).

1. LEGAL FRAMEWORK

1.1 According to the provisions of Regulation 6 (2) of the Aliens and Immigration Regulations, the Minister of Interior, having notified the Council of Ministers, has decided to issue an Immigration Permit Permit to third-country applicants in cases where the following conditions are satisfied.

1.2 The applicant must meet one of the investment criteria mentioned in Section 2.1 and Section 3, quality criteria. All the investors’ funds must provide payment proof that they have been transferred to Cyprus from abroad.

2. INVESTMENT CRITERIA

2.1 The applicant must proceed with an investment of at least €300,000 in one of the following investment categories:

(A) Investment in a house/apartment:

Purchase of a NEW residential real estate property (house or apartment) from a developer company of at least €300,000 (plus V.A.T.).

(B) Investment in real estate units (excluding houses/apartments):

Purchase of other types of real estate units such as offices, shops, hotels, or similar developments or a combination of the above with a total value of at least €300,000 (plus V.A.T. when applicable). These properties can also be resale.

(C) Investment in the share capital of a Cyprus Company with activities and personnel in the Republic of Cyprus:

Investment of a total value of €300,000 in the Share Capital of a company registered in the Republic of Cyprus. The company should be based and operates in the Republic of Cyprus with a proven physical presence in Cyprus and should employ at least five (5) persons.

(D) Investment in Shares of Cyprus Collective Investment Funds (type A.I.F., AIFLNP, RAIF):

Investment worth €300,000 in shares of Cyprus Collective Investment Funds.

If for any reason there is an alienation between the investment and the Permanent Residency Permit, then the cancelation procedure of the Permit will be activated, based on the provisions of the Aliens and Immigration Regulations (Regulation 6).

To avoid the Permit’s cancellation, the investor should have a direct replacement investment of the same or greater value that meets the present procedures’ conditions.

2.2 In addition to the investment under Section 2.1, applicants must be able to prove that they have at their disposal a secure annual income of at least €30,000. Suppose the applicants wish to add additional dependents in their application; then their annual income should increase by €5,000 for each dependent family member and €8,000 for each dependent parent (of the same and/or spouse).

In the case of applicants’ investments under category Section 2.1 (A), the income should derive from abroad from employee salaries, pensions, dividends on shares, fixed deposits, rents, etc.

Note: When calculating the applicant’s total income, the applicant’s spouse’s income can also be considered.

In the cases where the applicants choose to invest as Sections 2.1. (B), 2.1. (C) or 2.1. (D), their total income or part of it may also derive from activity sources within the Republic of Cyprus.

3. QUALITY CRITERIA

3.1 The applicant and his / her spouse must submit a certificate of no criminal record from their country of residence or the Republic of Cyprus in the case they already reside in Cyprus. Additionally, in general, applicants must not pose in any way a threat to public order or public security or be under investigation for criminal offenses attested by relevant authorities of the residence country.

3.2 The applicants and their spouse should certify that they do not intend to work in the Republic of Cyprus, with the exception of their employment as Directors in a Company in which they have chosen to invest under the provisions of this policy.

3.3 In cases where the investment does not concern the company’s share capital, the applicant and/or his/her spouse may be shareholders in Companies registered in Cyprus. The dividend income in such companies may not be considered an obstacle to obtaining the Permanent Residency Permit. They may also hold the position of Director in such companies, with the term of not receiving any payment for their duties.

3.4 In cases where the applicants choose to invest as Sections 2.1. (B), 2.1. (C) or 2.1. (D), they must present information about their residence place in the Republic of Cyprus (e.g., a real estate title deed, purchase agreement, tenancy agreement).

4. LEGAL DOCUMENTS

4.1 Investing in a house/apartment or other real estate units:

The applicants should submit, with their application, the title deed or a contract of sale stating their names and/or their spouse’s names. The submitted documents should be the ones that have been officially deposited to the Department of Lands and Surveys for a dwelling or other building, having a total market value of at least €300.000 (V.A.T. is not included therein). Also, the applicants should submit the official receipts for the payment of at least €200.000 (excluding V.A.T.), irrespective of the date of the dwelling delivery. It should be stressed that the total amount of the dwelling value should be settled in an account in a financial institution in Cyprus.

It is understood that when submitting the application, the provided proofs must support that the investment funds derived from abroad, are not a product of domestic borrowing (remittances, foreign card payments receipts, bank certificates), and they are linked to the corresponding investment. The rest of the investment value will have to be repaid to the seller’s account at a Cyprus Financial Institution.

Furthermore, the real estate unit’s purchase is accepted even when it is submitted by a legal entity, in which the applicants and/or their spouse are the sole shareholders or the final beneficiaries. Also, the legal entity should be established in the Republic of Cyprus or another Member State of the European Union or European Economic Area.
Concerning the purchase of a house/apartment, reference to paragraph 2, it is specified that:

(a) The applicants may purchase up to two (2) housing units (apartments or houses), provided that the total market value meets the provisions of Section 4.1. In the case of a couple, the above condition applies to the couple as a whole.

(b) The said purchase should be related to dwellings sold by a development company for the first time to the buyer unless the dwellings’ purchase took place before 07/05/2013. Contracts of Sale associated with the resale of houses and submitted to the Land Registry before 07/05/2013 (the date of submission of the contract of sale should be confirmed by the Department of Land and Surveys) will be accepted for policy purposes.

It is important to note that the properties are not obliged to be purchased from the same developer company.

4.2 Investment in the share capital of a Cyprus Company with business activities and employees in Cyprus:

For the purpose of policy implementation, the applicants are required to make a total investment of €300,000; the company should have a physical presence in the Republic of Cyprus and employment of at least five (5) persons. In this case, the following documents should be submitted:

• Share Purchase Agreement
• Shareholder Certificate and Company Registration Certificate from the Registrar of Companies and Official Recipient
• Business Profile of the company that includes business goals etc.
• Proof of Payment (e.g., bank transfer)
• Employment proofs from the Department of Social Insurance, for the employees of the company

4.3 Investment in shares of the Cyprus Investment Organization of Collective Investments (type A.I.F., AIFLNP, RAIF):

For the purposes of this policy, the applicants are required to submit a total investment of €300,000 in investment shares along with the following documentations:

• Securities or other confirmations for the units purchased
• Proof of Payment (e.g., bank transfer)
• Confirmation from the Cyprus Securities and Exchange Commission for the establishment of the Fund
• Memorandum of the Fund or Investment Plan

5. DEPENDENT APPLICANTS

5.1 The Permanent Residency Permit is issued to the applicant. The Permanent Residency Permit includes the applicant’s dependents, the spouse, and minor children, up to 18 years old.

If the applicant and spouse wish, it is possible to issue two separate Permanent Residency Permits in each of the couple’s names without the second’s obligation to meet the above criteria. In that case, the applicant and spouse should submit a separate application and pay the corresponding fees.

It is essential to mention that if the Permanent Residency Permit granted to the investor is canceled for any reason, then a cancellation activation process will apply to the Permanent Residency Permit all parties included, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.

5.2 Unmarried children between 18 and 25 years old can submit separate applications for a Permanent Residency Permit by paying the corresponding fee. They are eligible to apply only when they prove that they are students studying abroad in a higher education institution on the date of application and are financially dependent on the applicant. In such a case, the father or mother and/or both parents together must present an additional annual income of €5,000 for each dependent child.

Suppose the children are students of a Higher Education Institution in the Republic of Cyprus, in that case, they must apply for a temporary residence permit in the Republic of Cyprus, as students under the relevant legislation (E.U. Directive).

After completing their studies in Cyprus, they can submit their own application for a Permanent Residency Permit, as mentioned above, with the corresponding fee’s payment, regardless of their age, provided that the parents will present an additional annual income of €5,000.

This Permanent Residency Permit will continue to be valid after reaching the age of 25 even if the child is still not single and/or a student and/or financially dependent on his or her parents. Under this provision, they cannot include their spouse and their minor dependents in the existing Permanent Residency Permit. In addition, if the Permanent Residence Permit of the investor/parent is canceled for any reason, the cancellation process will be activated and on the Permanent Residency Permit of the child, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.

5.3 A Permanent Residency Permit can also be granted to the applicant’s parents and their spouse by submitting separate applications for each parent and paying the corresponding fee. In that case, the applicant should present an additional annual income of €8,000 for each dependent parent. In this type of Permanent Residency Permit application, parents cannot include their dependents, i.e., spouse and minor children.

In addition, if the Permanent Residence Permit of the investor/child is canceled for any reason, the cancellation process will be activated and on the Permanent Residency Permit of the child, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.

6. HIGHER INVESTMENT VALUE FOR INCLUDING ADULT CHILDREN

A Permanent Residency Permit may also include adult children of the applicant, who are not financially dependent, if the total value of the applicant investment is of a higher value according to the provisions of Paragraph 2, as set out below:

The market value of the €300,000 investment should be multiplied by the number of adult children who will invoke the same investment to obtain the Permanent Residency Permit. For example, if the applicant wishes to include in his Permanent Residency Permin an adult child, he/she should invest €600,000. If he has two adult children, the investment value should amount to €900,000, etc.

If the investment is according to the provisions of Sections 2.1. (A) and 2.1. (B), of purchasing real estate property units, the applicant, together with the application, should provide payment proof of at least 66% of the property market value.

In such a case, each adult child should prove that they have at their disposal a secured annual income of at least €30,000, which increases by €5,000 for each dependent, as provided in Section 2.2. Also, the investment can be made jointly in the name of the applicant and the adult child or exclusively in the applicant’s name.

7. TIME FRAME

If all the criteria of this policy are met, and there are no reasons concerning either the applicant’s criminal record or reasons of public order and public security, the application will be forwarded for consideration and decision by the Minister of Interior.

It is estimated that the application’s examination period from the completed application submission date will be approximately two (2) months.

8. OTHER INFORMATION

Persons who acquired the Permanent Residency Permit must obtain permanent residence in the Republic of Cyprus within one (1) year from the date of the submitted application approval, while the family members and applicants should not remain outside the Republic of Cyprus for a period of two (2) years. Otherwise, the Permanent Residency Permit ceases to be valid under Regulation 6 (3) and/or maybe revoked under Regulation 6 (4).

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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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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?

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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.

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