Cyprus: The success story of Europe
Exceeding international expectations with a return to growth in 2015 and one of the highest growth rates in EYU in 2016 Cyprus is making steady progress in restructuring its economy and regaining investor confidence. Hailed a success story by the Eurogroup, Cyprus officially exited the international support programme on March 7th, 2016.
Recovery Headlines
- Based on its revised estimates, the economy is expected to grow by 2.8% and 2.2% in 2016 and 2017, respectively, versus the 1.6% and 2.0% estimates for 2016 and 2017 in IMF’s April 2016 WEO.
- Unemployment is anticipated to reach 13.0% in 2016 versus 14.9% in 2015 and decline further to 11.6% in 2017.
- Tourist arrivals reached 2.2mn during the first 8 months of the year, a +19.2% y-o-y marking a record period for Cyprus.
- In October 2016, Moody’s marked Cyprus as credit positive due to inflow of deposits amounting to €873m at Cypriot Banking System (raising deposits to the highest point since April 2012).
Read more: CYPRUS Succeeding in EUROPE
powered by social2s
We are dedicated in preparing / compiling all of the following to complete and achieve for our Client - Investor:
1 LEGAL FRAMEWORK
1.1 Pursuant to the provisions of Regulation 6(2) of the Foreigners and Immigration Regulations, the Minister of the Interior decided, after informing the Council of Ministers, to issue Immigration Permits to third-country national applicants, in cases of investments that meet the conditions of of this policy.
1.2 The applicant must meet one of the investment criteria of Paragraph 2.1, as well as the quality criteria of Paragraph 3 below.
Provided that the money to be used for the investment must be proven to come from abroad, from the bank account of the applicant himself and/or his wife, as long as he is included as a dependent in his application. The amount of the investment value should be paid from the applicant's bank account to the seller's account in a Cyprus financial institution.
2 INVESTMENT CRITERIA
2.1 The applicant should make an investment of at least €300,000 in one of the following investment categories:
(A) Investment in house/apartment:
Purchase of a house or apartment from a land development company, which should concern a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding houses/apartments):
Purchase of other types of real estate such as offices, shops, hotels or similar developments or a combination of these with a total value of €300,000. The properties in question may also be subject to resale.
(C) Investment in share capital of a Cypriot Company with activities and staff in Cyprus:
Initial investment in share capital of a new company worth €300,000 or increase of share capital worth €300,000 in an existing company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.
(D) Investment in shares of a Cyprus Investment Organization for Collective Investments (type AIF, AIFLNP, RAIF):
Investment worth €300,000 in shares of a Cyprus Investment Organization for Collective Investments whose investments should be carried out in the Republic of Cyprus.
Provided that, any alienation of the holder of the Immigration Permit from the investment he has made without immediately replacing it with another of the same or greater value, which should meet the conditions set in this procedure, will entail activation of the procedure cancellation of the License based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
2.2 The applicant should, in addition to the investment based on Paragraph 2.1 above, be able to prove that he has at his disposal a personal insured annual income of at least €50,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child of the applicant and/or his/her spouse. This income can come from wages for work, pensions, stock dividends, interest on deposits, rents, coke coming from abroad, which will only be proven through his tax return from the country in which he declares a tax resident, for the cases which the applicant chooses to invest as per Paragraph 2.1.(A). In calculating the total income, the income of the applicant's wife may also be taken into account.
In the cases where the applicant chooses to invest as Paragraphs 2.1.(B), 2.1.(C) or 2.1.(D), his total income or part of it may also arise from sources originating from activities within the Republic, provided that it is taxable in the Republic.
3 QUALITY CRITERIA
3.1 The applicant and his wife must submit a certificate of a clean criminal record from their country of origin as well as from their country of residence in case it differs, and in general they must not in any way pose a threat to public order or public security.
3.2 The applicant and their dependent family members must provide a Health Insurance Certificate for medical treatment covering inpatient and outpatient care.
3.3 The applicant and his wife will certify that they do not intend to be employed in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest within the framework of this policy.
3.4 In cases where the investment does not concern a Company's share capital, the applicant and/or his spouse may be shareholders in Companies registered in Cyprus and the income from dividends in such companies shall not be considered as an obstacle for the purposes of obtaining the Immigration Permit . They may also hold the position of Director in such companies without pay.
3.5 In cases where the applicant chooses to invest as Paragraphs 2.1.(B), 2.1.(C) or 2.1.(D), he should present information about the residence of himself and his family members in the Republic (e.g. property title deed, sales document, rental document).
In cases where the applicant chooses to invest as per Paragraph 2.1.(A), but the number of bedrooms of the investment property cannot satisfy the needs of his dependent family members, he should indicate another property or properties which he will constitute the place of residence of these persons (e.g. property title deed, sales document, rental document).
4 LEGISLATIVE ELEMENTS
4.1 Investment in house/apartment or other properties:
The applicant submits with the title deed application or a deed of sale in his and/or his wife's name filed in the Department of Cadastre and Land Surveying for a residence or other building with a market value of at least €300,000 (plus VAT if applicable) and official receipts for the payment of at least €300,000 (excluding VAT), regardless of the date of delivery of the property.
Provided that when submitting the application, evidence must be provided that the investment money has come from abroad and is not a product of domestic borrowing (remittances, payment receipts with a foreign card, bank certificate) which must be linked to the similar investments. The balance of the investment value should be paid into the seller's account at a Cypriot financial institution.
It is noted that the purchase of real estate will be accepted even when it is made by a legal entity in which the applicant and/or his wife are the exclusive shareholders or final beneficiaries and which is legally established in the Republic or in another member state of the European Union or of the European Economic Area.
For the purposes of applying Paragraph 2 in relation to the purchase of a house/apartment, it is clarified that:
(a) The applicant may purchase up to two (2) residential units (apartments or houses), provided that the total market value meets the provisions of Paragraph 4.1 above. In the case of a couple, the above condition applies to the couple as a whole.
(b) The purchase in question must relate to dwellings sold by the developer to a first-time buyer, unless the purchase of the dwellings took place before 07/05/2013. Purchase and sale documents relating to residential resales and filed with the Land Registry before 07/05/2013 (the date of filing of the purchase and sale documents will be confirmed by the Department of Land Registry and Surveying), will be accepted for the purposes of implementing this policy.
It is noted that the properties do not have to be purchased from the same land development company.
In cases where the sale deed has been signed or the title deed for the property has been issued in a period exceeding one year from the date of submission of the application, the applicant is required to submit together with the application a recent Real Estate Survey Certificate from the Land Registry Department and Spatial Measurement.
4.2 Investment in share capital of a Cypriot Company with business activities and staff in Cyprus:
For the purposes of implementing this policy, a total investment of €300,000 is required from the applicant, a physical presence of the company in the Republic and employment by it of at least five (5) employees. In this case the following documents must be submitted:
Certificate of shareholders and Certificate of Incorporation from the Registrar of Companies and Official Receiver
Business profile of the company including business objectives etc
Proof of payment (e.g. bank transfer)
Evidence of the employment of employees from the Department of Social Insurance.
4.3 Investment in shares of a Cyprus Investment Organization for Collective Investments (type AIF, AIFLNP, RAIF):
For the purposes of implementing this policy, the applicant is required to make a total investment of €300,000 in investment shares whose investments should be made in the Republic of Cyprus and to present the following documents:
Titles or other confirmation of units purchased
Proof of payment (e.g. bank transfer)
Confirmation by the Capital Market Commission for the establishment of the Fund
Memorandum of the Fund or the Investment Plan.
5 DEPENDENTS OF APPLICANT
5.1 The Immigration Permit is issued to the applicant. This includes the applicant's dependents who are the spouse and their minor children under the age of 18.
If they so wish, it is possible to issue two separate Immigration Permits to each of the parties of the couple without the obligation and the second one to meet the above criteria, provided that a separate application is submitted and the corresponding fee is paid.
Provided that in case the Immigration Permit that has been granted to the investor is canceled for any reason, it will entail activation of the License cancellation procedure for the other part of the couple, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
5.2 Unmarried children between the ages of 18 and 25, only when they are proven higher education students abroad on the date of submission of the application and who are financially dependent on the applicant, may submit their own, separate application for obtaining an Immigration Permit with the submission of the corresponding fee. In such a case, the father or mother and/or both parents together must present an additional annual income of €10,000 for each such dependent child.
If the children are students in Higher and Higher educational institutions of the Republic, they should apply for a temporary residence permit in the Republic as students based on the relevant legislation (EU Directive). After completing their studies in Cyprus, they will be able to submit their own application for an Immigration Permit, as mentioned above, by paying the corresponding fee, regardless of their age, with the only condition that the parents will present an additional annual income of €10,000.
Said License will continue to be valid even after reaching the age of 25, even if the child is still unmarried and/or a student and/or financially dependent on his parents. It is understood that the spouse and their minor children cannot be included as dependents in said License. It is also understood that in the event that the Immigration Permit granted to the investor / parent is canceled for any reason, it will entail the activation of the procedure for the cancellation of the Permit for that child, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
6 HIGHEST VALUE INVESTMENTS TO INCLUDING ADULT CHILDREN
An Immigration Permit may also be granted to adult children of an applicant who are not financially dependent on the assumption that an investment of higher value has been made, on the basis of the provisions of Paragraph 2, as specified below:
The market value of the investment of €300,000 should be multiplied according to the number of adult children, who will rely on the same investment for the purposes of obtaining an Immigration Permit. For example, in case the applicant has an adult child he should make an investment worth €600,000, if he has two adult children the value of the investment should amount to €900,000 gross.
In the event that the investment will concern the real estate market, i.e. where the applicant chooses to invest as per Paragraphs 2.1.(A) and 2.1.(B), together with the application, a payment certificate of at least 66% of the market value must be submitted of real estate.
Provided that, in such a case, each adult child will be able to prove that he has at his disposal an insured annual income of at least €50,000, which will be increased by €15,000 and €10,000 respectively for each dependent person, as the provisions of Paragraph 2.2. Additionally, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.
It is pointed out that, in cases where the number of bedrooms of the investment property cannot satisfy the needs of the dependent members of the investor's family, he should indicate another property or properties which will constitute the residence of these persons (e.g. .property title, sale document, rental document).
7 APPLICATION SUBMISSION AND EXAMINATION PROCEDURE
The applications, together with the required accompanying documents, will be submitted to the Department of Population and Immigration Records (TAPM) in person or through a representative after arranging an appointment or in any other way decided. With the submission of the application, a fee of €500 is paid, as well as a fee of €70 for each person included in the application for the issuance of the Foreigner Registration Card (DFR) in cases where it does not exist.
In the case of submitting an application through a representative, it should be accompanied by a written certified authorization of the applicant, which should include the full details of the representative as well as his address and contact numbers.
The application will be processed quickly by TAPM and will be submitted to the Minister of the Interior, through the Director General of the Ministry of the Interior (Ministry of the Interior).
8 TIME SCHEDULES
As long as all the criteria of this policy are met and as long as there are no reasons related either to the criminal record of the applicant, or to reasons of public order and public security, the application will be forwarded for examination and decision-making by the Minister of the Interior.
It is estimated that the period of examination of the application from the date of submission of the completed application will be around two (2) months.
9 APPLICATION FORMS
The forms are available online on the website of the Department of Population Records and Immigration and are as follows:
Application Form (MIP1)
List of documents submitted with the application
Responsible Declaration of the applicant's annual income,
Responsible Declaration certifying the non-employment of the applicant and his/her spouse in Cyprus with the exception of their employment as Directors in a Company in which they have chosen to invest within the framework of this policy.
The documents accompanying the application should be duly translated and certified.
10 CONTROL MECHANISM OBSERVANCE OF THE CRITERIA AND PRESERVATION OF THE INVESTMENT
The applicant is required to submit to the Department of Population and Immigration Records, on an annual basis from the date of obtaining the Immigration Permit, evidence that he maintains the investment, that he maintains the required income determined for him and his family and that he and his family members are holders of a health insurance certificate, in case they do not continue to be beneficiaries in GESY. In addition to the above, the applicant and his adult family members are required to provide an annual certificate of a clean criminal record from their country of origin, as well as from their country of residence.
It is understood that, in case the holder of the Immigration Permit fails to prove the above, it will entail the activation of the process of canceling the Permit of himself and his family members based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
COMMENCEMENT OF REVISED POLICY
This policy takes effect on 02/05/2023.
ADDITIONAL INFORMATION AND CLARIFICATIONS
Clarifying announcement on the 4th revision of the criteria related to the expedited process of granting an immigration permit to applicants who are nationals of third countries and invest in Cyprus – 17/5/2023
With reference to the 4th Revision of the criteria relating to the expedited process of granting Immigration Permits to applicants who are nationals of third countries and invest in Cyprus, which came into effect on 02/05/2023, the following is clarified:
Paragraph 1.2:
The money from abroad that will be used to pay for the investment can also come from a bank account of a company of which the applicant and/or his/her spouse are the sole shareholders, provided that the shareholder will be included in the application. The same applies to the amount of the value of the investment to be paid into the seller's account in a Cyprus financial institution.
Paragraph 2.2:
The applicant's annual income can be proven either through his tax return from the country in which he declares tax residence or through official certifications from an independent chartered accountant.
Paragraph 10:
For the eligibility and investment maintenance mechanism, the requirement to provide annual evidence that the applicant maintains the income set for himself and his family members is removed.
The applicant and his adult family members are required to provide a three-yearly certificate of a clean criminal record from their country of origin and country of residence, instead of annually. The requirement for the applicant to provide evidence of the maintenance of their investment on an annual basis, as well as that the applicant and their family members hold a health insurance certificate in the event that they do not continue to be beneficiaries of GESY continues to apply.
DURATION OF PERMIT
The right of residence granted upon approval of the application to the investor and his adult dependent family members is of unlimited validity. However, the residence permit (card) has an expiry date 10 years from its issue and upon expiry it must be replaced.
The residence permit issued to the minor dependent members of his family is valid until they reach the age of majority (18 years).
Necessary actions after approval
Persons whose application for obtaining an Immigration Permit is approved, are obliged, based on the Foreigners and Immigration Regulations, if they are abroad, to come to Cyprus for permanent settlement within one year from the date of notification of the approval of the application.
Loss of right to permanent residence
Persons who remain outside the Republic for a period of at least two years lose the right to permanent residence in the Republic, as do persons who have acquired permanent residence in another country.
The grant of the permit makes the granting of citizenship easier .
Read more: Great News for property buyers and Investors
powered by social2s
Cyprus Welcomes Article 90 EC
Once upon a time when Cyprus was "battling" its way to EU, its own Copmpetition Protection Law appeared to go beyond the European Commission's expecations at the time. The article of Mrs Sophocleous embicts the issue and provides a good analysis and a real archive to Cyprus' era through Europe. The article was published at the "Journal of the Section on Business Law", International Business Lawyer magazine, Oct. 2001 issue.
Download article here
Read more: Cyprus Welcomes Article 90 EC
powered by social2s