IMPORTANT UPDATE: It’s official, Cyprus closed its popular citizenship by investment program on 1 November 2020. What this means is investors will no longer be able to directly acquire a Cypriot passport by investment.
A new program has taken place, however. The Cyprus Golden Visa provides individuals with an alternative route to permanent residency in Cyprus. Those looking for European citizenship can also apply to the Malta citizenship program, which offers a direct investment route to a Maltese passport.
For UK citizens or residents who worry about what effect Brexit will have on their investments and freedom of movement, Cyprus’ Citizenship-by-Investment programme can offer peace of mind and several tax advantages.
Cyprus citizenship by investment
This premier investment programme offers Cyprus citizenship and effectively EU citizenship, to investors and their families, within six months from passport application.
The best part? There’s no residency requirement.
In a nutshell, the programme requires the purchase of a private residence in Cyprus for € 500,000 and a further investment on the island of € 1,500,000 if this will be exclusively in residential property/s or a further € 2,000,000 if the investment will be in assets such as commercial property or shares/ financial instruments of Cyprus companies or a combination of all the above.
The investor and qualifying family members, can live, work and study anywhere within the European Union. Those deciding to live permanently in Cyprus can enjoy life in one of the safest and environmentally cleanest countries in Europe, with one of the highest standards of living. Nearly 90% of the population speak English, allowing new citizens to feel like they really belong.
Learn more about this programme. Download our Cyprus programmes guide.
How do I apply?
Citizenship by investment grants Cypriot citizenship through a programme called ‘Naturalisation by Exception’, and requires that a substantial investment is made in the country.
Successful applicants must also pass several diligent screening requirements such as a criminal record check and rigorous financial checks. Spouses and dependent children may also apply, provided they meet the same requirements.
What can Cyprus offer?
While no residency requirement means endless possibilities, living in Cyprus can be a golden opportunity. Cyprus is an up-and-coming financial centre in the Mediterranean. Combined with the year-round warm weather, a highly skilled workforce and an attractive tax system, the country is a desirable place to reside and invest in.
The Cypriot government has in recent years restructured key economic sectors, such as banking and communications, tourism and shipping are on a path of strong growth, while real estate is exhibiting encouraging signs of steady recovery and discoveries in offshore gas reserves are showing some promising potential. At the same time, Cyprus has provided transparency to its legal and regulatory systems, thus offering confidence to investors.
The island is layered with history and culture, and boasts some of Europe’s most hospitable people, with a high living standard and an excellent quality health and education system.
What are the tax advantages?
Investors with Cyprus citizenship will only be taxed on their worldwide income if they reside in Cyprus for over 183 days in any year. Non-tax residents are only taxed on income accrued or derived in Cyprus, and there are tax deductions for personal income tax paid in another country.
Cyprus has a favourable personal income tax regime of up to 35% applied with a progressive system, while corporate tax stands at 12.5%. There is no inheritance tax in Cyprus.
Annual Municipal property taxes (Immovable Property Tax) vary with a maximum of 0.24%0 on the 2013 property valuation. This applies to both legal and physical owners.
VAT is 19% for the supply of goods and services.
Can UK citizens and residents apply now?
Absolutely. UK citizens and residents need not wait until the Brexit process is completed.
Global Citizen Solutions offer a highly-qualified team to guide and assist you through the application process, from investment to visa, to citizenship. To learn more about Cyprus’ Citizenship-by-Investment programme, and how the Global Citizen Solutions team can help guide you through the process, contact us now.