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Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship
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Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship

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As a part of its policies aiming to attract foreign investors in Cyprus the Council of Ministers, on the 24th of May 2013, concluded the new "Scheme for Naturalization of non-Cypriot investors by …

As a part of its policies aiming to attract foreign investors in Cyprus the Council of Ministers, on the 24th of May 2013, concluded the new "Scheme for Naturalization of non-Cypriot investors by exception" and, thus, established the new financial criteria based on which non–Cypriot entrepreneurs/ investors may acquire the Cypriot citizenship.

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  • 1. CYPRUS CITIZENSHIP BY INVESTMENT SCHEME A BESPOKE SERVICE DEDICATED TO ULTRA-HIGH NET WORTH INDIVIDUALS & FAMILIES JANUARY 2014
  • 2. 2 | P a g eGC Privé Wealth NATURALISATION OF FOREIGN INVESTORS IN CYPRUS As a part of its policies aiming to attract foreign investors in Cyprus the Council of Ministers of the Republic of Cyprus, on the 24th of May 2013, concluded the new "Scheme for Naturalization of non-Cypriot investors by exception", therefore, establishing the new financial criteria based on which non–Cypriot entrepreneurs / investors may acquire the Cypriot citizenship. The Council of Ministers of the Republic of Cyprus resolved to revise the criteria for providing Cypriot Citizenship for high-net worth individuals, making it more efficient for non-Cypriot investors, businessmen and entrepreneurs to obtain the Cyprus Citizenship. Under the new resolution, the criteria have been relaxed and applicants are allowed to apply under this new regime. For instance, applicants do not need to show any Greek language ability. Moreover, the applicant and/or family members will not need to relocate to Cyprus.
  • 3. 3 | P a g eGC Privé Wealth YOUR GATEWAY TO EUROPE By obtaining the Cypriot Citizenship, successful applicants become holders of a Cypriot passport; which effectively offers the benefits of a European Union (EU) passport and carries the same rights as other Cypriot and EU citizens, including certain immigration and visa travelling benefits. The scheme for naturalisation of investors in Cyprus is defined by the recent resolution of the Council of Ministers of the Republic of Cyprus as being available to high-net worth individuals who make certain investments in Cyprus and satisfy the conditions of such resolution.
  • 4. 4 | P a g eGC Privé Wealth APPLICATION PROCESS AND TIMING FOR CYPRUS CITIZENSHIP APPLICATIONS Once a naturalisation application is submitted, the Council of Ministers of the Republic of Cyprus will examine such application. The guidance issued by the Government of Cyprus suggests that the time period will be approximately three months, provided that the application is completed and submitted with all the necessary supporting documents and that the applicant meets the investment criteria of the resolution of the Council of Ministers of the Republic of Cyprus. However, our past experience shows that the whole process usually takes between 3-4 months from the filing date to the issuance of the naturalisation certificate and the subsequent issuance of the Cyprus passport. In the case where following a periodic inspection it has been ascertained that any condition is being circumvented, the naturalization may be revoked.
  • 5. 5 | P a g eGC Privé Wealth CYPRUS CITIZENSHIP V. CYPRUS TAX RESIDENCY Please note that by obtaining the Cypriot Citizenship and passport by exception, a successful applicant does not become automatically a tax resident of the Republic of Cyprus. Tax residency in Cyprus is based on the number of days that an individual spends in Cyprus within a given tax year and this is known as the 183-days tax test. CYPRUS TAX PLANNING AND CYPRUS TRUST ESTABLISHMENT For more information on Cyprus Tax Planning and Trust Establishments, please request our brochure on this topic from your trusted tax advisor and legal professional at GC Privé Wealth. We also note that a Cyprus tax resident may be taxed on his/her worldwide income; whereas a non-Cyprus tax resident is taxed only on his/her Cyprus sourced income accordingly; however any further references to this topic is outside the scope of this brochure.
  • 6. 6 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION OF INVESTORS IN CYPRUS BY EXCEPTION ON THE BASIS OF SUBSECTION (2) OF SECTION 111A OF THE CIVIL REGISTRY LAWS OF 2002-2013 A non-Cypriot citizen may by exception apply for the acquisition of Cypriot Citizenship, if he / she meets one of the following criteria: A.1 Mixed investments and a donation to a state fund: The applicant must have made the following investments and donation: an amount of at least €2,0 million for the purchase of shares and/or bonds of the Investment company of the state under formation and Provided that the applicant may deposit the said amount with the Treasury of the state until the shares and/or bonds of the said company are issued. an amount of at least €0,5 million as a donation to the Research and Technology Fund or
  • 7. 7 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) A.2 Direct Investments: The applicant must have direct investments in Cyprus of at least €5,0 million. Direct Investments may alternatively involve: (a) the purchase of properties (houses, offices, shops, hotels etc. or a development of a similar nature, excluding underdeveloped land), (b)the purchase of businesses or companies that are based and are active in the Republic of Cyprus (c) the purchase of shares of companies registered in the Republic of Cyprus (d)the purchase of financial assets (e.g. bonds / securities / debentures registered and issued in the Republic of Cyprus, including those to be issued by the Solidarity Fund on the basis of the Establishment of a National Solidarity Fund Law of 2013) (e) participation in a company/ consortium of companies that has undertaken to carry out a public project Provided that with regard to conditions (a) – (d), the applicant shall retain the said assets in his possession for a period of at least three years. In the case of a share or bond portfolio, it is to be ensured that the amount of the value of the portfolio for the said period will not fall below the amount specified. Provided further that the Minister of Interior shall have the right, for the period ending on 30 June 2014, to reduce the amount required for Direct Investment to €2.0 million for non-Cypriot citizens, who demonstrably participate in a special collective real estate purchase scheme, which will comprise the purchase of property on the territory of the Republic of Cyprus, controlled by the Government of the Republic, of a total value of at least €10.0 billion.
  • 8. 8 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) A.3 Deposits in banks: The applicant must have personal fixed term deposits for three years in Cypriot banks or deposits of privately owned companies or trusts (in which he/she is the beneficiary owner) in the Republic of Cyprus of at least €5.0 million or A.4 A Combination of Mixed Investments and a Donation to a State Fund (A.1), Direct Investments (A.2) and Deposits in Cypriot Banks (A.3): The applicant is required to have a combination of the above amounting to at least €5.0 million or
  • 9. 9 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) A.5 Business Activities: The applicant must be a shareholder or beneficiary owner of a company (or companies) the management of which is in the Republic of Cyprus and that over the last 3 years prior to submitting the application has paid to State Funds (corporate tax, V.A.T. or other fees and charges etc.) and remuneration for the purchase of business services (legal, accounting, auditing) as amount of at least €500,000 per annum. Alternatively in the case where the applicant is a shareholder or beneficiary owner of a company (or companies) that is active in Cyprus, has established its central offices in Cyprus and employs at least five (5) Cypriot citizens, then the minimum amount that must be paid for the above (direct revenue – corporate tax, V.A.T. or other fees and charges etc. and remuneration for the purchase of business services – legal, accounting, auditing) is reduced to at least €350,000 for the last three years preceding the submission of the application. In the case where the applicant is a shareholder or beneficiary owner of a company (or companies) that is active in Cyprus, has established its central offices in Cyprus and employs at least ten (10) Cypriot citizens, then the minimum amount that must be paid for the above (direct revenue – corporate tax, V.A.T. or other fees and charges etc. and remuneration for the purchase of business services – legal, accounting, auditing) is reduced to at least €200,000 for the last three years preceding the submission of the application. For every such company (or companies) applications for naturalisation may be submitted by a maximum of two (2) shareholders, who preferably hold the majority of the share capital. In the case where the applicant has paid the Cyprus economy direct revenue or fees (as described hereinabove) an amount less than the abovementioned amounts, a combination may be made with criteria A.1 (Mixed Investments and Donations to State Funds) or A.2 (Direct Investments ) or A.3 (Deposits in Banks). The total of payments to State Funds and remuneration for services in the last three years shall be deducted from the required investment to satisfy criteria A.1 or A.2 or A.3. or
  • 10. 10 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) A.6 Persons whose deposits with the Bank of Cyprus or Popular Bank have been impaired due to the measures implemented in both Banks after the 15th March 2013 The applicant has incurred an impairment in deposits on one or both of the abovementioned Banks amounting to a total of at least €3.0 million. In the case where the applicant has incurred an impairment in his deposits in one or both of the abovementioned Banks under €3.0 million he may apply having made an Additional Direct Investment (A.2) or Mixed Investments or a Donation to a State Fund (A.1) for the balance of the required amount of the said criterion. B. Terms and Conditions 1. Clean Criminal Record: the applicant must have a clean criminal record. Furthermore, his name must not be included on the list of persons whose property is ordered to be frozen within the boundaries of the European Union. 2. Residence in the Republic of Cyprus: In all cases listed in Part A, the applicant must hold 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. 3. In the case where following a periodic inspection it has been ascertained that any condition is being circumvented, the naturalisation may be revoked.
  • 11. 11 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) C. Submission of Documents In order to examine any applications (M127) various documents are required to be submitted, including the contract of sale and a confirmation of settlement of the dwelling referred to in B. 2 above and the following, depending on the case: 1. Mixed investments and a Donation to a state fund (a) Receipts for the donations to the Research and Technology Fund (b) Receipts from the Treasury of the Republic of Cyprus for the purchase of shares and/or bonds from the investment company of the State under formation. 2. Direct Investments (a) For the purchase of immovable property: Contract of Sale, Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department, Receipts for paying the agreed purchase price (b) For the purchase of a business, company: Contract of Sale, Receipts for paying the agreed purchase price, Confirmation from the Registrar of Companies as to Shareholders. (c) For the purchase of Shares: Share Certificates (d) For the purchase of financial assets: Title/titles and other documents regarding the financial assets.
  • 12. 12 | P a g eGC Privé Wealth SCHEME FOR NATURALISATION (continued) 3. Deposits in banks (a) Confirmation from Cypriot banks as to the fixed term deposits for three years of the applicant or the companies in which he is the beneficiary owner or of the trust in which he is the beneficiary owner (b) In the case of deposits of companies in which the applicant is the owner/ beneficiary owner, the Certificate of Registration of the Company by the Registrar of Companies and/or any other relevant evidence is to be attached. 4. Business Activities (a) Certificate of Registration of the Company (or companies) by the Registrar of Companies. (b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that he is the beneficiary owner of the company (or companies) (c) Confirmation as to the amounts paid with regard to the purchase of business services. The confirmation is to be issued by the business service providers (d) Audited Accounts of the company (or companies) for the last three years preceding the year of the application (e) Confirmation from the Social Insurance Department as to the insurable income of the employees in the company (or companies) of the applicant. 5. Impairment of deposits in the Bank of Cyprus and in the Popular Bank (a) Confirmation as to the level and the time of the impairment of the deposits. (b) In the case of deposits of companies in which the applicant is the beneficiary owner, the Certificate of Registration of the Company by the Registrar of Companies and/or any other evidence is to be attached.
  • 13. 13 | P a g eGC Privé Wealth HOW GC PRIVÉ CAN ASSIST YOU At GC Privé Wealth we pride ourselves on providing a highly bespoke client service dedicated to ultra-high net worth individuals and families. We are specialists in assisting Ultra High Net Worth foreign investors, entrepreneurs and businessmen to successfully navigate the application procedure required to obtain Cyprus Citizenship, and in managing these requisite investments in a productive and responsive way. Our advisers, including our Cyprus qualified legal team, will guide you through each state of your application process, from assisting to facilitate in gathering all the required documentation for the application through to selecting and executing your portfolio of investments in Cyprus to underpin the naturalisation application. Each member of our team is available round the clock to response to your questions, while we remain at your disposal throughout the application process.
  • 14. 14 | P a g eGC Privé Wealth HOW GC PRIVÉ CAN ASSIST YOU (continued) GC Privé Wealth can assist you with the following requirements:-  Examine the parameters of your specific case, including the naturalisation of your family in Cyprus  Assist with the legal verification of the supporting documentation  Efficient structuring of the required bank deposits to tap bank leverage  Real estate brokerage and management with regards to residential investment opportunities in Cyprus  Business activities facilitation, including company registration, full project management and business consulting services
  • 15. 15 | P a g eGC Privé Wealth SELECTING AND MANAGING YOUR REAL ESTATE PORTFOLIO CYPRUS ESTATE PLANNING Following the recent economic events in Cyprus, we believe that the current macroeconomic climate offers an excellent opportunity for foreign investors to acquire both commercial and residential real estate assets at attractive valuations. Our trust and fiduciary services can help meet your estate planning needs in Cyprus. Based on a network of Cyprus estate brokers, we guarantee you access to the most coveted properties on the island, ranging from luxury seafront villas and chalets to city-centre apartments and other unique investment opportunities that will qualify you for acquiring Cypriot Citizenship as a foreign investor by exception.
  • 16. 16 | P a g eGC Privé Wealth CYPRUS TRUST & FIDUCIARY SOLUTIONS FAMILY ENTREPRENEURIAL SPIRIT GC Privé Wealth goes a step far beyond the traditional structuring, but works closely with you to enhance the entrepreneurial spirit within family members by supporting through a number of networking initiatives. Our top law practitioners, tax planners and accountants stand ready to advise you and undertake these complex requirements in structuring efficiently your luxury asset portfolio on your behalf. We specialize in these trust and fiduciary solutions: Cyprus Trust Services: Together with our accredited partners we can structure and administer a range of trusts to meet your needs in Cyprus and worldwide. Cyprus Companies Formation: Your situation may call for a Cyprus-based company (or companies) in combination with one or more trusts in Cyprus. Cyprus Foundations: We can help establish and administer a foundation for charitable, family or private purposes; especially when it comes to the efficient donation of significant assets to charitable and philanthropic causes.
  • 17. 17 | P a g eGC Privé Wealth YOUR BUSINESS ADVISORS AND TRUSTED MANAGEMENT CONSULTANTS CYPRUS BUSINESS INTRODUCTIONS We strongly believe that Cyprus nowadays offers an exceptional array of business investment opportunities. The possibility to acquire businesses at this time and turnaround following a process of restructuring may be an important investment consideration for enhancing your business interest. We keep you aware of the most important business activities and events in Cyprus, including the most relevant business forums and summits in Limassol, Nicosia and elsewhere. Our business events calendar is tailored to meet your bespoke requirements and fit your own business schedule. BEST MANAGEMENT PRACTICE GC Privé Wealth works closely with the management of Single Family Offices (SFOs) and Family Businesses in Cyprus in setting up world class standards of reporting, including establishing sophisticated internal due diligence procedures, managing compliance requirements and developing advanced administration processes. We assist SFOs to choose the best tax planning advisors and establish efficient tax structures worldwide aiming at safeguarding the wealth of the family. Our international tax and wealth structuring specialists are skilled at establishing complex, cross-border trusts and estates. We are reviewing the structures on a frequent basis in assisting the management of the SFO to report back to the family members.
  • 18. 18 | P a g eGC Privé Wealth WE LOOK AFTER YOUR ENTIRE FAMILY’S NATURALISATION PROCESS We are fully aware about your family’s requirements. Therefore, our service extends to the whole family and we remain involved in processing applications for all family members. The resolution of the Council of Ministers of the Republic of Cyprus also provides that your spouse, your financially dependent adult children, eighteen years old or above up to the age of 28, (i.e. higher education students) may be able to apply for Cypriot Citizenship. Neither the spouse nor the children are obliged to meet any financial criteria.
  • 19. 19 | P a g eGC Privé Wealth NATURALISATION OF YOUR FAMILY MEMBERS The resolution specifies that adult children of an investor are considered as financially dependent, if they are students up to the age of 28 and are attending an institution of higher education aiming to obtain a diploma or an undergraduate or a master’s degree. The resolution excludes individuals who are studying for the acquisition of a professional qualification (e.g. chartered accountants or barrister) or individuals who are studying for the acquisition of a second, third etc. diploma or degree (either undergraduate or master’s). Finally, minor children (under the age of eighteen) of an investor have the right to acquire the citizenship according to the provisions of section 110 (3) of the Civil Registry Law (i.e. like any other minor child of a Cypriot citizen). APPLICATION PROCEDURE AND TIMING FOR FAMILY MEMBERS NATURALISATION The spouse of the applicant may apply in parallel or at a later stage based on the conditions fulfilled by the main applicant. Therefore, the spouse’s application can be submitted along with the application of the investor, so that both the main (investor) applicant and spouse will be able to acquire the Cypriot citizenship simultaneously. Dependent children (under the age of 18) are able to apply for Cyprus passport only after the approval of the main applicant.
  • 20. 20 | P a g eGC Privé Wealth REQUIRED FAMILY DOCUMENTATION All the documents issued by a foreign authority should be translated into either Greek or English and be duly authenticated. They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country). The list of the necessary documents for each family member is as follows: Investor’s Adult Children - Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer - Copy of the investor’s Certificate of Naturalization - Copy of the investor’s Cypriot passport - Birth Certificate - Copy of the applicant’s passport - Certificate of criminal record from the country of residence of the applicant - Marriage Certificate (if applicable) - Copies of advertisements in a daily newspaper two consecutive posts - Two passport size photographs - Curriculum Vitae - Copy of the undergraduate degree (if the applicant studies for a master’s degree) - Certificate of attendance at a Higher Education Institute (Original) Investor’s Minor Children - Application Form M126 fully completed and signed by the parent before a Registrar of a Cypriot court or a consular officer - Copy of the investor’s Certificate of Naturalization - Child’s Birth Certificate - Parent’s marriage certificate - Copies of the child’s and parents’ passports - Certificate of criminal record from the country of residence of the applicant - Written Consent of the non-Cypriot parent - Two passport size photographs Investor’s Spouse - Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer - Copy of the investor’s Certificate of Naturalization (if the application is not submitted simultaneously with the investor) - Copy of the investor’s Cypriot passport (if the application is not submitted simultaneously with the investor) - Birth Certificate - Copy of passport - Certificate of criminal record from the country of residence of the applicant - Marriage Certificate - Copies of advertisements in a daily newspaper two consecutive posts - Two passport size photographs - Curriculum Vitae
  • 21. 21 | P a g eGC Privé Wealth CONTACT GC Privé Wealth is the Private Office of GC Privé Group. It is the ultimate embodiment of our commitment to form an in-depth understanding of our clients and the world they live in. GC Privé serves the world’s business leaders, family offices, celebrities and other high-profile individuals. For further information contact our team of advisers at GC Privé Wealth to discuss your specific situation in confidence: Louis Loizou Partner louis.loizou@gcprive.com CY +357 25 355 656 Ext. 214 CY Mobile +357 99 0909 23 UK +44 207 590 3022 Ext. 214 UK Mobile + 44 7899 943 910 Anastasia Boykov Partner anastasia.boykov@gcprive.com UK +44 207 590 3022 Ext. 256 UK Mobile +44 7789 862 358 Christine Serhal Partner christine.serhal@gcprive.com UK +44 207 590 3022 Ext. 451 UK Mobile +44 7789 431 239 GC Privé Limassol Limassol City House 6 Karaiskakis Street 3032 Limassol Cyprus limassol@gcprive.com +357 25 355 656 GC Privé London GC Privé House 64 Knightsbridge SW1X 7JF London United Kingdom london@gcprive.com +44 207 590 3022 Andreas Ashiotis Partner, ACA andreas.ashiotis@gcprive.com CY +357 25 355 656 Ext. 417 CY Mobile +357 99 1978 27 UK +44 207 590 3022 Ext. 417 UK Mobile + 44 7515 692 194 Kia Zhu Partner kia.zhu@gcprive.com UK +44 207 590 3022 Ext. 322 UK Mobile +44 77 48 677 538
  • 22. 22 | P a g eGC Privé Wealth DISCLAIMER AND IMPORTANT NOTICE: This publication has been produced for information purposes only. It may not be reproduced in whole, or in part, nor may any of the information contained therein be disclosed without the prior consent of GC PRIVE LLP (the ‘Company’). A recipient may not solicit, directly or indirectly (whether through an agent or otherwise) the participation of another institution or person without the prior approval of the Company. The case studies presented in this brochure are scenarios intended to illustrate the application of certain products and services available through the GC Privé Partner Network ™. The strategies presented are examples of tailored solutions and so are not appropriate for every client. Please contact GC PRIVE LLP to discuss these matters in the context of your particular circumstances. No representation, warranty or undertaking, expressed or implied is or will be made or given and no responsibility or liability is or will be accepted by GC PRIVE LLP or by any of its partners, employees or agents in relation to the accuracy or completeness of this document or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. GC Privé Partner Network ™ is the marketing term used to describe the global affiliates and agents of GC PRIVE LLP. GC PRIVE LLP is a UK limited liability partnership, 64 Knightsbridge London SW1X 7JF. © Copyright 2013. GC PRIVE LLP. All rights reserved.

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