On 13 September 2016, the Cyprus Government announced that the Council of Ministers approved revised criteria for granting Cypriot citizenship to foreign investors, lowering the threshold and thus making the program even more attractive. The main revisions in the criteria are the following:
Minimum required investment:
The minimum required investment amount has been reduced to €2mn (from €5mn for individual applications and from €2.5mn for collective investment scheme applications). To make the application process easier and faster, the collective investment scheme is abolished.
One of the following financial criteria must be met:
Direct Investments in Cyprus amounting to a minimum of €2 mn, held for at least 3 years, in any of the following:
investment in real estate, land development, and infrastructure projects
purchase, creation or participation in Cyprus businesses and companies based and operating in Cyprus. Such companies are required to have a physical presence in Cyprus and to employ at least 5 Cypriot citizens
investment in Alternative Investment Funds (“AIFs”) established in Cyprus and licensed by CySEC which invest exclusively in Cyprus. This criterion includes financial assets of Cypriot companies or organizations issued after approval by CySEC
combination of the aforementioned criteria amounting to €2mn. In the context of this criterion, the applicant
Important notice:
PERSONS WHOSE DEPOSITS WITH THE POPULAR BANK PUBLIC COMPANY HAVE BEEN IMPAIRED ARE ALLOWED TO SUBMIT APPLICATIONS UNDER THE OLD FINANCIAL CRITERIA CAN BE SUBMITTED UNTIL 31/10/2016.
Citizenship to parents of the applicant:
An investor’s parents are now entitled to apply for Cyprus citizenship provided that they own a permanent residence worth at least €500.000. Alternatively, the investor and parents acquire one residential property with a total value of minimum €1mn.
Residence permit:
Applicants must be holders of a residence permit in Cyprus to qualify for receiving the Cypriot Citizenship. For this purpose, applications for residence permits should be submitted to the Authorities, which will be issued simultaneously with the filing of the Citizenship application.
Remember:
a) Free travel, reside and work within the EU of which Cyprus is a member state
b) The application processing takes 3 months only
c) Keeping investments for 3 years only
d) Low government fees for the filing of the application
e) Dual citizenship is permitted and the acquisition of citizenship in Cyprus is not reported to other countries
If you are interested in obtaining Cyprus Citizenship by Investment, please contact us at info@internetincorporate.com.
One Plus Capital Ltd (OPC)
OPC is the investment arm of Oneworld Group, licenced by the Cyprus Securities Exchange Commission – CySEC - since 2010. Established in 2009, licensed by CySEC, OPC is our boutique investment firm and its services passported in the EU. It is catering for the individual needs of private, retail and corporate clients from all over the world.
OPC core services include asset management, global brokerage, investment advisory, custody, corporate finance, mutual funds, CFDs. Our advisors also offer private equity and consulting for international investments.
For more information you may contact Kikis Lagos MD and head of asset management and Pavlos Philippides head of brokerage.
Cyprus Private Funds
The EU Directives on financial markets have encouraged fund managers, custodians, administrators and promoters who want to benefit from cross border EU opportunities, raise funds intra EU and maximize returns for investors at low cost and enhanced tax efficiency to transfer their funds and operations to Cyprus.
It is a credible alternative to onshore fund jurisdictions such as Luxemburg, Ireland, Malta and the UK and offshore jurisdictions such as the Cayman or BVI. There are two types of private funds that can be set up in Cyprus:
Alternative Investment Funds (AIF) without limitation as to the number of investors (public)
Alternative Investment Funds (AIF) with limitation as to the number of investors (private) Read more.
If you are interested in setting up a fund, please contact us at info@oneworldweb.net for an initial consultation with one of our expert advisors.
Double Tax Treaty Updates
Ukraine - Cyprus Double Tax Treaty Update:In accordance to the amending Protocol, the withholding taxes on dividends is amended as follows:
- the minimum rate on dividends has been raised to 5% and is applicable where the recipient holds 20% percent or more of the shares in the company distributing the dividend and invested at least EUR100.000 for that holding;
- otherwise, a 10% rate applies.
Cyprus and Latvia Tax Treaty Update:In according to the provisions of the treaty, the following withholding taxes will apply:
Dividends:
- Nil (0) withholding tax (WHT) will apply to dividends paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the dividends/interest
- 10% in all other cases
Interest:
- Nil (0) withholding tax will apply to interest paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the interest
- 10% in all other cases
Royalties:
- Nil (0) withholding tax will apply to royalties paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the royalties
- 5% in all other cases. Read more
Russia and Hong Kong: On 29 July 2016 the Income Tax Treaty between Hong Kong and Russia entered into force. The following withholding taxes will apply: Dividends:
5% of the beneficial owner is a company (other than a partnership) which holds directly at least 15% of the company paying the dividends; and 10% in all other cases Interest: 0% Royalties: 3%
Cyprus - Jersey: Tax Treaty Details: The tax treaty between Cyprus and Jersey have become available. The provisions of the treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force. The following withholding taxes will apply: - Dividends 0% - Interest 0% - Royalties 0%
