Cyprus has a robust, market-driven economy supported by a stable democracy and driven by a diverse, well-educated, skilled workforce, along with an excellent telecommunications and infrastructure system and the lowest tax regime in the EU. The country’s currency is the euro.
LOCATION & POPULATION
Cyprus, with an area of 9,251 sq km and coordinates at 35 n and 33 e, lies at the crossroads of Europe, Africa and Asia at the crux of the busy shipping and air routes linking the three continents. The population of Cyprus is 870,000 (est). The capital of Cyprus is Nicosia situated at the heart of the island with a population of 310,000 (est). The second largest city is Limassol and the location of the island’s major commercial port. The international Airport situated in Larnaca with more than 35 international airlines operate scheduled flights to and from Larnaca international Airport and Paphos international Airport. The Paphos Airport was inaugurated in 2008 with a passenger flow of approximately 1.7 million in 2010. The new Airport in Larnaca opened in 2009 and handled more than 5.3 million passengers in 2010.
Cyprus’ languages include Greek and English. English is widely spoken and used as the language of international business on the island. In addition, Cyprus is home to people that also speak Russian, German, French and other languages.
Cyprus has become the destination of choice for investors in search of an ideal location for their company headquarters and operational activities. Cyprus, which has a long established reputation as a safe and secure location for commercial and business activities, continues to develop into an ideal hub for doing business between the Middle east, Africa, Asia and Europe.
Cyprus offers ease of doing business in a professional environment in the surroundings of a sophisticated culture and advanced quality of life, both for multinationals as well as small and medium enterprises. By investing in an EU member state such as Cyprus, a market of over 500 million citizens is readily available. An EU member state since 2004 and a member of the European Monetary Union since 2008, Cyprus provides a thriving market oriented economic system with the lowest corporate tax regime in the EU, combined with a range of double tax treaties with over 43 countries worldwide. Cyprus offers relatively low operating costs for high quality services, including banking, tax accounting, auditing, business administration, legal processing, trustee, investment, brokerage and funds management.
Cyprus possesses an advanced transport and telecommunications infrastructure with state-of-the-art high-speed internet and mobile telecommunications, two international airports (Larnaca and Paphos) and sea ports (Limassol and Larnaca), with close geographic proximity to the Suez Canal. Cyprus is located in the ideal geographical position and can act as a hub for investments to Europe and to countries of Middle east, Gulf States, Africa and Asia. Cyprus provides the ideal environment to set up your business operations effectively and efficiently.
Cyprus can fully cater to your business needs!
Providing services ranging from registering and setting up your company’s operations to managing your EU, North African and Middle Eastern and Asian clients very cost-effectively. Cyprus is committed to sustainable growth and economic development. with pristine beaches and enviable weather, Cyprus blends a high quality of life with maximum business benefits, catering for individuals and families.
Why Invest in Cyprus
EU & EUROZONE
EU27 Member since May 2004, Economic and Monetary Union Member since January 2008.
Cyprus is Europe’s eastern outpost at the crossroads of three continents – Europe, Africa and Asia – providing a gateway to and from each one of them.
Cyprus offers one of the most attractive tax systems in Europe and a network of double taxation agreements with key countries. The country provides a simplified, effective and transparent tax regime that is fully compliant with the EU laws and regulations.
Cyprus has a young, well-educated, skilled and multilingual human capital base and offers a high standard of specialist professional services.
VALUE FOR MONEY
Cyprus offers relatively lower operating costs with high quality services, including banking, tax, accounting, auditing, business administration, legal, investment and funds management.
Cyprus provides an effective transparent regulatory and legal framework based on the Common Law and is fully harmonized with the framework of EU laws and regulations.
State-of-the-art high speed internet connectivity, mobile telecommunications, a modern road network, two international airports in Larnaca and Paphos and two ports in Limassol and Larnaca.
EASE OF DOING BUSINESS
Cyprus has developed into an international quality business center that offers specialized services and rewarding business opportunities catering for the diverse needs of international investors, enhancing the ease of doing business.
QUALITY OF LIFE
Cyprus offers a wonderful environment with a very comfortable standard of living. Living and working in Cyprus is combined with fabulous weather, beautiful nature, art and culture, safety, security, and above all, hospitable people.
There are various incentives offered for businesses and entrepreneurial activities.
Cyprus is committed to ensuring the security of its energy supply, protecting the environment, fostering healthy competition in the energy sector and encouraging development of renewable energy technologies and production. The energy policy of Cyprus is fully harmonized with the energy policy of the European Union.
Main aspects of the policy include:
The liberalization of the electricity and oil markets.
The establishment and operation of a strategic oil stock terminal
The implementation of development programs related to the use of energy conservation, technologies, utilization of Renewable Energy Systems (RES) and the protection of the environment from industrial pollution.
The promotion of oil products and other sources of energy friendly to the environment, such as natural gas.
The discovery of rich natural gas reserves in the waters surrounding the Cypriot Exclusive Economic Zone (EEZ) brings new focus to the energy industry in Cyprus.
Cyprus is weighing various options related to natural gas, related to exploiting its own natural gas reserves, (estimated at 10 trillion cubic meters), in its offshore territory and creating a liquefaction plant for export of its own reserves of natural gas as well as of neighboring countries.
It is clear that natural gas will play an important role in the developments in the energy sector as well as the Cyprus economy in the immediate future.
Invest in Cyprus & Get Permanent Residency Status
On account of Cyprus’ ideal geographical positioning between three continents, Cyprus government has found it opportune to reinforce the real estate market, by motivating the increase of residence purchases by high net worth third country nationals. Now third country nationals who invest in property in Cyprus are favored in regard to the obtaining of Permanent residence permits or Cyprus Passport and citizenship, enabling their full or part time stay in Cyprus.
The Cyprus PR program offers non-EU nationals guaranteed permanent residency within 2 months with a single, secure, real estate investment of €300,000. It applies to the investor, their spouse and dependent children up to age 25. The permits are valid forever, the process is simple and are issued very quickly.
Visit Requirements – Just a single day visit, once every two years.
Cyprus permanent residency benefits:
Permanent residency status means that your family has the right to live freely in Cyprus or continue to live in your home country and just use the permit whenever you need it. It can act as an insurance policy for the future.
Permit holders also have the right to own a business in Cyprus or setup a Cyprus company as an intermediary for export trading throughout the world, thus benefit from Cyprus’ excellent business and tax advantages.
Cyprus is a superb base for travelling throughout Europe with its excellent flight connections and visas are very easy and quick to obtain. A permit holder can obtain a Schengen visa within just one week. Travel will become even easier when Cyprus becomes a Schengen State in the very near future. The island offers excellent education opportunities which enable your children access to the best universities worldwide.
Minimum investment to get Cyprus Citizenship has been reduced to only EUR 2.500.000 + residence of EUR 500.000, compared to min. EUR 5.000.000 + residence of EUR 500.000 before.
On 28th March 2014, the Cyprus Government announced changes to the legislation that enables foreign non-EU investors to become a Cypriot (EU) citizen and obtain a Cypriot passport through naturalization, making it more accessible and affordable than ever.
One of the key benefits of the Cyprus citizenship program is that it involves a secure investment, rather than a donation like in many countries.
The above amounts are to be understood without VAT.
The investment of EUR 2.500.000 will be eligible for citizenship if invested in real estate, shares in Cyprus companies, purchase of local businesses, infrastructure and development projects, or government bonds.
Property purchased by the applicant during the past three years is eligible to be accounted for the required total investment. Additional property/ies may be purchased or other investments done in order to meet the total required investment.
We are experienced with the process and we are here to assist you in achieving either your CYPRUS Permanent Residency or Citizenship.
Benefits of the Cyprus Residence or Citizenship by Investment
Cyprus Residence by Investment Program:
|Option to invest in real-estate:||Yes|
|Time to citizenship in years:||7|
|Income Tax:||up to 30%|
|No Global income tax:||Yes|
|Option to reside, and study in Cyprus:||Yes|
|Present a proof of income from outside Cyprus:||Yes|
|Residency requirements:||once every 2 years|
|Minimum investment||€300 000|
|Process duration in months||2|
|The property needs to be owned during the whole period of residency||Yes|
Comparison – Single person
Permanent Residence – Fast Track Procedure
|Minimum Investment Amount||€325,000 (including 5% VAT)|
|Minimum Bank Deposit||€30,000|
|Legal & Consultant Fees||€20,000|
Cyprus Citizenship by Investment Program:
|No of countries you can travel to visa-free:||146|
|Travel free to EU and Canada:||Yes|
|You gain right to live, work and study in EU:||Yes|
|Option to invest in real-estate, thus recover your funds:||Yes|
|Relatively low property prices:||Yes|
|Residency requirements per year (in weeks):||0|
|Min investment:||€ 3 000 000|
|Process duration in months||3-4|
|Min investment period after which you can sell your property:||3 years|
With our wide selection of properties and proven experience in the market, we ensure to offer you the best options to turn your dreams into reality.
A deposit of 5% (minimum of €5,000) will reserve your property for 2- 4 weeks.
Terms of Payments: Upon signing contract of sale a minimum 30% payment is required. The rest of 70% will be payable on completion for ready properties. For off plan properties stage payments apply.
Mortgage facilities with various banking institutions in Cyprus, either in Euro or any other currency, is available with at least 40% initial contribution and low interest rates. Our sales team assists the buyer during the whole process of obtaining a loan.
Legal fees vary according to the price of the property, but the fees of an experienced property solicitor is usually between €2.000 – €3.000, and it is payable to the solicitor upon signing the contract of sale. An additional fee is charged in the case of application to obtain Permanent Residence Status.
CONTRACT OF SALE
The legal system in Cyprus is based on the British system. When purchasing a property the contract you sign is a private agreement between you and the seller. All contracts of sale are in English, but we can provide with official translation in any language that you require.
FILING THE CONTRACT OF SALE TO THE LAND REGISTRY DEPARTMENT
Once the Contract of Sale is duly signed and stamped, your lawyer files a certified copy of the Contract at the Land Registry Office to secure the transfer of the acquired property into your name.
After the contract of sale is signed, the purchaser is liable for the payment of stamp duty.
|The first €5.000||0|
|€5.001 – €170.000||0.15%|
|More than €170.001||0.2%|
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:
|Market Value||Rate||Fee||Accumulated Fee|
|From €85.001 to €170.000||5%||~€4.250||~€6.800|
In an effort to receive the real estate market, sale-purchase contracts concluded between 2 December 2011 and 31 December 2016, which are subject to VAT will be exempt from the above transfer fees and those not subject to VAT will be eligible for a 50% exemption from the above transfer fees (subject to conditions).
VALUE ADDED TAX (VAT)
Buyers of new real property are liable to pay Value Added Tax (VAT), which is levied on the purchase price or market value of the property. The standard VAT rate is 19% as of 13 January 2014.
A reduced VAT rate of 15% may apply on the acquisition and/or construction of residences of first-time buyers, with area less than 250m2. The reduced rate may also apply on the acquisition and/or construction of residences for use as the primary and permanent residence for the next ten years.
ANNUAL PROPERTY TAXES AND FEES
Example of Property Value €300.000
|One Owner||Two Owners|
A. Immovable Property Tax
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st January 1980. Immovable Property Tax is payable to the Inland Revenue Department of Cyprus. The rates are as follows:
|Assessed 1980 Property Value||Tax Rate||Tax||Cumulative Tax|
|€1 to €12,500||nil||€0||€0|
|€12,501 to €40,000||0.6%||€240*||€240*|
|€40,001 to €120,000||0.8%||€640||€880|
|€120,001 to €170,000||0.9%||€450||€1,330|
|€170,001 to €300,000||1.1%||€1,430||€2,760|
|€300,001 to €500,000||1.3%||€2,600||€5,360|
|€500,001 to €800,000||1.5%||€4,500||€9,860|
|€800,001 to €3,000,000||1.7%||€37,400||€47,260|
|More than €3,000,000||1.9%|
*Property owners whose property has a total value of €12.500 or less (using values of 1.1.1980) are exempt from International Property Tax.
B. Local Authorities Fees
Local Authorities charge €100 – €200, depending on the size of your property, for regular refuse collection, street lighting and relevant community services. The fees are payable to the local Municipality Authority.
C. Municipality Tax
The registered owner of a property is liable to an annual Municipality Tax calculated on the market value of the property as at 1st January 1980. The rate is 0.15%. Municipality tax is payable to the local Municipality Authority. For example, for a 3 bed house the Municipality tax valued today at €300.000 will be about €80 per annum.