CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LIMITED
Citizenship & Residency Schemes, and investment Opportunities in Cyprus
Table of contents
1.
2.
3.
Introducing ConnectedSky
Why Cyprus ?
Conclusion
Citizenship and residency schemes
4.
Introducing ConnectedSky
Introducing ConnectedSky
The Samir Group
Introducing ConnectedSky
Through its association with C. Samir & Co. LLC , ConnectedSky maintains its headquarters in Nicosia, the Capital City of Cyprus and has representative offices in 22 locations within 16 Countries:
BEIJING • BERLIN • BRUSSELS • BUDAPEST • DUBAI • FRANKFURT • HAMBURG • HONG KONG • KONING-WUSTERHAUSEN • LIMASSOL • LONDON • LUGANO • MILAN • MOSCOW • MUNICH • NICOSIA • PALMA DE MALLORCA • PRAGUE • ST. JULIANS • VIENNA • WARSAW • WIESBADEN
Introducing ConnectedSky Global professional services provider ONE-STOP-SHOP Services & Solutions In addition to its representative offices, ConnectedSky maintains
Subsidiaries in: Russia “OOO ConnectedSky” Malta “ConnectedSky (Malta) Limited” Hong Kong “ConnectedSky (HK) Limited” London “ ConnectedSky (UK) Limited”
Introducing ConnectedSky
Top 20 Services By ConnectedSky
1. Formation and Full Management of Foundations and Trusts Worldwide 2. Formation of Cyprus Investment Firms (CIF) 3. Formation of Alternative Investment Funds (AIF) 4. International Tax Planning 5. Obtaining Cypriot and Foreign Citizenship and Residency 6. Opening and Maintenance of Bank Accounts Worldwide 7. Formation and Re-domiciliation of Companies Worldwide 8. Fiduciary, Trustee, Administrative and Secretarial Services Worldwide 9. Mergers & Acquisitions
Introducing ConnectedSky
Top 20 Services By ConnectedSky
10. Insolvency and Restructuring 11. Dispute Resolution 12. Real-estate and Construction 13. Intellectual Property 14. International Corporate Intelligence 15. International Compliance 16. Family Office 17. Legal Opinions and Legal Due Diligence Exercises 18. Accounting, Bookkeeping and Audit Assistance 19. Assistance with Recruitment, Training and HR 20. Registration of Ships, Vessels and Private Yachts
Introducing ConnectedSky
Our Values:
Performance based work ethics
Uncompromising attention for details We Grow When You Grow
Why Cyprus
“Cyprus offers a strategic location, favourable tax environment, educated work force, excellent telecommunications, modern banking and legal infrastructure which make the country the perfect business bridge for the European Union and the Middle East.”
THE WALL STREET JOURNAL
Why Cyprus
EU Membership
Geographical location
Shipping
Why Cyprus
Legal System
English Common Law principles FULL compliance with
- all EU AML directives - OECD - FATCA - FATF
Why Cyprus Taxation
corporate tax rate of 12,5% Dividend income received from abroad is tax exempt (subject to
conditions); No thin capitalisation rules; Capital gains from the sale of immovable property situated outside
Cyprus is tax exempt; Capital gains on sale of qualified Securities: 100% exemption; No withholding tax on outward payments (Dividends-Interest-
Royalties) to non Cyprus tax residents (companies or individuals); Foreign Permanent Establishment profits exempt (subject to
conditions); IP Box Regime with only 2.5% effective Taxation.
Citizenship and residency schemes
Citizenship and residency schemes
Cyprus Citizenship
Cyprus Citizenship by Investment
INCENTIVES EU citizenship No language requirement, medical test or interview Visa-free travel to more than 150 countries in the world, including all the
European Union countries, Canada and Australia amongst others Protection by EU legislation and regulations Dual-citizenship is allowed Combination of tax incentives for investors who were granted the citizenship
Cyprus Citizenship by Investment
REQUIREMENTS Fulfil one of the following Economic criteria
1. Investment of at least €2 million in real estate developments and infrastructure. 2. Purchase or incorporation or participation of at least € 2 million in Cypriot businesses and companies. (Must have physical presence in Cyprus, with significant activity and turnover, and must employ at least five (5) Cypriot or European citizens) 3. Investment of at least € 2 million in Cyprus alternative investment funds (AIF’s) or financial assets or Cypriot organizations licensed by the Cyprus Securities and Exchange Commission, “CySEC”
Cyprus Citizenship by Investment
OR a combination of the aforementioned investments - Combination of the above investments, provided that the total investment will amount
to at least € 2 million. - Under this criterion, the investor may also invest in government bonds of Cyprus for
the amount up to € 500.000 (Included in the € 2 million Investment), which will be issued for this purpose by the Public Debt Management Office of the Ministry of Finance, for a period of at least three (3) years.
Cyprus Citizenship by Investment
TERMS AND CONDITIONS 1. Clean criminal record
2. Residential property in the republic of Cyprus with a value of at least € 500.000 plus
VAT.
3. Residency in Cyprus
Following the recent amendments, the investor may invest €500.000 more and qualify
to obtain Cyprus Citizenship for his/her parents as well.
Citizenship and residency schemes
Cyprus Residency
Cyprus Permanent Residency
INCENTIVES Right to permanent residence in Cyprus Visa Free travel to Cyprus Granted for Life Includes spouses, parents, underage children and adult dependent children up to 25
years old.
Cyprus Permanent Residency
Requirements Purchase of Property in Cyprus of a minimum value of
€300.000 and proof of payment for at least €200.000
Deposit of minimum €30.000, in a 3-year Fixed Deposit
Account.
Cyprus Permanent Residency
Terms and Conditions Clean criminal record certificate Submit a statement of non-employment in Cyprus
Visit Cyprus at least once every two years
Citizenship and residency schemes
Cyprus Non-Domicile Program
Cyprus Non-Domicile Program
Tax Authorities
CRS / FATCA Global Issues CLIENT
Cyprus Non-Domicile Program
Tax Authorities
Substance
CRS / FATCA Global Issues
Cyprus Non-Domicile Program
Personal Substance
Corporate Substance
Tax Residency
Real Physical Presence
Cyprus Non-Domicile Program
Tax Residency In Cyprus : physically present on the island for 183 days or more during a calendar year
Domicile : a person who has either his/her domicile of
origin (given at birth) in Cyprus or domicile of choice (establishing a home with the intention to reside in Cyprus permanently or indefinitely)
Definitions:
Cyprus Non-Domicile Program
KEY BENEFITS
Tax exemption of 50% of the remuneration from any employment exercised in Cyprus ( When the remuneration exceeds €100,000 per annum.)
Tax exemption of 20% of the remuneration or €8,550 (whichever is the lower) from any employment exercised in Cyprus
Income tax exemption for overseas employment. Remuneration from rendering services outside Cyprus to a non-resident employer for more than 90 days is exempt from income tax
Cyprus Non-Domicile Program
KEY BENEFITS
No tax on dividend and interest income
No tax on gains arising from the disposal of investments
Nil/reduced withholding tax on income received from abroad
Exemption from capital gains tax (CGT) on sale of non- Cypriot real estate
The Cyprus Non-Domicile Program
SAMPLE COMPUTATION
Sources of income Amount Taxes Comments
Employment Income €150,000 20,000 ( After application of the progressive Personal Tax Rates of 20%,25%,30%,35%)
50% Tax Exempt
Dividend Income €70,000 NIL 100% Tax Exempt
Interest Income €30,000 NIL 100% Tax Exempt
Gains from the Disposal of shares
€5,000 NIL 100% Tax Exempt
Capital Gains on sale of non-Cyprus real estate
€200,000 NIL 100% Tax Exempt
Total €455,000 €20,000
The Cyprus Non-Domicile Program
SAMPLE COMPUTATION
For an income of €445,000 Per Annum
Only € 20.000 Personal Income Tax
And FULL exemption on all Investment income
Conclusion
Within an increasingly demanding regulatory and legal environment Cyprus clearly stands out with a vast array of investment opportunities for both individuals and corporate entities. ConnectedSky translates such a multi-faced matter into an integrated global service. We thoroughly understand the need for cost efficiency, strategic commercial guidance, and most importantly, mindfulness throughout.
Thank You
Charalambos Samir is an International Corporate lawyer and member of the Cyprus Bar Association. He is the founder and CEO of ConnectedSky and C. Samir & Co. LLC, and specialises in International Corporate Law, Mergers & Acquisitions, and International Corporate (Re) structuring, the setting up of Trust and Foundations, Fiduciary, Tax and Dispute Resolution.