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18/07/2018

-by-investment programme - a legal
May 25, 2018

Introduction

In 2014 Cyprus was ranked the fifth-best relocation destination in the world by an international lifestyle review.(1) Cyprus was the only European location alongside Switzerland to make it into the top five – ahead of London, Madrid and Monaco. Coupled with what most international tax advisers agree is the most favourable onshore personal tax regime in the world, Cyprus provides an attractive destination for investment-based immigration.

Cyprus's immigration policy and legal framework enable EU and non-EU applicants to obtain Cypriot citizenship on an expedited basis. There are a number of reasons that Cyprus's citizenship-by-investment (CBI) programme is considered to be the most attractive in Europe, including the following:

- There is no requirement to make a donation to the local government in contrast to many other CBI programmes worldwide (eg, Malta).
- Cyprus does not require applicants to live on the island prior, during or after the application process, unlike all other EU countries whose citizenship programmes impose some form of residency requirement.
- The application process takes six months and approval is granted within three to four months. As a result, the Cyprus's CBI programme is the fastest route to EU citizenship.
- The application process is simple and straightforward with no requirements to disclose sources of wealth, no medical tests and no language requirements.
- Cyprus's CBI programme is one of only two EU-approved programmes.

Legal framework

The recent amendments to the Naturalisation of Investors in Cyprus by Exception Scheme, based on Sub-section 2 of Section 111A of the Civil Registry Laws 2002, was approved by the Council of Ministers on September 13 2016. The government has formulated a fast-track citizenship scheme aimed at high-net-worth individuals, investors and entrepreneurs. This allows successful applicants and their families to hold a Cypriot passport and enjoy all of the benefits afforded to Cyprus and EU nationals.

Free movement of people Cypriot citizens can freely travel, reside, study and work in any of the 28 EU member states, as well as Switzerland, Norway, Iceland and Liechtenstein. An entire family can obtain Cyprus citizenship and the children of EU nationals have the right to lower tuition fees within the European Union.

Free movement of services Individual citizens and their companies can offer services within the EU member states without any obstacles.

Free movement of capital Cypriot citizens can transfer funds between EU member states, purchase of property in any EU member state and invest in any type of activity.

Free movement of goods All goods produced in EU member states can be freely transferred inside the European Union.

No requirement to physically reside in Cyprus There is no requirement for applicants to physically reside in Cyprus either before filing an application or after obtaining Cypriot citizenship.

Attractive tax system Cyprus is an attractive financial centre due to its favourable tax system and strategic location at the crossroads of Europe, Africa and Asia. The Cypriot taxation system is consistently voted by EU tax professionals as the most attractive in Europe. Further, the newly introduced non-domicile regime means zero taxation of worldwide dividends and interest income for 17 years.

High standard of living Cyprus offers:

- political stability;
- a high standard of living with access to reputable state and private schools and medical facilities; and
- among the European Union's lowest crime rates.

Visa free travel Cypriot citizens require no visa for travel within the European Union and to over 159 non-EU countries.

Dual citizenship Cyprus allows its citizens to hold dual citizenship.

CBI investment options

The investment options under the CBI programme are as follows.

Investment in residential real estate This option entails a €2 million (plus value added tax (VAT) of 0%, 5% or 19%) investment in residential real estate that is situated in Cyprus and held for three years, after which the overall investment in real estate can be reduced to a minimum of €500,000 in residential property (excluding any VAT that was paid on initial acquisition).

Examples of possible investment under this option include:

- the purchase of a villa for €1.5 million and one apartment for €500,000, with the option to sell the villa after three years; and
- the purchase of a villa for €2 million that is sold after three years and the simultaneous purchase of a residential property worth €500,000.

The parents of the main investor can also be included in the same application with an additional investment of €500,000 (plus VAT if applicable) in residential property.

Combination of real estate and other investments This option entails the following investments:

- a three-year investment of €2 million (non-inclusive of VAT) in any of the following investment categories:
- eligible real estate situated in Cyprus, namely residential property, commercial property, infrastructure or land, provided that a development plan is in place;
- the creation, acquisition or participation in a Cyprus company or business that employs five Cypriot or EU nationals who have been resident in Cyprus for five years prior to the filing of the citizenship application, where the applicant is a shareholder;
- investment in an alternative investment fund or the financial assets of a Cyprus Securities and Exchange Commission-licensed entity with activities in Cyprus;
investment in interest-bearing Cyprus government bonds (0.75% per annum), provided that the investment does not exceed €500,000;
- a mix and match of any of the above options; or
a €500,000 investment (plus VAT of 0%, 5% or 19%) in residential property, which must be held indefinitely.

The main investor's parents can also be included in the same application with an additional investment of €500,000 (plus VAT if applicable) in residential property.

In addition to satisfying any of the above financial criteria, the primary applicant must:

- have a clean criminal record from his or her country of origin or residence; and
- confirm that his or her name is not included in the list of persons whose property is ordered to be frozen by the European Union.

Application process and timeline

The CBI application timeline can be summarised as follows:

- six months for the main applicant and spouse;
- seven months for minor children; and
- 12 months for the main applicant's adult children and parents.

There is no requirement to physically reside in Cyprus before, during or after the CBI application.

The application process can be summarised as follows:

- A CBI application is filed for the main applicant and his or her spouse.
- A permanent residence permit (PRP) application must be filed the next day for the main applicant and his or her spouse and minor children (between the ages of six and 17). This requires a one-day visit to Cyprus by the main applicant, his or her spouse and minor children (minor children can be excluded from the PRP application and this will not affect their ability to apply for citizenship).
- Within five days of filing, approval of the PRP will be granted, allowing the holder of a permit to travel visa free to Cyprus, Germany, Italy, France, the Netherlands and Luxembourg.
- The CBI application will be approved within three to four months.
- Certificates of naturalisation and passports for the main applicant and spouse will be issued six months from the date of the original application.
- Citizenship applications for minor children will require two to three weeks for approval followed by the immediate issuance of certificates of naturalisation and passports.
- Citizenship applications are filed for adult children (up to the age of 28) and parents of the main applicant.
- The main applicant's adult children and parents must visit Cyprus the next day to file a PRP application.
- The main applicant's adult children and parents will receive their citizenship within two to three months of filing the relevant PRP application.
- Certificates of naturalisation and passports for the main applicant's adult children and parents will be issued six months from the date of the relevant PRP application.

Cyprus's immigration policy and legal framework enable EU and non-EU applicants to obtain Cypriot citizenship on an expedited basis. The government…

11/06/2018

Highly skilled British people could work in the after under expanded scheme, claims report
June 11, 2018

The analysis by Migration Watch says the proposed expansion of the 'Blue Card' scheme could 'provide opportunities for British nationals to work in the EU even without any special agreement following the Brexit negotiations'.

Highly skilled British people could work in the European Union after Brexit under an expanded visa scheme, a new report claims.

According to the new analysis by Migration Watch, the right-wing think thank that campaigns for more stringent immigration controls, the proposed expansion of the “Blue Card” scheme could “provide opportunities for British nationals to work in the EU even without any special agreement following the Brexit negotiations”.

The scheme, which is modelled on the United States’ green card programme, aims to give highly qualified workers from outside the EU the right to live and work in a member state provided they meet specific conditions.

Implemented by the EU in 2009 as the EU Blue Card Directive, it currently applies in 25 out of the 28 EU member states – with Denmark, Ireland and the UK not participating. But the scheme has enjoyed little success and EU officials hope to revive it.

While the post-Brexit immigration issue is yet to be resolved in the Brexit negotiations, Alanna Thomas, the executive director of Migration Watch, said: “British citizens hoping to work in the EU post-Brexit need not be concerned about getting a work permit. The EU is in the process of expanding their scheme and easing the conditions.”

The organisation’s paper estimates that in the five EU states where the most EU-based British nationals live, and which implement the Blue Card – Spain, France, Germany, Netherlands and Belgium – the prospective salary threshold range under the proposed new regime would be between £17,000 and £46,400 a year.

When the EU announced its intentions to revive the Blue Card scheme before the referendum last June, Dimitris Avramopoulos, the European Commissioner in charge of migration, said: “The revised EU Blue Card scheme will make it easier and more attractive for highly skilled third-country nationals to come and work in the EU and strengthen our economic growth.”

But Migration Watch adds that the scheme is currently “far from complete” and claims 87 per cent of Blue Cards are issued by Germany alone. Applicants for the scheme are also required to hold a work contract of at least one year and a salary of at least one and a half times the average gross annual salary paid in the member state they wish to reside in. Proof of a higher educational qualification is also required.

The report adds: “Current EU arrangements for highly skilled work permits are either incomplete or characterised by differing arrangements across states. However the EU aims to make the system more uniform and increase the number of Blue Cards issued by lowering salary thresholds, among other changes.

The analysis by Migration Watch says the proposed expansion of the 'Blue Card' scheme could 'provide opportunities for British nationals to work in the EU even without any special agreement following the Brexit negotiations'

11/06/2018

Destination : Asian Funds Make Island Their
June 11, 2018

For many investments funds from Asia, Cyprus has become a gateway to Europe.

Drawn by its location -- straddling the regions of Europe, the Middle East and North Africa and with access to Eastern Europe, Russia and former Soviet republics -- flexible legislation and lower costs, Asian funds are using Cyprus for their single European Union passport for investment across the bloc.

"There is an increasing trend for funds from countries who traditionally didn’t have strong economic ties with Cyprus such as China, India and even Japan, to establish a base in the country as their gateway to the EU," Andreas Yiasemides, Vice President of the Cyprus Investment Funds Association, said in an interview in Nicosia.

The number of investment funds and assets under management have hit record highs, according to the Central Bank of Cyprus. At the end of March the number of funds rose to 123 from 110 at end December. Total assets under management rose by about 29 percent to 4.45 billion euros ($5.24 billion) from 3.45 billion euros. In Dec., 2008 there were 55 funds with 1.23 billion euros in assets under management.

Destination Cyprus
Investment funds are increasingly attracted to the island

CHART

Interest for the setup and authorization by the Cyprus Securities and Exchange Commission of alternative investment funds runs strong, its Chairwoman Demetra Kalogerou said.

“There are 60 applications at this moment for different fund structures,” she said. “Of these, 44 have been pre-approved, subject to fulfilling certain conditions.”

Flexible legislation
While Cyprus’s existing funds framework legislation applies EU directives and regulations, the country is introducing additional changes to make the island even more attractive for investors and fund and asset managers to register and manage funds, said Marios Tannousis, Board Member and Secretary of CIFA.

These include legislation that will enable investors to know from the beginning the tax regime applied to the different types of funds, a fast-track procedure for launching so-called registered alternate investment funds and the establishment of a new category of investment managers known as mini-managers who will be licensed to operate below current alternative investment fund manager thresholds, he said.

Cypriot legislation for establishing funds is much more flexible than elsewhere in Europe, but investors remain well protected, Yiasemides said. Costs in Cyprus are much lower than elsewhere in the EU and that is very important for small and medium-sized fund managers that Cyprus is seeking to lure.

“We can’t become Luxembourg from day one and so we aim to attract funds that take cost into account,” he said.

AUM Surge
Value of assets increases by two thirds in last year

CHART

Domestic investment
A physical presence in Cyprus also means funds contribute to the country’s domestic economy, renting or buying offices and paying fees to the state. They can carry out investments, especially in real estate, Yiasemides said.

Kylin Prime Fund, a Sino-European manager, established the Kylinprime Investment Fund in Cyprus as an alternative investment fund for the island’s assets. It invests in real estate, land development and infrastructure projects in Cyprus, financial assets of Cypriot companies or Cypriot organizations, such as bonds, bills issued with Cysec approval, according to its website. It is also one of the very few funds authorized to raise capital under the Cyprus citizenship by investment program, the company says.

“We are receiving inquiries for domiciling funds in Cyprus from China and India, but also from the Middle East and Europe including from Switzerland, Italy, Greece and Germany,” Tannousis said. “There is also some interest from U.K. funds managers to have back up funds in the country as their EU base, ” he said.

For many investments funds from Asia, Cyprus has become a gateway to Europe.

11/06/2018

Why 's Richest Are Seeking In
June 10, 2018

India's wealthy have long coveted foreign passports. Some see it as a ticket to easier tax regimes and more business friendly climates. For others, it’s the desire for a more western lifestyle or the ability to study, work or travel abroad with ease. For rich Indians looking for citizenship or permanent residency in a European nation, the scenic island country of Cyprus in the Eastern Mediterranean is becoming an increasingly popular choice, thanks to its "golden visa" program, where residency or citizenship can be acquired via investment.

Why Cyprus?

Perhaps the most high profile Indian to opt for Cypriot citizenship in recent times is real estate tycoon Surendra Hiranandani, cofounder of the Hiranandani Group; a Forbes Billionaire, and one of India’s richest businessmen. His reason: the ease of doing business.

“If I had a chance to speak with Prime Minister Narendra Modi today, I would urge him to do something about improving the ease of getting various permissions for the real estate sector. Then, of course, there is the major problem of the rate of interest the builders are charged,” he said in an interview with the Mumbai Mirror, lamenting the state of the construction business in India.

Interestingly, Cyprus seems to appeal not just to high net worth Indians in India, but equally to wealthy Non-Resident Indians (NRIs) in cities like London or Dubai.

Another famous Indian to recently take on Cypriot citizenship is Anish Bhatt, better known as Watch Anish. He's the founder of one of the world’s foremost watch and lifestyle magazines, with close to two million followers on Instagram.

Speaking to me from Cyprus in a telephone interview, when asked why he made the switch, he said the biggest draw was the quality of life the move offered. “I travel so much for work, I barely get to spend 60 days a year with my wife and daughter. Those 60 days at home are now in a place with constant sunshine, swimming pools and easy access to the most beautiful beaches in the world, instead of in an apartment in a dreary, hectic city. London was also getting more and more dangerous and I wanted a better quality of life for my little girl."

The island’s more tax-friendly business climate, and varied investment opportunities are an added bonus for new businesses. “It really worked well because the tax system in Cyprus is very easy to work with. Plus with all the new infrastructure and development coming up, I’ve also discovered many promising new investment opportunities,” Bhatt said.

What the process is like

When asked what the process of getting his Cypriot passport was like, Anish explained, “While it may seem daunting to make the switch to a whole new country, it can actually be a very smooth process--you just work with consultants that specialize in enabling your move.”

To find out more, I spoke with Dillon Bhatt, head of international business development at Millwood Kane International, the real estate investment firm that worked with Watch Anish to facilitate his move.

Currently based out of London and Cyprus, the firm specializes in assisting high net worth individuals with the Cypriot citizenship-via-investment and residency-via-investment processes. Now the firm also has a growing presence in Mumbai, because a large portion of their clients are Indians.

“Cyprus offers the quickest route to European citizenship through the investment program,” Dillon said. “The investment can be made by a purchase of a €2 million home in Cyprus, or an investment of €2 million into land development, infrastructure projects, hospitality, businesses, or even funds in Cyprus with an additional €500,000 + VAT invested in a home.”

For a Permanent Residency Visa, "applicants are required to invest €300,000 plus VAT in real estate, and comply with basic minimum annual income criteria," he explained. "There's no obligation to reside in Cyprus, a short visit once in two years is sufficient; and after seven years of residency in Cyprus, you are entitled to apply for naturalization and obtain a Cyprus passport."

In either case, the process usually takes "approximately three to six months," according to Dillon.

What are the benefits?

"Once you have Cypriot citizenship or residency, as long as you spend at least 60 days a year in Cyprus and less than 183 days in any other country, you are eligible to be a tax resident in Cyprus, which can be extremely tax efficient for most people making the switch," Dillon explained.

"Cyprus has one of the lowest corporate income tax rates in the EU, at 12.5% which can be further reduced to as little as 2.5% by applying Notional Interest Deduction (NID). Also, there is no capital gains, inheritance or estate tax, and significantly, there is zero tax on dividends--so it can make a lot of sense financially for Indians."

Dillon also said that family members of the primary applicant can also easily acquire Cyprus residency or citizenship; spouses and children under 18 years are included–and even adult children until the age of 28 are eligible until the age of 28 if they can show that they are financially dependent on the primary applicant.

"This makes it especially appealing to wealthy Indians who tend to live with large families and have family-run businesses," he said.

The Cyprus citizenship-via-investment has been popular with millionaires from other countries for several years now, and it is understandable why more and more wealthy Indians are keen to avail of it too.

But just last month, the Cypriot government announced that it will limit the number of naturalizations of investors to 700 a year, starting this year.

It will be interesting to see how this policy update will impact the aspirations of high net worth Indians wanting to relocate to Europe. Perhaps it will make Cypriot citizenship even more desirable.

For rich Indians looking for citizenship or permanent residency in a European nation, the scenic island country of Cyprus in the Eastern Mediterranean is becoming an increasingly popular choice.

24/05/2018

to step up security checks in cash-for- scheme
May 23, 2018

After criticism of the scheme applicants will be subjected to more rigorous vetting process.

Cyprus has sought to curb criticism of its golden visa scheme, saying it will tighten vetting procedures for investors determined to acquire European citizenship.
With disapproval of the controversial cash-for-citizenship programme on the rise, the island announced that security checks would be stepped up. Under the renamed “Cypriot investment scheme” the number of passports granted would be capped at 700.

“A limit has been put in place and a new code of conduct adopted to send the message that this is not an industry,” the government spokesman Prodromos Prodromou said. “We’re not hiding that some cases were maybe problematic and needed further research internationally. It is not easy to trace the activity of everyone around the world.”

The Mediterranean outpost has faced mounting criticism over a scheme that has allowed the wealthy to obtain citizenship if they invest at least €2m in real estate, stocks, government bonds or Cypriot businesses. Rich Russians accounted for most of the recipients of the estimated 1,013 passports handed out to investors, and respective family members, in 2017.

In addition to billionaire oligarchs, Ukrainian elites accused of corruption have also been among beneficiaries of a scheme criticised for serving the super-rich.

Initiated in 2013 on the back of the banking crisis that spurred the island’s near-economic collapse, the programme has met with unexpected success, generating over €4bn in revenues for Greek Cypriot state coffers.

Under the new rules, applicants will be subjected to a process of enhanced due diligence. International agencies specialised in money laundering will also be deployed to examine requests under a procedure expected to take much longer than the initial three months.

“There will be a much more organised department to handle applications,” Prodromou insisted, in an interview from Nicosia, Cyprus’s war-partitioned capital. “Advertising of the scheme by private law and accountancy firms is over. From now on, it will all be done through the proper channels.”

This week, the island’s finance minister, Harris Georgiades, also conceded there were “weaknesses” in the system. But he dismissed charges that Cyprus had become the weak link in a system that has seen the golden visa market being transformed into a multibillion-euro global phenomenon.

“We reject the notion that the Cyprus passport is up for sale,” he told the state radio station RIK. “We don’t depend on this scheme but it’s a useful complement to the tools we have to stimulate economic development.”

The island is not alone in coming under fire for a programme that EU officials contend has been open to rampant abuse. Other EU states including Austria, Hungary, Portugal and Malta have also been accused of applying insufficient integrity checks.

Freedom of movement is a major selling point for investors enticed, in the case of Cyprus, by visa-free access to 163 destinations. Access to the EU’s single market, legal service and social services are other draws.

While the island had decided to apply stricter criteria, the government spokesman said that much of the criticism had also been unfair.

“In 2013 there were bank depositors who lost tens and sometimes hundreds of millions of euros when we were forced to cut [deposits] in exchange for [bailout] loans,” he said.
“At that moment, when no one was interested in investing in Cyprus, granting citizenship was seen as a gesture, compensation for those who had suffered such losses and, yes, many were Russian. The idea was never to sell citizenship. In many ways the criticism has been unfair.”

https://www.theguardian.com/world/2018/may/23/cyprus-to-step-up-security-checks-in-cash-for-citizenship-scheme

After criticism of the scheme applicants will be subjected to more rigorous vetting process

25/04/2018

’s Government to Ratio Down to 25.4%
April 25, 2018

Bulgaria’s Parliament on 25th of April reported that Bulgaria retained its leading position of lowest indebtedness in Europe.

Bulgaria’s Parliament on 25th of April reported that Bulgaria retained its leading position of lowest indebtedness in Europe. In a statement from the parliamentary stand, Budget Committee Chair Menda Stoyanova also quoted Eurostat data that the level of Bulgaria’s government debt dropped from 29% at the end of 2016 to 25.4%.

At the beginning of today's government meeting, Prime Minister Boyko Borissov announced that Bulgaria has reduced its government debt for only a year. “The Eurostat report has been published. Bulgaria's foreign debt has declined from 29% to 25.4% and Bulgaria is ranked third in the lowest foreign debt in Europe after Estonia and Luxembourg. Luxembourg has 23%, but bearing in mindthe pace at which the government is working, at the end of the year, we will drop it to 20%'', Boyko Borissov said.

Bulgaria’s Parliament on 25th of April reported that Bulgaria retained its leading position of lowest indebtedness in Europe...

17/04/2018

granted to 1626 people in 2016, 30 per cent to Russians –
April 09, 2018

Bulgaria granted citizenship to 1626 people in 2016, an increase of 28 per cent compared with 2015, European Union statistics agency Eurostat said on April 9 2018.

The top three recipients of Bulgarian citizenship in 2016 were Russians (30 per cent), Ukrainians (17.1 per cent) and citizens of Turkey (8.9 per cent), Eurostat said.

Bulgaria had a naturalisation rate of just more than two for every 100 resident foreigners, according to the report.

Eurostat said that in 2016, about 995 000 people acquired citizenship of a member state of the EU, up from 841 000 in 2015 and 889 000 in 2014.

Of the total number of people obtaining the citizenship of one of the EU member states in 2016, about 12 per cent were former citizens of another EU member state, while the majority were non-EU citizens or stateless.

The largest group acquiring citizenship of an EU member state where they lived in 2016 was citizens of Morocco (101 300 people, of whom 89 per cent acquired citizenship of Spain, Italy or France), ahead of citizens of Albania (67 500, 97 per cent acquired citizenship of Italy or Greece), India (41 700, almost 60 per cent acquired British citizenship), Pakistan (32 900, more than half acquired British citizenship), Turkey (32 800, almost half acquired German citizenship), Romania (29 700, 44 per cent acquired Italian citizenship), and Ukraine (24 000, 60 per cent acquired citizenship of Germany, Romania, Portugal or Italy).

Moroccans, Albanians, Indians, Pakistanis, Turks, Romanians, and Ukrainians represented together about a third (33 per cent) of the total number of people who acquired citizenship of an EU member state in 2016.

Romanians (29 700 people) and Poles (19 800) were the two largest groups of EU citizens acquiring citizenship of another EU member state.

The number of UK nationals acquiring citizenship of another EU member state more than doubled in 2016, Eurostat said.

All but three EU countries granted citizenship to more people in 2016 than they did in 2015.

The largest relative increase was in Croatia (in 2016, it granted citizenship to three times more people than in 2015 – an increase from 1196 people to 3973, or +232 per cent), in Greece (the number more than doubled from 13 933 to 33 210, or +138 per cent) and Malta (from 646 to 1 495, or +131 per cent).

The number of citizenships granted fell in three member states in 2016, with the largest decrease in Ireland (from 13 565 to 10 038 or -26 per cent).

Focusing on former citizenships for which at least 100 people acquired the citizenship of an EU Member State in 2016, the largest relative increase compared with 2015 was for the citizens of the UK (the number more than doubled from 2478 people in 2015 to 6555 people in 2016, or +165 per cent), nationals of Saudi Arabia (from 133 to 277, or +108 per cent), Nicaragua (from 715 to 1 423, or +99 per cent), Bhutan (from 72 to 143, or +99 per cent), and Paraguay (from 2046 to 3468, or +70 per cent).

The highest naturalisation rate was in Croatia and Sweden, Eurostat said.

The naturalisation rate is the ratio of the number of people who acquired the citizenship of a country during a year over the stock of foreign residents in the same country at the beginning of the year.

In 2016, the highest naturalisation rates were registered in Croatia (9.7 citizenships granted per 100 resident foreigners), Sweden (7.9) and Portugal (6.5), followed by Romania and Greece (both 4.2), Finland and Italy (both 4.1).

At the opposite end of the scale, naturalisation rates below one citizenship acquisition per 100 resident foreigners were recorded in Austria, Latvia and Slovakia (all 0.7), Estonia and Lithuania (0.9) and the Czech Republic (one), Eurostat said.

Bulgaria granted citizenship to 1626 people in 2016, an increase of 28 per cent compared with 2015, European Union statistics agency Eurostat said on April 9 2018. The top three recipients of Bulga…

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