Individuals that want to work or live within the European Union can do so via the Cyprus Investment programme. The government of Cyprus offers this programme with the intention of encouraging foreign direct investment. This mainly attracts high net worth individuals that are looking to settle or start a business in Cyprus.

The Cyprus investment program has been in effect for many years in Cyprus. However, since 13.02.2019, the council of Ministers added a few new criteria and terms. Namely, criteria that indicate which foreign entrepreneurs and investors can submit applications that follow the provisions of the program. Naturally, individuals that apply for the Cyprus investment program will be able to bring their families with them.

This program is suitable for individuals wishing to relocate to the European Union. By completing the process successfully, clients can live or work within any of the 28 member countries of the EU.

One of the main objectives of the economic policy of the Republic of Cyprus is to further encourage foreign direct investment and to attract high net worth individuals to settle and conduct their business in Cyprus. Key factors that make Cyprus an attractive destination for investment, is the highly specialized human capital. The reliable legislative and regulatory framework, the stable tax system and the safety and stability conditions prevailing in the country.

Benefits

When an individual chooses to invest in Cyprus, some of the main benefits include:

• One of the most competitive corporate tax rates of 12.5%
• Competitive individual tax rates & VAT rates
• The individual’s foreign capital gains are exempt
• Attractive individual tax regime is available for international professionals
• Investors get access to Double Tax Treaties as well as to EU Tax Directives
• No dividend, interest or royalty with holding tax on outgoing payments
• A generous participation exemption regime

Legal References for Cyprus Investment Programme

The Government of Cyprus has established and revised the (CIP) on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2019, with specific incentives, terms and conditions and control procedures in order to prevent abuse.

On the basis of the Programme, a non-Cypriot citizen may apply for the acquisition of the Cypriot citizenship through naturalization by exception, if he/she fulfills the financial criterion A.1 and one of the financial criteria A.2-A.5, either personally or through a company/companies in which he/she participates as a shareholder – in proportion to his/her holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/ companies that fulfills the financial criterion A.1 and one of the financial criteria A.2-A.5,.