Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship

CYPRUS CITIZENSHIP BY INVESTMENT SCHEME
A BESPOKE SERVICE DEDICATED TO ULTRA-HIGH NET WORTH INDIVIDUALS & FAMILIES
JANUARY 2014

2 | P a g eGC Privé Wealth
NATURALISATION OF FOREIGN INVESTORS IN CYPRUS
As a part of its policies aiming to attract foreign investors in Cyprus the Council of Ministers of the Republic of Cyprus, on the 24th of
May 2013, concluded the new "Scheme for Naturalization of non-Cypriot investors by exception", therefore, establishing the new
financial criteria based on which non–Cypriot entrepreneurs / investors may acquire the Cypriot citizenship.
The Council of Ministers of the Republic of Cyprus
resolved to revise the criteria for providing Cypriot
Citizenship for high-net worth individuals, making it more
efficient for non-Cypriot investors, businessmen and
entrepreneurs to obtain the Cyprus Citizenship.
Under the new resolution, the criteria have been relaxed
and applicants are allowed to apply under this new regime.
For instance, applicants do not need to show any Greek
language ability. Moreover, the applicant and/or family
members will not need to relocate to Cyprus.

YOUR GATEWAY TO EUROPE
By obtaining the Cypriot Citizenship, successful applicants become holders of a Cypriot passport; which effectively offers the benefits
of a European Union (EU) passport and carries the same rights as other Cypriot and EU citizens, including certain immigration and visa
travelling benefits.
The scheme for naturalisation of investors in Cyprus is defined by the recent resolution of the Council of Ministers of the Republic of
Cyprus as being available to high-net worth individuals who make certain investments in Cyprus and satisfy the conditions of such
resolution.

APPLICATION PROCESS AND TIMING FOR CYPRUS CITIZENSHIP APPLICATIONS
Once a naturalisation application is submitted, the Council
of Ministers of the Republic of Cyprus will examine such
application.
The guidance issued by the Government of Cyprus
suggests that the time period will be approximately three
months, provided that the application is completed and
submitted with all the necessary supporting documents and
that the applicant meets the investment criteria of the
resolution of the Council of Ministers of the Republic of
Cyprus.
However, our past experience shows that the whole
process usually takes between 3-4 months from the filing
date to the issuance of the naturalisation certificate and the
subsequent issuance of the Cyprus passport.
In the case where following a periodic inspection it has
been ascertained that any condition is being circumvented,
the naturalization may be revoked.

CYPRUS CITIZENSHIP V. CYPRUS TAX RESIDENCY
Please note that by obtaining the Cypriot Citizenship and passport by exception, a successful applicant does not become automatically
a tax resident of the Republic of Cyprus. Tax residency in Cyprus is based on the number of days that an individual spends in Cyprus
within a given tax year and this is known as the 183-days tax test.
CYPRUS TAX PLANNING AND CYPRUS TRUST ESTABLISHMENT
For more information on Cyprus Tax Planning and Trust Establishments, please request our brochure on this topic from your trusted
tax advisor and legal professional at GC Privé Wealth. We also note that a Cyprus tax resident may be taxed on his/her worldwide
income; whereas a non-Cyprus tax resident is taxed only on his/her Cyprus sourced income accordingly; however any further
references to this topic is outside the scope of this brochure.

SCHEME FOR NATURALISATION OF INVESTORS IN CYPRUS BY EXCEPTION ON THE BASIS
OF SUBSECTION (2) OF SECTION 111A OF THE CIVIL REGISTRY LAWS OF 2002-2013
A non-Cypriot citizen may by exception apply for the acquisition of Cypriot Citizenship, if he / she meets one of the following criteria:
A.1 Mixed investments and a donation to a state fund:
The applicant must have made the following investments and donation:
an amount of at least €2,0 million for the purchase of shares and/or bonds of the Investment company of the state under
formation and
Provided that the applicant may deposit the said amount with the Treasury of the state until the shares and/or bonds of the said
company are issued.
an amount of at least €0,5 million as a donation to the Research and Technology Fund
or

SCHEME FOR NATURALISATION (continued)
A.2 Direct Investments:
The applicant must have direct investments in Cyprus of at least €5,0 million. Direct Investments may alternatively involve:
(a) the purchase of properties (houses, offices, shops, hotels etc. or a development of a similar nature, excluding
underdeveloped land),
(b)the purchase of businesses or companies that are based and are active in the Republic of Cyprus
(c) the purchase of shares of companies registered in the Republic of Cyprus
(d)the purchase of financial assets (e.g. bonds / securities / debentures registered and issued in the Republic of Cyprus,
including those to be issued by the Solidarity Fund on the basis of the Establishment of a National Solidarity Fund Law of
2013)
(e) participation in a company/ consortium of companies that has undertaken to carry out a public project
Provided that with regard to conditions (a) – (d), the applicant shall retain the said assets in his possession for a period of at least
three years. In the case of a share or bond portfolio, it is to be ensured that the amount of the value of the portfolio for the said
period will not fall below the amount specified.
Provided further that the Minister of Interior shall have the right, for the period ending on 30 June 2014, to reduce the amount
required for Direct Investment to €2.0 million for non-Cypriot citizens, who demonstrably participate in a special collective real
estate purchase scheme, which will comprise the purchase of property on the territory of the Republic of Cyprus, controlled by
the Government of the Republic, of a total value of at least €10.0 billion.

A.3 Deposits in banks:
The applicant must have personal fixed term deposits for three years in Cypriot banks or deposits of privately owned companies
or trusts (in which he/she is the beneficiary owner) in the Republic of Cyprus of at least €5.0 million
or
A.4 A Combination of Mixed Investments and a Donation to a State Fund (A.1), Direct Investments (A.2) and
Deposits in Cypriot Banks (A.3):
The applicant is required to have a combination of the above amounting to at least €5.0 million
or

A.5 Business Activities:
The applicant must be a shareholder or beneficiary owner of a company (or companies) the management of which is in the
Republic of Cyprus and that over the last 3 years prior to submitting the application has paid to State Funds (corporate tax, V.A.T.
or other fees and charges etc.) and remuneration for the purchase of business services (legal, accounting, auditing) as amount of at
least €500,000 per annum.
Alternatively in the case where the applicant is a shareholder or beneficiary owner of a company (or companies) that is active in
Cyprus, has established its central offices in Cyprus and employs at least five (5) Cypriot citizens, then the minimum amount that
must be paid for the above (direct revenue – corporate tax, V.A.T. or other fees and charges etc. and remuneration for the
purchase of business services – legal, accounting, auditing) is reduced to at least €350,000 for the last three years preceding the
submission of the application.
In the case where the applicant is a shareholder or beneficiary owner of a company (or companies) that is active in Cyprus, has
established its central offices in Cyprus and employs at least ten (10)
Cypriot citizens, then the minimum amount that must be paid for the above (direct revenue – corporate tax, V.A.T. or other fees
and charges etc. and remuneration for the purchase of business services – legal, accounting, auditing) is reduced to at least
€200,000 for the last three years preceding the submission of the application. For every such company (or companies) applications
for naturalisation may be submitted by a maximum of two (2) shareholders, who preferably hold the majority of the share capital.
In the case where the applicant has paid the Cyprus economy direct revenue or fees (as described hereinabove) an amount less
than the abovementioned amounts, a combination may be made with criteria A.1 (Mixed Investments and Donations to State
Funds) or A.2 (Direct Investments ) or A.3 (Deposits in Banks). The total of payments to State Funds and remuneration for
services in the last three years shall be deducted from the required investment to satisfy criteria A.1 or A.2 or A.3.
or

A.6 Persons whose deposits with the Bank of Cyprus or Popular Bank have been impaired due to the measures
implemented in both Banks after the 15th March 2013
The applicant has incurred an impairment in deposits on one or both of the abovementioned Banks amounting to a total of at least
€3.0 million. In the case where the applicant has incurred an impairment in his deposits in one or both of the abovementioned
Banks under €3.0 million he may apply having made an Additional Direct Investment (A.2) or Mixed Investments or a Donation to
a State Fund (A.1) for the balance of the required amount of the said criterion.
B. Terms and Conditions
1. Clean Criminal Record: the applicant must have a clean criminal record. Furthermore, his name must not be included on the
list of persons whose property is ordered to be frozen within the boundaries of the European Union.
2. Residence in the Republic of Cyprus: In all cases listed in Part A, the applicant must hold a permanent privately-owned
residence in the Republic of Cyprus, the purchase price of which must be at least €500,000 plus V.A.T.
3. In the case where following a periodic inspection it has been ascertained that any condition is being circumvented, the
naturalisation may be revoked.

C. Submission of Documents
In order to examine any applications (M127) various documents are required to be submitted, including the contract of sale and a
confirmation of settlement of the dwelling referred to in B. 2 above and the following, depending on the case:
1. Mixed investments and a Donation to a state fund
(a) Receipts for the donations to the Research and Technology Fund
(b) Receipts from the Treasury of the Republic of Cyprus for the purchase of shares and/or bonds from the investment company of the State under
formation.
2. Direct Investments
(a) For the purchase of immovable property: Contract of Sale, Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department,
Receipts for paying the agreed purchase price
(b) For the purchase of a business, company: Contract of Sale, Receipts for paying the agreed purchase price, Confirmation from the Registrar of
Companies as to Shareholders.
(c) For the purchase of Shares: Share Certificates
(d) For the purchase of financial assets: Title/titles and other documents regarding the financial assets.

3. Deposits in banks
(a) Confirmation from Cypriot banks as to the fixed term deposits for three years of the applicant or the companies in which he is the beneficiary
owner or of the trust in which he is the beneficiary owner
(b) In the case of deposits of companies in which the applicant is the owner/ beneficiary owner, the Certificate of Registration of the Company by
the Registrar of Companies and/or any other relevant evidence is to be attached.
4. Business Activities
(a) Certificate of Registration of the Company (or companies) by the Registrar of Companies.
(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that he is the beneficiary owner of the company (or
companies)
(c) Confirmation as to the amounts paid with regard to the purchase of business services. The confirmation is to be issued by the business service
providers
(d) Audited Accounts of the company (or companies) for the last three years preceding the year of the application
(e) Confirmation from the Social Insurance Department as to the insurable income of the employees in the company (or companies) of the
applicant.
5. Impairment of deposits in the Bank of Cyprus and in the Popular Bank
(a) Confirmation as to the level and the time of the impairment of the deposits.
(b) In the case of deposits of companies in which the applicant is the beneficiary owner, the Certificate of Registration of the Company by the
Registrar of Companies and/or any other evidence is to be attached.

HOW GC PRIVÉ CAN ASSIST YOU
At GC Privé Wealth we pride ourselves on providing a
highly bespoke client service dedicated to ultra-high net
worth individuals and families.
We are specialists in assisting Ultra High Net Worth
foreign investors, entrepreneurs and businessmen to
successfully navigate the application procedure required
to obtain Cyprus Citizenship, and in managing these
requisite investments in a productive and responsive
way.
Our advisers, including our Cyprus qualified legal team,
will guide you through each state of your application
process, from assisting to facilitate in gathering all the
required documentation for the application through to
selecting and executing your portfolio of investments in
Cyprus to underpin the naturalisation application.
Each member of our team is available round the clock
to response to your questions, while we remain at your
disposal throughout the application process.

HOW GC PRIVÉ CAN ASSIST YOU (continued)
GC Privé Wealth can assist you with the following
requirements:-
 Examine the parameters of your specific case, including
the naturalisation of your family in Cyprus
 Assist with the legal verification of the supporting
documentation
 Efficient structuring of the required bank deposits to tap
bank leverage
 Real estate brokerage and management with regards to
residential investment opportunities in Cyprus
 Business activities facilitation, including company
registration, full project management and business
consulting services

SELECTING AND MANAGING YOUR REAL ESTATE PORTFOLIO
CYPRUS ESTATE PLANNING
Following the recent economic events in Cyprus, we believe that the current macroeconomic climate offers an excellent opportunity
for foreign investors to acquire both commercial and residential real estate assets at attractive valuations.
Our trust and fiduciary services can help meet your estate planning needs in Cyprus. Based on a network of Cyprus estate brokers, we
guarantee you access to the most coveted properties on the island, ranging from luxury seafront villas and chalets to city-centre
apartments and other unique investment opportunities that will qualify you for acquiring Cypriot Citizenship as a foreign investor by
exception.

CYPRUS TRUST & FIDUCIARY SOLUTIONS
FAMILY ENTREPRENEURIAL SPIRIT
GC Privé Wealth goes a step far beyond the traditional structuring, but works closely with you to enhance the entrepreneurial spirit
within family members by supporting through a number of networking initiatives.
Our top law practitioners, tax planners and accountants stand ready to advise you and undertake these complex requirements in
structuring efficiently your luxury asset portfolio on your behalf.
We specialize in these trust and fiduciary solutions:
Cyprus Trust Services: Together with our accredited
partners we can structure and administer a range of trusts to
meet your needs in Cyprus and worldwide.
Cyprus Companies Formation: Your situation may call for a
Cyprus-based company (or companies) in combination with one
or more trusts in Cyprus.
Cyprus Foundations: We can help establish and administer a
foundation for charitable, family or private purposes; especially
when it comes to the efficient donation of significant assets to
charitable and philanthropic causes.

YOUR BUSINESS ADVISORS AND TRUSTED MANAGEMENT CONSULTANTS
CYPRUS BUSINESS INTRODUCTIONS
We strongly believe that Cyprus nowadays offers an
exceptional array of business investment opportunities.
The possibility to acquire businesses at this time and
turnaround following a process of restructuring may be
an important investment consideration for enhancing
your business interest.
We keep you aware of the most important business
activities and events in Cyprus, including the most
relevant business forums and summits in Limassol,
Nicosia and elsewhere.
Our business events calendar is tailored to meet your
bespoke requirements and fit your own business
schedule.
BEST MANAGEMENT PRACTICE
GC Privé Wealth works closely with the management of
Single Family Offices (SFOs) and Family Businesses in
Cyprus in setting up world class standards of reporting,
including establishing sophisticated internal due diligence
procedures, managing compliance requirements and
developing advanced administration processes.
We assist SFOs to choose the best tax planning advisors
and establish efficient tax structures worldwide aiming at
safeguarding the wealth of the family. Our international tax
and wealth structuring specialists are skilled at establishing
complex, cross-border trusts and estates. We are
reviewing the structures on a frequent basis in assisting the
management of the SFO to report back to the family
members.

WE LOOK AFTER YOUR ENTIRE FAMILY’S NATURALISATION PROCESS
We are fully aware about your family’s requirements. Therefore, our service extends to the whole family and we remain involved in
processing applications for all family members.
The resolution of the Council of Ministers of the Republic of Cyprus also provides that your spouse, your financially dependent adult
children, eighteen years old or above up to the age of 28, (i.e. higher education students) may be able to apply for Cypriot Citizenship.
Neither the spouse nor the children are obliged to meet any financial criteria.

NATURALISATION OF YOUR FAMILY MEMBERS
The resolution specifies that adult children of an investor are considered as financially dependent, if they are students up to the age of
28 and are attending an institution of higher education aiming to obtain a diploma or an undergraduate or a master’s degree.
The resolution excludes individuals who are studying for the acquisition of a professional qualification (e.g. chartered accountants or
barrister) or individuals who are studying for the acquisition of a second, third etc. diploma or degree (either undergraduate or
master’s).
Finally, minor children (under the age of eighteen) of an investor have the right to acquire the citizenship according to the provisions of
section 110 (3) of the Civil Registry Law (i.e. like any other minor child of a Cypriot citizen).
APPLICATION PROCEDURE AND TIMING FOR FAMILY MEMBERS NATURALISATION
The spouse of the applicant may apply in parallel or at a later stage based on the
conditions fulfilled by the main applicant.
Therefore, the spouse’s application can be submitted along with the application of the
investor, so that both the main (investor) applicant and spouse will be able to acquire the
Cypriot citizenship simultaneously.
Dependent children (under the age of 18) are able to apply for Cyprus passport only after
the approval of the main applicant.

REQUIRED FAMILY DOCUMENTATION
All the documents issued by a foreign authority should be translated into either Greek or English and be duly authenticated. They
should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be
sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing
country). The list of the necessary documents for each family member is as follows:
Investor’s Adult Children
- Application Form M127 fully completed
and signed before a Registrar of a Cypriot
court or a consular officer
- Copy of the investor’s Certificate of
Naturalization
- Copy of the investor’s Cypriot passport
- Birth Certificate
- Copy of the applicant’s passport
- Certificate of criminal record from the
country of residence of the applicant
- Marriage Certificate (if applicable)
- Copies of advertisements in a daily
newspaper two consecutive posts
- Two passport size photographs
- Curriculum Vitae
- Copy of the undergraduate degree (if the
applicant studies for a master’s degree)
- Certificate of attendance at a Higher
Education Institute (Original)
Investor’s Minor Children
and signed by the parent before a Registrar
of a Cypriot court or a consular officer
Naturalization
- Child’s Birth Certificate
- Parent’s marriage certificate
- Copies of the child’s and parents’
passports
- Written Consent of the non-Cypriot
parent
Investor’s Spouse
and signed before a Registrar of a Cypriot
court or a consular officer
Naturalization (if the application is not
submitted simultaneously with the
investor)
- Copy of the investor’s Cypriot passport (if
the application is not submitted
simultaneously with the investor)
- Birth Certificate
- Copy of passport
- Marriage Certificate
- Copies of advertisements in a daily
newspaper two consecutive posts
- Curriculum Vitae

CONTACT
GC Privé Wealth is the Private Office of GC Privé Group. It is the ultimate embodiment of our commitment to form an in-depth
understanding of our clients and the world they live in.
GC Privé serves the world’s business leaders, family offices, celebrities and other high-profile individuals. For further information
contact our team of advisers at GC Privé Wealth to discuss your specific situation in confidence:
Louis Loizou
Partner
louis.loizou@gcprive.com
CY +357 25 355 656 Ext. 214
CY Mobile +357 99 0909 23
UK +44 207 590 3022 Ext. 214
UK Mobile + 44 7899 943 910
Anastasia Boykov
Partner
anastasia.boykov@gcprive.com
UK +44 207 590 3022 Ext. 256
UK Mobile +44 7789 862 358
Christine Serhal
Partner
christine.serhal@gcprive.com
UK +44 207 590 3022 Ext. 451
UK Mobile +44 7789 431 239
GC Privé Limassol
Limassol City House
6 Karaiskakis Street
3032 Limassol
Cyprus
limassol@gcprive.com
+357 25 355 656
GC Privé London
GC Privé House
64 Knightsbridge
SW1X 7JF London
United Kingdom
london@gcprive.com
+44 207 590 3022
Andreas Ashiotis
Partner, ACA
andreas.ashiotis@gcprive.com
CY +357 25 355 656 Ext. 417
CY Mobile +357 99 1978 27
UK +44 207 590 3022 Ext. 417
UK Mobile + 44 7515 692 194
Kia Zhu
Partner
kia.zhu@gcprive.com
UK +44 207 590 3022 Ext. 322
UK Mobile +44 77 48 677 538

DISCLAIMER AND IMPORTANT NOTICE: This publication has been produced for information purposes only. It may not be reproduced in whole, or in part,
nor may any of the information contained therein be disclosed without the prior consent of GC PRIVE LLP (the ‘Company’).
A recipient may not solicit, directly or indirectly (whether through an agent or otherwise) the participation of another institution or person without the prior
approval of the Company. The case studies presented in this brochure are scenarios intended to illustrate the application of certain products and services
available through the GC Privé Partner Network ™.
The strategies presented are examples of tailored solutions and so are not appropriate for every client. Please contact GC PRIVE LLP to discuss these matters
in the context of your particular circumstances.
No representation, warranty or undertaking, expressed or implied is or will be made or given and no responsibility or liability is or will be accepted by GC
PRIVE LLP or by any of its partners, employees or agents in relation to the accuracy or completeness of this document or duty of care for any loss arising from
any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
GC Privé Partner Network ™ is the marketing term used to describe the global affiliates and agents of GC PRIVE LLP.
GC PRIVE LLP is a UK limited liability partnership, 64 Knightsbridge London SW1X 7JF.
© Copyright 2013. GC PRIVE LLP. All rights reserved.

Scheme for Naturalization of Investors in Cyprus, Cypriot Citizenship

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