Cyprus tax system
Those who plan to move to Cyprus need to get acquainted with the tax system..
This state is gaining popularity among foreign investors due to loyalty to how to obtain citizenship of Cyprus. Such a policy allows the island to attract substantial investments from abroad annually, which contributes to the development of the country’s economy.
Today, many European businessmen choose real estate on the island as a profitable investment method, which will ensure obtaining a residence permit and will become a good “airbag” for the future, because the demand for Cypriot housing and commercial real estate is growing, and with it the price of objects.
In addition, Cyprus is a state where you can obtain a second citizenship. That is, in order to have Cypriot citizenship, a foreign investor is not required to abandon his former. Also, you do not have to pass a language test and a medical examination.
There are different ways to obtain citizenship, we will tell you about one of them – through investment.
To obtain citizenship of Cyprus, you can purchase any property. It can be residential or commercial, this also includes a building plot. The cost of an object or several objects should be from 2 million euros. 5 years after obtaining citizenship, the buyer has the right to sell all property except real estate in the amount of 500 thousand euros. She must remain in ownership for life.
Also, a person who wants to buy citizenship can invest in investment funds or Cypriot companies. To do this, you need to purchase shares of these organizations or Cyprus government bonds.
Another option how to obtain citizenship is to invest in your own business on the island. The field of activity can be any, it is important to observe the following conditions: hire at least 5 working Cypriots, any citizens who have legally resided in Cyprus for at least five years or are members of the EU.
An important point regarding taxes: participants in the Cyprus Investment Program cease to be its tax resident if they stay on the island for less than 183 days a year. But you can go to the Cyprus tax system, which is recognized as one of the most practical of the European ones.
In 2019, obtaining citizenship of Cyprus has undergone several changes. The process has tightened, but still the policy remains quite loyal. We will tell you about how to obtain citizenship in Cyprus through investments, taking into account the latest amendments to the legislation of this state.
From mid-May 2019, a Cypriot passport requires additional fees. If earlier it was enough to invest only in Cyprus real estate, today, in addition to investing in finished housing or housing in a new building, the applicant must donate 150,000 euros to the Cyprus Innovation and Social Development Fund. In addition, citizenship in Cyprus requires a mandatory contribution to the Cyprus Land Development Organization to finance affordable housing.
Now, the Cypriot authorities want to approach more carefully the issue of sources of finance paid by foreign investors who wish to obtain citizenship. To do this, an independent company will monitor the movement of funds, and each investor will undergo an individual audit. The authorities of Cyprus are doing this in order to prevent the infiltration of criminals and swindlers into Europe through the Cyprus investment bridge.
Also, for those wishing to have a Cyprus passport, the terms of ownership of investment property have changed. If earlier it was enough three years, today the term has stretched to five, and it is necessary to have a residence permit at least six months before the application for a passport is submitted.
Changes have also appeared regarding visas: the investor applying for Cypriot citizenship must now necessarily possess Schengen. And, in addition, not to be denied citizenship from other countries. Without these conditions, the investor’s application for Cyprus citizenship will not be considered.
The good news: those who applied for Cypriot citizenship before May 15, 2019, when the amendments were made, do not fall under these changes.
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