Author Archives: Artemios Michael Mallas

FIC: The 10 advantages of a Cyprus Foreign Interest Company

A Cyprus ‘Foreign Interest Company’ (FIC) is an avenue that gives a Cyprus based company with non-EU shareholders the ability and priority to employ non-EU nationals instead of locals and EU nationals.

Non-EU shareholders are able to reside and set up shop in Cyprus by relocating their existing business from a non-EU country or launching a new business from scratch, whilst simultaneously hiring their key personnel from around the world and taking advantage of the island’s many benefits  i.e. lifestyle, cheaper operating costs, EU membership and tax advantages – find out Why Cyprus here.

We break down the 10 advantages of a Cyprus Foreign Interest Company:

Residency, Family & Key Personnel

  1. Non-EU Shareholders of a FIC can apply for a business visa (work permit) and residency through employment in their Cyprus registered company. This allows any non-EU citizen to live and work freely in Cyprus for as long as the FIC is active, with them employed at the FIC.

This provides non-EU individuals or groups of individuals with the ability to relocate their existing business or launch a new business in an European Union member country.

2.  Non-EU Shareholders of a FIC are also eligible and allowed to move their families to Cyprus, with their children able to attend any public or private schools available. Their spouses are also allowed to work in Cyprus.

This allows non-EU shareholders the ability to live and work freely in Cyprus without having to constantly fly back to their families. This also allows families the ability to enjoy the exquisite lifestyle of Cyprus with no concerns or worries regarding their residency.

3.  A FIC can register and hire up to 5 non-EU employees as senior management, who are able to obtain a business visa (work permit), allowing them to live and work in Cyprus.

4.  A FIC can register and hire up to 10 non-EU employees as middle management or other administrative, secretarial or technical staff, who are able to obtain a business visa (work permit), allowing to live and work in Cyprus.

5.  All non-EU employees hired by the FIC are also eligible and allowed to move their families to Cyprus, with their children able to attend any public or private schools available.Their spouses are also allowed to work in Cyprus.

This allows all non-EU employees hired by the FIC the ability to live and work freely in Cyprus without having to constantly fly back to their families. This also allows families the ability to enjoy the exquisite lifestyle of Cyprus with no concerns or worries regarding their residency.

Additional Key Personnel (Specialists) 

6.  A FIC can register and hire up to 200 or even more additional non-EU employees which are considered as Specialists (e.g., tech industry, marine industry, pharmaceutical industry). The amount of additional non-Eu employees considered as Specialist that a FIC can hire, depends on the annual turnover of the company and the overall operations, and needs of the FIC.

This allows a FIC to invest further into its relocation or launch, by hiring more non-EU employees that are needed to push for growth.

Citizenship, Social Insurance & National Health System (GESY)

7.  Non-EU shareholders and FIC employees, and their families, can benefit from Cyprus’ social insurance schemes and register to the Cyprus national health system for subsidized medical care.

8.  Non-EU shareholders and FIC employees, and their families, are able to apply for citizenship after a period of 7 years, if they resided fully for the 7 years (more information can be provided on this)

This allows all non-EU individuals with the ability to enjoy the full benefits of being a Cypriot citizen, with a Cypriot passport, which includes all the benefits of Cyprus being a member of the European Union.

Tax Benefits – Corporate and Individual

9.  Non-EU shareholders who register their companies as foreign interest can benefit both individually and corporately from Cyprus’ advantageous tax benefits (see in detail below) for companies and individuals.

10.  All non-EU employees hired by the FIC can benefit individually from Cyprus’ advantageous tax benefits (see tax benefits here)

Eligibility Criteria:

Criteria that companies must meet in order to benefit from this decision, and the categories of staff and the maximum numbers of third country nationals who can be employed are all described below.

Eligibility Criteria In order to register a Cyprus company as a foreign interest company:

  • Non-EU shareholder/s should own the majority of the company’s shares. (more than 50%),
  • Foreign direct investment of capital amounting to at least €200.000, legally admitted to a Cyprus bank account from abroad. This amount can be used for company’s activities.

Staff Categories:

a) Senior Management – Directors, General managers, Heads of Departments, Project Managers

Maximum number of third country nationals employed: 5 persons (unless the Civil Registry and Migration Department is satisfied that the employment of a greater number is justified, depending on the circumstances of each company.)

Minimum Acceptable Gross Monthly Salary: €4.000

b) Middle Management – Upper / middle management personnel, Other administrative, secretarial or technical staff

Maximum number of third country nationals employed: 10 persons (unless the Civil Registry and Migration Department is satisfied that the employment of a greater number is justified, depending on the circumstances of each company.)

Minimum Acceptable Gross Monthly Salary: €2.000

c) Support Personnel

  • A company may employ third country nationals in support positions by first securing the positive recommendation of the Department of
  • A company may staff up to 30% of its total personnel with third country nationals in posts in this category.

d) Additional personnel: Exceeding the maximum allowed number of employees from third countries in each category

To employ more third country personnel, requests by the company must be submitted to the Department for approval. The requests must include information on the salary offered along with:

  • The requests must include information on the salary offered as well as:
  • The company’s turnover
  • The ratio of third country employees to Cypriots / EU Nationals and
  • The company’s operating time in

e) Specialists 

Companies are entitled to employ a number non-EU nationals, up to 200 or even more, over and above the categories stated above, if they fall within the professions/skills listed below.

Minimum Acceptable Gross Monthly Salary for Specialists: €2.000.

Professions / Skills

  • Software and System Engineers
  • Application and Data Architects
  • ICT and Enterprise Solution Architects
  • Technical Assurance Professionals
  • Telecom and Space Engineers
  • Data scientists
  • Machine Learning Engineers
  • Web Developers and designers
  • UX User Experience Professionals
  • Quantitative Analysts
  • Quality Assurance Analysts
  • Mobile Application Developers
  • Augmented Reality/ Virtual Reality Programmers
  • Digital Marketing Specialists
  • Video Production Multimedia Specialists for Mobile Apps and Software
  • Analysts for Mobile Apps and Software
  • Designers of Prototype for Mobile Devices
  • DevOps Engineers
  • Cyber Security Specialists
  • Artificial Intelligence, Robotics and Big Data Specialists
  • Pharmaceutical Formulation Technologists
  • Pharmaceutical Engineer Validation Specialists
  • Pharmaceutical Patents Specialists
  • Pharmaceutical Regulatory and Quality Assurance Professionals
  • Marine Engineers
  • Naval Architects

Maximum number of third country nationals employed as Specialists

The number of non-EU Specialists allowed is based on the annual turnover of the company, as following (unless the CRMD is satisfied that a FIC requires a number higher than 200 employees):

Foreign Interest Company Specialist

Number of Specialists permitted based on turnover.

 

 

 

 

 

 

 

 

 

What we do

Panayiotis Z. Toulouras LLC provides corporate services to clients worldwide. Our law firm, with it’s team of experts, provides strategic advice for individuals and entities, seeking the foreign interest company route, and ensures a smooth transition for all clients aiming to relocate an existing business or launch a new business in Cyprus.

  • Incorporation of a Cyprus company
  • Registration of a Foreign Interest Company
  • Business visa applications and other visas
  • Launch and Setting up consultation
  • Family reunification
  • Employment agreements
  • Purchase and/or rental of commercial and residential premises
  • Applications for permanent and temporary residence
  • Applications for naturalization
  • IP registration
  • Advice on all related tax aspects
  • Opening of corporate and personal bank accounts in Cyprus and abroad
  • VAT and TAX registrations
  • Processing of investment and lending facilities
  • Relocation assistance and advice

 

 

 

6.2 Things to Know about the Newly Revamped Cyprus Fast-Track Permanent Residence – Regulation 6.2

THINGS TO KNOW ABOUT THE CYPRUS FAST-TRACK PERMANENT RESIDENCE

The Immigration Permit under Regulation 6.2 of the Aliens and Immigration Regulations, has always been considered the best avenue for non-European investors seeking an expedited immigration permit, that allows them to reside permanently in Cyprus.

One of the key benefits of this Immigration Permit, other than its expedition, is the ability for all the family to obtain the Permanent Residence, such as the married spouse, children under 18 years old, financially dependent children up to 25 years old (provided they are engaged in a tertiary education at the time), parents and in-laws.

On the 24th of March 2021, Regulation 6.2 got the revamp it needed, by introducing new investment options for applicants and the possibility for the main applicant to be a Director with a salary.

Here are the 6.2 Things to Know about the Newly Revamped Cyprus Fast-Track Permanent Residence – Regulation 6.2:

1. New Investment Options for Applicants

The previous Regulation 6.2 required applicants to invest in new residential properties that have a total purchase value of at least €300,000 (excluding VAT) – classified as Investment (A).

The newly improved Regulation now permits applicants the option of investing either with a:

  • Minimum investment of €300,000 (plus VAT if applicable) in commercial properties, including offices, shops, and hotel (NEW or RESALE), classified as Investment (B), 
  • Minimum investment of €300,000 in the share capital of a existing or a new Cyprus company having a physical presence and activities in Cyprus and employs at least 5 persons, classified as Investment (C), 
  • Minimum investment of €300,000 in compartments of Cyprus UCITS funds (AIF, AIFLNP, RAIF types), classified as Investment (D).

2. Time for a Return of Investment

Whilst the previous Regulation 6.2 focused mostly on the purchase of new real estate properties for residential purposes, the newly improved Regulation 6.2 aims to encourage and attract applicants that are seeking a Return on their Investment from the get-go.

The introduction of the new investment options (B), (C) and (D), will result in the Residence Permit becoming a lot more attractive and offer more value for applicants that are able to see their investments become fruitful from their first year of residency.

3. Time to depart from Pledging €30,000 in a Cyprus bank account

The previous Regulation 6.2 required applicants to pledge the amount of €30,000 for three years. Thew newly improved Regulation 6.2 has scrapped this requirement, making it more attractive to applicants that seek to utilize this amount of money on other matters.

4. Directorship with a salary and Shareholding

Investment (A), (C), (D): 

The newly revamped Regulation 6.2. continues to request applicants to declare that they do not intend undertake any sort of employment in Cyprus when investing in residential properties, commercial properties and UCITS.

Applicants and their spouses, can be shareholders in any other type Cyprus company, not associate with Investment (B) and receive dividends from the said company, however they cannot be employed with a salary.

Investment (B): 

However, Investment (B) allows for the main applicant (not the spouse) to be employed as a Director with a salary, in the company in which they choose to invest the minimum of investment of €300,000. This is an exception to the previous notion that no Permanent Resident holder is able to be employed in Cyprus. Furthermore, the main applicant can be included in the minimum number of employees that the company should have to be eligible for the Fast-Track process  (at least 5). This is will be widely seen as a great advantage and boost for the Fast-Track scheme’s popularity and for the main applicants, who will benefit from being more actively involved in their investment.

Applicants and their spouses, can also be shareholders in the company and receive dividends from the said company.

5. The rest of the procedure remains the same

  • The Main Applicant will continue to prove a secure annual income (including salaries from employment, pensions, dividends, fixed deposits, rentals) of at least €30,000,
  • Each dependent added to the application will require the proven annual income to be increased by €5,000 for every dependent person (spouse and children) and by €8.000 for every dependent parent or parent-in-law.
  • Income should derive from abroad in cases where the applicant invests in new residential units, however income can be generated from sources within Cyprus derived from the new investment options. The income of the applicant and the spouse can be taken into consideration.
  • The funds invested for Investments (A), (B), (C) and (D) should be transferred and emanate from abroad
  • The applicant and the spouse should provide a Clean Criminal Record from their country of residence.

6.2. Find the right investment and choose the right option 

The introduction of the new investment options allows investors to do ‘investment shopping’ , prior to investing the minimum €300,000, that fits their needs and objectives.

Our Team is able to provide various opportunities for applicants seeking a favourable return on their investment made for the Cyprus Permanent Residence – Fast Track Immigration Permit (Regulation 6.2).

Our Team also assists in all the requirements needed to be eligible and to apply for the Permanent Residency Regulation 6.2,  from the formation and registration of a company, Immigration Permit applications, purchase of property to the opening of bank accounts that may be needed to facilitate any of the above investment options a client may choose.

Contact us today for all information

Address: Faneromeni 106, Office 201, 6031, Larnaca, Cyprus

Telephone: +357 24 623 800   Fax: +357 24 332 991

Email: info@toulouraslaw.com

Website: www.toulouraslaw.com

Find out why Cyprus is the best option for British companies to set up an EU base.

Find out why Cyprus is the best option for British companies to set up an EU base.

With the full impact of Brexit still unclear for many businesses, British businesses exporting into the European Union are being encouraged to set up a separate entity in an EU Member State to help avoid the extra charges, paperwork, and taxes resulting from Brexit, as revealed by the Guardian newspaper.

Trade advisers at the British Department for International Trade (DIT) have advised businesses, that the best way to avoid border issues and VAT problems, is for them to register new companies in jurisdictions within the EU single market, such as Cyprus, which would allow them to operate more freely and with less bureaucratic hassle.

 So, now that the Transitional period is over, what happens to companies?

The UK is no longer in the EU-wide VAT system, which means UK retailers that want to import the goods into the EU and sell them to customers will have to register in the EU member state of the consumer, pay import VAT, and charge local VAT.

  • UK businesses will have to consider VAT registering in Europe immediately. Any UK business with a foreign VAT registration in the EU may now face the obligation to appoint a special VAT fiscal representative. These agents will hold direct liability for any unpaid VAT, and therefore require cash deposits or bank guarantees in exchange.
  • End of zero-rated B2B intra- community supplies, all movements are now considered imports or exports, which are subject to U.K. or E.U. import VAT. Businesses that move goods are now required to have two EORI numbers to move goods between the UK and EU.

Example: UK importers will have to pay the import VAT at the point of importing goods from Cyprus, while importers may also have to make import declarations, paperwork, and all necessary customs procedures should be properly applied as well.

  • UK has already introduced a Postponed VAT Accounting import VAT deferral scheme, meaning no cash VAT payment has to be made by business importers to UK customs.
  • Many EU countries do not offer the same referral scheme for UK businesses importing their goods, thus impacting their cash flow.

Digital Services

UK sellers of digital services to EU consumers

  • UK is no longer a member of the EU Mini One-Stop-Shop (MOSS) single VAT return scheme.
  • UK sellers of electronic, broadcast or telecoms services to EU consumers will need to register in any other EU state, as a non-Union business, to continue to file their VAT declarations for EU e-service sales.

EU sellers of digital services to UK consumers

  • Have to register with the UK’s HMRC to file their VAT declaration.

Third-Country sellers of digital services to consumers

  • Any non-EU business which used the UK MOSS registration now has to re-register for MOSS in the EU and separately in the UK under a regular VAT return.
  • Any non-EU business will no longer be able to report their UK sales on their Non-Union MOSS return. They will have to register for UK VAT and report UK sales on a UK VAT return.

Since 1 January 2021, if you are a UK, EU or US seller of digital services to, then you will need new VAT registrations to avoid being fined by the tax authorities.

This includes cross-border sales to UK and EU consumers of downloadable or streaming media, apps, online software, e-learning; e-books, online journals, and dating or similar membership websites.

As of 1 January 2021, a UK business should register with a new EU VAT MOSS in the non-union scheme, by choosing which of the 27 member states they would like to serve as their ‘’base’’ in the European Union.

B2B Transactions

If a UK business only sells digital products in B2B transactions, then they do not need to register for EU VAT as Reverse Charge applies.

When the Reverse Charge applies, the responsibility for the recording of a VAT transaction from the seller to the buyer for that good or service.

CYPRUS UNIQUE SELLING POINTS

Why Cyprus?

Cyprus has strategically established itself as an attractive jurisdiction, both within the EU and globally.

The competitive, modern, and transparent legal (based on the English Common law system), financial and regulatory framework along with the highly skilled and multilingual workforce that Cyprus possesses has established Cyprus as a credible and highly reputable jurisdiction for companies to set up a trading or holding company.

The country’s stable and advantageous tax policy has made Cyprus attractive for all types of businesses and individuals. As Cyprus is a European Union member, companies can enjoy all the advantages of operating in an E.U. country.

Tax Advantages

  • Corporation tax only 12.5%
  • Profits generated from transactions in shares, bonds and other qualifying securities are exempt
  • Exemption from dividends paid by a foreign subsidiary to a Cyprus Holding Company
  • No withholding taxes on dividend distribution to foreign non- resident shareholders whether corporate or individual
  • No withholding taxes on royalties and interests paid to non-resident shareholders, whether corporate or individuals.
  • No Capital gains tax on sales of shares
  • Extensive Tax Treaty network with more than 60 countries
  • Tax losses are carried forward for 5 years.

 Cyprus & UK Connection

Cyprus has a competitive advantage of having an effective legal system based on English Common Law principles.

Government departments, financial institutions and local authorities accept documents in English. This provides bureaucratic transparency and clear regulations for UK businesses wishing to set up shop in Cyprus.

With English being a predominant language spoken between businesses, when setting up your business you can benefit from the island’s high percentage of English-speaking citizens:

  • 73% of Cypriots speak English – official language due to British colonization
  • English widely accepted for business transactions, government services, contracts, banking and other day-to-day operations
  • Cyprus trade relations existed before the EU and will continue strongly after Brexit as Cyprus belongs to the Commonwealth and has sovereign British Bases on the island
  • Key legislations such the Companies law, Contract law and Tort law are modelled on the British law. The Cyprus courts follow the precedents of the English courts and in general Cyprus can be characterized as UK-friendly country, this results in more clarity and certainty in the legal system and a preferred jurisdiction for U.K. companies

European Union Member

At the core of the EU is the single market – the programme of freeing up the trade of goods and services and the movement of people between EU countries. Cyprus has access to 40 + EU trade agreements with countries outside the E.U along

Intellectual Property

Cyprus IP box regime provides a tax benefit of up to 80% for the IP profit that qualify. As corporation tax is Cyprus is 12.5%, this will result to a tax rate of up to 2.5%. The IP box regime has been reviewed by the EU Code of Conduct and is fully compatible with EU standards.

Qualifying assets under IP BOX regime:

  • Patents
  • Software programs with a copyright
  • Other intangible assets that is not obvious but are useful and novel.

The new IP regime is compliant with the provisions of the revised ‘Nexus approach.’

Banking

The European Union has a well-developed and regulated banking sector, thus opening a bank account with a Cyprus bank will allow companies a swift process when opening bank accounts in other EU nations.

Bank transfers or payments from any EU bank account can be transferred to any other country in the world without any restrictions or limitations. A Cyprus company will be able to trade and open a bank account in various currencies as there are no exchange control limitations.

Foreign Interest Company

Cyprus companies with non-EU shareholders that provide a paid-up capital of the company of minimum EUR 171.000 can employ up to 15 non-EU persons in management positions, and many more in specific specialists positions, with residence and work permits issued by the Cyprus authorities. Family members can join by way of family reunification.

Setting Up Costs

Launching and running your business in Cyprus reduces your overall set-up costs compared to other EU countries resulting in more budget being allocated other segments of your business.

  • Lower labour costs – costs for technical and professional talents lower than other EU countries
  • Lower office rental costs – office rental rates among lowest in Europe, range of serviced offices and co-working spaces make initial office setup easy
  • Lower business support costs – services like I.T., accounting, legal are greatly affordable

 Lifestyle

Choosing Cyprus ensures you and your teamwork in a Mediterranean island that provides you with a very high standard of living that includes:

  • One of the EU’s best all-year climates and one of the best worldwide
  • Over 65 Blue Flag status beaches for all tastes (highest % per capita) – sports, entertainment etc,
  • High level public & private healthcare services
  • Short distances – can travel from one side of the island to another in 2 1⁄2 hours
  • Considered one of the world’s safest countries with one of the lowest crime rates in the EU
  • Reasonable cost of living with great choice fresh products always available – both local and international
  • Quick access to three continents –Europe, Asia and the Middle East.

 What we do

Panayiotis Z. Toulouras LLC provides legal services to clients worldwide. Our law firm, with the assistance of our vast network of associates, provides strategic legal advice for:

  • The incorporation of a Cyprus company
  • Setting up a branch/subsidiary in Cyprus or outside of Cyprus
  • Opening of bank accounts in Cyprus and abroad
  • Business visa applications and other visas
  • Work permits
  • Employment contracts
  • Purchase/rental of property for commercial purposes
  • Purchase/rental of property for residential purposes
  • Applications for permanent & temporary residency
  • P. registration

Contact us for more information:

Telephone: +357 24 623 800

Fax: +357 24 332 991

Email: info@toulouraslaw.com

Website: www.toulouraslaw.com

 

 

 

Lebanese Families Seeking Cyprus Permanent Residency: Find out why.

With the impact of COVID19 shifting the country’s economy to further dismay and with no clear indication of whether things will improve in 2021, Cyprus has experienced an increase in Lebanese families inquiring and applying for a Cyprus Permanent Residency through purchasing a property of any value in Cyprus.

Permanent Residency programs allow individuals to live freely and enter into Cyprus, as legally residing citizens of the Republic of Cyprus. It also allows Lebanese Citizens the opportunity to provide their children a high quality education and a safer way of life for the whole family.

Individuals in Cyprus are able to benefit from Cyprus’ tax advantages and be registered to the Cyprus health system.

The P.R.  does not expire and does not require a renewal. There is simply a requirement to visit Cyprus once every two years to maintain the P.R.  After 7 years of living in Cyprus, the P.R. holders are able to apply for a Cyprus citizenship.

Panayiotis Z. Toulouras LLC is able to assist clients from start to finish, as they seek to relocate or start setting up a second home here in neighbouring Cyprus.

Two main types of Permanent Residency

  • Permanent Residency Category F (Normal Option)
  • Category 6.2 (Fast Track Permanent Residency)

A) Permanent Residency in Cyprus Category F (not Fast Track)

Requirements – To be eligible the applicant must:

  1. Purchase a Property in Cyprus of ANY VALUE – Category F residency is flexible and does not have a strict requirement of property purchase as a rental may also be possible:
  • However, it is always recommended to buy a property in Cyprus of any amount. (We are able to assist in presenting various property options according to your needs and requests and finalising purchase)
  • It can even be a resale property (not new) purchased
  • The money for the purchase does not need to be transferred from abroad

2.   Have an Annual income:

  • The applicant must show an annual income of at least €9.568 for one applicant, plus €4.613 for each dependent person.
  • This income must come from abroad.

Note: It can be any income deriving from salaries, pensions, dividends, fixed deposits, rents etc.

3.  Deposit in a Cyprus bank:

  • The applicant should have deposited in a bank account in Cyprus an amount of approximately €15.000 to €20.000. (We are able to assist in the setting up of a bank account)
  • Unlike the Fast-Track application, the deposit is not pledged, and the money can be used after the application is submitted

Family members

  1. Only children up to the age of 18 years old are allowed to apply as a dependent
  2. Their permanent residency will be valid only until they become 18 years old
  3. The parents or parents in law of the applicants cannot apply as dependents

Conditions and restrictions of the permanent residency program

  1. The holder must visit Cyprus once every two years. If not, the residency permit will be cancelled automatically.
  2. The holders of Permanent Residency are not permitted to work in Cyprus. However, they can live in Cyprus as shareholders in a Cypriot Company, which are able to undertake business in Cyprus or abroad, and also receive dividend income from companies. (We are able to assist in the Company incorporation)

Duration

  • Alien Registration Certificate provide same day as application
  • Permanent Residence Cards received after 12 months

B) Category 6.2 (Fast Track Permanent Residency)

Requirements – To be eligible the applicant must:

1. Make a investment of a minimum of €300.000: 

  • Eligible through purchasing investing at least €300,000 (excluding VAT) in one of the following options (a) residential properties (b) commercial properties (c) company share capital and (d) Cyprus investment funds,
  • Option (c) investing at least €300,000 (excluding VAT) in a company share capital gives the right to the main applicant to work in Cyprus as an employee,
  • The P.R. does not expire and the holder does not need to renew it.
  • All options give the right to applicants to be shareholders in Cyprus.

Note: Properties under construction can be included.

Note: Property can also be bought in a company’s name if the actual owner or ultimate beneficiary will be the applicant or their spouse.

2.   Have an Annual Income:

  • The applicant must prove an annual income from abroad of minimum €30.000
  • This is increased by €5.000 for each dependent (e.g. children and spouse).
  • This is also increased by €8.000 for each dependent parents or parent-in-law
  • If all above is satisfied the above family members can apply and get the permanent residence permit.

Note: It can be any income deriving from salaries, pensions, dividends, fixed deposits, rents etc.

Family members

  1. The Permanent Residency permit covers the spouse and children up to 18 years old.
  2. Also, children between 18 and 25 years old are able to apply as long as they are financially dependent on the applicant and are unmarried.
  3. The Permanent Residency is kept by the children for life even if they exceed the age of 25 or do not continue to fulfil the above terms )e.g. unmarried, students, financially dependent)

Note: Only Fast Track Residency allows parents and parents-in-law of the applicant to also get a Permanent Residency without buying an additional property. 

Note: Only Fast Track Residency allows children between 18 and 25 to be included on the application. 

Conditions and Restrictions

  1. The holder must visit Cyprus once every two years. If not, the residency permit will be cancelled automatically
  2. The holders of Permanent Residency are not permitted to work in Cyprus. However, they can live in Cyprus as shareholders in a Cypriot Company, which are able to undertake business in Cyprus or abroad, and also receive dividend income from companies. (We are able to assist in the Company incorporation)

Duration

  • Alien Registration Certificate provide same day as application
  • Permanent Residence Cards received after 2-3 months (Fast Track)

What we do

Panayiotis Z. Toulouras LLC provides corporate and immigration services to clients worldwide. Our law firm, with the assistance of our vast network of associates, provides strategic advice spanning all aspects of Immigration, Real Estate acquisition, Company set-up, Relocation services and Tax Planning.

  • Relocation Assistance and Advice
  • Real Estate Acquisition or Rental
  • Permanent Residency Applications
  • Employment Permits
  • Registration of International Companies for the Employment of Foreign Individuals
  • Visas and Special Permit application
  • Advice on All Related Tax Aspects
  • Facilitating Online Bank Facilities
  • Processing of Investment and Lending Facilities
  • Opening of Private and Corporate Bank Accounts

Contact us today for all information

Address: Faneromeni 106, Office 201, 6031, Larnaca, Cyprus

Telephone: +357 24 623 800   Fax: +357 24 332 991

Email: info@toulouraslaw.com

Website: www.toulouraslaw.com

 

Cyprus Permanent Residency: Why is it trending in Lebanon?

The Lebanese people have been facing political and financial instability for some time, with no clear sign whether things will improve in the coming months. As such, it is no surprise that Lebanese citizens are requesting to proceed with a Permanent Residency in the Republic of Cyprus. The past 6 months, Cyprus has experienced a high influx of Lebanese families searching for a way-out from the current situation in Lebanon.

Permanent Residency programs allow individuals to live freely and enter into Cyprus, as legally residing citizens of the Republic of Cyprus. It also allows Lebanese Citizens the opportunity to provide their children a high quality education and a safer way of life for the whole family.

Individuals in Cyprus are able to benefit from Cyprus’ tax advantages and be registered to the Cyprus health system.

The P.R.  does not expire and does not require a renewal. There is simply a requirement to visit Cyprus once every two years to maintain the P.R.  After 7 years of living in Cyprus, the P.R. holders are able to apply for a Cyprus citizenship.

Panayiotis Z. Toulouras LLC is able to assist clients from start to finish, as they seek to relocate or start setting up a second home here in neighbouring Cyprus.

Two main types of Permanent Residency

  • Permanent Residency Category F (Normal Option)
  • Category 6.2 (Fast Track Permanent Residency)

A) Permanent Residency in Cyprus Category F (not Fast Track)

Requirements – To be eligible the applicant must:

  1. Purchase a Property in Cyprus – Category F residency is flexible and does not have a strict requirement of property purchase as a rental may also be possible:
  • However, it is always recommended to buy a property in Cyprus of any amount. (We are able to assist in presenting various property options according to your needs and requests and finalising purchase)
  • It can even be a resale property (not new) purchased
  • The money for the purchase does not need to be transferred from abroad

2.   Have an Annual income:

  • The applicant must show an annual income of at least €9.568 for one applicant, plus €4.613 for each dependent person.
  • This income must come from abroad.

Note: It can be any income deriving from salaries, pensions, dividends, fixed deposits, rents etc.

3.  Deposit in a Cyprus bank:

  • The applicant should have deposited in a bank account in Cyprus an amount of approximately €15.000 to €20.000. (We are able to assist in the setting up of a bank account)
  • Unlike the Fast-Track application, the deposit is not pledged, and the money can be used after the application is submitted

Family members

  1. Only children up to the age of 18 years old are allowed to apply as a dependent
  2. Their permanent residency will be valid only until they become 18 years old
  3. The parents or parents in law of the applicants cannot apply as dependents

Conditions and restrictions of the permanent residency program

  1. The holder must visit Cyprus once every two years. If not, the residency permit will be cancelled automatically.
  2. The holders of Permanent Residency are not permitted to work in Cyprus. However, they can live in Cyprus as shareholders in a Cypriot Company, which are able to undertake business in Cyprus or abroad, and also receive dividend income from companies. (We are able to assist in the Company incorporation)

Duration

  • Alien Registration Certificate provide same day as application
  • Permanent Residence Cards received after 12 months

B) Category 6.2 (Fast Track Permanent Residency)

Requirements – To be eligible the applicant must:

  1.  Make a investment of a minimum of €300.000: 
  • Eligible through purchasing investing at least €300,000 (excluding VAT) in one of the following options (a) residential properties (b) commercial properties (c) company share capital and (d) Cyprus investment funds,
  • Option (c) investing at least €300,000 (excluding VAT) in a company share capital gives the right to the main applicant to work in Cyprus as an employee,
  • The P.R. does not expire and the holder does not need to renew it.
  • All options give the right to applicants to be shareholders in Cyprus.

Note: Properties under construction can be included.

Note: Property can also be bought in a company’s name if the actual owner or ultimate beneficiary will be the applicant or their spouse.

2.   Have an Annual Income:

  • The applicant must prove an annual income from abroad of minimum €30.000
  • This is increased by €5.000 for each dependent (e.g. children and spouse).
  • This is also increased by €8.000 for each dependent parents or parent-in-law
  • If all above is satisfied the above family members can apply and get the permanent residence permit.

Note: It can be any income deriving from salaries, pensions, dividends, fixed deposits, rents etc.

Family members

  1. The Permanent Residency permit covers the spouse and children up to 18 years old.
  2. Also, children between 18 and 25 years old are able to apply as long as they are financially dependent on the applicant and are unmarried.
  3. The Permanent Residency is kept by the children for life even if they exceed the age of 25 or do not continue to fulfil the above terms (e.g. unmarried, students, financially dependent)

Note: Only Fast Track Residency allows parents and parents-in-law of the applicant to also get a Permanent Residency without buying an additional property. 

Note: Only Fast Track Residency allows children between 18 and 25 to be included on the application. 

Conditions and Restrictions

  1. The holder must visit Cyprus once every two years. If not, the residency permit will be cancelled automatically
  2. The holders of Permanent Residency are not permitted to work in Cyprus. However, they can live in Cyprus as shareholders in a Cypriot Company, which are able to undertake business in Cyprus or abroad, and also receive dividend income from companies. (We are able to assist in the Company incorporation)

Duration

  • Alien Registration Certificate provided same day as application
  • Permanent Residence Cards received after 2 months (Fast Track)

What we do

Panayiotis Z. Toulouras LLC provides corporate and immigration services to clients worldwide. Our law firm, with the assistance of our vast network of associates, provides strategic advice spanning all aspects of Immigration, Real Estate acquisition, Company set-up, Relocation services and Tax Planning.

  • Relocation Assistance and Advice
  • Real Estate Acquisition or Rental
  • Permanent Residency Applications
  • Employment Permits
  • Registration of International Companies for the Employment of Foreign Individuals
  • Visas and Special Permit application
  • Advice on All Related Tax Aspects
  • Facilitating Online Bank Facilities
  • Processing of Investment and Lending Facilities
  • Opening of Private and Corporate Bank Accounts

Contact us today for all information

Address: Faneromeni 106, Office 201, 6031, Larnaca, Cyprus

Telephone: +357 24 623 800   Fax: +357 24 332 991

Email: info@toulouraslaw.com

Website: www.toulouraslaw.com

 

Redomiciliation into Cyprus: The life jacket your company needs!

Cyprus Law permits the redomiciliation process which allows a company to transfer its jurisdiction of incorporation to Cyprus, in accordance with Companies (Amendment) Law of 2006, Law No. 124(I)/2006).

Directors and shareholders of foreign companies aiming to take advantage of Cyprus’ pro-business tax regime, E.U. status, global economic links, and lifestyle should start considering the redomiciliation of their company to the Republic of Cyprus.

Cyprus is included in the list of very few countries that permit the redomiciliation of Non-EU companies into and out of the Republic of Cyprus.

Redomiciliation into Cyprus: What does it mean?

Redomiciliation is the procedure where a company transfers its registration from one country to another. This allows an existing company to transfer its registered office and address it to a new jurisdiction by acquiring all the benefits there. This differs from a company incorporating a subsidiary in a foreign country or setting up a branch overseas.

For example, when a BVI registered company aims to become a Cyprus company, this is possible through redomiciliation, and essentially, they are converting the BVI company into a Cyprus-registered company with the former ceasing to be active. This results in all rights and liabilities of the BVI company transferring over to the Cyprus company, with the newly domiciled company being regulated by Cyprus law.

Redomiciliation into Cyprus: What does it achieve for your company?

Business Continuity

Companies redomicile from a commercial perspective as redomiciliation allows a company to continue their business with only its place of incorporation shifting.

The total continuity of the business results in matters such as goodwill, bank accounts, credit ratings, assets, liabilities, and performance records remaining intact and thus avoiding the administrational headaches of ‘starting again’ in a new jurisdiction.

Special purpose vehicles (SPVs) holding property  will only need a certificate of continuation to inform their local authorities of the change of jurisdiction.

Tax advantages

Cyprus’ corporate tax is at an attractive rate lower than many other developed countries.

The increase of stringent rules on the taxation of cross-border transactions between companies in the same corporate groups has heightened the demand for redomiciliation.

If, for example, your company’s original place of jurisdiction has started to impose stricter and unfavourable regulatory conditions, such as a higher corporate tax rate and increased administrative requirements, resulting in a detriment to your business, then redomiciling to Cyprus could allow your company to avoid having to abide to those requirements.

Cyprus offers many tax advantages and incentives, for companies and individuals, making it extremely attractive to redomicile into Cyprus.

Cyprus companies benefit from:

• Low corporate tax rate of 12,5% on profit, one of the lowest within the EU with the possibility to enjoy a much lower effective tax rate
• Simple, transparent and EU harmonized tax system following recommended OECD practices

Cyprus holding companies benefit from:

• No withholding tax on dividends, royalties, and interests paid to non-resident shareholders, whether corporate or individuals
• Tax exemption when a company receives dividends from another Cyprus company
• Tax exemption on dividends Cyprus companies receive as shareholders of other subsidiaries situated abroad
• Tax exemption on any income arising from trading in securities such as shares, bonds, etc
• No withholding tax on royalties paid from Cyprus based companies in respect of intellectual property exploited outside of Cyprus
• 80% tax exemption on any qualifying profits generated by intellectual property owned by companies in Cyprus
• Group relief laws allowing for Group to carry forward losses
• No Capital gains tax from the disposal of any immovable property held by the Company outside of Cyprus or disposal of shares in companies situated outside Cyprus
• Extensive Tax Treaty network with more than 60 countries

Individuals will benefit from:

  • Being considered non-domiciled in Cyprus for a maximum of 17 years once they relocate to Cyprus
  • No Special Defence Contribution Tax for non-domicile personnel who become tax residents
  • Tax exemption on dividends and interests earned by non-domicile individuals
  • The first €19,500 of taxable income being tax-exempt for individuals
  • 50% exemption for the remuneration of individuals from employment in Cyprus who were residents outside Cyprus before the commencement of their employment. The exemption applies for 10 years commencing from the year of employment if such income exceeds €100,000 per year
  • 100% exemption on lump sum repayments from life insurance schemes or from approved provident funds
  • No Capital Gains Tax on the sale of immovable property located outside Cyprus
  • No Wealth-tax for High Net Worth Individuals

European Union

Redomiciling to an E.U. member state, like Cyprus, allows companies to benefit from the single market, freeing up the trade of goods and services and the movement of people between E.U. countries.

The aim of the E.U. is that doing business with other EU countries is like doing business within your own country.

Cyprus has access to more than 40 E.U. trade agreements with countries outside the Union.

Standard of Living

Cyprus enjoys a very safe and high standard of living that includes:

  • One of the EU’s best all-year climates and one of the best worldwide
  • Over 65 Blue Flag status beaches for all tastes (highest % per capita) sports, entertainment, etc
  • High level public & private healthcare services
  • Short distances: Can travel from one side of the island to another in 2 ½ hours
  • One of the world’s safest countries with one of the lowest crime rates in E.U.
  • Reasonable cost of living
  • Real Estate available to cater to all needs – city centre, beach, countryside etc
  • High Level of Education: Private schools and private institutions offering a high level of education in English

Brexit & the U.K. Connection

U.K. – Cyprus trade relations existed before the E.U. and will continue strongly after
Brexit as Cyprus belongs to the Commonwealth and has sovereign British.

Cyprus being an ex-British colony, the judicial and legal system is very much aligned with that of the United Kingdom.

Key legislation such as the Companies law, Contract law, and Tort law are modelled on British law. The Cyprus courts follow the precedents of the English courts and in general, Cyprus can be characterized as a UK-friendly country, this results in more clarity and certainty in the legal system and a preferred jurisdiction for U.K. companies.

Lower Costs

Moving your company to Cyprus reduces your overall set-up costs compared to other EU countries, with lower labor costs compared to other E.U. countries, lower office rental costs and a pool of highly skilled support services such as legal and accounting services at lower fees than other E.U. countries.

Redomiciliation into Cyprus: Is your company allowed to redomicile?

Before deciding on redomiciliation it is a necessary precondition that the legislation of the initial jurisdiction allows your company to transfer to Cyprus and that the company’s memorandum of incorporation permits the possibility of its continuation under the legal system of another approved country or jurisdiction such as Cyprus.

Furthermore, it is a condition that no procedures must have commenced for the dissolution of the company, nor any insolvency proceedings, arrangements or compositions, or proceedings for the execution of a court judgment or other similar procedures against your company, in the initial jurisdiction.

In case where your company wishes to enter into an activity where a special license is required under Cyprus legislation such as Financial Services Companies, insurance Companies etc. , then such license must be obtained by the relevant authorities in Cyprus. Also your company must produce a consent authorising the redomiciliation by the respective authorities of the initial jurisdiction.

The above are the key conditions that need to be met, to be granted consent to redomicile, with other administrative requirements also required to be followed also.

Redomiciliation into Cyprus: What we do

Panayiotis Z. Toulouras LLC provides legal services to clients worldwide. Our law firm, with the assistance of our vast network of associates, provides strategic legal advice for:

Redomiciliation: 

  • Assisting with any amendments required in order to permit redomiciliation.
  • Submission of name application with Cyprus Companies registrar
  • Assisting in the collection and preparation of all required documents for the redomiciliation process from the origin country to redomicile country
  • Submission of application and permit required for the company’s redomiciliation.
  • Liaison with any authorities and business support companies in the origin country
  • Liaison with banks and any other authorities in order to organize and ensure a smooth transition of the redomiciled company’s activities
  • Guidance through financial and compliance requirements

General:

  • The incorporation of a Cyprus company
  • Opening of bank accounts in Cyprus and abroad
  • Business visa applications and other visas
  • Work permits Employment contracts Purchase/rental of property for commercial purposes
  • Purchase/rental of property for residential purposes
  • Applications for permanent & temporary residency
  • Applications for naturalization
  • Cyprus international trust creation
  • I.P. registration