1. Cyprus a financial center at the crossroads of three continents. “Cyprus is a European Blossom, conveniently situated in the Mediterranean sea at the crossroads of Europe, Africa and Asia.” “Cyprus provides the nectar and is used as a hive through which businessmen produce their refined honey with the sweet aftertaste of low taxation.” Yiannos Georgiades Advocate & Legal Consultant

2.  Concerns Non EU Citizens  It is granted to the applicant and/or his spouse  It is granted to their minor children till the age of 18 (exceptional till the age of 25 years)

3. INVESTMENT / FINANCIAL CRITERIA INVESTMENT / FINANCIAL CRITERIA  Statement from a Cyprus financial institution showing that an amount of at least €30,000 has been transferred from abroad and deposited in a reserve account, for a period of at least 3 years.  Applicant and spouse shall have at their disposal a secured annual income of at least €30,000 increased by €5,000 for each dependent.  Filing a title deed or purchase contract in applicant’s and/or its spouse name, at the Department of Lands and Surveys, for a residential or other building, of a market value of at least €300,000 (excluding VAT) and official proof of payment of at least €200,000 (excluding VAT), provided that the remaining value will be paid from foreign funds. NOTE! House purchase will be accepted even when made in the name of a Company provided that : House purchase will be accepted even when made in the name of a Company provided that : It is registered in Cyprus It is registered in Cyprus It is registered in the name of the applicant and/or of his spouse It is registered in the name of the applicant and/or of his spouse The Applicant and/or his spouse are only shareholders of the Company The Applicant and/or his spouse are only shareholders of the Company

4.  Applicant and/or a couple may buy: up to two housing units (apartments or houses) or a housing unit and a store with an area of 100 sq.m., or a housing unit and an office with an area of 250 sq.m. Conditions Total purchase price more than €300,000 Property must be new – resale is not accepted If two properties are separate they must be purchased from the same developer Not be accepted purchase of more than two properties by the couple (including purchase by the Company)

5. Conditions Age 18-25 Financially dependent on the applicant Proven students Parents should present additional annual income of €5,000 for each dependent child All required documents must be submitted with the application

6. Conditions Over 18 Not financially dependent on the applicant For each child there must be an attributable market value of the acquired property of at least €300,00 Certificate of payment of at least 66% of the the total purchase price of the property

7. Submission of a certificate of a clear criminal record from the country of residency Applicant and spouse will attest that are not employed in Cyprus NOTE! They can be shareholders in a company registered in Cyprus and receive dividends from its profit! Visiting Cyprus at least once every two years Supporting documents and their translation must be duly certified

8.  Applications must be submitted to the Civil Registry and Migration Department (CRMD) personally or through a representative with non-refundable fee of €500.  The application shall be processed by the CRMD and submitted to the Minister of Interior.  The Ministry of Interior will inform the applicant or his representative and the CRMD on the decision of the Minister of Interior.  The examination period of the application from the date of its submission will not exceed 2 months.

9. Required Documentation – Certificates (1)  Application form (M67)  Copy of valid passport of the applicant and his dependants.  Copy of valid temporary residence permit (if the applicant resides in Cyprus).  Curriculum Vitae (including academic qualifications).  Original Letter from a financial institution in Cyprus (Bank, Coop) of a deposit of €30.000, pledged for three years.  Declaration of a secured annual income from abroad of €30.000 at least, (original documents and affidavit or declaration).  Title of ownership or contract of sale of a built property in Cyprus of a minimum market value of €300.000 (original or true copy). If the title of ownership has not been obtained yet, the applicant must submit the contract of sale duly stamped by the Stamps Commissioner and the Department of Lands & Surveys and proof of payment for at least €200,000.

10. Required Documentation – Certificates (2)  Official Statement by the applicant and his/her spouse that he/she does not intent to work or be engaged in any form of business in Cyprus.  Health Insurance Policy for the applicant and his dependants  Original Criminal Record Certificate duly certified for the applicant and his spouse (if the applicant resides abroad, the certificate must be issued from his country of residence, and submitted with an official and certified translation).  Marriage Certificate duly certified (official and certified translation).  Children’s Birth Certificates dully certified (official and certified translation).  Other documents which are submitted with the application.

11. Required Documents/Certificates for Dependent adult children18-25 years old  Copy of valid passport of the applicant.  Copy of valid temporary residence permit (if the applicant resides in Cyprus).  Curriculum Vitae (including academic qualifications).  Declaration of a secured annual income of the parent from abroad of at least €30.000, (original documents and affidavit or declaration). The necessary annual income is increased by €5.000 for each person dependent to the parent.  Official Statement by the applicant that he/she does not intent to work or be engaged in any form of business in Cyprus.  Health Insurance Policy for the applicant  Original Criminal Record Certificate duly certified for the applicant (if the applicant resides abroad, the certificate must be issued from his country of residence, and submitted with an official and certified translation  Birth Certificate of the applicant dully certified (official and certified translation)  Letter from the school/university that the applicant is a registered student.

12.  Acquiring a permanent residence permit in another country (other than the country of nationality)  Not visiting Cyprus for a period longer than 2 years continuously

13. Decision of Council of Ministers dated 19/03/2014  Revised the criteria and conditions for the Naturalization of investors in Cyprus by way of an exemption under s(2) of S. 111A of the Civil Registry Laws of 2002-2013.  Cypriot citizenship is granted to the spouse as well as the financially dependent adult children  Neither the spouse nor the children are obliged to meet any financial criteria.

14. Non-Cypriot citizens may apply for the attainment of Cypriot citizenship if they have:  Clean Criminal Record  Residency in the Republic of Cyprus, the market value of which must be at least €500,000.00 plus V.A.T.  Investment in government bonds or  Investment in financial assets of Cypriot companies or  Investment in real estate, land development and infrastructure projects or  Participation in Cypriot businesses or  Deposits in Cypriot banks or  Persons whose deposits with the Popular bank Public Company Ltd have been impaired due to the measures implements after the 15 th March 2013 or  Major Collective Investments.

15.  Applicant must have purchased state bonds of the Republic of Cyprus of at least €5,0 million Documentation:  Receipts from the Treasury of the Republic of Cyprus for the purchase of the Government bonds.

16.  Applicant must have purchased financial assets of Cypriot companies or organizations (bonds/ securities/ debentures registered and issued in the Republic of Cyprus) of at least €5,0 million. Documentation :  Titles and other documents regarding the financial assets.  Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization

17.  The applicant must have made an investment of at least € 5,0 million for the purchase or construction of buildings or for the construction of other land development projects. Documentation:  Contract of sale.  Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department  Receipts for paying the agreed purchase price  Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company

18.  Applicant must have made an investment of at least € 5,0 million in the purchase, creation or participation in businesses, that are based and operating in the Republic. and employ at least 5 Cypriot citizens. Documentation:  Contract of sale.  Receipts for paying the agreed purchase price  Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the companies  Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company  Confirmation from the Social Insurance Department as to the insurable income of the Cypriot employees in the company  Confirmation from the Inland Revenues Department as to the taxable income of the Cypriot employees in the companies or businesses that the applicant invested in.

19.  Applicant must have personal fixed term deposits for 3 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 Documentation:  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  Copy of the wire transfer in the Cypriot commercial banking institution

20.  Applicant has incurred an impairment in deposits amounting to a total of at least €3,0 million.  For an impairment in deposits under €3,0 million, applications are accepted, if an additional investment has been made for the balance of the required amount of the aforementioned criteria. Documentation:  Confirmation as to the level and the time of the impairment of the deposits

21.  T he Council of Ministers shall have the right on special occasions, to reduce the above to :  €2,5 millions for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least €12,5 millions.  To €2,0 millions for investors who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is more than €12.5 millions. NOTE! This present provision, will be in force until 01/06/2014.

22.  At the Ministry of Interior  Fees of €2.000  Original documents should be submitted, along with a photocopy of all the following documents:  Letter by the applicant or representative of the applicant, in which the investment and criterion, under which the application is submitted, are briefly explained.  Application Form M127 fully completed and signed before a Registrar of a Cypriot court  Birth Certificate  Copy of passport  Certificate of criminal record from the country of origin, as well as the country of residence of the applicant  Marriage Certificate  Copies of advertisements in a daily newspaper two consecutive posts  Two passport size photographs  Curriculum Vitae

23. Documents concerning the permanent privately-owned residence of the applicant in Cyprus:  Contract of Sale  Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department  Receipts for paying the agreed purchase price  Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company Documents evidencing the investments of the applicant in the Republic. These documents may include:  Certificate of Registration of the company/ companies by the Registrar of Companies  Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies  Audited Accounts of the company (or companies) for the last three years preceding the year of the application

24.  Evaluation of documents relating to business activities and investment of the applicant by the Ministry of Finance  Investigation of the other conditions by the Ministry of Interior  Presentation of the application to the Council of Ministers for final decision  Issuing of a Certification of Naturalization by the Civil Registry and Migration Department, following payment of the issuing fee of €5.000.

25.  Permission to acquire immovable properties from the Council of Ministers, only for non EU Citizens.  All procedural restrictions were lifted for EU Citizens initially in May 2004 and then in May 2009.  When non EU Citizens decide to buy immovable property they have the same rights as Cypriot Citizens.  Contract of sale binds both parties.  The Seller who signs the agreement must be the registered owner of the property.

26.  Upon signing of the contract the purchaser is liable to pay stamp fee and then it is advisable for the contract of sale to be registered within 2 months of the contract date at the District Land and Surveys Department.  Sale of Land (Specific Performance Law) Law 81(I)/2011 – requires the sale & purchase agreement to be submitted to the Cyprus Land Registry – right for specific performance.

27. Property value (EURO) Stamp Duty (0/1000) € 1.00 -€ 5,000.00 0 € 5,001.00 -€ 170,860.00 1.5 per thousand Over € 170,860.00 - 2 per thousand

28. Property value (EURO) Tranfer Fee Rate (%) 0 -€ 85,430.00 3 € 85,431.00 -€ 170,860.00 5 € 170,860.00 and over 8.NOTE! For properties owned by joint names, the tranfer fees are charged on 50% of the property value for each, providing an advantage for any property value exceeding a value of € 85,430.00

29.  Inheritance tax Inheritance tax has been abolished  VAT payable on property Has been introduced on May 2004. Applications which were filed before 1 May 2004 are VAT-exempt.  Capital gains tax Should the purchaser decide to sell the property, capital gains tax will be payable at the rate of 20% on the gain. However, the first €17,000.08 of the gain is tax-exempted. If the property is jointly owned by a couple, then €34,017.00 of the gain is tax-exempt. In a case whereby the property has been used by the Vendor as a residence for at least 5 years prior to the sale, then up to €85,430.00 is tax-exempt.

30. Our law firm can handle all legal formalities on behalf of the prospective purchaser and guide them through all the stages of property acquisition. Specifically, our services include, inter alia:  Advising and assisting for the requirements and procedures to be followed.  Preparation & Completion of the relevant applications with the supporting documents and follow up.  Preparing the contract of sale (drafting and printing)  Visiting the Department of Inland Revenue to stamp the contract of sale.  Visiting the District Land and Surveys Department to deposit the contract of sale.  Preparing the application to the Council of Ministers with supporting documents and follow up.  Visiting the District Land and Surveys Department to effect the transfer of the property.  Obtaining authority from the Central Bank.  Amending the contract of sale.  Cancelling the contract of sale, where necessary.

31. Thank you for attending our conference. We have provided you with general information, but this should not be taken as legal advice. For detailed analysis and advice specific to your business needs please contact our office for a personal meeting.

32. Our folder contain information guides regarding:  Residency in Cyprus  Nationality in Cyprus  Buying Property in Cyprus  International Collective Investments Schemes  Investment Services and Activities

33. GEORGIADES & ASSOCIATES 2 AYIOS PAVLOS & KADMOS STREET WISDOM TOWER, 3 RD FLOOR 1105 NICOSIA CYPRUS TEL: 00 357 22 819 292 FAX: 00 357 22 778 444 WEB: WWW.GMADVOCATES.COM EMAIL: ENQUIRIES@GMADVOCATES.COM