CONNECTEDSKY - Intax Group...ConnectedSky translates such a multi-faced matter into an integrated global service. We thoroughly understand the need for cost efficiency, strategic commercial

CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LIMITED

Citizenship & Residency Schemes, and investment Opportunities in Cyprus

Table of contents

1.

2.

3.

Introducing ConnectedSky

Why Cyprus ?

Conclusion

Citizenship and residency schemes

4.



The Samir Group


Through its association with C. Samir & Co. LLC , ConnectedSky maintains its headquarters in Nicosia, the Capital City of Cyprus and has representative offices in 22 locations within 16 Countries:

BEIJING • BERLIN • BRUSSELS • BUDAPEST • DUBAI • FRANKFURT • HAMBURG • HONG KONG • KONING-WUSTERHAUSEN • LIMASSOL • LONDON • LUGANO • MILAN • MOSCOW • MUNICH • NICOSIA • PALMA DE MALLORCA • PRAGUE • ST. JULIANS • VIENNA • WARSAW • WIESBADEN

Introducing ConnectedSky Global professional services provider ONE-STOP-SHOP Services & Solutions In addition to its representative offices, ConnectedSky maintains

Subsidiaries in: Russia “OOO ConnectedSky” Malta “ConnectedSky (Malta) Limited” Hong Kong “ConnectedSky (HK) Limited” London “ ConnectedSky (UK) Limited”


Top 20 Services By ConnectedSky

1. Formation and Full Management of Foundations and Trusts Worldwide 2. Formation of Cyprus Investment Firms (CIF) 3. Formation of Alternative Investment Funds (AIF) 4. International Tax Planning 5. Obtaining Cypriot and Foreign Citizenship and Residency 6. Opening and Maintenance of Bank Accounts Worldwide 7. Formation and Re-domiciliation of Companies Worldwide 8. Fiduciary, Trustee, Administrative and Secretarial Services Worldwide 9. Mergers & Acquisitions


Top 20 Services By ConnectedSky

10. Insolvency and Restructuring 11. Dispute Resolution 12. Real-estate and Construction 13. Intellectual Property 14. International Corporate Intelligence 15. International Compliance 16. Family Office 17. Legal Opinions and Legal Due Diligence Exercises 18. Accounting, Bookkeeping and Audit Assistance 19. Assistance with Recruitment, Training and HR 20. Registration of Ships, Vessels and Private Yachts


Our Values:

Performance based work ethics

Uncompromising attention for details We Grow When You Grow

Why Cyprus

“Cyprus offers a strategic location, favourable tax environment, educated work force, excellent telecommunications, modern banking and legal infrastructure which make the country the perfect business bridge for the European Union and the Middle East.”

THE WALL STREET JOURNAL

Why Cyprus

EU Membership

Geographical location

Shipping

Why Cyprus

Legal System

English Common Law principles FULL compliance with

- all EU AML directives - OECD - FATCA - FATF

Why Cyprus Taxation

corporate tax rate of 12,5% Dividend income received from abroad is tax exempt (subject to

conditions); No thin capitalisation rules; Capital gains from the sale of immovable property situated outside

Cyprus is tax exempt; Capital gains on sale of qualified Securities: 100% exemption; No withholding tax on outward payments (Dividends-Interest-

Royalties) to non Cyprus tax residents (companies or individuals); Foreign Permanent Establishment profits exempt (subject to

conditions); IP Box Regime with only 2.5% effective Taxation.



Cyprus Citizenship

Cyprus Citizenship by Investment

INCENTIVES EU citizenship No language requirement, medical test or interview Visa-free travel to more than 150 countries in the world, including all the

European Union countries, Canada and Australia amongst others Protection by EU legislation and regulations Dual-citizenship is allowed Combination of tax incentives for investors who were granted the citizenship


REQUIREMENTS Fulfil one of the following Economic criteria

1. Investment of at least €2 million in real estate developments and infrastructure. 2. Purchase or incorporation or participation of at least € 2 million in Cypriot businesses and companies. (Must have physical presence in Cyprus, with significant activity and turnover, and must employ at least five (5) Cypriot or European citizens) 3. Investment of at least € 2 million in Cyprus alternative investment funds (AIF’s) or financial assets or Cypriot organizations licensed by the Cyprus Securities and Exchange Commission, “CySEC”


OR a combination of the aforementioned investments - Combination of the above investments, provided that the total investment will amount

to at least € 2 million. - Under this criterion, the investor may also invest in government bonds of Cyprus for

the amount up to € 500.000 (Included in the € 2 million Investment), which will be issued for this purpose by the Public Debt Management Office of the Ministry of Finance, for a period of at least three (3) years.


TERMS AND CONDITIONS 1. Clean criminal record

2. Residential property in the republic of Cyprus with a value of at least € 500.000 plus

VAT.

3. Residency in Cyprus

Following the recent amendments, the investor may invest €500.000 more and qualify

to obtain Cyprus Citizenship for his/her parents as well.


Cyprus Residency

Cyprus Permanent Residency

INCENTIVES Right to permanent residence in Cyprus Visa Free travel to Cyprus Granted for Life Includes spouses, parents, underage children and adult dependent children up to 25

years old.


Requirements Purchase of Property in Cyprus of a minimum value of

€300.000 and proof of payment for at least €200.000

Deposit of minimum €30.000, in a 3-year Fixed Deposit

Account.


Terms and Conditions Clean criminal record certificate Submit a statement of non-employment in Cyprus

Visit Cyprus at least once every two years


Cyprus Non-Domicile Program


Tax Authorities

CRS / FATCA Global Issues CLIENT


Tax Authorities

Substance

CRS / FATCA Global Issues


Personal Substance

Corporate Substance

Tax Residency

Real Physical Presence


Tax Residency In Cyprus : physically present on the island for 183 days or more during a calendar year

Domicile : a person who has either his/her domicile of

origin (given at birth) in Cyprus or domicile of choice (establishing a home with the intention to reside in Cyprus permanently or indefinitely)

Definitions:


KEY BENEFITS

Tax exemption of 50% of the remuneration from any employment exercised in Cyprus ( When the remuneration exceeds €100,000 per annum.)

Tax exemption of 20% of the remuneration or €8,550 (whichever is the lower) from any employment exercised in Cyprus

Income tax exemption for overseas employment. Remuneration from rendering services outside Cyprus to a non-resident employer for more than 90 days is exempt from income tax


KEY BENEFITS

No tax on dividend and interest income

No tax on gains arising from the disposal of investments

Nil/reduced withholding tax on income received from abroad

Exemption from capital gains tax (CGT) on sale of non- Cypriot real estate

The Cyprus Non-Domicile Program

SAMPLE COMPUTATION

Sources of income Amount Taxes Comments

Employment Income €150,000 20,000 ( After application of the progressive Personal Tax Rates of 20%,25%,30%,35%)

50% Tax Exempt

Dividend Income €70,000 NIL 100% Tax Exempt

Interest Income €30,000 NIL 100% Tax Exempt

Gains from the Disposal of shares

€5,000 NIL 100% Tax Exempt

Capital Gains on sale of non-Cyprus real estate

€200,000 NIL 100% Tax Exempt

Total €455,000 €20,000

The Cyprus Non-Domicile Program

SAMPLE COMPUTATION

For an income of €445,000 Per Annum

Only € 20.000 Personal Income Tax

And FULL exemption on all Investment income

Conclusion

Within an increasingly demanding regulatory and legal environment Cyprus clearly stands out with a vast array of investment opportunities for both individuals and corporate entities. ConnectedSky translates such a multi-faced matter into an integrated global service. We thoroughly understand the need for cost efficiency, strategic commercial guidance, and most importantly, mindfulness throughout.

Thank You

Charalambos Samir is an International Corporate lawyer and member of the Cyprus Bar Association. He is the founder and CEO of ConnectedSky and C. Samir & Co. LLC, and specialises in International Corporate Law, Mergers & Acquisitions, and International Corporate (Re) structuring, the setting up of Trust and Foundations, Fiduciary, Tax and Dispute Resolution.

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CONNECTEDSKY - Intax Group...ConnectedSky translates such a multi-faced matter into an integrated global service. We thoroughly understand the need for cost efficiency, strategic commercial