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Introduction

EU Citizens are free to enter, leave, travel and live in Cyprus and may also engage in any economic activity, either as paid employees or self employed persons, service providers or engage in any educational opportunity in Cyprus, under the same conditions as Cypriot citizens If you are going to spend less than three months in Cyprus, you only need to have a valid passport or a valid identity card issued by your country and not expiring in less than six months, which shows your nationality. When you enter Cyprus from a formal and recognized airport or port you can go through passport control queues identified for EU Nationals.

Residing in Cyprus

Within four months of the date you entered Cyprus you have the obligation by law to go personally to the Civil Registry and Migration Department (this service is for the time being, provided at the local Immigration Branch of the Police in all districts except Nicosia where a District Migration Office exists) and apply for the Registration Certificate for EU Nationals (Form MEU1 known as the Yellow Slip). In order to obtain this Certificate one should submit the following: A duly completed standard form (obtainable from Civil Registry & Migration Dept or from the local Immigration Branch of the Police) depending on the category of residence permit one is applying for (employed activity, self-employment etc.). - A Valid Passport or ID Card - 2 photos - A fee of €20 Note: When applying for dependants, the applicant must present certified true copies of marriage certificate, birth certificates of children etc.). The Certificate is issued within a short period of time from the day of application. The application forms can also be downloaded from the website of the Ministry of Interior at www.moi.gov.cy or you may request for information at the tel. 00357 22804400 and at the electronic address migration@crmd.moi.gov.cy One should know that a Registration Certificate is issued only if the applicant has secured a paid job in Cyprus or are self employed or you are a student or you have identified reasonable means for living in Cyprus without working. If by any chance you do not comply with the above then the Cyprus Authorities may refuse to issue the Certificate. It should be noted that a fine is imposed in the case of non-compliance (Law N7(I)/2007) and specifically a fine of €2.562,90 to any European national who works in the Republic without being registered. Family members will have to complete the appropriate form too, together with proof of their relationship. Note: Non-EU Citizens have to complete a separate form - MEU2 (more commonly known as the pink slip.

Residency Criteria

Not working does not, in itself, prevent you from living in Cyprus. However, you have to identify that you have reasonable means of wealth allowing you to live in Cyprus without becoming a burden for the social and health system of the Country. For a student, in addition to the passport or identity documents and two passport-sized photographs, in order to obtain the Registration Certificate students are required to show: - proof of their enrolment in a university or college; - proof of comprehensive health insurance; - proof (by declaration) of financial resources. If a person is retired or simply not working in Cyprus, they must show that you have: - adequate income from legal sources such as pension, employment outside of Cyprus or another means to support themselves; - proof of funds in a Cyprus or overseas bank; - proof of comprehensive health insurance.

Property Ownership

Buying property in Cyprus is quite easy. EU citizens are entitled to buy as many FREEHOLD Residential or Commercial Properties or Land as they wish, there are now no restrictions, and have such the same rights as Cypriot nationals. Non EU citizens are entitled to purchase FREEHOLD property for your personal use, either: - An apartment or a house or; - A villa on a building site not exceeding 4.000m²; - A piece of land not exceeding 4000m² for the purpose of erecting a house within a reasonable time period; - Offshore Business Units can be boought/built which have unlimited office/work space; - A second home maybe permitted depending on the type. [ex., a holiday home in addition to a permanent home in the city.]; In addition: - Acquisition of Leases having a term in excess of 33 years duration, are treated similarly in Real Estate as a freehold; - Acquisition in shares other than between husband and wife is not permitted.

Property Title Deeds

Properties have title deeds. Title deeds are issued by the Land Registry Department, of the Cyprus Government, a few years after completion of the project. Individual houses follow the same procedure. Upon approval by the Council of Ministers of the application and confirmation by the Central Bank that the purchase was with foreign funds, then the transfer of deeds can take place within a few hours. The following documents are required to be submitted in order for property to be transferred to your name as a purchaser: - Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported into Cyprus. - The sale contract. - The Ministerial Council's (now undertaken by Local Authorities) permission for the purchased property. - The property's title deeds, if available. - Confirmation that all taxes for the purchased property [sewerage, immovable property, town taxes etc] have been paid. - Transfer fees are paid on the value that the Land Registry department determines is the Market Value of the property; - Based on the day of the original transaction / sales contract.

Cypriot Passport & Citizenship

Cyprus EU Citizenship may be obtained through a secure property investment of €2 million, provided the  property or properties are residential. The investment can be a single property or combined property portfolio. The main investment may be sold after a period of 3 years, however, the investor must always maintain / purchase a property with a value of at least €500,000 A Clean criminal record is required The investor’s parents are entitled to apply for Cyprus Citizenship by Exception provided that they have purchased a permanent residence of at least €500,000 plus VAT.  BENEFITS OF THE CYPRUS EU CITIZENSHIP PROGRAMME: FAST AND SIMPLE - Cyprus EU Citizenship by Investment can be obtained within 3 months; NO RESIDENCE REQUIREMENTS - Investors must visit Cyprus at least once every 7 years; FREE MOVEMENT - Citizens have the right to live, work and get an education within the European Union, Free movement of goods, services and capital, Visa-free travel to over 158 countries including the EU and Canada; PROTECTION - Protection by the diplomatic or consular authorities of any EU country LANGUAGE - There are no language requirements NO DONATION - No donation to the Cyprus Government is required RIGHT TO VOTE -  All European Citizens have the right to vote and stand for European Parliament Elections DUAL CITIZENSHIP - No need to renounce previous nationality as dual citizenship is allowed VALID FOR LIFE - Citizenship can be passed to future generations by descent ELIGIBILITY - All nationalities are eligible for the programme NO TAX CONSEQUENCES - No tax consequences unless one opts to become a tax resident in Cyprus.

Property Transfer Fees:

Property Value (€) Fees (% of property value) Transfer Fee (€) Up to €85,000 3% 2550 €85001 - €170,000 5% 4250 €170,001 & above 8% -

Please Note: - For a €500,000 property, the transfer fee is €33,200 (based on €2550 (3% of €85,000) + €4250 (5% of €85,000) + €26,400 (8% of €330,000) - Properties subject to VAT are exempt from the above transfer fees. - Properties not subject to VAT are eligible for a 50% reduction in the above transfer fees.

Working in Cyprus

It should be made clear that in order for an EU or Non-EU citizen to work legally in Cyprus they must be in possession of the appropriate Registration Certificate. A Registration Certificate is issued only if the applicant has secured a paid job in Cyprus or are self employed or a student or have reasonable means for living in Cyprus without working. If for any reason a person does not comply with the above then the Cyprus Authorities may refuse to issue the Certificate.

Employment Opportunities

Employment opportunities in Cyprus tend to be seasonal in nature, especially within the tourism, hotel and catering sectors. There is very little full-time employment for non-Greek speakers in other sectors of the economy, unless a person has particular skills which are in short supply within the local population.

Business Opportunities

The majority of businesses established by those from overseas in Cyprus are linked to the leisure and catering industries, followed by property investment and development. The most common include holiday accommodation, e.g. bed & breakfast, villas, apartments and cottages, catering, e.g. bars, cafés and restaurants, shops, property agencies, translation bureaux, language schools, and holiday and sports centres, e.g. tennis, golf and water sports. It’s sometimes easier to buy an established business than to start a new one, and it’s less of a risk. The paperwork for taking over an existing business is also simpler, although still complex. If you plan to buy a business, always obtain an independent valuation (or two) and employ an accountant to audit the books. Never sign anything you don’t understand completely even if you think you understand it. Since Cyprus’ EU accession in May 2004, there have been no offshore companies in Cyprus. Previously there were some 40,000 registered offshore companies, taking advantage of the tax benefits. All companies must now pay 10 per cent corporation tax on their profits, but this is still the lowest rate in the EU. A word of caution: many people turn to self-employment or start their own business when they start a new life abroad, this can be very risky indeed in a foreign country. Great care, thought and planning must be given to setting up new ventures in another country.

Business Setup

In theory, now that Cyprus has joined the EU, other EU citizens can work as a self-employed person or start a business in Cyprus without restriction. For example, EU citizens are now able to start a business without needing a local Cypriot partner and there’s no minimum investment required. The exception to this relaxation of regulations is businesses related to financial services, which are subject to strict criteria. No matter what kind of business you wish to setup, first establish its infrastructure, including asks such as opening a bank account, hiring an accountant and a lawyer. The advice of a good local lawyer, who understands the business climate in Cyprus and is experienced in company incorporation, is vital. That way you can always ensure that you’re operating within the law and the lawyer will take you through the preparation of a brief financial report so that you can present your proposal to a financial institution. He will also help you apply for a company name and complete all the necessary paperwork for incorporation. It’s worth paying a lawyer to complete the application on your behalf. There are severe penalties for anyone who ignores the regulations and legal requirements. Help, advice and business information can be obtained from a number of organisations in Cyprus, such as the Central Bank of Cyprus (www.centralbank.gov.cy), the Cyprus Chamber of Commerce (www.ccci.org.cy) and the Employers’ and Industrialists’ Federation (www.oeb-eif.org). As with starting a business in any country, it’s important to keep your plans small and manageable and work well within your budget, especially in the early days, rather than undertaking some grandiose scheme that’s impossible to see through. You should have a contingency plan and sufficient funds to last until you’re established (this also applies to employees). As in many countries, most people are self-employed for the lifestyle and freedom it affords (no clocks or bosses!) rather than for the financial rewards (which can be non-existent). Generally speaking, you shouldn’t consider running a business in Cyprus in a field in which you don’t have previous experience, and it’s often wise to work for someone else in the same line of business in order to gain experience, rather than jump in at the deep end. Most people are far too optimistic about the prospects for a new business and over-estimate income levels (it often takes years to make a profit) and under-estimate costs. You must be realistic or even pessimistic when calculating your income and over-estimate the costs and under-estimate the revenue (then reduce it by 50 per cent!). New projects are rarely, if ever, completed within budget, and you need to ensure that you have sufficient working capital and can survive until a business takes off. Cypriot banks are very conservative and extremely wary of lending to new businesses, especially businesses run by foreigners. If you wish to borrow money to buy property or for a business venture, you should also carefully consider where and in what currency to raise the necessary finance. The majority of businesses established by foreigners in Cyprus are linked to the leisure and catering industries, followed by property investment and development. In Cyprus certain businesses are termed ‘saturated activities’ and applications for investment in such businesses are rejected outright. Check with the Central Bank of Cyprus (see above) for up to date information.

Taxation Information

If you live in Cyprus for more than six months, then you must pay tax on your worldwide income there. If you live in Cyprus for less than six months in the tax year, then you are not considered tax resident and pay tax only on income earned in Cyprus. The table below gives the amount of personal tax paid based on annual income:

Bracket Annual Income (€) Tax (%) 1 up to €19,500 0% 2 €19,501 - €28,000 20% 3 €28,001 - €36,300 25% 4 €36,301 - €60,000 30% 5 Over €60,001 35%

Cyprus Guide            Paphos Guide          Limassol Guide           Larnaca Guide           Famagusta Guide          Nicosia Guide           Kyrenia Guide

A.T & P.E Homes (Cyprus) Ltd. is a Certified and Licensed Estate Agent Company: Registration No.: 808; License No.: 147/E.