cyprus citizenship-by-investment program · cyprus citizenship-by-investment program henley &...

9th Global Residence and Citizenship Conference · Dubai 2015

Cyprus Citizenship-by-Investment Program

2 Cyprus Citizenship-by-Investment Program ∙ Henley & Partners

The Agenda

1. Cyprus Geopolitical Role in EU

2. Cyprus Economy Now and in the Future

3. Today’s Realities and Opportunities

4. Economic Incentives

5. Conclusion

Cyprus Geopolitical Role in the EU



St Petersburg

Moscow

Cyprus

Cairo

Dubai

Mediterranean sea

Monaco

Paris

AmsterdamLondon


• Cyprus was granted independence from Britain in 1960

• Historically followed a non-aligned foreign policy

• Joined EU in 2004

• Plays important role in the region

• Enjoys excellent relations neighbouring countries

• Known as having one of the most ancient and traditional sea routes in the world

• Acts as an international base between countries and an exchange point of imports and exports

• Member of the United Nations, Council of Europe, Commonwealth


! Cyprus is recognized as the fifth safest country in the world

History and Relation with Neighbouring Countries

Cyprus Economy Now and in the Future



• European Crisis

• Connection of Cyprus with Greek economy

• Opportunity for total reformation

• Macroeconomic Adjustment Program

Crisis of 2013 – What happened?



2013-2014:

• Recession in this period was less severe than expected

• Considerably improved fiscal situation

• Consistent over-performance of fiscal targets

• Banking sector recapitalized and stabilizing

• Economy outperformed all macroeconomic forecasts

2015-2016:

• End of recession and return to growth forecast

• Continued fiscal consolidation and safeguarded debt sustainability

• Banking sector highly strengthened

Cyprus comeback



GDP Growth (% Change)

Source: Ministry of Finance (update: 06/03/2015) * 2014 estimate ** 2015-2016 projected forecast

5,1

3,6

-1,9

1,3

0,4

-2,4

-5,4

-2,3*

0,2**

1,4**



• Improvements in Tax Regime

• Third largest fleet in the EU

• Tourism infrastructure and strategy improvements

• Discovery of natural offshore gas

• Positive ratings by Fitch, and Standard and Poor’s with positive outlook

• Services industry still contributes 81.3% of Cyprus GDP

Positive Facts



• Tourism (11.4% of GDP) – Record tourist arrivals to Cyprus, numbers to increase

• Remains an economically robust economic sector

Main Sectors of the Economy


• Financial services – Very attractive destination for international businesses due to strong segments of the business services industry, encouraged by around 52 double taxation treaties and a legal system based on English Law

• Favourable taxation

• New tax incentives




• Ship management (7% of GDP) – The Cyprus Registry is classified as the 10th largest merchant fleet in the world and the third largest fleet in the EU

• The tax benefits introduced for both foreign and local ship-owners, triggered the tremendous expansion of the Cyprus Shipping Registry

• The Cyprus Registry is one of the only two “Open Registries” within EU and is estimated to constitute 25% of the whole EU fleet




• Real Estate (2.1% of GDP) – Market has found its bottom and now, a number of incentives offer various opportunities for international investors

• A significant increase of 11.3% in sales

• Magnet for international investors, expats, retirees and those looking to enjoy a second home

• Knight Frank Global Lifestyle Review ranks Cyprus as the fifth best place in the world to relocate



Today’s Realities and Opportunities


Today’s Realities and Opportunities

• Banking sector adjustments

• Public sector reformation

• Privatisation

• Transportation

• Casino development

• Tourism

• Investment in people of Cyprus

• Fund development

• Luxury real estate

Economic Incentives


Economic Incentives

• Cyprus tax resident individual who is not domiciled in Cyprus will not be subject to Special Contribution of Defence (SDC)

• 30% on passive interest income

• 17% on dividend income

• 3% on 75% of rental income

• Encourage the relocation of corporate executives and encourage high net worth individuals to take up residency in Cyprus as a significant drawback of the old tax rules has been set aside

Introduction of the Status of “Non-Domicile”


Economic Incentives

• Reduction of transfer fees on real estate transactions by 50%

• Exemption from Capital Gains Tax on sales of land or land with buildings on it

• Consolidation and modernization of immovable property tax and transfer fees


Economic Incentives

• Investing, not donating your wealth

• Approved within 90 days after application

• No residency requirement

• Investments can be combined

• Basic documentation

• Easy process

• Very high approval rate

Cyprus Citizenship-by-Investment Program

Conclusion


Conclusion

• Cyprus geopolitical role allows it to remain an important member of the EU

• Cyprus economy is now on the upturn

• Today’s realities offer a large number of opportunities to those sharing the Cyprus vision


Yiannos Trisokkas, IMCMManaging Partner

Henley & Partners Cyprus Ltd.Spirou Kiprianou AvenueNo. 9, Office 301 3070, LimassolCyprus

T + 357 2531 1844M + 357 9665 9500E [email protected]

Thank You

cyprus citizenship-by-investment program · cyprus citizenship-by-investment program henley &...

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