cyprus - ktc.com.cy · larnaca is the oldest city of cyprus and one of the oldest trade centers of...

CIT IZENSHIP SCHEMECYPRUS Invest in the country to

acquire Cyprus residency and therefore enjoy all the benefits of the European citizenship.

Prepared by KTC BusinessConsultants.

A complete information guide about the scheme and the citizenship acquisition procedure in Cyprus.The tax and legal regime and the growth sectors at the moment.

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WHY CHOOSE CYPRUS

THE CIT IES

BENEF ITS OF CYPRUS PASSPORT

LEGAL

TAX

GROWTH SECTORS

THE SCHEME & CR ITER IA

PROCEDURE & DOCUMENTAT ION

ABOUT KTC

Many investors from all around the world choose Cyprus as their second home. Find out why.

Explore the beauties of each city. Learn which is more suitable for your family to reside. The choice is not easy.

Cyprus Passport is considered to be one of the best in the world and offers great values for many reasons.

Basic information about the legal system in Cyprus which acts on behalf of the business establishments.

One of the most advanced and famous Tax regimes is found in Cyprus. Supporting local establishments and the country's economy.

Cyprus economy is growing day by day. Opportunities are everywhere.

The economic criteria to enter the citizenship scheme.

Documents needed in each case and how the procces runs.

Who we are and how are going to assit you.

CYPRUS CITIZENSHIP PROGRAM

No restrictions on movement of capital, goods and services.

WHY CYPRUS

Ease of doing business.International business center.

The sunniest country in Europe with over 340 days of sun yearly.

Citizenship is granted to the investor and the rest of the family.

Freedom of movement.Travel to 157 countries worldwide.

Corporate tax rate for companies is 12,5%

WHY CYPRUS

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Where is Cyprus

TRANSPORTATION TIME BY PLANE

Cyprus is located in the heart of the Mediterranean Sea and its location is a major crossroad between Europe, Africa and Asia. Cyprus has more than 3000 thousand years of history and culture since the antiquity with famous cultural and inheritance sites protected by UNESCO. The country is one of the most beautiful islands of the Eastern Europe, offering sunny beaches and is a great place for a family to reside mainly due to the

genuine local hospitality, low crime figures and the good quality of life.Cyprus is a well-established business location known for tax neutral tax regime, investor friendly business culture, highly educated work force, solid banking system and legal system. Cyprus Republic is a state member of the European Union since 2004 which offers the country a great prospective in all aspects of quality

of living, stable health care system, internationally recognised education system and a liberal economy. The inhabitants of Cyprus are mainly Greek speaking, but all major European languages are spoken including English, French, German, Spanish and Russian.

CYPRUS AT A GLANCE


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Moscow Athens Rome Paris

Amsterdam London Madrid

DubaiFrankfurt

Beirut Tel Aviv

- 4.45 hrs- 1.30 hrs- 3.30 hrs- 4.30 hrs-4.30 hrs- 4.40 hrs- 5 hrs- 3.45 hrs- 4 hrs- 0.5 hr- 1 hr

Nicosia is the capital city of Cyprus and located in the center of the island. Nicosia's old town picturesque streets are world famous for their architecture bursting with history, historical museums and local galleries. A vibrant city with the historical past of major European civilizations blending in harmony with the city’s modern era creating a unique city to reside and work in pleasant and stress free atmosphere. Exclusive restaurants, boutiques, wineries, cocktail bars and artisan coffee shops are all over the town, whilst 10 minutes away from the city center

you can visit the Mall of Cyprus. The city also is well known for its open markets bursting with traditional products, fresh fruit and vegetables, and antiques shops.

CITIES OF CYPRUS

NICOSIA MEDIEVAL WALLS

WHY CYPRUS - Cit ies of Cyprus

NICOSIACapital Island's center Business Centre International Firms Old town Medieval walls Museums Malls

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JEAN NOUVEL BUILDING

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"Nicosia is a business hub and hosts many local and international firms and companies. The capital also hosts all major government departments and services."

Larnaca is the oldest city of Cyprus and one of the oldest trade centers of the world. The city is located on the south side of the island and hosts naturally preserved beaches, hotels, restaurants, beach bars and the Cyprus International Airport.Is a vibrant city with famous historical sites, lovely country side and a continuous development that attracts numerous visitors every year. The city of Larnaca is the most developed city in recent years with many newly build hotels and constant public projects that have transformed the city to an ideal destination for visitors.

Larnaca still offers nice hotels, excellent fish taverns and sushi bars and an all-around hot spot like the Mackenzie area were beach meets the best restaurants and bars offering a great day and night experience.

HALA SULTAN TEKKE,LARNACA SALT LAKE

LARNACABeaches Hotels Upcoming Marina International airport Nightlife

Seafood Small town Medieval castle Museums Salt Lakes


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Charming and relaxing by the sea.

Limassol is the second biggest city of Cyprus but Cyprus business hub with many international shipping trading and financial companies are located in the city, granting the city a cosmopolitan aura similar to European major cities. A brand new marina hosts some of the most expensive yachts along with great international cuisine restaurants, bars, exclusive suites and private residences. The city is well known for the fresh fish restaurants.


LIMASSOL MARINA

LIMASSOLResorts Yatch Marina Beaches Biggest Port Business centre

Nightlife Seafood Russian community Medieval castles

Gourmet cuisine Wineries


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Vibrant and luxury lifestyle on a coastline.Limassol combines tradition with high nightlife and countless dining choices by the sea and hosts some very famous archaeological monuments and medieval castles an attractive destination for many visitors.Some of the best hotels of the island are located in Limassol and the city has major development projects in the field of tourism with resorts and golf courts as well as business centers. Limassol is also the biggest port in Cyprus and one of major shipping hubs in the Mediterranean Sea.

Pafos located in the western side of the island and in one of the most historical cities of Cyprus with more than 2500 years of history. The city of Pafos is home to the mythical legend of Aphrodite’s birth as passed through generations and attracts visitors from around the globe in admiring the birthplace of the mythical goddess. Pafos combines wild natural beauty and many historical monuments and is a quiet place to live, and many people from all around the world choose Pafos for their retirement for its low traffic, clean air, quiet beaches and natural beauty and pure locals.Golf courts, exclusive resorts and residences are all over the district that combines wild mountains and seaside. Development projects are always available in Pafos due to the fast growth of the city and the need to host high profile residents from all over the world.


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PAFOSGolf Resorts Beaches

Agro Resorts Relaxed routine

Quiet town Seafood

English community

Ancient monuments Wineries

Natural Park

BLUE LAGOON AKAMAS

PAFOS CASTLE


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Culture, history, development and exclusivity.

Famagusta is located on the east side of the island. The Famagusta town is not accessible since 1974 after the Turkish invasion and is now considered the Ghost city of Cyprus.The Famagusta district though hosts the most beautiful places on the island. The seaside is well developed with resorts of Ayia Napa and Protaras are well known as attractive vacation destinations in Europe. Some of the beaches in this area are voted the best in Europe and awarded with the Blue Flag with gold sand and crystal clear turquoise waters make the Famagusta beaches the best in the island.Famagusta area is the home of world famous resorts by the sea and is highly regarded for its quality of holidays offered to visitors from all over the world, with night clubs and international cuisine restaurants being voted as the best of the tourist destinations in Europe.

"NISSI" BEACH, AGIA NAPA


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FAMAGUSTAResorts Marina soon Beaches

Nightlife Seafood

CAVO GREKO LOVE BRIGDE,AGIA NAPA


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MOUNTAIN RANGE AND WINE ROUTESCyprus has also a nice mountain range where heavy vegetation and historical monuments live together.The mountain of Troodos offers great views and with an altimeter of 1952 meters is a great winter vacation destination offering great wild paths for trekking as well as winter sport activities on heavy snow. The island has a respectful wine production and history and there are many wineries around to visit and taste the local brands like the Comandaria (a desert wine which is claimed to be the oldest named wine in the world).


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The sunniest country in Europe with over 340 days of sun per year.

World Travel and Tourism Council recognizes Cyprus as one of the world’s hottest travel destinations in its recent report.

The Knight Frank Lifestyle Report ranked Cyprus as the 5th best place among major European countries and other competing destinations.

Cyprus has some of the cleanest beaches in the world. 59 out of the 113 swimming areas were marked with the Blue Flag.

Cyprus is the largest third party management center in the EU. It is the home to some of the world’s leading names in the shipping industry, with the 10th largest merchant fleet in the world.

Limassol is the main trade center of the island and one of the busiest ports in the Mediterranean. Limassol hosts a vast amount of shipping establishments.

Cyprus is in the top five of safest countries in the World with less than 5 million population according to the Value Penguin Survey in 2015.

Cyprus is an EU member since 2004 and has adopted Euro as its current since 2008.

Cyprus offers very good healthcare services and a range of reputable public and private schools.

Cyprus has a well-educated and trained labor force with fluency in English, Russian, Arabic and Chinese language. Local language is Greek.

The corporate tax rate for Cyprus companies is 12,5% and is one of the most attractive tax regimes in Europe. Extensive double tax treaties. Positive tax reforms passed.

Recently introduced non-domicile provisions in the tax law that exempts individuals from Cyprus tax on investment type income. Remuneration exceeds €100.000

Ease of doing business: Cyprus was ranked 39th in the World Bank’s doing Business Report 2017 out of 190 countries worldwide.

MANY REASONS TO CHOOSE CYPRUS

WHY CYPRUS - Main Benefits

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SUNNIEST PLACE IN EUROPE

TRADE CENTER

EU MEMBER

BEST BEACHES

SAFE COUNTRY FOR FAMILY

BUSINESS CENTER

PASSPORT BENEFITSFreedom of movement. Travel, reside, work or study within the EU. Travel to 157 countries worldwide including Canada and Australia.

Citizenship is granted to the investor and the rest of the family and financially dependent children over 18 and under the age of 28 years.

No restrictions on movement of capital. Transfer any amount of money from any EU member state to another.

No government donations.

The main investment may be sold three years after. A Property with a value of at least €500.000 must be maintained at all times.

Property purchased up to 3 years prior to the submission of the citizenship application will count towards the required investment.

No requirement to physically reside in Cyprus before the application or after the obtaining of the citizenship.

Parents of the main applicant can obtain the Cyprus citizenship with an additional residential property of a minimum of €500.000.


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LEGAL SYSTEM

THE LEGAL SYSTEMCyprus’ legal system, based on English Common Law principles, is widely recognised as a business-friendly and effective system that ensures transparency and reliability in business practices.

The very core script of the Cyprus Companies Law (CAP. 113) is a replica of the UK Companies Law. However, it is important to note that since its adoption several decades ago, the Law was, and still is, a subject of numerous amendments in the effort of the government to implement all the reforms necessary in order to remain competitive.

The Companies Law, as all other legislation in the Republic of Cyprus, is fully compliant with EU Directives and Regulations. As such, any physical person, both from the EU or a third country, who registers his or her company in Cyprus, can engage in business activities without any restrictions.

"Any physical person, both from the EU or a third country, who registers his or her

company in Cyprus, can engage in business activities without any restrictions."

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Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations.

THE MAIN FEATURES INVOLVE:

AN ATTRACTIVE TAX REGIME

One of the lowest corporate income tax rates in the EU at 12.5%

A generous participation exemption regime

Exemption on disposal of securities (e.g. shares, bonds, debentures)

No withholding taxes on dividend, interest and royalty payments abroad

No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)

No succession taxes

Attractive Intellectual Property regime

Tonnage tax for shipping companies

Notional interest deduction for investments into Cyprus companies

Personal tax exemptions for new residents and non-domiciled individuals

More than 60 double tax treaties

TAX SYSTEM CYPRUS CITIZENSHIP PROGRAM

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GROWTH SECTORS

CYPRUS GROWTH AND INVESTMENT SECTORSSHIPPINGCyprus is a renowned International Shipping Centre and home to some of the world’s leading names in the global shipping industry, such as the Italian MSC Mediterranean Shipping Company, the German-owned Bernhard Schulte Ship management and the Russian Unicom Management Services.

• The latest EU-approved Tonnage Tax System (TTS) with no direct link to corporate tax

• Competitive ship registration costs and fees• No crew/officer nationality restrictions• 28 Merchant Shipping Bilateral Agreements

• Signatory to all international maritime conventions on safety, security and pollution prevention

• Full protection for financiers and mortgagees

• White List of Paris and Tokyo MoUs

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Cyprus maintains a wide range of competitive advantages through a high quality maritime cluster, offering efficient and quality services, including:


TOURISMTourism has traditionally been a major source of income and a driver of economic growth in Cyprus, with a significant contribution to the country’s GDP. Being one of Cyprus’ most resilient and strong economic sectors, tourism continuously experiences substantial growth, translated into a number of more than 2.5m tourists visiting Cyprus every year.Cyprus is well known for the hospitality of its people, its delicious gastronomy, its rich culture and extraordinary natural beauty. With its golden sandy beaches and clear blue waters, as well as its pleasant Mediterranean climate with year-round sunshine, Cyprus has been a popular tourist destination for decades. The island’s famous beaches have been awarded with 57 Blue Flags in 2015, ranking the island first in the EU for the tenth consecutive year, including three records:

• most Blue Flags per capita in the world• most dense concentration of Blue Flag Beaches• most Blue Flag beaches per coastline

Cyprus tourism industry has gained several prestigious awards, including the Sustainable Destinations Global Top 100, VISION on Sustainable Tourism and Totem Tourism and Green Destination titles presented to Limassol and Paphos in 2014.But there is much more to Cyprus than just sun and sea. Cosmopolitan and culturally rich, Cyprus offers a variety of tourism options that cater to all tastes and desires, whether it be sports, historical and cultural attractions, luxury resorts, wine routes, nature trails and ecotourism in traditional villages.The island has all the prerequisites to further develop this industry and offers great potential for investments in niche areas such as Health & Wellness, Sports, Luxury and Lifestyle.

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REAL ESTATE AND INFRASTRUCTURE PROJECTSAcquiring property in Cyprus, either as an investment or as a second home, has always been a popular choice among foreign investors. A combination of high quality of life, year-round sunshine and natural beauty, ease of doing business and investment incentives offer investors an attractive experience in terms of both living and doing business.Property sales have increased significantly in 2016, with the construction industry intensifying its activities island-wide. Cyprus continues to offer unique options for beautiful holiday homes and represents a popular destination for permanent residency and retirement.At the same time, a wide range of prestigious Large-Scale Development opportunities are available, ranging from residential and commercial developments, to luxury tourist attractions, such as marinas, golf courses, tourist resorts.

GROWTH SECTORS

VILLAS AT THE LIMASSOL MARINA

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Hotels, golf resorts and residence developement is a fast growth

industry in Cyprus, with the demand and the tourism sector rapidly

increasing in the last years.

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ENERGYThe discovery of hydrocarbons in Cyprus’ Exclusive Economic Zone (EEZ) has created new and exciting prospects for Cyprus to become an energy hub in the Eastern Mediterranean. Prospects in the energy sector are all the more promising thanks to the island’s geostrategic location, connecting Europe and the Black Sea with markets in the Middle East and Asia and its role as a pole of stability and security in the region of the Eastern Mediterranean.

Recent developments have attracted worldwide interest and significant investments from leading international energy giants, such as Noble Energy, Delek, Total, ENI and KOGAS, ExxonMobil as well as renowned international providers operating in the oil and gas auxiliary services sector. Comprehensive strategies are being developed to exploit the country’s wealth not only for local needs, but also for export purposes.

GROWTH SECTORS

INNOVATION AND START UPSCreating value through ideas and having the potential of becoming a key driver of economic growth, the development of the Start-Ups sector is deemed of great importance for Cyprus. In this direction, significant incentives have been introduced by the Cyprus government in order to boost innovation and enterpreneurship, such as the approval of a package of tax incentives of investment into start-ups, as well as the introduction of the Start-up Visa for third country nationals.


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THE SCHEME

THE SCHEME

Economic criteria and conditions.Applications are examined within approximately 3 months. Once the application is approved, the applicant will be able to take all actions for the acquisition of the Citizenship and the issue of a Cypriot passport. The procedure for the acquisition of the Cypriot citizenship will be completed, provided that the applicant holds a residence permit for a period of at least 6 (six) months.If the applicant does not hold a residence permit for the aforementioned time period, he/ she will need to wait until the six-month period is completed.

Investments can be made either personally by the investor, either by his/ her spouse, or jointly with the spouse or even through a company in which they are participating as shareholders or as ultimate beneficial owners.

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CRITERIA

OPTION A - One of the below investments

OPTION B - Citizenship by a residence OPTION C - Citizenship by employment

CRITERIA

2,5m

2,0m0,5m

Investment in financial assets of Cypriot companies / organizations.These companies must have proven physical presence in Cyprus with activities, turnover and employ at least five (5) EU or Cypriot citizens. The employees need to have legally and continuously resided in Cyprus during the five years preceding the application submission date.

Investment in Alternative Investment Funds or financial assets of Cypriot companies.Licenced by CYPRUS SECURITIES AND EXCHANGE COMMISSION.

Investment in real estate, land development and infrastructure projects.-Residential properties.-Commercial properties / Land development /Development in tourism sector

Combination of the above.This combination may also include investment in government bonds of up to €500,000, issued by the Public Debt Management Office of the Ministry of Finance.Bonds must be retained for 3 years.

The applicant need to also own a permanent residence in Cyprus.In all criteria, the applicant must possess a permanent privately-owned residence in Cyprus of at least €500,000 (+VAT).

The applicant invests in a private residence in Cyprus.

The applicant makes an investment of 2 million euros for a private residence.*In this case there is no need for additional 500.000 investment.

Individuals employed as senior manager by a Cyprus Company or overseas company operating in the Republic Of Cyprus can apply for naturalization, provided that he/she receive such a remuneration that generates tax revenues of at least €100,000 over a three year period and the aforementioned taxes are already paid. The applicant must also acquire a privately owned permanent resident of at least €500,000 excluding VAT.


total invest.

total invest.

total invest.

CRITERIA - Terms and Notes

Clean Criminal Record for adult applicants (main applicant, spouse, adult children and parents) who are also not included in the list of persons whose property is ordered to be frozen within the EU.

In any investment cases, the applicant must possess a permanent privately-owned residence in the republic of Cyprus, the purchase of which must be at least €500.000 plus V.A.T

Members of the family who apply separately as investors, can collectively acquire a residence, provides that the total value of the property covers the amount of €500.000 per applicant.

All above mentioned investments need to be kept for at least three years from the date of naturalization.

All investments need to be concluded with fresh funds from abroad.

Prior to acquiring the Cyprus Citizenship, all adult applicants must be residence permit holders for at least six (6) months. In case the applicant does not hold a residence permit he may apply simultaneously with the application of naturalization.

Main applicant and his/her spouse apply jointly. Upon approval, children’s and parents’ applications follow.

Cyprus tax residency will be granted to applicant as soon as he/she spends more than 183 days in Cyprus territory in any one calendar year.

It is noted that if the applicant has invested in housing

IMPORTANT TERMS AND NOTES

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CYPRUS CITIZENSHIP PROGRAMTHE PROCEDURE

BASIC DOCUMENTS FOR APPLICATIONTHE PROCEDUREBasic Submission documents.For the evaluation of the applications the form (M127) as well as the following documents must be submitted:

1. Clean Criminal Record: Certificate of Clean Criminal Record from the country of origin and the country of residence (if different).

2. Residence in the Republic of Cyprus:(a) Contract of Sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.

(c) Proof of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

Criteria regarding the investment (when applicable).(a) Certificate of Registration of the company/ companies by the Registrar of Companies.

(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies.

(c) Audited accounts of the company (or companies) for the last three years preceding the year of the application.

(d) If the applicant is a high-ranking senior manager, the submission of the employment contract and the receipt from the Department of Inland Revenue are additionally required.

(e) If the investment is made by the spouse of the applicant or jointly, a marriage certificate is required.

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THE PROCEDURE - Documentation

Investment in real estate, land development and infrastructure projects.(a) Contract of sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department. (c) Proofs of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

(f) Investment Plan for the development of the purchased land, if the investment involves the purchase of land under development.

DOCUMENTS REQUIRED DEPENDING ON EACHINVESTMENT CASE.

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Purchase, Formation or Participation in Cypriot Companies or Businesses.(a) Contract of sale.

(b) Proof of payment of the agreed purchase price.

(c) Certificate of shareholders by the Registrar of Companies.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(e) Specific investment plan.

(f) Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.

(g) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.

(h) Copy of the Social Insurance Contributions for every Cypriot or European Union citizen employee.

(i) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.

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Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec.(a) Title/Titles and other relevant documents of the financial assets / units purchased.

(b) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(c) Specific investment plan.

(d) Confirmation by the CySec.

Investment in government bonds.(a) Proof from the Public Debt Management Office for the purchase of special government bonds.

(b) Copy of the wire transfer into a bank account of the Treasury of the Republic of Cyprus.

Any other document that might be requested either by the Ministry of Interior, or by the Ministry of Finance.

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THE PROCEDURE - Documentation

ADDRESS: 61 Agiou Pavlou str , 1107, Nicosia, CyprusTELEPHONE: +357 22 777 020 | +357 22 777 023FAX: +357 22 777 021EMAIL: [email protected]: www.ktc.com.cy

CONTACT PERSON:Theocharis Theocharous (Partner)Nicholas Ktoris (Partner)

ABOUT US

KTC is offering professional services to both Cypriot and international clients. KTC is based in Nicosia, Cyprus and is a member of the Institute of Certified Public Accountants (ICPAC) as well as a member of the Association of Chartered Certified Accountants (ACCA). The Directors of KTC and all the staff lead an organization that never grows out of having energy and enthusiasm for assisting businesses, and proactively working with the individual behind those businesses with the highest standards of client service, commercial acumen, honesty and integrity.

We are committed to forming partnerships with our clients we know this is the only way to understand your needs and what you want to achieve. We are dedicated to quality by offering valued services using innovative technologies in the highest professional standards. Simply put, we will provide you with quality services, on time and on budget.We are involved virtually in every aspect of the professional services industry, offering a comprehensive range of services such as audit and assurance, advisory, accountancy, taxation compliance, international tax planning, fiduciary services, education and training.

ABOUT US

CONTACT US

KTC Business Consultants will:Advice the applicant on all the requirements and details arising from the economic criteria, as well as guide him through the required steps

Interview and examine the applicant’s case in order to suggest the most effective way to meet the criteria

Assist and suggest investment targets and opportunities

Examine and suggest on the legal side of the purchase agreement

Assist and examine any tax implications

Pre clearance checks with authorities

Real estate - Due diligence

Assist and preparation of all the required documents of the application

Ongoing monitoring of the application

Assist all the family in obtaining CY passport and ID