CYPRUS RESIDENCY AND CITIZENSHIP & ESTABLISHING CORPORATE/TAX PRESENCE IN CYPRUS

About CyprusOfficial Name: Rep. of Cyprus Population: 838,900Capital: NicosiaCurrency: EuroLanguages: Greek & EnglishTimezone: GMT+2Member of: EU, UN & British Commonwealth

About Cyprus• Cyprus is an island situated in Eastern Mediterranean and has been the crossing point between Europe, Asia and Africa• People living in the island enjoy the warm Mediterranean climate, the high standard living, excellent health care, safety, low crime rate, sophisticated infrastructure and much more

About CyprusOn the 1st May, 2004, Cyprus became a full member of the European Union. Cyprus' new EU path brings with it the added benefits of heightened security, increasing employment opportunities and the lowest property prices for comparable EU locations. Investing in Cyprus has long proved to be a sound decision as prices have been steadily on the increase.

INVEST IN CYPRUS …

…IMMIGRATE TO EUROPE

Cyprus Culture

CULTURE

EATING HABITS FOR CYPRIOTS SIMILAR AS

CHINESEMORE THAN 20 DIFFERENT

PLATTER

FAMILY ORIENTEDSTRONG BONDS BETWEEN

FAMILY MEMBERS

HOSPITABLE PEOPLEVERY FRIENDLY TO

FOREIGNERS

HIGH LEVEL EDUCATED PEOPLE

RELIGIONPEOPLE ARE FREE TO WOSHIP ANY RELIGION

THEY WISHMOST CYPRIOTS ARE GREEK

ORTHODOX

ARTS / MUSIC

Cyprus Advantages•Member of the European Union •Strategic Geographic Location - Europe, Asia and Africa •Warm Mediterranean Island with 320 days of sunshine •New Marinas & Golf courses •Sophisticated infrastructure •Free hold property ownership •English-speaking population •Upgraded Airline connections and Telecommunications • Good business and financial services

The Entrance Gate to Europe

ECONOMY

TourismMore than 2 m/ year

EnergyGaz extraction more

than 30 billion

Real Estate30 % of the local

market

International Trade

Point of exchange between Europe,

Asia and Africa

Top Reasons to Invest in Cyprus•EU & EUROZONE•STRATEGIC LOCATION•TAXATION•HUMAN TALENT•VALUE FOR MONEY•LEGAL FRAMEWORK•WELL – DEVELOPED INFRASTRUCTURE•EASE OF DOING BUSINESS•QUALITY OF LIFE•WELL DEVELOPED EDUCATION PROGRAM•DOUBLE TAX TREATIES WITH 40 COUNTRIES

EducationThe Ministry of Education and Culture is harmonizing the Education System in line with the European Standards and guidelines for quality assurance.Schools, Colleges and Universities• 2 Public Universities• 4 Private Universities• Many private colleges offering

international studies• More than 400 public and private

primary schools (english and greek speaking)

• More than 200 public and private secondary schools (english and greek speaking)

Schools, Colleges and Universities are located in all Cyprus cities.All Universities are English speaking and teaching and cooperate with well known European Universities in order to offer programs for study abroad the masters and doctoral degrees.

Permanent Residence PermitWhat is a permanent residence permit? Official authorization recognizing

to its holder a legal right to permanently reside in the country issuing the permit subject to certain conditions.

Why apply for a permanent residence permit in Cyprus? Expedited processing: Permit

issued no more than two (2) months from the date of submission of the complete application

Lifts travelling restrictions and visa requirements from a number of European countries

Subject to certain residency requirements, it may lead to the acquisition of a Cyprus (EU) passport.

It can facilitate travelling in some European countries without issuing VISA

* Cyprus is currently in the process of becoming part of the Schengen Area (a Schengen candidate). This will entitle Cyprus residents to travel to other Schengen member countries without being subjected to border checks.

Eligible applicants

Any third country national (and his/her spouse)who:-

has a clean criminal record and otherwise not considered a threat to public safety/order declares the intention not to be employed in Cyprus wires from abroad and maintains a fixed term deposit account in Cyprus of €30,000 for at least three (3) years proves a secured annual income of at least €30,000 generated from sources abroad (plus €5,000 per dependent person) buys a residence in Cyprus sold for the first time market value of at least €300,000

Permit and residency requirements:

To maintain permit and residency requirements • the individual must visit Cyprus

once every two years • To convert the permanent

residence permit into a Cypriot (EU) passport the individual must stay in Cyprus for seven (7) years, out of which the last 12 months preceding the Cypriot (EU) passport application must be continuous

Citizenship by investmentWhat is citizenship by investment? A process whereby a country, by

way of exception, grants citizenship to

eligible applicants that make a certain significant investment into its local

economy. • Citizenship in return for

economic investment.Why is second citizenship important? Lifts travelling restrictions Limits time consuming travelling

formalities – no visa application required

Flexible and efficient foundation for tax structuring and planning

Can be passed on to a next generation.

Why the Cyprus citizenship by investment program• Sound legal right to EU citizenship to

the applicant and his dependents as of right;

• Passport issued within 4 to 6 months;• Existing passport need not be

relinquished (i.e. more than one passport is legal in Cyprus);

• No residence requirements;• No language test requirements;• No family planning laws;• Common law jurisdiction;• Quality of life, education and access to

medical facilities;• Through our personal contacts, we can

guarantee an expedited process which can lead to a successful approval of the application in just a few months.

Eligible applicants

Any third country national who:- has a clean criminal record; and, provides all necessary

documentation (i.e. birth certificate, marriage

certificate, passport pictures); and,

buys a house in Cyprus worth at least €500,000; and,

makes an investment in Cyprus of such amount as required under the

investment medium citizenship is sought.

Investment How to invest amount

€2.5 million €2 million for the purchase the shares and/or bonds in a state owned investment company to be incorporated; and, €500.000 donated (i.e. non refundable) to the Research and Technology Fund.

OR

€5 million Entire amount deposited in a three (3) year fixed term bank account with a bank in the Republic of Cyprus, same being either in the name of:-- the applicant (personal account); or- a company or a trust (corporate account), of which the applicant is theultimate beneficial owner of.

OR€5 million Entire amount spent by the applicant for:

- purchase of immovable properties (private residences, offices, shops, hotels or establishments of similar nature excluding undeveloped land); and/or,- acquisition of businesses or companies based and engaged in activities in Cyprus; and/or,- purchase of shares of companies registered in the Republic of Cyprus- purchase of financial assets- participation in a company or a consortium of companies that has undertaken a public project.

OR

€5 million Accumulated & combined use of any of the abovesaid investment mediums.

ORVariable amount Paid by local companies belonging to the applicant in the public purse

annually by way of taxes, fees for local professional services etc over a period of three years. The amount will depend on the number of local employees engaged by the local company.

OR€3 million Confined to a special class of persons whose bank deposits in Cyprus

Popular Bank and Bank of Cyprus were affected by the Government Decree of 15.3.2013.

Tax and fee savings on acquisition of propertyNew VAT Rules•The new law introduces a reduced rate of 5% applicable for any purchase of a property•The current full rate of VAT is 19%•So SAVE 14% VAT on the selling price•For example for a house of €300000 plus VAT you save 14% which means € 42000No transfer fees• Upon receiving a title deed for

your property normally transfer fees apply

• If you buy now or before the end of 2014 you will pay no transfer fees and save thousands

• For example for a house of €300000 plus VAT you save transfer fees of more than € 17000

Properties offeredThrough our exclusive partners we can offer the following type of properties to support the clients application for Cyprus residency or citizenship:

i) Villas, apartments and any other type of dwelling;

ii) Commercial buildings;iii) Building plots with all

local permits for residential OR commercial construction;

iv) Land for future development.

The properties are located throughout Cyprus and visiting tours can be easily arranged.

In case of interest in any particular type of property, we can provide separate property presentation including photographs and descriptions.

Corporate and Tax PresenceTYPES OF CORPORATIONThe types of corporations that can be established in Cyprus is a private limited company, a public company or a company limited by guarantee.Private Limited CompanyThe minimum number of members is one and the maximum is limited to fifty. And there can be no invitation to the public to subscribe for any shares or debentures.This is the most popular type of companies in the business world and their general characteristics are the following: The minimum number of members is one and the

maximum is fifty; The liability of every member is limited to the amount of

their subscribed shares; No bearer shares can be issued (however nominee

services can be offered);

Preferential shares or different classes of shares can be issued;

The right to transfer shares is restricted; The word “limited” must appear at the end of the name

of the company There can be only one Director who can be either

Cypriot or foreigner and the Board Meetings can be held anywhere in the world;

The company must have a registered address in Cyprus and a company secretary;

The Secretary maintains the Register of Members, the Minute Book recording all the Board Meetings and Resolutions, the Register of Charges, the Register of Directors and Secretary and the Company seal (under its custody);

any charges against the company must be registered with the Company Registrar in order to ensure priority and protection against other creditors of the Company.

What is important to note is that the identity of beneficial owners in a Cyprus private limited company may remain confidential through nominee holding. This confidentiality is maintained as long as the company and its ultimate beneficial owners are not involved in any criminal activity.

Public Limited CompanyPublic companies need seven or more founder members, they can invite the public to subscribe for their shares or debentures and do not restrict share transfers.

Company Limited by GuaranteeThe liability of each member is limited to the amount agreed on the Memorandum of Association to be contributed in the event the company goes into liquidation. In the majority of cases these companies are incorporated as non-profit making organisations under section 20 of Cap 113.

Tax PresenceIn order for a company to secure a Cyprus tax resident status, the management and control must be exercised in Cyprus. This is usually accomplished by simply appointing Cyprus nominee directors.

A Cyprus tax resident company enjoy the benefits of the popular Cyprus tax regime.

Income taxFor individualsWhere an individual is a resident in the Republic, tax is imposed on income accruing or arising from sources both within and outside the Republic.Relevant tax rates are as follows:

Tax ratesTaxable Tax CumulativeIncome Rate Tax Tax€ % € €0 - 19.500 0 0 019.501 - 28.000 20 1.700 1.70028.001 - 36.300 25 2.075 3.77536.301 - 60.000 30 7.110 10.88560.001 and over 35

For corporationsWhere a company is resident in the Republic, tax is imposed onincome accruing or arising both from sources in and outside theRepublic.

Where a company is not a resident in the Republic, tax is imposedon income accruing or arising only from sources in the Republic.

Resident in the Republic is a company that is managed andControlled in the Republic.

The Tax rate is fixed at 12.5%

FOR BOTH, INDIVIDUALS AND CORPORATIONS, THERE ARE NUMEROUS EXEMPTIONS AND DEDUCTIONS WHICH CAN BE USED TO REDUCE THE TAXABLE INCOME, BEFORE APPLYING THE ABOVE RATES

Social Insurance costs for individualsSPECIAL CONTRIBUTIONS

Each employee, self-employed, or person operating in the private sectorreceiving a pension, shall pay a special contribution to the Republic inorder to strengthen public finances. The contribution is a percentagelevied on the gross earnings as shown in the table below.

Gross monthly salary € Special Contribution %Up to 1.500 01.501 - 2.500 2,5 (with a minimum amount

of special contribution of €10)2.501 - 3.500 33.501 and over 3,5The above special contribution is calculated on the total gross earningswith no restriction or maximum limit on the amount of the levy.

SOCIAL SECURITY CONTRIBUTIONSContributions

SelfEmployer Employee employed% % %

Social Insurance 7,8 7,8 14,6Redundancy Fund 1,2 - -Industrial Training 0,5 - -Social Cohesion Fund 2,0* - -

Upper limits for employeesper weekfrom 7/1/2013 per month per annum€ € €

Weekly employees 1.046 - 54.392Monthly employees - 4.533 54.396

* The amount of contribution to Social Cohesion Fund iscalculated on the total emoluments with no upper limit