FAQ
Cyprus citizenship
Why do I need Cyprus citizenship?
It’s good for business.
Cyprus is a EU member country and is in the Eurozone, making it attractive for business transactions within the European Union. Provision of services and transfer of goods across the EU is unhindered, either for companies, or for individuals.
Additionally, the country has multiple taxation benefits for resident companies (arguably the best in Europe) and tax treaties with countries across the world, which make it ever more attractive commercially globally.
The geographic location and the aforementioned tax treaty network of Cyprus make it an ideal business hub for dealings with Asia, Africa and non-EU member states of Europe, among others.
Running your business from Cyprus means that you will likely want to stay in the country freely and travel across various destinations without any obstacles. Except for visa-free travel within the EU, Cyprus has similar arrangements with multiple other destinations, making its citizens welcome to visit over 150 countries without any additional bureaucratic “red tape”.
Cyprus citizenship does not presume prior residency in the country (and it does not presume you will do so after receipt of the passport), nor does it require any donations to the government. The procedure is expedient and permits your entire families, as well as your children’s family apply for the same, as soon as possible.
Should you wish to stay in Cyprus after obtaining the citizenship, you would be able to benefit from the enviable infrastructure: high quality schools, private medical care, an extensive network of professional workforce, as well as the lowest crime rates in Europe.
Is it really better than other European citizenships?
On multiple accounts
Cyprus vs Malta
- 3 months processing time vs 14 months
- Right to sell investment after 3 years vs 5 years
- No donation to government vs EUR 650.000 (plus additional EUR 25.000 per child)
- No physical stay required vs need to reside
Cyprus vs Latvia
- 3 months processing time vs 6 years
- Right to sell investment after 3 years vs 5 years
- Dual citizenship allowed vs ban on dual citizenship
Cyprus vs Bulgaria
- 3 months processing time vs 2 years
- Right to sell investment after 3 years vs 5 years
Cyprus vs Spain
- 3 months processing time vs 10 years
- Right to sell investment after 3 years vs 5 years
- No physical stay required vs need to reside
- Dual citizenship allowed vs ban on dual citizenship
Cyprus vs UK
- EU vs non-EU?
- 3 months processing time vs 6 years
- Right to sell investment after 3 years vs 5 years
- No physical stay required vs need to reside
Are there any timeframes to keep in mind?
Planning for the medium-term is key.
The properties/development project should have been owned by the applicant for three years prior to the application and must be kept for a further three years post-naturalization. Random checks could occur, so keep your timeframes in mind.
This does not mean that an investor should be staying in the country for 3 years before and after application!
Additionally, the private residence can be sold, and a new one purchased in the meantime. Keeping the value of the property at a minimum of EUR 500.000 is the only requirement. No need to pass up an opportunity to make a profit from your Cyprus property, while you wait!
Can my dependants apply for Cyprus citizenship?
“Keeping it in the family” is the Cyprus motto
Your spouse and dependent children can apply for Cyprus citizenship without needing to comply with any financial criteria. This includes adult children, provided they are between the ages of 18 and 28 and are studying for their first university degree or equivalent.
Must my family wait to apply for citizenship?
Time is of the essence
Your spouse can apply simultaneously. Your children, both adult and under the age of 18, must wait until you receive your Cyprus naturalization to apply.
Must I invest personally or can I use my company to do so?
Tax structuring is Cyprus’ “bread and butter”.
Far be it from the local authorities to stomp on the legitimacy of corporate structuring. You can invest personally, or via an SPV (“special purpose vehicle), be it company, fund or foundation. Just make sure you are a traceable in the structure, as an individual.
Must I learn the Greek language to qualify?
It’s all Greek to me
It is absolutely not mandatory to learn the language or demonstrate its understanding to qualify for the Cyprus citizenship. Furthermore, you do not need to pass a history test, nor recite the national anthem, in order to become a Cyprus citizen.
Furthermore, living in Cyprus is perfectly comfortable for many foreigners, since the ex-British colony boasts probably the highest percentage of English-speakers within the EU, bar UK itself.
How long does it take?
Less time than opening a Swiss bank account nowadays
A typical timeframe from the moment of application to the moment of naturalization is 3-4 months. Make concessions for the ever-so-slow month of August or Christmas festivities, but otherwise, you could do it in a single financial year quarter.
Any hidden charges?
Everything is crystal clear
VAT is not included in the investment property value or private residence value. Neither are other taxes included in the amounts in question, such as transfer fees.
Must I collect lots of documents? Do I need to translate them all?
Let professionals take care of details
The island has an ample supply of professionals that are familiar with the procedures and requirements, so you are in good hands. As far as documentation is concerned, you would need to provide certain documents from your home country, such as:
- Birth certificate
- Marriage certificate
- Copy of passport
- Clean criminal record certificates from country of origin (and residence, if different).
All of the above needs to be translated into Greek or English and such translations duly certified by Apostle or Ministry of Foreign Affairs/Diplomatic Mission of Cyprus in the country of origin of documents.
Several documents will be prepared in Cyprus, such as:
- Application forms,
- Certificates for the corporate entities involved,
- Audited financial statements of the corporate entities involved,
- Purchase documents for the properties,
- Title deeds for the properties (proof of submission of purchase documents to the Land Registry),
- Proof of payments made.
In case of employment in Cyprus (for high-ranking managers, applying for citizenship), copies of employment contracts and receipts of taxes paid must also be presented.
Additionally, each applicant is expected to provide passport photographs.
Some additional documents may be required for the adult children, proving their financial dependency and enrolment in higher education institutions.
Sellers information
So you want to sell your Cyprus home?
Whether it is your family residence that is being upgraded, a work-related relocation that caused the need to move or a pre-planned financial profit opportunity that suddenly materialised – there are ample reasons you may wish to sell your property in Cyprus. Here we will introduce some important considerations for you to ponder, in order to make the process most efficient and least stressful.
Cyprus Legal Framework
The legal system of the island is based on the British Common Law. Nevertheless, the need to hire a professional is real, as there are distinct differences in legislation nowadays and taxes are calculated very differently.
Thankfully, the island boasts a large number of professionals of the highest caliber that we would be delighted to introduce you to. You will find the qualifications outstanding and the fees reasonable, of that we are sure.
Your selected professional will walk you through the proper calculations of the market value of your property, ensure that the sales contract does not infringe upon your rights, navigate you around the various authorities’ intricate requirements and ensure that your tax base is adequately derived and any duties are paid promptly.
Transfer of Property in Cyprus
Once the sale contract is concluded and the price is agreed and settled, there comes a need to deal with the most bureaucratic part of the sales process, the transfer of the legal title to the property, i.e. Title Deed.
This step presumes that all taxes, fees and charges have been settled and thus, requires proof of such settlements. Namely, you would need to satisfy the authorities that the following payments to the authorities have been settled up until the date of transfer:
- Immovable property tax
- Local taxes (e.g. refuse collection, sewerage board fees and community/municipality rates)
- Capital gains tax
- Land Registry Fees.
All of the above are typically upon the Seller to settle up until the property passes on to the new proprietor and proof of such settlements must be presented to the Land Registry, in form of receipts and special forms (e.g. Declaration of Transfer of Immovable Property Form N.270 and Completion of Form N.313 for everything else).
Clearance certificates are then issued and the sales purchase contract is lodged with the Land Registry, along with such certificates, as well as the new Title Deeds, formally securing the transfer of property.
Though the above process is not too complicated, as far as bureaucratic procedures go, it is common to appoint an attorney to finalise the procedures, via a Power of Attorney. This saves queuing times at the Land Registry and trips to various government institutions, including local authorities of your particular district, for the necessary paperwork.
Land Registry: Key Facts
Formally the Department of Land and Surveys is essentially a knowledge base for all immovable property in Cyprus. It is a publicly accessible database, so anybody that is considered an “interested person” is likely to get easy access to the information they require, after paying a nominal fee. This list of interested persons will include:
- Proprietors
- Potential owners
- Beneficiaries or legal attorneys of proprietors/potential proprietors
- Persons engaged in a lawsuit with proprietors
- Valuation experts
- Financial institutions that hold properties, as collateral.
Hence, it is crucial to keep in mind that forgoing the transfer of Title Deeds processes is neither advisable nor possible, in practice.
Potential buyers would typically gain access to such information by way of written authorisation or confirmation from sellers or by depositing a contract of sale at the Land Registry. As such, they can easily find out about any charges or mortgages on the property, which is important to keep in mind.
Speaking of mortgages, securing financing on your property without the proper lodging of Title Deeds at the Land Registry is impossible, so there is something to consider for future buyers.
Failure to properly record the transfer of the property at the Land Registry may make the Seller responsible for local taxes and collections payments even after the sale.
The Land Registry has a set of charges for information to be provided but should such charges not be explicitly priced, there is a flat rate of EUR15 per hour to obtain it.
Sale of Property in Cyprus: What is the cost?
A. Capital Gains Tax – 20%
As you would expect, the 20% is levied on the taxable base of the profit made on sale. That means that there are a number of allowances that can be deducted from the sales price, namely:
- Interest paid on any mortgages on the property
- Inflation, as published by the government, if the property was purchased after 01/01/80
- Cost of acquisition
- Cost of any approved addition/improvement to the property
- Fees of registered real estate agents
- Personal allowances, including:
- Universal first deduction of €17.086.01 from the amount of profit
- Total of €85,430.07 deducted from profit, if the property was a personal residence for over 5 years and occupied less than 1,500 m² of land.
B. Transfer Fees for Immovable Property – between 3-8%
There is a calculator for the approximate fees on the official government website but care must be taken not to rely on it entirely, as a number of concessions exist, depending on VAT payments and date of acquisition. For example, see below:
The fees charged by the Department of Land and Surveys for the transfers of immovable property are:
| Property Price | Rate | Fee | Cumulative Fee |
|---|---|---|---|
| First €85.000 | 3% | €2.550 | €2.550 |
| €85.001 to €170.000 | 5% | €4.250 | €6.800 |
| Over €170.000 | 3% |
Properties purchased between the 2nd of December 2011 and 31st December 2016, which are subject to VAT will be exempt from the above transfer fees. Properties not subject to VAT will be eligible for a 50% exemption from the above transfer fees. For instance:
| Example 1 | Example 2 | ||
|---|---|---|---|
| No transfer fees payable for properties with VAT | 50% transfer fees payable for properties w/o VAT | ||
| Property Price (net of VAT) | €500.000,00 | Property Price | €500.000,00 |
| Transfer fee | €33.200,00 | Transfer fee | €33.200,00 |
| Transfer fee now | €0,00 | Transfer fee now | €16.600,00 |
| Saving | €33.200,00 | Saving | €16.600,00 |
I am ready to sell my Cyprus home: What do I need to do?
First and foremost, you need to select a good partner to help you navigate all of the above intricacies.
At The Property Shop we offer you a “turnkey” solution to all your concerns with respect to the sale of your property. Let our qualified staff inspect your premises and identify the strengths, weaknesses and “to-do” items prior to the listing.
We will inspect the outdoor areas, check the pool and garden to ensure they make the right impression. We will assess the front entrance, as this is often the first proper glance into the property and can be a deal breaker. Once inside, we will ensure that the living areas are presentable, advice on the right amount of clutter that won’t detract from the property and draw your attention to some other key components of a good “house for sale”.
We will ensure that any repairs, maintenance and cosmetic changes to your home are done efficiently, with taste and beneficial to the overall appeal of your property to its next owner. We will supervise and monitor the works, too.
We at The Property Shop will always provide the best legal advice from qualified professionals, which will be transparent, relevant, providing “value for money” and adequate. All fees and disbursements will be properly disclosed, be it for the review of the sales contract or a Power of Attorney for dealings with the Land Registry.
With The Property Shop you are in good hands and we will endeavor to make your Cyprus sale a flawless one.