In recent years, obtaining Cyprus citizenship has become particularly attractive for many successful Russians, and Cyprus is a "gateway to Europe". This island state is now the most popular country for Russians to move, as well as to obtain citizenship or residence permit as a "reserve airfield". And Russians are interested in both investment migration and moving on common grounds for people of average income. It's no secret that Oleg Deripaska, Alla Pugacheva and Maxim Galkin have become Cyprus passport holders. However, in addition to the starry Russians, businessmen, employees, pensioners, and young families with small children went to Cyprus to obtain Cyprus citizenship.
What attracts Russians to Cyprus so much? There are many reasons for that.
Cyprus citizenship is "The Window to Europe". Cyprus has been a member state of the European Union since 2004 and is part of the Eurozone. This gives people with a residence permit of Cyprus preferential conditions for obtaining visas to stay in Schengen countries.
Citizenship of Cyprus as a second. Cyprus is one of the few countries in Europe that allows its citizens to have a second citizenship. Thus, Russian citizens have the right to have Russian citizenship, as well as to obtain citizenship of Cyprus.
Lifestyle. Pleasant climate, blue flag beaches, Mediterranean cuisine, access to European social system and education, low crime rate and security of tenure, full ownership of real estate and low maintenance costs, friendliness and openness of Cypriots attract residents of Moscow and other Russian cities. All these citizens of Russia receive a residence permit and Cyprus citizenship.
Close cultural and religious ties. The island has long been a favorite place for Russians, and Limassol was dubbed "Russian city". Some compatriots, having lived more than 10 years in Cyprus, never learned Greek, as English and Russian languages are widespread. By the way, no one will test you for Greek to get a residence permit and Cyprus citizenship.
Cyprus is an Orthodox country, which is why some of our applicants give it more preference than Malta.
Close economic ties. Cyprus has an extensive network of double tax treaties with more than 40 countries, including Russia. This agreement provides the most promising tax planning opportunities compared to other agreements concluded by Russia. Only the UK, Luxembourg and the Netherlands can compete.
With Cyprus Citizenship, an attractive tax regime and high potential for investment is emerging. In light of recent developments in deofforization and automatic exchange of tax information, Russians are choosing countries with preferential tax treatment, primarily Cyprus. Legislation on controlled foreign companies (CFC) applies to tax residents of Russia. In case of change of tax residency, i.e. if you do not stay in Russia for more than 183 days for 12 consecutive months, the CIC legislation is no longer about you. Accordingly, obtaining a residence permit (residence permit) in Cyprus is again a way out of the situation.
Corporate tax is the lowest in the EU and is only 12.5%, making it very attractive for holders of a residence permit or citizenship in Cyprus to conduct their own business. Moreover, persons who have not been tax residents of Cyprus (have not resided in the country for more than 183 days per year) for the last 17 years out of 20 (persons with non dom status) are fully exempt from personal income tax as well as tax on dividends from Cyprus or any other company and passive interest income from bank deposits, Eurobonds issued by Russian issuers. For comparison, the total personal income tax rate in Russia today is 13% and it is planned to increase it to 15%.
For transactions with securities, a zero tax rate on capital gains is applicable. For persons with non-domic status there is a 50% exemption from taxation of income from employment if their salary exceeds €100,000 per year, a 20% exemption from taxation of remuneration from employment in Cyprus, or €8,550 (the lower of the amount) in respect of persons who were not tax residents of Cyprus before starting employment.
The property tax has been eliminated from 2017. There is a preferential VAT rate of 5% (standard rate is 19%) on the purchase of the first property for own residence.
The Government of Cyprus encourages the move to Cyprus of non-domiciled foreign nationals through the tax reform in 2015 and friendly amendments to the tax and immigration laws.
In this way, Cyprus will combine the pleasant with the useful - attractive lifestyle with reduced tax burden in one package. There is no better country to move to or "reserve airfield" for the future in case of instability in your home country or just a desire to move to a more pleasant climate, not to find!
Obtaining a residence permit through an accelerated procedure (category F6(2)) is by far the most in demand among our applicants seeking a Residence Permit (residence permit) in Cyprus due to the speedy approval of applications and the guarantees of obtaining a residence permit as this migration programme is actively supported and promoted by the Government of Cyprus.
In accordance with the provisions of Regulation 6(2) of the Aliens and Immigration Act, the Ministry of Home Affairs, after notifying the Council of Ministers, decided to issue immigration permits (permanent residence or residence permits) to applicants from outside the EU, provided that the conditions and criteria described below are met.
Financial criteria for obtaining a Residence Permit (Permanent Residence Permit) in Cyprus, category F6 (2)
The principal applicant shall deposit an amount of €30,000 or more with a Cypriot financial institution for a period of at least 3 years and the amount shall not come from Cyprus,
Providing proof of a stable source of income of €30,000 per year, an additional €5,000 per spouse and/or minor child and €8,000 per parent, father-in-law, mother-in-law, father-in-law and financially dependent child between 18 and 26 years of age if included with the principal applicant.
Acquisition of residential properties with a market value of €300,000 or more excluding VAT (as a rule a preferential VAT rate of 5% is applicable, but in certain cases the property may not be subject to VAT at all). Proof of payment of at least €200,000, excluding VAT, must be submitted to the Cyprus Financial Institution, Sale and Purchase Agreement with a note of deposit at the Lands and Land Management Department.
The principal applicant and/or spouse can acquire ownership of both one residential property (apartment or villa) and two separate residential properties from one developer or one residential property and commercial premises for a shop of up to 100 sqm or residential property and commercial premises for an office of up to 250 sqm provided that the value of these objects exceeds €300,000 net of VAT.
Conditions for obtaining a Residence Permit (residence permit) in Cyprus category F6 (2)
The applicant and/or his/her spouse must submit a certificate of absence of criminal record from their country of permanent residence as well as not being a threat to public security in Cyprus.
The applicant must certify that he does not intend to be employed in Cyprus and that he is permitted to conduct business and to hold shares in a Cyprus company and to receive profits, distribute dividends which, it will be recalled, will not be subject to income or defence taxes on newly arrived undeclared persons.
The applicant, if not permanently residing in Cyprus after obtaining a permanent residence permit, must come to Cyprus for at least one day for a period of 2 years in order for the residence permit not to be cancelled.
No medical tests are required to obtain a permanent residence permit in Cyprus. It is sufficient to provide a health insurance policy which we will arrange for you.
Deadlines for obtaining an F6 (2) residence permit (residence permit) in Cyprus
Cyprus law sets the deadline for obtaining a residence permit at 2 months. However, in practice, due to the huge popularity of Cyprus among foreign citizens, including Russians, along with Chinese and Arabs, the real terms of a positive decision to obtain a residence permit reaches 4 - 5 months due to the workload of the registration and migration service and the Ministry of Internal Affairs of the Republic of Cyprus. Therefore, the real time period that we announce to our clients in obtaining a Residence Permit (residence permit) in Cyprus category F6 (2) is from 2 to 5 months from the date of application.
Our services for obtaining an F6 (2) residence permit (residence permit) in Cyprus
We provide a turnkey service and full support for all stages of obtaining an F6 (2) residence permit (residence permit) in Cyprus and post service if required.
These services include:
Consulting on the list of accompanying documents, obtaining some personal documents for obtaining a residence permit in Cyprus by proxy, in order to save your time, performing notarized and certified translations, apostille, drafting the documents submitted to the Migration Directorate, filling in state forms,
Selecting the best property that suits your needs and the established criteria for the positive consideration of your application for a residence permit in Cyprus and organization of viewing,
Drawing up a preliminary sales contract to reserve an apartment or villa for you, as well as the main sales contract,
● support in obtaining a preferential VAT rate, cooperation with the Cyprus government authorities (Tax Administration, Department of Land Resources and Land Management, Registration and Migration Service),
● carrying out real estate inspections for presence/absence of registered encumbrances of law, due diligence of the seller,
● advice on structuring real estate ownership,
opening a personal account in a Cyprus financial institution and submitting a notification in accordance with the legislation of the Russian Federation on currency regulation and currency control,
● applying for permanent residence in Cyprus and keeping track of it,
● support for biometric data (fingerprints and signature specimen),
courier services for all documents, including received residence cards (residence permit card in Cyprus),
filling out the forms of notification about the Russian citizen's residence permit or citizenship abroad,
Non-domicile, TIC and tax resident certificate, if you need it.
Planning a move requires not only time, but also detailed study of the topic. In particular, if you try to do it yourself without the help of lawyers specializing in emigration and tax planning for individuals.
We offer our applicants a free advice on how to find an emigration program first.