IFP Coverage

Cyprus; A Tax Haven for an Entrepreneur

Cyprus is not just a resort country with attractive climate and recreation services: the country stands out of the neighbours because of its expedient taxation system.

4 interesting peculiarities of Cyprus taxation system

  1. The country offers the lowest income tax rate ever among the European countries. It equals 12.5%.
  2. Capital growth is subject to taxation, yet not very high — 20%. The tax is applicable only to bargains on trade of shares which were not registered on the country’s stock markets and also to bargains on selling immovable property located on the country’s territory.
  3. In 2015 the government imposed the status of “non-domiciliary tax resident”. Citizens who possess such status do not pay any taxes on income they receive abroad.
  4. According to Cyprus citizenship by investment program, physical persons who have become the citizens of this country can receive a number of tax allowances. Just to name a few – dividends, income deriving from rent and deposits opened on the territories of other states are not subject to taxation.

These are the reasons why many foreign entrepreneurs receive Cyprus dual citizenship under “Citizenship by investment” program.

The program offers two options:

  • Contribution to real estate: developers’ projects, as well as dwelling and commercial objects. The minimal investment sum equals 2 000 000 euro.
  • Investment in business: it is possible to contribute to buying current company located in Cyprus or to company creation. Contribution sum must be at least 2 000 000 euro.
  • Additional donation of 150 thousand euros to the state fund.

One more attractive factor is that investments are refundable: an investor has to keep them for 3 years and then is able to refund all the expenses except for those which he has invested in immovable property for the purpose of his own dwelling.

Note. The government has made amendments to the program: the term of investment withholding will be enhanced to 5 years. Amendments are expected to come into effect in May 2019.

To receive a passport of Cyprus, you have to purchase real estate residential property of at least 500 000 euro if you want to invest the all sum of money in business or commercial real estate.

According to Migronis (https://migronis-citizenship.com/cyprus), the applicant’s wife/husband, children under 28 years old and parents can receive citizenship together with the main applicant. Citizenship is inherited.

Interesting fact: the country’s government has made changes in the scheme of Cyprus golden visa. The criteria have become stricter. Now the applicants must have Schengen visa. Also, the applicants who have been refused in other EU countries are automatically refused in Cyprus.

Cyprus citizenship by investment is an opportunity to benefit from all tax advantages of the country.

IFP Media Wire

Reports and views published in the Media Wire section have been retrieved from other news agencies and websites, and do not necessarily reflect the opinion of the Iran Front Page (IFP) news website. The IFP may change the headlines of the reports in a bid to make them compatible with its own style of covering Iran News, and does not make any changes to the content. The source and URL of all reports and news stories are mentioned at the bottom of each article.

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