And this is understandable – a soft climate, a lot of great offers and dual citizenship with the EU in the framework of 3-6 months are the main advantages for buyers.
Company Kalinka couldn’t stay away from such a powerful mainstream and has prepared a list of what you need to know the buyer of real estate in Cyprus. Answers one of the main and experienced professionals in this area – Anastasia Demidova-Zenonos.
Cyprus a great opportunity a small island
The programme for the presentation of citizenship helped the island to overcome the crisis, and our compatriots were given the right to live and to do business in the EU. How to get a Cyprus passport, what opportunities he gives you, read our article.
The story of friendship
The history of relations between Russia and Cyprus began long ago. Largely it is influenced by the religious factor. Russia and Cyprus – the two Orthodox countries. Since the establishment of the first contacts between the churches, which happened almost 900 years ago, the common belief remains one of the conditions of mutual understanding, trust, friendship and mutual interest among Nations. Even during the secular Soviet Union, when Cyprus is in the middle of the last century fought for their independence from the British, the Soviet government supported him. Then it even gave rise to comparisons of the island of Cuba, and the first President of Cyprus Archbishop Makarios and Fidel Castro. Friendship continues. And more recently, in 2011, the Russian government has approved a loan to the government of Cyprus of €2.5 billion to support the economy and the country’s banking system during the crisis.
Another example of a significant contribution of Russians to the prosperity of the island is tourism. According for the 2016 year, Cyprus was visited by about 3.2 million tourists, among which there were 780 thousand citizens of Russia. Our countrymen occupy the second place in number of tourists after the British. Many people in our country attracted by the beautiful beaches, rich culture and traditions, excellent service, wonderful cuisine, openness and friendliness of the Cypriots.
In Cyprus constantly live about 30 thousand Russians on the island are branches of Russian banks, well-known companies out Russian newspaper, have a radio in the Russian language. Our traditions, and penetrate into everyday life, in shops and cafes have signs in Russian, so many of our compatriots feel at home here.
Every year more and more Russians come to Cyprus to obtain citizenship of the island, allowing you to live, to travel without visa in more than 157 countries of the world, and work in any EU country.The majority of Russians buying property in Cyprus, do it with the aim of obtaining citizenship of the European Union. Our compatriots along with a few other States are the main investors in the sector of Cyprus real estate.
Why a Cyprus passport is popular among Russians
To help the economy during the crisis, the Cyprus government has offered attractive conditions for obtaining citizenship for investors. As the country is in the European Union since 2004. obtaining a passport of the island meant that its owner becomes a citizen of the United Europe – with all its attendant benefits and rights. To obtain a Cyprus passport would foreigners who have invested in residential real estate from €2 million, excluding VAT, and for three years put it up for sale. After 3 years you can sell anything that was purchased more than 500,000 Euros. House 1 have to stay forever. Another option is to purchase a commercial property, government bonds, to participate in the financial assets, the purchase, opening, or participation in businesses/companies in Cyprus of at least €2,5 million it is essential that the Applicant wants to obtain citizenship of the EU must have a certificate of good conduct.
In the period of the programme for the issuance of passports to foreign investors, the nationality certificates received more than two and a half thousand people – including Russians make up almost half. The program was very successful and brought the country’s budget in 2016 about €4 billion – more than 20% of the island’s GDP. For comparison, the revenues from tourism over the same period amounted to €2.4 billion.
How to obtain citizenship of Cyprus?
Today Cyprus is the only country where citizenship is given when investing in property from €2 million Changes made to the passport of the European Union more accessible, was introduced in November 2016. First of all, decreased the amount of investment required for obtaining passports, — with €2.5 million in case of group applications (you had to collect 5 of the applicants in the amount of 12.5 million € before you apply for citizenship)to the current €2 million In the second, if previously an individual submission was possible only under condition of investments from 5 million €, in connection with a scheme to Bank deposits (cancelled Nov 2016) , now each individual submission and not have to wait to collect the other applicants that is much more comfortable for buyers for a number of reasons. Time necessary for registration of passports, increased the time to obtain a passport increased to 6 months.
Previously required 3 -5 months. The period was extended due to the fact that in addition to the above amendments made in November last year, at the insistence of the EU added paragraph, which States that to obtain a EU passport you must first obtain a residence permit. Thus, feeding on the passport, at the same time the documents are submitted for permit, and under the new law the applicant must have a residence permit for at least 6 months before you become a citizen. But even in this case our friends the Cypriots realized that while the supply of applicants will receive at once in exactly 6 months. Because the procedure is transparent and understandable, increasing the period of registration has not reduced the number of applicants, but only increased. According to forecasts by the year 2017 will break records in 2016!
If until November 2016, the passport could be obtained only by the applicant, the person he married, and children under the age of 27 years, now get citizenship and parents of the investor. Also before you could buy government bonds in the amount of €2.5 million and to invest €500 million in real estate — now, after the changes, the size of contribution in government securities was reduced to €500 thousand.
What documents should I provide?
So, the condition and the basis for obtaining citizenship of the Republic of Cyprus is to buy a property worth €2 million for a period of not less than 3 years. Further, the first stage of registration of citizenship of Cyprus is obtaining a residence permit. The state provides this status simultaneously with the filing of the application for citizenship.
The applicant must provide the following documents:
- original certificate of no criminal record;
- notarized translation (into English) birth certificate and marriage;
- a notarized copy of the passport;
- 2 color photos;
It is also necessary to bring to Cyprus
· was a contract for the purchase of real estate;
· a note from the construction company about receiving payment.
Each situation is considered individually, so you may need other documents.
What are the benefits of Cypriot citizenship?
Here are the main benefits for passport holders of Cyprus.
· First of all, the passport of the citizen of Cyprus is a full European Union passport. It provides protection of the rights and freedoms of national law and European Union law, diplomatic protection and support outside the country.
· Passport of Cyprus gives the right to freedom of residence, study, work, doing business and investment in all countries of the EU and Schengen countries — Switzerland, Liechtenstein, Norway and Iceland
· Provides a simplified or visa-free entry into 157 countries around the world.
· Reduced high-quality medical care in Europe, legal and other bonuses
· education in private English schools, followed by admission to the Universities of England and other EU countries on preferential terms.
· Cyprus is the 5th in the list ranking the safest countries in the world, and along with Switzerland, Singapore and Japan, Cyprus has shown the best results for 7 data categories (CO2 emissions, life expectancy, national police, died in accidents, theft and attacks, calculating the number per 100 000 people).
· Guaranteed income from the rental of residential property in the lease in the amount of 3.5-4.5%
In addition, the presence of such a passport does not require a permanent stay in Cyprus before or after receiving it. Holder citizen of Cyprus you must visit the country only 1 time in 7 years. No need to take the exam in the language or history of the country. The passport holder is not required to become tax resident of Cyprus, and for those who, conversely, would like to become a tax resident of Cyprus, this possibility is also available, and for many Russians is important — it can keep the passport of their country
The Cypriots, there are additional benefits. They enjoy the benefits of European medicine and education. For example, the cost of education in London to Cypriot citizens is several times lower than for other foreigners. Cyprus has concluded with 47 countries agreement for avoiding double taxation. At this point, the passport of the country in high demand, in addition to our compatriots he seek to get other States, most of whom are citizens of Arab countries, Ukrainians, Australians and even the Chinese, even though their own laws prohibit it.
What is up with taxes?
Cyprus VAT is 19%, but for foreign nationals from non-EU countries is valid exemption for the first purchase and so when buying property covered area of not more than 244 sq m you will need to pay only 5% VAT but if the covered area more than this figure, then on the basis of covered area the benefit is calculated – for example for building the covered area is 350sq.m will have to pay 8%. Further, the annual property tax is 15% of the cadastral value, which was established on 1 January 1980. For example, the owner of the house, which is currently worth €2 million, will have to pay about €50. It is very favorable conditions for the owners.
The most interesting objects for investments
Permanent residence permit can be obtained for the purchase of the property from €300 For citizenship, you can buy a Villa or apartment on the coast cost from €2 million or to gain a few units of residential property. It can be 4-5 apartments in the same or in different cities or a house + flat in good locations, in order to profitably rent out if desired.
If we talk about specific locations, the most popular among Russians enjoy Limassol and Paphos. In Paphos find a property at a truly elite level is difficult, the purchase in this region and in other cities of Cyprus will cost 20-30% cheaper than in Limassol. For example, an apartment of 100 square meters in Paphos cost $ 1500-300 thousand in Limassol is approximately the same will cost more than€300-. and up to several million Euros
Next in popularity among Russians are Ayia NAPA and Protaras. These resorts are of interest to those considering the purchase in the segments of economy and business class. In Ayia NAPA you can choose a Villa at the price of up to €1 million, although we are now building new projects and soon the market will be a decent big-budget features. in Protaras and offers more expensive items costing up to €5 million.
Our compatriots who are planning to purchase a property for more private accommodation, we can recommend the resorts of Latchi and the Akamas. Here you can choose from superb villas in the range of €2-6 million Location allows you to enjoy all aspects of life, making Cyprus one of the most attractive places on earth: Mediterranean climate, swimming in the sea, walking, water sports, and the tranquility and privacy.
The crisis is behind us – time to buy
Through these measures, including a program to grant citizenship to foreign investors, the economy has successfully overcome the crisis. Time it took even less than expected. By the end of 2016, economic growth amounted to 2.6%, while investments increased by 26%.
A significant contribution to positive dynamics has made a real estate transaction. Their number last year increased by 43%. Significantly (more than 50%) increased and the number of foreign investors. In the near future, your contribution can make the British, worried about the consequences Brekzita. Obviously, our compatriots, we need to hurry to buy the most attractive property on the island at the best prices and to become citizens of a United Europe or just get a second passport and have dual citizenship for the soul.