In order to qualify for the Cyprus Investment Program, one may setup a business in Cyprus via a Cyprus company and employ at least five Cypriots or EU nationals. This company needs to have substance, presence and substantial operations in Cyprus, along with a meaningful business plan. Once this is done, a residence of at least 500,000 euros is required in order to fully comply.
How can I structure my business in Cyprus to support my citizenship-by-investment application?
I am a successful businessman in my home country with years of experience. I plan to open a branch in Cyprus and use it for my citizenship-by-investment application. However, I am not very familiar with the business culture in Cyprus. Could you please explain to me how I should structure this branch so that my application bears a better chance of being approved?
In order to establish a Cypriot company or business, the below criteria need to apply: The applicant must have invested at least 2 million for the purchase or participation in companies or organizations established and operating in the Republic of Cyprus with investment costs of. The invested funds shall be channeled toward the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan. Moreover, investments in the shipping sector are eligible on the basis of measurable criteria that will be determined jointly by the Ministry of Finance and the Shipping Deputy Ministry. The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five Cypriot citizens or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company.
Note that the investment is 500,000 less if all is invested in real estate. You can invest everything in real estate and get rental income, and you are allowed to sell after five years for 1.5 million.It is better to invest as an individual in order to benefit from decrease to 5% VAT on the first 200 square meters, as a company/branch cannot benefit from that. Cyprus is a commonwealth, common law, capitalistic culture, a sort of tiny Hong Kong in the Mediterranean.