CYPRUS residency and citizenship & establishing corporate/tax presence in cyprus

1. CYPRUS residency and citizenship & establishing corporate/tax presence in cyprus

2. About Cyprus Official Name: Rep. of Cyprus Population: 838,900 Capital: Nicosia Currency: Euro Languages: Greek & English Timezone: GMT+2 Member of: EU, UN & British Commonwealth

3. About Cyprus Cyprus is an island situated in Eastern Mediterranean and has been the crossing point between Europe, Asia and Africa People living in the island enjoy the warm Mediterranean climate, the high standard living, excellent health care, safety, low crime rate, sophisticated infrastructure and much more

4. About Cyprus On the 1st May, 2004, Cyprus became a full member of the European Union. Cyprus' new EU path brings with it the added benefits of heightened security, increasing employment opportunities and the lowest property prices for comparable EU locations. Investing in Cyprus has long proved to be a sound decision as prices have been steadily on the increase.

5. INVEST IN CYPRUS … …IMMIGRATE TO EUROPE

6. Cyprus Culture FAMILY ORIENTED STRONG BONDS BETWEEN FAMILY MEMBERS HIGH LEVEL EDUCATED PEOPLE HOSPITABLE PEOPLE VERY FRIENDLY TO FOREIGNERS CULTURE ARTS / MUSIC EATING HABITS FOR CYPRIOTS SIMILAR AS CHINESE MORE THAN 20 DIFFERENT PLATTER RELIGION PEOPLE ARE FREE TO WOSHIP ANY RELIGION THEY WISH MOST CYPRIOTS ARE GREEK ORTHODOX

7. Cyprus Advantages Member of the European Union Strategic Geographic Location - Europe, Asia and Africa Warm Mediterranean Island with 320 days of sunshine New Marinas & Golf courses Sophisticated infrastructure Free hold property ownership English-speaking population Upgraded Airline connections and Telecommunications Good business and financial services The Entrance Gate to Europe

8. ECONOMY Tourism More than 2 m/ year Energy Gaz extraction more than 30 billion Real Estate 30 % of the local market International Trade Point of exchange between Europe, Asia and Africa

9. Top Reasons to Invest in Cyprus EU & EUROZONE STRATEGIC LOCATION TAXATION HUMAN TALENT VALUE FOR MONEY LEGAL FRAMEWORK WELL – DEVELOPED INFRASTRUCTURE EASE OF DOING BUSINESS QUALITY OF LIFE WELL DEVELOPED EDUCATION PROGRAM DOUBLE TAX TREATIES WITH 40 COUNTRIES

10. Education Schools, Colleges and Universities are located in all Cyprus cities. All Universities are English speaking and teaching and cooperate with well known European Universities in order to offer programs for study abroad the masters and doctoral degrees. The Ministry of Education and Culture is harmonizing the Education System in line with the European Standards and guidelines for quality assurance. Schools, Colleges and Universities • 2Public Universities • 4 Private Universities • Many private colleges offering international studies • More than 400 public and private primary schools (english and greek speaking) • More than 200 public and private secondary schools (english and greek speaking)

11. Permanent Residence Permit * Cyprus is currently in the process of becoming part of the Schengen Area (a Schengen candidate). This will entitle Cyprus residents to travel to other Schengen member countries without being subjected to border checks. What is a permanent residence permit? Official authorization recognizing to its holder a legal right to permanently reside in the country issuing the permit subject to certain conditions. Why apply for a permanent residence permit in Cyprus? Expedited processing: Permit issued no more than two (2) months from the date of submission of the complete application Lifts travelling restrictions and visa requirements from a number of European countries Subject to certain residency requirements, it may lead to the acquisition of a Cyprus (EU) passport. It can facilitate travelling in some European countries without issuing VISA

12. Eligible applicants Any third country national (and his/her spouse)who:- has a clean criminal record and otherwise not considered a threat to public safety/order declares the intention not to be employed in Cyprus wires from abroad and maintains a fixed term deposit account in Cyprus of €30,000 for at least three (3) years proves a secured annual income of at least €30,000 generated from sources abroad (plus €5,000 per dependent person) buys a residence in Cyprus sold for the first time market value of at least €300,000 Permit and residency requirements: To maintain permit and residency requirements the individual must visit Cyprus once every two years To convert the permanent residence permit into a Cypriot (EU) passport the individual must stay in Cyprus for seven (7) years, out of which the last 12 months preceding the Cypriot (EU) passport application must be continuous

13. Citizenship by investment • Why the Cyprus citizenship by investment program • Sound legal right to EU citizenship to the applicant and his dependents as of right; • Passport issued within 4 to 6 months; • Existing passport need not be relinquished (i.e. more than one passport is legal in Cyprus); • No residence requirements; • No language test requirements; • No family planning laws; • Common law jurisdiction; • Quality of life, education and access to medical facilities; • Through our personal contacts, we can guarantee an expedited process which can lead to a successful approval of the application in just a few months. What is citizenship by investment? A process whereby a country, by way of exception, grants citizenship to eligible applicants that make a certain significant investment into its local economy. • Citizenship in return for economic investment. Why is second citizenship important? Lifts travelling restrictions Limits time consuming travelling formalities – no visa application required Flexible and efficient foundation for tax structuring and planning Can be passed on to a next generation.

14. Eligible applicants Any third country national who:- has a clean criminal record; and, provides all necessary documentation (i.e. birth certificate, marriage certificate, passport pictures); and, buys a house in Cyprus worth at least €500,000; and, makes an investment in Cyprus of such amount as required under the investment medium citizenship is sought.

15. Investment How to invest amount €2.5million €2 million for the purchase the shares and/or bonds in a state owned investmentcompany to be incorporated; and,  €500.000 donated (i.e. non refundable) to the Research and Technology Fund. OR €5million  Entire amount deposited in a three (3) year fixed term bank account with a bank in the Republic of Cyprus, same being either in the name of:- - the applicant (personal account); or - a company or a trust (corporate account), of which the applicant is the ultimate beneficial owner of. OR €5million  Entire amount spent by the applicant for: - purchase of immovable properties (private residences, offices, shops, hotels or establishments of similar nature excluding undeveloped land); and/or, - acquisition of businesses or companies based and engaged in activities in Cyprus; and/or, - purchase of shares of companies registered in the Republic of Cyprus - purchase of financial assets - participation in a company or a consortium of companies that has undertakena public project. OR

16. €5million  Accumulated & combined use of any of the abovesaidinvestment mediums. OR Variable amount Paid by local companies belonging to the applicant in the public purse annually by way of taxes, fees for local professional services etc over a period of three years. The amount will depend on the number of local employees engaged by the local company. OR €3million  Confined to a special class of persons whose bank deposits in Cyprus PopularBank and Bank of Cyprus were affected by the Government Decree of 15.3.2013.

17. Tax and fee savings on acquisition of property New VAT Rules The new law introduces a reduced rate of 5% applicable for any purchase of a property The current full rate of VAT is 19% So SAVE 14% VAT on the selling price For example for a house of €300000 plus VAT you save 14% which means € 42000 • No transfer fees • Upon receiving a title deed for your property normally transfer fees apply • If you buy now or before the end of 2014 you will pay no transfer fees and save thousands • For example for a house of €300000 plus VAT you save transfer fees of more than € 17000

18. Properties offered Through our exclusive partners we can offer the following type of properties to support the clients application for Cyprus residency or citizenship: Villas, apartments and any other type of dwelling; Commercial buildings; Building plots with all local permits for residential OR commercial construction; Land for future development. The properties are located throughout Cyprus and visiting tours can be easily arranged. In case of interest in any particular type of property, we can provide separate property presentation including photographs and descriptions.

19. Corporate and Tax Presence TYPES OF CORPORATION The types of corporations that can be established in Cyprus is a private limited company, a public company or a company limited by guarantee. Private Limited Company The minimum number of members is one and the maximum is limited to fifty. And there can be no invitation to the public to subscribe for any shares or debentures. This is the most popular type of companies in the business world and their general characteristics are the following: • The minimum number of members is one and the maximum is fifty; • The liability of every member is limited to the amount of their subscribed shares; • No bearer shares can be issued (however nominee services can be offered);

20. Preferential shares or different classes of shares can be issued; • The right to transfer shares is restricted; • The word “limited” must appear at the end of the name of the company • There can be only one Director who can be either Cypriot or foreigner and the Board Meetings can be held anywhere in the world; • The company must have a registered address in Cyprus and a company secretary; • The Secretary maintains the Register of Members, the Minute Book recording all the Board Meetings and Resolutions, the Register of Charges, the Register of Directors and Secretary and the Company seal (under its custody); • any charges against the company must be registered with the Company Registrar in order to ensure priority and protection against other creditors of the Company.

21. What is important to note is that the identity of beneficial owners in a Cyprus private limited company may remain confidential through nominee holding. This confidentiality is maintained as long as the company and its ultimate beneficial owners are not involved in any criminal activity. Public Limited Company Public companies need seven or more founder members, they can invite the public to subscribe for their shares or debentures and do not restrict share transfers. Company Limited by Guarantee The liability of each member is limited to the amount agreed on the Memorandum of Association to be contributed in the event the company goes into liquidation. In the majority of cases these companies are incorporated as non-profit making organisations under section 20 of Cap 113.

22. Tax Presence In order for a company to secure a Cyprus tax resident status, the management and control must be exercised in Cyprus. This is usually accomplished by simply appointing Cyprus nominee directors. A Cyprus tax resident company enjoy the benefits of the popular Cyprus tax regime.

23. Income tax For individuals Where an individual is a resident in the Republic, tax is imposed on income accruing or arising from sources both within and outside the Republic. Relevant tax rates are as follows: Tax rates Taxable Tax Cumulative Income Rate Tax Tax € % € € 0 - 19.500 0 0 0 19.501 - 28.000 20 1.700 1.700 28.001 - 36.300 25 2.075 3.775 36.301 - 60.000 30 7.110 10.885 60.001 and over 35

24. For corporations Where a company is resident in the Republic, tax is imposed on income accruing or arising both from sources in and outside the Republic. Where a company is not a resident in the Republic, tax is imposed on income accruing or arising only from sources in the Republic. Resident in the Republic is a company that is managed and Controlled in the Republic. The Tax rate is fixed at 12.5% FOR BOTH, INDIVIDUALS AND CORPORATIONS, THERE ARE NUMEROUS EXEMPTIONS AND DEDUCTIONS WHICH CAN BE USED TO REDUCE THE TAXABLE INCOME, BEFORE APPLYING THE ABOVE RATES

25. Social Insurance costs for individuals SPECIAL CONTRIBUTIONS Each employee, self-employed, or person operating in the private sector receiving a pension, shall pay a special contribution to the Republic in order to strengthen public finances. The contribution is a percentage levied on the gross earnings as shown in the table below. Gross monthly salary € Special Contribution % Up to 1.500 0 1.501 - 2.500 2,5 (with a minimum amount of special contribution of €10) 2.501 - 3.500 3 3.501 and over 3,5 The above special contribution is calculated on the total gross earnings with no restriction or maximum limit on the amount of the levy.

26. SOCIAL SECURITY CONTRIBUTIONS Contributions Self Employer Employee employed % % % Social Insurance 7,8 7,8 14,6 Redundancy Fund 1,2 - - Industrial Training 0,5 - - Social Cohesion Fund 2,0* - - Upper limits for employees per week from 7/1/2013 per month per annum € € € Weekly employees 1.046 - 54.392 Monthly employees - 4.533 54.396 * The amount of contribution to Social Cohesion Fund is calculated on the total emoluments with no upper limit