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Benefits of a second Cyprus residency or citizenship

Sheltering wealth through tax planning

Citizenship has a direct connection to a person`s tax residency. The new trend is for exchange of information agreements between states and already 100 countries have signed this agreement. Based on this agreement there will no longer be any banking secrecy as the banks will be required to provide information on the bank accounts of any foreign resident.

Protection against political and economic instability

Another reason why a second citizenship/residency might be a good move is also the need of families for security and stability.

Expansion of investment activities

A second citizenship/residency in an EU country offers the chance to live and work in a union of developed countries with a population of 750 million people and this in itself is a great business opportunity for any businessman to expand or develop his business.

Provides financial and personal privacy

Another advantage is that one is able to have dual citizenship and this offers an effective tool for international tax planning to high net worth individuals and also provides a degree of financial privacy at the same time.

Access to quality education

A very important aspect of life is the education of children and a second citizenship in the EU makes it much easier for parents to educate their children in some of the best universities in Europe with the payment of either reduced or no tuition fees.

Access to excellent healthcare

Access to the European Union healthcare is a very important consideration when thinking about a second citizenship. A lot of successful business people are in their forties and fifties and first class healthcare is essential for an entrepreneur. Some of the most advanced hospitals and health care centres are available to all EU citizens and residents.

Mobility and freedom to travel

A second EU citizenship allows the entrepreneur and his family easy entry in many countries around the world without the need for a visa.

Finding a better place for retirement

A second EU citizenship allows one to live or retire in a country with much better living conditions than their native country. One has to also consider respect for human rights, personal freedom and democratic systems. It is a fact that retirement can also be more rewarding in some countries than others usually due to better climate and also more cultural and outdoor activities that might be available.

The Benefits

Non­domiciled individuals resident in Cyprus have some special tax incentives:

1. A tax resident individual who is non­domiciled in Cyprus is totally exempt from all taxes and special defence contribution on their local or foreign dividend and interest income.

2. No capital gains tax (normally 20%) will be payable on the disposal of any immovable property situated in Cyprus if this property was acquired between 16 July 2015 and 31 December 2016.

Generally Cyprus has one of the lowest corporation tax rates in Europe at 12.5%. Tax resident companies are taxed on worldwide income while non­resident companies are taxed only on Cyprus­sourced income. An individual is considered resident of Cyprus if he spends 183 days or more in the Republic of Cyprus. A company is considered resident in Cyprus if its management and control is exercised in Cyprus.

The above is just a few of the various incentives provided by the Republic of Cyprus and you are strongly recommended to seek professional advice for your particular case.