As you are reading this article, negotiations over Brexit are being held behind closed doors. No one yet knows for sure what path the United Kingdom and the European Union will decide to take together. This creates a lot of uncertainty for the UK citizens residing in EU and creates even more uncertainty for EU businesses relying on UK investors. Moreover, how will the lives of UK passport-holders who live in Cyprus change and most importantly, what can they do to preserve their privileges?A citizen of Cyprus is by default a citizen of the European Union. Having that in mind, a holder of a Cypriot passport is entitled to all advantages offered by the EU. The travel to any EU member state would be with the least amount of endeavors possible. Additionally, conducting operations such as investing, developing or starting a business in the EU would pose fewer obstacles if they were to be done by an EU citizen – especially if the investor’s citizenship is certain.
Most importantly, with a Cypriot passport, the UK citizens that currently reside in Cyprus can continue enjoying the Cypriot leisure lifestyle and its relaxed atmosphere without being concerned about how the results of Brexit would affect them. That being said, it is reasonable to say that a Cypriot passport is a gateway to a stress-free environment.
Just like its atmosphere, the process in getting a Cypriot passport is stress-free compared to many other EU member-states. The simplest method is through the investment program which offers a Cypriot passport to foreigners who are willing to invest €2 million into Cypriot property projects and obtain a permanent residence on island valued €500 thousand (included in the 2 million euros investment) + VAT. Considering how highly the Cypriot government values major foreign investors, it is no surprise that they wish to treat those investors as their own people. Thus a citizenship is provided to those who fulfill the investment criteria.
The most common way of investing into Cyprus would be by purchasing a high-value property. Anyone from the UK may receive a Cypriot passport by acquiring a property as a permanent residence for €2 million + VAT. This way the newly Cypriot passport-holder can enjoy all the advantages of being an EU citizen while at the same time having a luxurious home on the Mediterranean island. In addition, purchasing a residence valuing at €2 million + VAT would save the investor €500,000 compared to other investment options.
On the other hand, alternative investment opportunities are available which could result in long-term profits. Investing into land development or real estate market for example is extremely popular in Cyprus at the moment. The long-term interest-rates in Cyprus have been reduced by nearly 1% in the last year, making the local population eager to take advantage and purchase land, properties, or both. The current enthusiasm for Cypriot citizens to purchase loans from the banks with lower interest rates can prove to be profitable for those who are planning to sell land or property in the upcoming years.
The chances of gaining profits through land development, real estate are not determined by the investor. For example, majority of economic activity in Cyprus is regulated and influenced by the Cyprus Securities and Exchange Commission. For the investors who wish to have more control over their assets, and specifically their production, a more attractive investment option could then be a purchase, creation or participation in a company or business in Cyprus. Although the Cypriot economy is doing very well in the recent years and is becoming stronger, creating their own company or business can give the investors a more hands-on approach regarding their profits and their €2 million investment.
The United Kingdom and the Republic of Cyprus both use common law. Taking that fact into consideration, there will be neither a lawyer nor a businessman from the UK who would feel like a stranger when starting a company, a business or any investment in Cyprus. Furthermore, receiving a citizenship in Cyprus can act as a gateway for the investors to expand their businesses across the European Union. Investing into Cyprus will without a doubt prove to be a perfect balance between business and pleasure.
For more information, please contact your Cyprus Lawyers, to assist you.