EY Transaction Advisory Services

Cypriot Citizenship through

naturalisation by Exception

Kiev

May 2018

Page 2

Why Cyprus?

Cypriot Citizenship through naturalisation by Exception

Benefits of EU passport

Freedom of movement andestablishment within the EUThe ‘Treaty for the Functioning of the EU’ allows allEU citizens to move, live, and work freelythroughout EU member states

Free movement of servicesIndividuals and companies can offer services throughout EU member states without additional impediment

Free movement of goodsGoods produced within the EU can betransferred without interference to any EUmember state

Free movement of CapitalFree movement of Capital: Free to proceed with investments, purchase property, or transfermoney from one EU member state to another

Living in Cyprus

• Natural beauty and year round pleasant climate

• High quality of life and variety of lifestyle options

• Rich historical and cultural landscape

• Political stability and low crime rate

• Cyprus hospitality and English /Russian speaking

population

• Excellent multilingual educational institutions

• Good worldwide connectivity through two

international airports

Doing business in Cyprus

• Robust and transparent legal framework based on

English Law

• High quality of professional services and well

educated, skilled workforce

• Attractive tax regime

• Strategic location in the crossroads of Europe,

Asia and Africa

• Modern and advanced infrastructure and

telecommunications

• EU membership

Page 3

Cypriot Citizenship through Naturalisation by Exception at a glance

Cypriot Citizenship through naturalisation by Exception

Main conditions for Citizenship

Clean criminal record

Ownership of a permanent private residence in Cyprus

with a purchase price of at least €500,000 (plus VAT)

Investment of at least €2m (plus VAT where

applicable) in one of the qualifying categories (see

next page)*

Residence permit in the Republic of Cyprus for 6

months - application can be in parallel with the

citizenship application (in the case that the applicant

is not already a holder)

Why Cypriot Citizenship scheme

• Simplified and fast track procedure for obtaining both the

temporary residence permit and citizenship (takes maximum 6

months in total)

• Multiple ways to get the citizenship with a minimum investment of

2 million Euros

• Required investments can be liquidated after 3 years, providing

the opportunity to recover the initial investment as well as

participate in the upside in case of an appreciation in value

• Naturalisation extends to the immediate family

*It is noted that the applicant must have concluded the necessary

investments during the three years preceding the date of

Application and must retain the said investments for a period of

at least three years following the date of Naturalisation

Naturalisation Financial Criteria and Conditions

Cypriot Citizenship through naturalisation by Exception

*In case the economic criterion is met via investment in residential real estate exclusively, then the

requirement for a permanent private residency can be met through this investment alone, without a need for

an additional property purchase of €500,000

A high-ranking senior manager in a company that satisfies the above investment criteria

may also apply, provided that he/she receives such a remuneration that generates for the

Republic tax revenue of at least €100,000 for a three year period and provided that this tax

has already been paid or prepaid.

Economic Criteria

Investment of at least €2m (plus VAT) in one of the below categories:

Financial instruments of Cypriot companies/ organisations that are licensed by CySEC (includes shares in AIFs, corporate bonds, debentures etc.)

Real estate, Land development projects (residential or commercial developments, developments in the tourism sector) and other Infrastructure projects*

Purchase, creation, or participation in Cyprus based businesses / companies with a ‘tangible' presence in Cyprus that employ at least 5 EU Citizens per applying investor

Or a combination of abovementioned criteria amounting to at least €2m, in which case an investment of up to €500k in Republic of Cyprus Government bonds is also permitted (provided they are obtained directly from the Public Debt Management Office of the Ministry of Finance)

The Process

Cypriot Citizenship through naturalisation by Exception

1 2 3 4The application

is submitted to the

Ministry of Interior and is

evaluated by the Ministry

of Interior and the Ministry

of Finance

The applicant must

retain the said

investments for a

period of at

least three years

following the date of

Naturalisation

Following this examination and

clearance, the application is

forwarded for final approval to the

Council of Ministers, which is the

decision making body with

absolute discretion relating to the

granting of the Citizenship

The applicant and his/her

spouse can apply

simultaneously. Once

approved, eligibility also

applies to minor children

(under 18 years of age) as

well as financially dependent

adult children up to the age

of 28 years

* It is noted that in case a Temporary Residency Permit is needed then the relevant process runs in parallel with the Citizenship application,

with the Temporary Residence issued at the beginning of the above process and the permit lasting for as long as the above process takes

Additional period to meet 6

months residency requirement Examination of application

Indicative timeline of the process and EY support

Submission of

applications

Up to 1 month,

(depending on investment

requirements / type)

Approx. 3 months

1. Investment

Selection (EY

assistance)

► Guidance on required

steps, requirements and

economic criteria to

comply with Scheme

► Evaluate specific details

of applicant and tailor a

successful strategy to

meet the criteria

► Identification of potential

real estate properties (if

applicable)

► Search and shortlist

potential investments to

meet the economic

criteria (optional)

► Communicate

alternative options for

investment (optional)

2. Investment Due

Diligence (EY

assistance)

► Check investment

appropriateness and

whether it qualifies as

per the economic criteria

► Identifying potential

issues and areas that

may impact the

citizenship application

► Identify the tax

implications for chosen

investment (optional)

► Due Diligence of the real

estate unit (titles,

encumbrances, etc)

and/or main investment

(financial, taxation, etc)

(optional)

► Valuations of proposed

investments (optional)

3. Investment

Execution (EY

assistance)

► Assistance with the

negotiations

(optional)

► Legal review of

transaction

documents for the

chosen investment

(optional)

► Check

completeness of

documents verifying

the transaction and

compliance with the

Scheme

6. Review by Council of

Ministers of Citizenship

Application (EY assistance)

► Continuous monitoring and

follow up with relevant Ministries

to ensure timely and complete

forwarding of citizenship

application to the Council of

Ministers for final decision,

ensuring a successful outcome

and approval by the Council of

Ministers

► Continuous updating of

application status to client

Application preparation

and submission Preparation & Investment phase

Execution of

investment

4. Submission of

Citizenship and

Temporary

Residence Permit

applications (EY

assistance)

► Help with preparation of

required documents

and ensure they are

complete and within the

required quality

standards

► Prepare and file the

relevant letter required

by the Authorities for

the application

► Submission of

application for

Citizenship at the

Ministry of Interior (1)

► Submission of

application for

Temporary Residence

Permit

Cypriot Citizenship through naturalisation by Exception

Approx. 3 monthsUp to 1 month, (depending

on investment)

Up to 3 weeks

Up to 2 weeks

Issuance of

Temporary

Residence Permit

5. Secure

Temporary

Residence

Permit (EY

assistance)

► Continuous

monitoring and

communication

with the

authorities to

ensure timely

issuance of

Temporary

Residence

Permit

► Accompany

client to the

Immigration

Authorities in

order to provide

biometrics and

other information

needed to issue

the permit

► Collect permit on

behalf of the

Client

Up to 2 weeks

Issuance of

Citizenship

Council of

Ministers

Approval

7. Issuance of Citizenship

Certificate (EY

assistance)

► Accompany the client to the

relevant authorities to ensure

completion of process

(relevant oath, etc) and issue

of citizenship certificate and

passport.

Why EY?

Cypriot Citizenship through naturalisation by Exception

EY is best placed to advice you

• We provide exceptional client services by experienced professionals with in-

depth knowledge of the relevant legislation and procedures, who adjust to

our client needs and communication preferences in English, Russian,

and Greek.

• EY Cyprus’ well-established and longstanding relationships with local

government bodies ensure close collaboration with relevant authorities for a

punctual and stress free process

• Team’s successful track record in the area: our current team has a remarkable

100% success rate in citizenship applications

• Confidentiality

• One stop shop: Our experienced team of handpicked staff will tailor their service

to your needs and objectives to ensure a successful investment outcome as well

as securing the Cypriot citizenship

Stelios Demetriou

Partner

Transaction Advisory Services Leader

Mob: +357 99 629 728

Email: Stelios.Demetriou@cy.ey.com

Andreas Anastasiou

Director

Transaction Advisory Services

Mob: +357 95 561 628

Email:Andreas.Anastasiou@cy.ey.com

Cyprus Team