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Case: How to buy property in Cyprus & obtain citizenship for the whole family

Kristina Kurkuliak
30 October 2018

Content

Case description

Our client, Vitaliy K., contacted us in January 2018 with a query regarding buying property for personal use and obtaining citizenship. The client has a large family (two minor children, a spouse and 2 dependent parents) whom he wanted to include the application. Vitaliy was also interested in visa-free travels to Canada.
The main objective was to buy property in a favorable country. The client knew that among the available European citizenship by investment programs he could choose between Malta and Cyprus. He was looking for a company that would help him make his choice and select the appropriate real estate item for obtaining citizenship.

Which programs were considered

In order to accommodate for the client’s needs, two options were suggested: the citizenship programs of Malta and Cyprus. Both options involve the ownership of real estate, however in Malta the main part of the investment amount goes for a donation to the government fund that is not quite profitable.

Comparison of the citizenship programs of Cyprus and Malta

Заключение договора Подготовка документов
Бесплатная предварительная проверка заявителя
(1 день) и заключение договора в одном из наших офисов или дистанционно. На этом этапе достаточно предоставить копии заграничных паспортов всех членов семьи, которые будут указаны в заявке на ВНЖ.
Результат этапа: Отчет о проверке + подписанный договор.
Мы получаем справки о несудимости, заполняем правительственные анкеты, заверяем копии документов у нотариуса переводим и апостилируем весь пакет и отправляем его в миграционное агентство Монако.
Вы предоставляете оригиналы документов и подписываете анкеты и другие документы, которые мы сами подготовим.
На этом этапе от Вас требуется визит в Монако для сдачи биометрических данных.
Результат этапа: Справка о получении документов правительством.
Рассмотрение кейса Получение карты ВНЖ
Миграционное агентство Монако проводит проверку от 4 до 7 месяцев.
Результат этапа: Получено одобрительное решение.
Действия заявителя: Оплатить инвестицию в течение месяца после одобрения
После оплаты инвестиции и пошлин вы посещаете Португалию для получение резидентских карт. ВНЖ действителен 1 год. Для поддержания статуса требуется проводить в стране 7 дней в году. Мы напоминаем о необходимости продлить его за 6 месяцев до окончания срока.

(As on the beginning of 2018) In the “Compare the programs” section you can select different programs and compare them by 14 criteria.

Why did the client make his choice in favor of the Cyprus program?

Firstly, in Malta main part of the investment is non-returnable, namely € 650,000 goes to the government fund. In Cyprus, the entire amount is invested in real estate, which may be sold in 3 years with maintenance of citizenship. At the same time, you must keep the ownership of the property worth € 500.000.

Secondly, in Malta the application process takes approximately 14 months, and in Cyprus it takes about 6-8 months. Also in Cyprus, the process of obtaining passports is not as complicated as in Malta. In Malta, the refusal rate for the entire period of program’s operation is 18%.

IMPORTANT NOTE! Although the citizenship program of Malta has its drawbacks, this country’s passport opens visa-free access to the United States, while other countries do not have such an advantage. It should be borne in mind that the passport of Cyprus allows you to open a long-term visa to the United States, if needed.

Real estate market in Cyprus

Choosing real property in Cyprus is not that easy since many objects are overvalued due to the passport program. We recommend carrying out a more in-depth study of the developers’ proposals. The price of some objects exceeds the market value by 50-100%. In Cyprus the real property market is overheated. Since the amount of land in Cyprus is limited, its value is increased. According to the PwC report for 2017, foreigners closed over 2 thousand transactions per year, which is 33% more than in the previous year.

Number of real estate purchase transactions with foreigners in Cyprus from 2010 to 2017

Cyprus real estate

In order to avoid buying overpriced real estate, you must choose an object with great care, using the assistance of professionals. We sent more than 10 options of real estate objects that accommodated the client’s requirements. One option was a project under construction, consisting of 3 villas in Limassol. The project involved two investment options: full or partial ownership. Partial ownership means that the investor purchases one of the villas worth € 2 million plus VAT, which the developer guarantees to buy out of the investor for the full price (€ 2 million) in 3 years or offers to exchange for a residential object worth € 500 thousand and pay € 1.5 million. The investor, if desired, can keep the ownership of the villa for personal use or for resale. According to forecasts, the market value of the object will rise to € 2.5 million upon completion of construction. Full ownership means that the investor purchases all 3 villas. This option is more costly, but according to forecasts it will bring quite a significant income ranging from € 514,500 to € 1,004,500. A detailed calculation of income and a description of the project are provided in this article. Information note: Real property may be leased out thus bringing additional income. Such good objects are difficult to find without having a local affiliate on the island; they are not always available on the websites of real estate companies.

cyprus villa

One of the villas of the complex

Application process

Before proceeding to application process for the citizenship of Cyprus, the client needs to buy real estate. The process of buying real property consists of several stages:

Example of calculations when buying real estate in the primary market

Оплата по факту Офисы в Европе и СНГ Мы реально на связи 24/7
Вы платите только в случае положительного решения. Возможна также оплата через эскроу-агентов с мировым именем. В этом случае все средства хранятся на счету агента пока Вы не получите ВНЖ. В Европе очень важно иметь своего сертифицированного специалиста на месте, который понимает местную специфику работы. Мы работаем без посредников и поэтому отвечаем за результат. Наши офисы находятся в разных часовых поясах, поэтому мы действительно доступны 24 часа в сутки 7 дней в неделю. Хотите убедиться в этом? Напишите в онлайн-чат или позвоните нам сейчас.
Получаем дополнительные документы в Монако Минимум Вашего участия, вся бумажная работа — за нами Работаем без посредников. Лицензированы правительствами
Кроме ВНЖ мы можем получить для Вас водительские права, налоговый номер, местный номер телефона. Поможем открыть счет в банке и зарегистрировать компанию. Мы получаем справки о несудимости, заполняем правительственные анкеты, заверяем копии документов у нотариуса переводим и апостилируем весь паке. Наш юрист на острове контролирует процесс на месте. Ваше участие сведено к минимуму: предоставить оригиналы, сдать биометрические данные. Наши юристы находятся как в странах СНГ, так и в странах, где мы оформляем гражданство и ПМЖ.
Оцениваем шансы Работаем быстро и качественно Сотни успешных кейсов за 8 лет работы
Мы беремся за кейс только в случаях, когда знаем, что сможем получить результат. Для этого мы проводим предварительную проверку, предоставляем отчет и свои рекомендации. Только после этого мы подписываем договор и приступаем к работе. Для того, чтобы работал механизм оплаты по факту — мы идеально выстроили внутренние процессы. Наша цель — предоставить услугу как можно скорее и с успешным результатом, ведь только в этом случае мы получим свой гонорар. В среднем подготовка документов занимает от 5 до 25 дней. У нас большой опыт и мы честно рассказываем как об успешных кейсах, так и о сложных ситуациях в нашем блоге. Мы не рекомендуем программы, которые плохо работают (например — Болгария), или переоцененную недвижимость для получения гражданства (бОльшая часть объектов на островах).

After buying real estate, you can start preparing a package of documents for citizenship. For Vitaliy, we prepared a package of documents in 20 days. Before the client made a contract with us and paid 50% of the cost of our services, we also conducted a preliminary check to make sure that the case was successful. In early March 2018, the case was submitted. The whole application process up to receiving passports took 7 months. Vitaliy received passports together with his children and his wife, and the parents received passports a little later, after the completion of the main applicant’s naturalization procedure.

Information note: On average, the actual duration of consideration of applications in Cyprus ranges from 6 to 8 months. Sometimes additional documents may be requested: confirmation of the origin of funds, utility bills, affidavits (notarized explanations in case of disputable situations), confirmation of financial solvency, consent to grant citizenship to a child from the second parent, etc.

The information about the applicant’s business and sources of funds indicated in the application form is carefully checked. Therefore it is necessary to provide only truthful data. The main criterion for the success of a case is the absence of outstanding conviction for serious crimes and a person’s not being included in the sanctions list, wanted list or Interpol database.

Fast facts

Having analyzed different objects, the client made his choice in favor of purchasing real estate in Limassol for the following reasons:

Expert's opinion

Kristina Ruzhilo: “Choosing real estate in Cyprus requires very careful approach, because in most cases the objects are significantly overvalued. Fancy photographs on websites often do not reflect the actual situation. We recommend selecting several objects before arriving to Cyprus, so that you could inspect them on site and see for yourself what their condition is. We recommend only those developers whose portfolio already includes successful projects, offering clients the options after analyzing the developer’s legal documentation. For assessing a developer’s reliability it is important to have an office in Cyprus and know the local specifics. ”

Conclusions

1. When choosing a property in Cyprus, it is important to consider the following factors:

2. In addition to real estate, we recommend paying attention to the following factors when choosing a program:

Only collaboration with specialists who have extensive experience working with different programs will allow you to choose the most suitable option.

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