Based on the decision number 81.292, 84.068 and 84.957 dated 13/09/2016, 09/01/2018 and 21/05/2018, the Council of Ministers approved the following amendments to the Scheme, effective as of 13/02/2019:

  1. The investor must make a donation amounting to €75,000 to the “Research Promotion Foundation”. *
  2. The investor must make a donation amounting to €75,000 to the “Cyprus Land Development Corporation”. *
  3. The investor is required to maintain their investment for the period of at least 5 years from the date of naturalisation, previously the investor had to maintain their investment for at least 3 years.
  4. The investor can replace the investment, within the period of 5 years upon prior approval from the Ministry of Finance.
  5. Investment made in the Cyprus shipping industry will be considered as eligible criterion for the Cyprus Investment Program (CIP).
  6. The investor can now also make an investment in Registered Alternative Investments Organizations (UCITS), the UCITS will have the right/option to invest up to € 200,000 in the secondary markets of the Cyprus Stock Exchange.
  7. In case where residential property is acquired, and had already been used for the purposes of the Cyprus Investment Program (CIP), the investment amount increases from €2m to €2.5m. *
  8. The investment in Government bonds has been abolished.
  9. In case the investor invests in real estate development & infrastructure projects, the following documents must be provided to the authorities: *
    i) Planning permit;
    ii) Certificate of Completion, duly executed by the architect of the project;
    iii) In case where the property is under construction, at least 5% of the total value of the property must be blocked via a bank guarantee, the relevant amount will only be released to the Vendor upon completion of the property;
    iv) In case where there is a mortgage on the property to be acquired, a bank waiver letter must be in place.
  10. The applicant must be a holder of a valid Schengen visa.
  11. In the event that the applicant has submitted an application to another Member State for citizenship and the application has been rejected, the investor will not be able to apply for the Cyprus Investment Program.

Note: All remaining terms and conditions to the Program remain the same and a detailed analysis of the updated Program will be provided in our upcoming brochure.

* Changes effective from 15/05/2019

View PDF (EN) View PDF (RUS) View PDF (CH)

Deputy Ministry of Shipping – Cyprus

In recent years, efforts have been made to upgrade and further develop the maritime industry of Cyprus.

When the Deputy Ministry of Shipping begun its operation, 168 companies were registered under the Cyprus tonnage tax system while today it has risen up to 191 companies in total.

The Deputy Minister of Shipping, Ms. Natasa Pilides stated that attempts are being made to simplify the procedures and modernize legislation so as to make Cyprus more competitive as a Register and as a maritime cluster. She also highlighted that attempts are being made to digitalize and modernize the Cyprus systems in order to make the Cyprus Registry even more attractive.

The budget of the Deputy Ministry for the year 2019 is 9.8 million euro compared to 8.1 million euros for the year 2018, i.e. an increase of 1.7 million euros. This is due to the large increase in the budget expenditure growth which is mainly because of the commercial shipping promotion and development activities.

The Deputy Ministry’s revenue for the year 2018 is estimated around 12 million euro while the indirect incomes of the maritime industry is estimated at 800 million euros which amounts to 7% of the GDP of the island. According to Ms. Pilidou, there are currently around 1100 seagoing ships and 600-700 small vessels under the Cypriot flag.

Based on these facts it is evident that the maritime industry of Cyprus is gradually evolving. The shipping fleet of Cyprus is the 10th largest worldwide and has 25% of the whole EU fleet. By continuously updating its services and striving for perfection in the field of shipping it will not be a surprise if Cyprus conquers the top in the near future.

Legal Update: Amendments to the Greek Tax Legislation

On 28/11/2018, the Greek Parliament voted important amendments to the Greek tax legislation such as the reduction of the property tax for the year 2019 for certain owners of real estate in Greece as well as a gradual decrease of the Greek corporate income tax.

More specifically, with a view to encourage investments and improve competitiveness of businesses, article 58 of the Greek Income Tax Code is amended so as to gradually decrease the tax rate applicable to profits from business activity of corporate entities from 29% (corporate income tax rate applicable today) to 25% for income earned as of the financial year 2022 and the following years.

As such, the Greek corporate income tax rate shall be reduced by 1% per year, applicable as of the income of the financial year 2019. Thus the income of the financial year 2019 shall be subject to a rate of 28%. Accordingly, for 2020 the tax rate shall be 27% and for 2021 the tax rate shall be 26%.

The Parliament, aiming to provide relief to the tax payers who are owners of low value real estate in Greece, further voted a decrease of the Greek property tax (ENFIA) for the year 2019.

According to the amendment introduced, specifically for the year 2019, when the total value of the real estate property held by a natural person which is subject to property tax, is up to the amount of 60 000 euros, the corresponding property tax shall be reduced by 30%. When the total value of the said real estate exceeds the amount of 60 000 euros, for the excess thereof, the amount of reduction of the tax (30%) shall be reduced by 0.7 euros per 1000 euros of the real estate and may not exceed 100 euros.

Mackrell International EMEA Regional Meeting

On the 16th to the 18th of November, the Mackrell International EMEA Regional Meeting took place in Brussels, Belgium.

The core meaning of this meeting was to network with other Mackrell International Members, discuss cross border matters and collaborative opportunities and to co-operate with the Business Development team so as to develop social media, practice group and promotional initiatives to which all members could contribute and as a result benefit from it collectively.

Mackrell International is an international legal network with lawyers from 60 different countries of the world, including 90 firms with 4500 lawyers in total.

Our firm, is an active member in this global network. Ms. Sanela Trzin, Barrister (England and Wales) and Cyprus Advocate in our Law Firm was invited and took part in a Business Development Panel Discussion addressing best practices in developing business for our Law Firm and how those can be applied to the network.


The International Expo Emigration and Luxury Property Conference took place in Cannes on the 9th of November until the 10th of November. Christodoulos G Vassiliades & Co LLC representatives attended the Conference and even exhibited the services they provide. Ms. Marianna Pavlides, advocate and Head of the Immigration Department of Christodoulos G Vassiliades & Co LLC was one of the speakers of the Conference with topic ‘Cyprus Citizenship and Residency Programs’.

IELP Expo covers a variety of topics including dual residency in highly developed countries, temporary and permanent residency in highly developed countries, acquisition of luxury real estate either for permanent or seasonal residence, how to gain temporary or permanent residency through investment among many others.

It is an excellent opportunity to obtain further information regarding immigration, real estate acquisition, and personal financial consulting services and is of special interest to visitors from Russia, Ukraine, Kazakhstan, Azerbaijan, and other CIS countries, China, India, UAE and other Middle East countries, South Africa, and the EU.



Стремясь повысить конкурентоспособность, справедливость и простоту кипрской налоговой системы и сделать ее более привлекательной для иностранных инвесторов, 9 июля 2015 года правительство Кипра приняло концепцию «домициль».

Введение правил домициля направлено на привлечение высокооплачиваемых лиц на переезд на Кипр, использование Кипра в качестве делового центра и перевод головного офиса своего бизнеса, создавая тем самым фактическое присутствие.


Налоговые резиденты Кипра облагаются как подоходным налогом, так и специальным взносом на оборону (СВО) на свой мировой доход.

Налоговым резидентом Кипра является:

a. Лицо, которое проводит более 183 дней в течение налогового года в Республике Кипр;


б. Лицо, которое проводит 60 дней в течение налогового года в Республике Кипр и соответствует ВСЕМ нижеперечисленным критериям:

  •  Он/она не является налоговым резидентом или не является резидентом в любой другой стране в течение налогового года (более 183 дней в году);
  •  Он/она осуществляет предпринимательскую деятельность на Кипре и/или работает на Кипре и/или имеет офис в компании, являющейся налоговым резидентом на Кипре, в любое время в течение налогового года; и
  •  Он/она имеет постоянный дом на Кипре, который либо принадлежит ему/ей, либо арендуется им/ей.

Если занятость/бизнес или владение офисом по второму условию прекращаются в течение финансового года, то лицо перестает считаться налоговым резидентом Кипра в течение этого налогового года в соответствии с новыми правилами.


В соответствии с введенными правилами домициля лицо, являющееся налоговым резидентом на Кипре в соответствии с положениями Закона о подоходном налоге («Закон»), НО «не имеющее домициль на Кипре», освобождается от уплаты СВО.

В контексте Закона термин «домициль на Кипре» определяется как:

а. Лицо, имеющее домициль по происхождению в Республике Кипр, в соответствии с положениями Закона о завещаниях и наследовании, который является домицилем его/ее отца на момент его рождения;


б. Лицо, которое считается налоговым резидентом Кипра в соответствии с Законом о подоходном налоге в течение последних 17 из 20 лет до соответствующего налогового года, независимо от места его/ее проживания.

Вышеприведенное определение НЕ БУДЕТ применяться:

a. Если лицо приобретает и поддерживает избранный домициль за пределами Республики Кипр в соответствии с Законом о завещаниях и наследовании, при условии, что это лицо не является налоговым резидентом Кипра в соответствии с Законом о подоходном налоге в течение любого периода, на протяжении 20 лет подряд до соответствующего налогового года.

Согласно Закону о завещаниях и наследовании, человек приобретает избранный домициль, предпочитая жить в любом месте за пределами Республики Кипр, с целью сделать его своим постоянным или бессрочным домом, но не иначе.

Поэтому для того, чтобы приобрести избранный домициль, лицо должно иметь:

  • намерение приобрести избранный домициль (animus); и
  • фактическое присутствие (factum),


b. Когда физическое лицо не являлось налоговым резидентом Кипра в соответствии с Законом о подоходном налоге в течение последних 20 лет до вступления в силу поправки к Закону, а именно до 16 июля 2015 года.

Таким образом, даже если лицо имеет домициль по происхождению на Кипре, он  может не иметь статус домициля в Республике Кипр согласно настоящему положению Закона.

Некоторые общие понятия:

  • Лицо должно иметь домициль постоянно;
  • Лицо может иметь только один домициль на определенный момент времени;
  • Существующий домициль имеет силу до тех пор, пока не будет заменен новым;
  • Домициль не зависит от национальности, гражданства и статуса резидента.


Налоговый резидент Кипра, не имеющий домициль на Кипре, облагается ТОЛЬКО Налогом на прибыль, и освобождается от СВО. Следовательно, данное лицо освобождается от СВО, в отношении дивидендного дохода, процентного дохода (который не связан с обычной деятельности) и дохода от аренды, вне зависимости от того, был ли доход получен из источников на Кипре или за его пределами.


In an effort to enhance the competiveness, fairness and simplicity of the Cyprus tax system and to make it more attractive to foreign investors, the Cyprus Government passed on 9th July 2015, among others, the “Domicile” concept.

The introduction of the non-domicile rules aims to attract high-earners to relocate to Cyprus, by using Cyprus as a business centre and transferring the headquarters of their business thus creating real substance.


Cyprus Tax Residents are subject to both Income Tax and Special Defence Contribution (SDC) on their worldwide income.

A Cyprus Tax resident is EITHER:

a. An individual who spends a period or an aggregated period of more than 183 days in a tax year in the Republic of Cyprus;


b. An individual who spends 60 days in a tax year in the Republic of Cyprus and satisfies ALL of the following criteria:

  • He/she is not tax resident nor resident in any other country within a tax year by spending more than 183 days in that country, that year;
  • He/she carries on business in Cyprus and/or is employed in Cyprus and/or holds an office in a Cyprus tax resident company at any time during the tax year; and
  • He/she maintains a permanent home in Cyprus that is either owned or rented.

If the employment/business or holding of an office as per the second condition is terminated during the fiscal year, then the individual shall cease to be considered a Cyprus tax resident for that tax year under these extended rules.



According to the domicile rules introduced, an individual who is a tax resident in Cyprus under the provisions of the Income Tax Law (“the Law”) BUT is “not-domiciled” in the Republic of Cyprus, will be exempt from SDC.

For the purposes of the Law, the term “domiciled in Cyprus” is defined as EITHER:

a. An individual who has a domicile of origin in the Republic of Cyprus, according to the provisions of the Wills and Succession Law, which is the domicile of his/her father at the time of his birth;


b. An individual who is considered a Cyprus tax resident, as per the Income Tax Law, for a period of at least 17 years out of the last 20 years before the relevant tax year, irrespective of his/ her domicile of origin.

The above definition WILL NOT apply:

a. Where an individual acquires and maintains a domicile of choice outside the Republic of Cyprus as per the Wills and Succession Law, provided that this individual was not a Cyprus tax resident as per the Income Tax Law for any period of at least 20 consecutive years before the relevant tax year.

According to the Wills and Succession Law, an individual acquires a domicile of choice by choosing to live in any place outside the Republic of Cyprus, with the intention of making it his/her permanent or indefinite home, but not otherwise.

Therefore, in order for a domicile of choice to be acquired, both must exist;

  • the intention to acquire a domicile of choice (animus); and
  • residence (factum),


b. Where an individual has not been a Cyprus tax resident as per Income Tax Law for a period of at least 20 consecutive years immediately before the amendment of the Law came into effect, namely on the 16th July 2015.

Thus, even if an individual has a Cypriot domicile of origin, he/she may not be considered as domiciled in the Republic of Cyprus under this provision of the Law.

Some general points are:

  • an individual cannot be without a domicile at any given time;
  • any individual can only have one domicile at each particular time;
  • the existing domicile continues until a new one is acquired;
  • domicile is distinct from nationality, citizenship and residence status.



A Cyprus tax resident who is not domiciled in Cyprus would be liable ONLY to Income Tax and would be exempt from SDC. Consequently that individual would be exempt from SDC regarding income from Dividends, Interest (which is not connected to the ordinary carrying on of a business) and Rent irrespective of whether these derive from sources in Cyprus or abroad.

International Comparative Legal Guide (ICLG) to Corporate Immigration 2018

Our Firm is pleased to announce that our Managing Director, Mr. Christodoulos G. Vassiliades, as well as our Head of Immigration, Ms. Marianna Pavlides, recently published an article in the ICLG Corporate Immigration Guide: A practical cross-border insight into corporate immigration law, 5th Edition.

To read the publication please click on the link below.

ICLG to Corporate Immigration 5th Edition


15 июня 2018 г. на основании решений за номером 81.292 и 84.068 от 13.09.2016 и 09.01.2018 были приняты и одобрены Советом министров следующие поправки к схеме:

  1. Программа «Кипрское гражданство за инвестиции» будет переименована в «Кипрскую инвестиционную программу»;
  2. Срок рассмотрения заявления на получение гражданства через инвестиции составит 6 месяцев с даты подачи;
  3. Квота: ограничение в 700 заявлений в год вступает в силу с 2018 года;
  4. Инвестор обязан сохранять во владении инвестиционную собственность в течение трех лет. В случае, если инвестиционная собственность находится на стадии строительства, инвестиционный период начинается с выдачи градостроительного разрешения на объект;
  5. Все заявления на участие в Кипрской инвестиционной программе должны быть поданы от имени заявителя (-ей) физическими/юридическими лицами, имеющими соответствующую лицензию;
  6. Все обладатели лицензии обязаны соответствовать требованиям нового установленного Кодекса Кипрской инвестиционной программы.

Примечание: Все остальные условия программы остаются неизменными, а подробный анализ обновленной Кипрской инвестиционной программы будет представлен в нашей готовящейся к изданию брошюре.

Христодулос Г. Вассилиадес & Ко. ЛЛС

Контактная информация: /

Телефон: +35722556677 / +35796500900


As of June 15th, 2018, and based on the decision numbered 81.292 and 84.068 dated 13/09/2016 and 09/01/2018, the following amendments to the scheme have been decided and approved by the Council of Ministers:

  1. The program of Cyprus Citizenship by Investment programme will be renamed to “Cyprus Investment Programme”;
  2. The examination period for the application for citizenship by investment will be 6 months from the date of submission;
  3. Quota: Limitation of 700 applications per year will take effect from 2018;
  4. The investor is obliged to maintain the investment property for a period of 3 years. In cases where the investment of property/ies is under construction, the investment period will commence from the issuance of the town planning permit of the property;
  5. All applications for the Cyprus Investment Programme should be submitted on behalf of the applicant(s) by natural/legal persons who are in possession of the requisite license certificate;
  6. All holders of the license certificate should comply with the newly established Code of Conduct of the Cyprus Investment Programme.

Note: All remaining terms and conditions to the programme remain the same and a detailed analysis of the updated Cyprus Investment Programme will be provided in our upcoming brochure.