A new oil and gas licencing round organised by the Republic of Cyprus.

Further drilling blogs in the eastern Mediterranean will contribute to energy security in southern Europe. The new round was announced by the Cypriot government on 13 February, with 12 offshore blocks available. The blocks being offered are located off the southern coast, where US explorer Noble Energy discovered a 5-8tcf field in December near the Israeli border.

There are high hopes among explorers that the new blocks available will be equally productive.

On December 28th Noble Energy, Inc. made an official announcement of a natural gas discovery at the Cyprus Block 12 of the Aphrodite Gas Field, offshore Cyprus.

Results from the Cyprus A-1 well indicate from 5 to 8 trillion cubic feet of gas and could be enough to power all the electricity on the island for 210 years.

“The gas discovery in the exclusive economic zone of our country creates great prospects for Cyprus and its people, which we shall seriously, prudently and collectively exploit to serve public interest,” said Cypriot President Demetris Christofias at a press conference following the announcement. “Cyprus is coming into Europe’s energy map with prospects of substantially contributing to the EU’s energy security.”

The Republic of Cyprus has started surveying for natural gas, and it’s been estimated that the country’s undersea reserves are worth billions of dollars.

“If you want an indication (of the value of the gas), if you consider that 6,000 cubic feet is equal to one barrel of oil, then approximately 7 tcf is equivalent to one billion barrels, and to give an indicative value of these deposits based on the barrel analogy, the deposits in one of the 13 blocks are worth around €100 billion in value,” said the country’s Commerce Minister, Praxoulla Antoniadou.

Houston-based Noble Energy pointed out in their statement that the field covers about 100 square kilometers and will need additional appraisal drilling before development.

Ask us anything you want related to setting up or running an offshore company in the form below, and we’ll answer it!

Fact: Offshore Companies are Legitimate, Popular and an Effective Means of Tax Planning.

If you’ve never dealt with an offshore company and somebody told you they were using one to save on taxes, what would be your first thought?  Wouldn’t you wonder if that person was doing something illegal?

It’s true, offshore companies have a doubtful reputation on the international arena due to the numerous cases when people used these companies to hide their wealth while concealing their identity.

Despite that, offshore companies ARE very legitimate and effective means of lowering tax payments and securing one’s assets.  At the moment, there are over 60 countries that in one or another way offer tax breaks to its tax residents – companies registered in that country, but doing business outside of it.

In Cyprus, for example, the corporate tax is only 10%.  So, when Cyprus company carries out trading activities with a country, with which there is a double tax treaty agreement, the profits are taxed at 10% versus 15/20/15% of the other country.  It allows for significant savings on taxes.

Additionally, offshore companies GREATLY CONTRIBUTE to global economies.  According to various statistics, 35-50% of the worldwide money turnover goes through companies registered in offshore zones and close to 60% of the global monetary supply is held in the offshore companies accounts.

So, you CAN play by the rules and still majorly and legally save on taxes.

The question is not IF your business benefit from an offshore company, but what structure to use.

Get in touch with us, and we’ll talk about.

Have you ever thought about why you choose one service provider over another?

If you google “Cyprus companies,” you will get a huge list of firms in essence offering the same services as we do.

So, if you don’t have anyone to ask for a referral, how do you go about selecting “the one”?

The common route is to compare service providers based on what they sell and how different their services and prices are.

But what if I told you that’s not what you should concentrate on?

Let me give you an example.

A few months ago I was looking for a web designer.   The task was not difficult considering that there is no shortage of them.   Yet, it took me three months.   Three longs months of thoroughly analyzing and comparing the work of equally qualified professionals.

And who did I pick in the end?

A girl, who I once knew and heard that she was good at what she does, but whose site I just glanced at and whose portfolio I never asked for.  I accidentally saw her post that she had started her own studio.  Out of politeness I sent her a message congratulating her.  She was all excitement when she said: “Yes, I now help my clients to make their dream sites a reality.”

And that’s when I knew that I have found my perfect web designer.

Think about it.  Don’t you make your choices the same way?  You go with your gut feeling.  You rely on WHY people do what they do.   Because then yours and your service provider’s goals are perfectly aligned.

It is easy to make decisions by putting negatives on one side of the scale, positives on the opposite and see what side overweighs the other.   But this method can easily fail you.

What will never fail is when you look for a service provider who shares the same fundamental purpose as you do.

So what does Christophi & Associates stand for?

Our fundamental purpose is to make sure that our clients have control of every aspect of their businesses even when they are thousands of miles away.

We do it by advising our clients the best possible and profitable scenario(s) of using offshore companies and by ensuring that these companies are run like a well-oiled machine.

If that is what you need in your business we are THE ONE.
E-mail us at office@lawyer.com.cy.  

Ten years ago when I was applying to grad schools with my Cyprus diploma, there were a couple of occasions when, to my shock, I was asked where Cyprus was.

Since then things have changed.  Cyprus popularity grew and reputation strengthened, especially, in the area of international tax planning.   But will this trend continue?  Is it really worth it to invest in Cyprus?

It depends on whether you see a correlation between the security of your investment and the wealth of the country you are investing into.

How wealthy is Cyprus?  Arguably, the richest country in Europe.

What would secure Cyprus that position?  The natural gas recently found off the south coast of the island.

The news broke in September when an American drilling company Noble Energy made the first announcement about the traces of a gas field in the Mediterranean Sea 160km south of Cyprus.

The size of the deposit is yet to be determined, but things look very optimistic.  According to Noble Energy’s November report the reserve could be 30-40% bigger than the initial estimate of 3.5 to 9 trillion cubic feet.

On the world scale it’s not that much, but it will be enough to make Cyprus the energy hub of Europe and, probably, the richest European country.

For Cyprus residents it would mean a greater per capita income.  For the investors, on the other hand, even better investment conditions and further tax breaks.

Stay tuned to the official announcement of Noble-Energys’ findings in mid-December and practical advice on how you could benefit from the situation.

The Council of Ministers has in recent years announced a policy according to which it will examine favourably applications for citizenship provided certain investment criteria are satisfied.

The main pillars of this policy are:

Direct Investments: The applicant should have direct investments in Cyprus of more than €25 million), i.e. land, offices, factories etc

OR

Entrepreneurial Activities: The applicant should have established in Cyprus a company/ companies with a total annual turnover over €85 million in the year preceding the application year

OR

 Introduction of new and innovative technologies, research centres: The applicant should prove that by his activities he has introduced to large extent new and innovative technologies in major sectors of the Cyprus economy or has created a significant research centre on a large scale for locally conducted research.



OR

Bank Deposits: The applicant should have personal deposits in Cyprus banks or deposits of privately owned companies (controlled by him) in Cyprus of over €17 million  with a five year duration period.

OR



Combination of the Direct Investments, Entrepreneurial Activities and Bank Deposits: The applicant should have €25 million through a combination of the above.

Employment of alien artists/musicians/ artistic ensembles

The Civil Registry and Migration Department grants Entry/Temporary Residence and Work Permits to alien artists, who will be employed in musical – dancing places providing entertainment.

The applications for these cases are submitted through artistic agents, according to the process followed, who are also responsible for the normal residence of the alien artists in Cyprus.

Moreover, this Department grants for individuals, companies, hotels etc. Entry/Temporary Residence and Work Permits to artists, who will work in hotel units, in theatres, circuses and for other cultural events, for a few days only.

Applications are submitted to the Civil Registry and Migration Department through the District Aliens and Immigration Branches of the Police.

Required Documents

(a) Application on Form M.58A.

(b) A photocopy of alien’s passport.

(c) A Bank letter of guarantee €342-855, depending on the country of origin of the alien, to cover possible repatriation expenses.

(d) A return ticket.

(e) A certificate from the Commissioner of Inland Revenue that the artist’s income tax has been paid.

(f) €34,20 (Fees for submission of application).

Employment of alien workers (General Categories of Employment) and domestic assistants

The granting of employment permits for alien workers is governed by the Aliens and Immigration Legislation as well as by the Decisions of the Council of Ministers and the Ministerial Committee dealing with aliens from time to time.

Issue of Entry and Work Permits

Applications for the issue of Entry and Work Permits in General Categories of Employment are submitted to the Civil Registry and Migration Department by the intended employer, through the respective District Aliens and Immigration Branch of the Police, on condition that the aliens are abroad. The applications should accompanied by a work contract stamped by the Department of Labour of the Ministry of Labour and Social Insurance, which is competent to examine whether regarding the specific profession or job there are no available or adequately qualified Cypriots and then to make a recommendation for employment of aliens. The applications are forwarded to the Civil Registry and Migration Department and after they are examined and it is established that there is nothing against the aliens which prevents their entry into Cyprus, the relevant Entry and Work Permits are issued.

Regarding aliens employed as domestic assistants, the same process referred to in the case of the other alien workers is followed except that the contract is not stamped by the Department of Labour, because the criteria for granting the relevant permits have been defined by the Council of Ministers. According to the said criteria, the employment of alien domestic assistants may be allowed in the following cases:

(a) Families of which both the husband and the wife work, that is they pay contribution to the Social Securities Fund and have children under the age of 12 are allowed to employ domestic assistants.

(b) When the family has a declared income of more than €51.300 annually.

(c) When alien women are to take care of aged persons, invalids, persons with special needs or persons suffering from a serious illness as a result of which they are incapable of taking care of themselves.

Required documents:

(a) For General Categories of Employment

1. Application on forms M.58 and M.64

2. A photocopy of alien’s passport

3. A clean criminal record certificate of alien

4. Medical certificates of alien

5. A Bank letter of guarantee for €342-855, depending on the country of origin of the alien, to cover possible repatriation expenses, valid for six months after the expiration of the work contract

6. A work contract, stamped by the Department of Labour of the Ministry of Labour and Social Insurance and stamped with a revenue stamp from the Revenue Stamps Registrar.

7. €34,20 (fee for submission of application)

(b) For Domestic Assistants

1. Application on form M. 58.

2. A photocopy of alien’s passport

3. A work contract stamped with a revenue stamp from the Revenue Stamps Registrar (€7,70 for each year of employment).

4. A Bank letter of guarantee for €342-855, depending on the country of origin of the alien, to cover possible repatriation expenses, valid for six months after the expiration of the work contract.

5. Birth certificates of children (where applicable).

6. A certificate from the Social Securities Department that both parents work and make contributions (where applicable).

7. A certificate from the Inland Revenue Department that the annual income of the applicant’s family exceeds the amount of €51.300 (where applicable).

8. Medical certificates and other documents regarding persons incapable of taking care of themselves (where applicable).

9. Documents regarding pensioners and aged people such as particulars about pension, date of birth etc. (where applicable).

Renewal of Residence and Work Permits

For the renewal of the Temporary Residence and Work Permit of aliens, it is necessary to submit an application on form M.61 through the District Aliens and Immigration Branch of the Police and to pay a fee of €34,20. Before the submission of the application the alien is registered at the District Aliens and Immigration Branch of the Police. For this registration the alien’s passport, three photographs of his and a fee of €34,20 should be produced.

Employment of Aliens with International Business Companies

1. ELIGIBLE COMPANIES

1.1. In order to protect the good name and economic interests of Cyprus, it has been decided that all companies (including ex IBCs) eligible to employ third country nationals on the island, are limited to those which:

• Belong to groups with transparent ownership and sources of capital and whose ultimate shareholders are approved by the Civil Registry and Migration Department or to public corporations quoted on any recognized stock exchange
• Operate from their self-contained office:

a) located in suitable distinct premises, not part of a private residence or another office
b) equipped with appropriate office and telecommunication facilities
c) open during normal office hours and staffed with full time personnel

• Prove, on the basis of their annual financial statements, that they are continuously operating and they are financially sound and credit worthy.

2. EMPLOYEE CLASSIFICATION

2.1. Eligible BCs may employ third country nationals in executive positions on the island. The maximum number of such executives is three (3), unless the Director of the Civil Registry and Migration Department is persuaded that a greater number is justified.

2.2. A third country national who wishes to be employed in an executive position on the island, must:

• be at least 24 years old
• have suitable qualifications
• receive appropriate remuneration

* EU Nationals

Applications by EU Nationals must be completed on forms MEU accompanied by the relevant documents and a fee of €8.55. Application forms are available at the Civil Registry and Migration Department of the Ministry of Interior and at the District Aliens and Immigration Branches of the Police. They are also available at the web site of the Ministry of Interior: moi.gov.cy. Applications by executive staff are made to the Civil Registry and Migration Department and by non-executive staff to the District Aliens and Immigration Branches of the Police.

2.3. The minimum acceptable annual salary for newly appointed executives is €41.040. This amount may be adjusted annually by the authorities according to fluctuations in the salaries index.

2.4. The term “executive” includes third country nationals registered as
(i) Directors or
(ii) Partners
(iii) General managers of subsidiaries and branches of publicly quoted overseas companies and
(iv) Department Managers of BCs operating from Cyprus for at least 2 years.

The term “non-executive”, refers to third country nationals who do not fall under the aforementioned 4 categories and who may be employed in managerial, professional, administrative, technical or clerical positions on the island.

2.5. BCs are expected to recruit non-executive staff from within the island. They may employ third country nationals in non-executive positions if comparable Cypriot personnel or EU Nationals are not available. BCs are advised not to commit themselves to employing a third country national via a non-executive position in Cyprus before first securing his Temporary Residence Permit from the Civil Registry and Migration Department.

3. ADMINISTRATIVE PROCEDURES

3.1. General

3.1.1. The Director of Civil Registry and Migration Department, is the authority responsible for the first issue and subsequent renewals of Temporary Residence Permits granted to all non-Cypriots employed by BCs in Cyprus. The Director of Civil Registry and Migration Department acts in consultation with other competent authorities such as:

• The Registrar of Companies
• The Labour Department of the Ministry of Labour and Social Insurance
• The Cyprus Police

3.1.2. The above mentioned authorities provide advise to the Director of Civil Registry and Migration Department concerning matters falling within their sphere of competence. The Director takes into account their recommendations and replies to the applicants directly.

3.2. First Permits

3.2.1. Executive staff

The application for an executive’s First Temporary Residence Permit is made to the Civil Registry and Migration Department. The Civil Registry and Migration Department issues to the applicant executive his first Temporary Residence Permit within one month, unless his case warrants for further consideration. The application form must be accompanied by the following original documents:

3.2.1.1. In respect of the company

• Certificate of Registration
• Memorandum and Articles of Association by the Registrar of
• Certificate of Directors and Shareholders* Companies
• Certificate of Registered Office
• Profile describing the nature of the company’s business and details of its office operations and staff requirements in Cyprus
• List showing the names of the Directors and Shareholders with their passport number, nationality and addresses abroad
• In case of new BCs, lease agreement for its office in Cyprus (if not available, it should be presented to the Civil Registry and Migration Department within 2 months)

3.2.1.2. In respect of the executive staff

• Contract of employment, stating annual salary and service duration by the duly stamped Commissioner for Stamp Duty.

A. New Companies

• Proof that both the applicant and members of his / her family have adequate funds so that then may not become a burden on the social Welfare System of the Republic during the validity of their permit for at least one year and until the company will operate fully. Such proof could be the equivalent amount to a year’s salary deposited in a local bank and presentation of monthly statements of this account.

or

The production of a relevant certificate by the Registrar of Companies, testifying that the issued and paid up share capital of the company is €42.750. This is required for the employment of up two (2) executive members of the company. In respect of the employment of more than two (2) persons, in an executive capacity, a Bank Recommendation should be produced by a Cypriot Bank, testifying the company’s competency with the financial applications stemming from the employment of (the persons in question).

B. Existing Companies

• Forms M61 (application for Temporary Residence Permit) and M64 (application for employment permit) fully completed and duly signed.

* In the event of another company being the shareholder, and if the company in question is a Cypriot Company, then a certificate of shareholders is required from the Registrar of Companies. If the said company has been registered overseas, then a certificate of shareholders is required from the relevant Authority of the country in which the company is registered.

• Copy of applicant’s C.V.
• Copy of passport’s data pages
• Certificate of criminal record
• Bank Guarantee from the employer
• Medical certificate
• Medical insurance certificate
• Fee: €34,20

3.2.2. Non-executive staff

3.2.2.1. In respect of the company (same as in paragraph 3.2.1.1. above) i.e.:

• Certificate of Registration
• Memorandum and Articles of Association by the Registrar of
• Certificate of Directors and Shareholders Companies
• Certificate of Registered Office
• Profile describing the nature of the company’s business and details of its office operations and staff requirements in Cyprus
• List showing the names of the Directors and Shareholders with their passport number, nationality and addresses abroad
• In case of new BCs, lease agreement for its office in Cyprus (if not available, it should be presented to the Civil Registry and Migration Department within 2 months)

3.2.2.2. In respect of the non-executive staff

The application by a non-executive member of staff who is a third country national is made to the District Aliens & Immigration Police Branch. The application must be accompanied by:

• Contract of employment, stating annual salary and service duration stamped by the District Labour Office
• Forms M61 (application for Temporary Residence Permit) and M64 (application for employment permit) fully completed and duly signed
• Copy of applicant’s C.V.
• Copy of passport’s data pages
• Certificate of criminal record
• Bank Guarantee from the employer
• Medical certificate
• Medical insurance certificate
• Fees €34,20

3.3. RENEWAL OF PERMITS

3.3.1. The applications by executive members of staff are submitted to the Civil Registry and Migration Department together with a certificate of the annual movement of the company’s accounts that prove the normal functioning of the company by the Registrar of Companies and the tax clearance issued by the Inland Revenue Department in addition to the documents mentioned under paragraph 3.2.1.2. (except the certificate of criminal record) and copy of their Aliens Registration Card.

3.3.2. The applications by non-executive members of staff are submitted to the District Aliens and Immigration Branches of the Police with a copy of the previous permit, a copy of the Aliens Registration Certificate (ARC), the tax clearance issued by the Inland Revenue Department in addition to the documents mentioned under paragraph 3.2.2.2. (except the certificate of criminal record).

4. The above procedures are considered necessary for the transitional period until new legislation for Aliens & Migration is enacted following the termination of the role of the Central Bank in these procedures.