Lebanese Market
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L E B A N E S E M A R K E T<br />
Zillien Property Consultants
I S B U Y I N G P R O P E R T Y I N C Y P R U S A G O O D I N V E S T M E N T ?<br />
As a large Mediterranean island, Cyprus boasts long stretches of gorgeous<br />
beaches, a tranquil lifestyle under the sun, and reasonably priced luxury villas.<br />
This makes it incredibly tempting for expats to buy real estate in Cyprus, with<br />
most families choosing to either relocate or possess a second home in this piece<br />
of paradise.<br />
For many years Cyprus has been a popular destination for <strong>Lebanese</strong> investors<br />
who are seeking to pursue business opportunities and/or set up a second home<br />
for their families due to the geographical and cultural proximity of Lebanon and<br />
Cyprus, as well as the island’s popularity as a close-to home safe getaway. Due to<br />
the constant political instability, the impact of COVID-19 and the economic<br />
downturn that Lebanon is facing, Cyprus is experiencing a considerable increase<br />
in enquiries from <strong>Lebanese</strong> nationals in relation to the Cyprus’s Permanent<br />
Residency Programs.<br />
In addition to Cyprus’s competitive legal and tax framework, Cyprus Permanent<br />
Residency programs, allows non-European Citizens to legally reside in the<br />
Republic and provide their families with stability, safety and higher quality of<br />
life.<br />
OWNING CYP RUS PROPERTY: TOP BENEFITS
S P O T L I G H T O N L I M A S S O L<br />
In 2014, Limassol was named by TripAdvisor as one of<br />
its Top Ten Destinations on the Rise, and the city has<br />
been growing in popularity ever since.<br />
Its sun-soaked beaches and bustling nightlife make<br />
Limassol a hot destination year-round.<br />
Limassol has become Cyrpus’ main hub for<br />
international business. The country is emerging as a<br />
prime financial centre in the Mediterranean, and<br />
Limassol is at its heart.<br />
With easy access to two international airports, Larnaca<br />
and Paphos, contemporary hotels and business centres,<br />
Limassol is an ideal gateway for business and<br />
investments to Europe, Asia and the Middle East.<br />
A beachfront oasis for the digital age, the city’s network<br />
connections are fast and reliable.
TWO TYPES OF PERMANENT RESIDENCY PROGRAMS<br />
PERMANENT RESIDENCY CATEGORY (6.(2)) (FAST TRACK)<br />
Investment Criteria:<br />
1. The Investor must purchase a house or apartment from a development company, which should concern a first sale of at least €30 0,000 (plus VAT).<br />
2. The Investment can be for any other types of real estate such as offices, shops, hotels or related estate developments or a c ombination of these with<br />
a total value of €300,000. The purchase of interest can be the result of a resale.<br />
3. The Investment of €300,000 can be in the share capital of a company registered in the Republic of Cyprus, based and operating in the Republic of<br />
Cyprus and having a proven physical presence in Cyprus and employing at least five (5) people.<br />
4. The Investment of €300,000 can be in units of the Cyprus Investment Organization of Collective Investments (forms of AIF, AIF LNP, RAIF)<br />
5. The Investor must be able to prove that he/she has at his/her disposal a secured minimum annual income amounting to 30.000 eu ro, which will be<br />
increased with 5.000 euro for each dependent family member and to 8.000 euro for each dependent parent (of the applicant and/ or his spouse). In<br />
calculating the total amount of income, the spouse’s income may also be taken into account.<br />
6. Evidence must be provided that the investment money for a house/apartment has derived from abroad.<br />
Examination Procedure:<br />
1. The applications, accompanied with the required documents, are submitted to the Civil Registry and Migration Department and t he Minister of Interior will grant the<br />
final approval.<br />
2. The examination period of the application from the date of submission will be approximately two (2) months (fast -track).
Dependent Persons:<br />
1. The Permanent Residency Permit issued to the applicant covers as dependents persons the spouse and children under the age of 18.<br />
2. Unmarried children between the ages of 18-25 and who are financially dependent on the applicant, can submit their own applicatio n for the Permit.<br />
3. The Permit may also be granted to the children of the applicant over the age of 18 who are not financially dependent on the a pplicant, on a higher<br />
value investment.<br />
4. Additionally, the applicant’s parents and parents-in law can proceed with the submission of separate applications.<br />
Conditions and Specifications:<br />
1. Employment in Cyprus is strictly prohibited; the annual income must be derived from sources abroad. (Pensions, dividends, emp loyment income)<br />
2. The applicant and/or spouse may be a shareholder(s) in a company incorporated under the laws of Cyprus. Income deriving from the Company in the<br />
form of dividends is not deemed an impediment for the purpose of obtaining an Immigration Permit<br />
3. The investor must visit the Republic of Cyprus at least once every two years (and all the family members that are included in the applicant’s permit)<br />
4. The applicant’s presence in Cyprus is not necessary during the examination of this application.
PERMANENT RESIDENCY CATEGORY (F)<br />
Criteria:<br />
1. The applicant must possess and have fully and freely at their disposal a secured annual income of at least €20,000, without h aving to be engaged in<br />
any business, trade or profession during their stay in Cyprus. For every dependent person this amount must be increased for a t least €5.000 more.<br />
2. The purchase of a property can be of any value and the rental of a property can be an option as well.<br />
3. Under this Category, the applicant and his spouse are not allowed to engage in any form of business or employment in Cyprus.<br />
Examination Procedure:<br />
1. The processing time for this type of application can take approximately 18 months from the submission date.<br />
2. The applications, accompanied with the required documents, are submitted to the Civil Registry and Migration Department and t he Minister of Interior<br />
will grant the final approval.<br />
Dependent Persons:<br />
1. An application consists of the applicant, his spouse and children under 18 years old. Any children who are 18 years old and o ver must submit a<br />
separate application.<br />
2. Persons who are 18 years old and above cannot apply for PR if they are studying at an educational institution in Cyprus.
Conditions and Specifications<br />
1. If, at the time of applying for Permanent Residency in Cyprus, the applicant and/or his spouse have Permanent Residency in a country other than their<br />
country of origin then their application in Cyprus may be rejected.<br />
2. Once the Permanent Residency is granted, the applicant and his family must visit Cyprus at least once every two years in orde r for their status to<br />
remain valid.<br />
3. The Permit will be automatically cancelled if the applicant fails to acquire residence in Cyprus within one year from the app roval of the application, in<br />
case he/she is residing outside Cyprus. It will also be cancelled if he/she acquires permanent residence abroad or be absent from Cyprus for a period<br />
of two years.<br />
4. The applicant’s presence in Cyprus is not necessary during the examination of this application. If the applicant and his fami ly wish to stay in Cyprus<br />
until their application is examined, then they must make another application for a Temporary Residence Permit as a ‘Visitor’.
L E B A N O N C O R R U P T I O N<br />
• Since October 2019, Lebanon’s financial sector imposed ad hoc capital controls, preventing most <strong>Lebanese</strong> from transferring any money<br />
overseas or withdrawing dollars from their bank accounts, despite the fact that 75 percent of accounts in <strong>Lebanese</strong> banks are<br />
denominated in dollars.<br />
• Lebanon is open to Foreign Direct Investment (FDI). The Investment Development Authority of Lebanon (IDAL) is the national authority<br />
responsible for promoting local and foreign investment in Lebanon covering eight priority sectors: industry, media, technology,<br />
telecommunications, tourism, agriculture, and agroindustry.<br />
• Foreign private entities may establish, acquire, and dispose of interests in business enterprises and may engage in all types of<br />
remunerative activities. <strong>Lebanese</strong> law allows the establishment of joint-stock corporations, limited liability, and offshore and holding<br />
companies.<br />
“Many people in Lebanon are unable to get their money out of the banks due to the undeclared capital control. So, they are tr ying to invest in<br />
real estate, preferably out of Lebanon. This is why we came up with an idea based on a win -win situation scheme. People can pay part of the<br />
amount due for their flats in Lebanon using USD cheques. We use these cheques to buy building material from Lebanon and we th en ship<br />
them to Cyprus”<br />
“We chose Cyprus because it is within close range of Lebanon, the weather is almost the same and we can easily adapt to the p eople and the<br />
mentality”
A RT I C L E S R E F E R E N C E S<br />
• Why the <strong>Lebanese</strong> Choose Cyprus: Move, Live & Invest<br />
(https://www.paraschou.com.cy/why-the-lebanese-choose-cyprus-move-live-invest/)<br />
• <strong>Lebanese</strong> Nationals: Live & Invest in Cyprus<br />
(https://www.vasiliou.law/lebanese-nationals-live-invest-in-cyprus/)<br />
• The Complete Guide to Cyprus Real Estate<br />
(https://www.globalcitizensolutions.com/guide-to-buying-cyprus-real-estate/)<br />
• 2020 Investment Climate Statements: Lebanon<br />
https://www.state.gov/reports/2020-investment-climate-statements/lebanon/