BCS VISA – CYPRUS IMMMIGRATION

Republic of Cyprus is an EU member since 2004 and year after year it attracts foreigners all around the world, from EU countries to America and Asia countries especially for relocation and business opportunities. This foreign interest is more common especially in the last five years where people decide to invest in Cyprus for a better life and to incorporate their own company.

In order to so, the CY Government in partnership with the Immigration Department have provided to their official website ways for third country nationals (Non-EU individuals) to obtain a permanent residence in Cyprus avoiding any issues with their passport entries and living illegally in the Republic of Cyprus.

BCS Benefits in Cyprus

Non-EU citizens who desire to invest in Cyprus, stay for longer than 3 months and have the opportunity to live, work and experience the life of the east Mediterranean island should easily apply for a BCS visa.

What will be the benefits if the applicant receives a BCS visa?

1. The applicant will have the right to live and work in Cyprus for more than three months.
2. The applicant will have the same benefits as the rest of Cypriot citizens.
3. The applicant will be able to relocate with his/her family (and children) and be able to obtain a medical card from the NHS system in Cyprus.
4. The applicant has the rights to own a business and/or work as an employee in a Cyprus registered company.
5. The applicant will have the right to be registered as a non-domicile person (Non-Dom articles here and here) and benefit from free tax Dividends.
6. The applicant’s kids can apply and register in our local schools and continue their learning courses.

It is important to note here that the BCS visa is only valid in Cyprus and not in any other EU country. The applicant should apply for this visa only when there is a consideration for a longer stay and investment in Cyprus. Not for just a temporary visit/stay.

Additionally, the applicants employed in companies incorporated in Cyprus have the right to bring their family. In this case, the close family members of the applicant can reside in Cyprus and proceed with the reunification application procedure in order to be registered as well and be able to live and enjoy the benefits that Cyprus can provide.

If the applicant wants a temporary visit due to an abroad residence/business and wants to benefit from taxes etc, other schemes and visas will apply for each case.

More information about the different types of visa can be obtained here .

BCS Visa required documents

This option for third country foreigners is more ideal were the UBO can proceed with the incorporation of his Cyprus company under the Registrar of Companies and then this company can be registered under a special approval from the Immigration in order to obtain it’s BCS visa.

In the majority of the BCS cases, we have heard and experienced before, the applicants have been well-informed about the general meaning of what the BCS visa can offer them. However, the most common issue in these cases is that the applicants are not informed in respect to the required documents they should gather when applying for a Yellow Slip.

With the help of a service provider, applying for a BCS visa in Cyprus will be very straight forward thing especially when the applicant is a Non-EU citizen and wants to relocate in Cyprus.

All the necessary documentation can be gathered by the service provider and with the help of an official representative, the documents can be submitted to the immigration. Kindly note that the BCS visa is split into two phases during its registration with the immigration. More details on the two phases are mentioned below accordingly.

Phase 1 - Registration of the company – Documents required:

1. All 4 original certificates from the Cyprus Registrar of Companies (Certificate of Incorporation / Certificate of Registered Office / Certificate of Directors).
2. The original certificate of Shareholders proving that the percentage of foreign participation in the company’s share capital is over 50% of the total share capital (in the case where companies are the shareholders, the whole chain of ownership up to the final owners (UBO) should be declared and documented).
3. Director’s Affidavit on the company’s ownership from the Court.
4. UBO’s valid passport/passports.
5. Company’s Memorandum & Articles (M&A).
6. Description of the company’s principal activities.
7. Deposited amount of at least 200,000€ supported by a bank swift which proves a foreign direct investment is made by the UBO legally admitted to his/her Cyprus company from abroad (personal account of UBO or a company that belongs to UBO) – this amount of money can be used to invest in the company (office purchase / office rentals).
8. Title of ownership (Title Deed) or rental agreement of the place of activity of the company.
9. For companies operating over 1 year in Cyprus will additionally need the latest Audited company financial statement and a tax clearance certificate.

Once the above are gathered, the service provider will submit the documents to the official representative before the final submission to the Immigration Department.

This process takes around 1-month for the license to be issued and then the phase 2 should commenced where the employees of the company can be registered.

Phase 2 - Registration of the employees – Documents required:

1. Original signed and stamped MBCS3 form by employer and applicant.
2. Copy of valid passport and arrival date stamp (original will be needed with the submission of the application).
3. Brief CV and true copies of academic qualifications and/or relevant professional experience in the job title field of minimum 2 years.
4. Original contract of employment dully stamped. *
5. Employer’s declaration signed by employer.
6. Original certificate of Clear Criminal Record from the country of origin or the country of residency of the previous year if not the same.
7. Original medicals records. MUST be performed and certified in Cyprus:
   1. Blood Test for four different diseases – HIV, Hepatitis B, Hepatitis C and Syphilis.
   2. X-ray for tuberculosis
8. Rental agreement for the employee’s accommodation dully stamped. **
9. Certificate of Health Certificate Plan A.
10. Employer’s liability insurance.

*The employment contract should be stamped (both original and copy). The employee is required to be receiving a minimum salary of 2,500 Euros.

**The rental agreement/sale agreement should be stamped (both original and copy).

Once the BCS visa is issued, it becomes temporary with validity of up to 2 years and it can be renewed every 2 years.

BCS Visa appointment-meeting

It is important to have in mind that during the process of gathering all the necessary documentation, the applicant’s service provider should be in a communication with the official representative who will be the last person to receive the full set of documents before the submission to the immigration department.

The documents will be reviewed by the official representative and if the documents are complete and approved, then the official representative will make an appointment to the immigration. The applicant needs to be present during the appointment and at the end of the immigration meeting, the BCS visa will be issued and given to the applicant at the same time.

Kindly note that the whole process can be done at any time the third country foreigner decides to relocate to Cyprus either if he/she wants to incorporate a new company or has already an incorporated company in the Republic of Cyprus.

Once the applicant enters Cyprus, he/she has a period of 90 days to stay and do the process with the appropriate help of the appointed service provider. Communication is needed before proceeding with the BCS option in order for the applicant to meet the deadlines.

Ignoring the deadlines and not having the BCS visa, the applicant must leave Cyprus and stay at least 90 days outside of Cyprus in order to have the right to re-enter the country.

Issues when applying for a BCS Visa

Despite the fact that the preparation of a BCS visa application is very straight forward, issues and mistakes might happen in cases where the applicant cannot provide the documents on time or if the documents might be provided incorrectly.

Based on the above said, some issues (happened in previous cases) that the applicants should be aware of in order to avoid any mistakes happen which will conclude to the wrong approach of issuing a BCS visa:

1. Not permanent residence: The applicant should be in a position to rent or buy a property (either a house or an apartment) when entering Cyprus. One common issue that might appear here is when the applicant will not follow the rent approach, but considers to stay in an Airbnb flat for a limited time of period. Following the Airbnb approach will cause issues and the Airbnb agreement will not be valid.
2. Medical records: One of the requirements is the medical records that the applicant has to do when entering in Cyprus. As mentioned above in the list of the required documents, the applicant might ignore the step where the medical tests should be done in Cyprus and therefore the applicant might do it from abroad. This will not be accepted by the Immigration department because the test must be approved, signed and stamped by a local doctor in Cyprus in order to be considered valid.
3. Academic qualification: The applicant must be in a position to provide his qualification degrees and certificates showing that the appropriate knowledge and work expertise is in place. One common issue that might appear here is when the applicant might provide limited documentation for his/her qualification or even not having the appropriate qualification based on the given description of the business activities.
4. Funds to be invested in company’s bank account: A usual issue here is when the applicant might not open a Cyprus bank account for his/her Cyprus company in order to invest the 200,000 euros funds. Instead, the funds might be invested in a personal bank account of the applicant as a result of not covering the requirement as mentioned above.

It is important to note that with the appropriate help of the appointed service provider, these kinds of issues will not appear and it is the role of the appointed service provider to avoid this kind of situation during the preparation phase.

How to mitigate such situations from avoiding to happen during the yellow slip process:

1. Mitigating these issues is very simple. Just follow the instructions of your appointed service provider.
2. If any questions might arise from the applicant’s side, arrange a meeting with the service provider to explain the situation in order to be more understandable during the preparation phase.
3. Gather all required documentation and provide to the service provider on time (avoid late response and communication). As mentioned above, this process should be prepared and submitted within the first month of the applicant’s entry in Cyprus.
4. It is important for the applicant to choose or consult with real estate experts and consider which area is more suitable to live in and be able to get employed.
5. In order for the applicant to transfer the required amount of funds, a bank account should be open for the company purposes.

Interested?

CYAUSE Audit Services has extensive experience in the immigration cases (yellow slip, BCS, visas etc) which has helped tens of newly relocated clients in Cyprus.

Feel free to visit our website or contact us directly at enquiries@cyprusaccountants.com.cy and we will be more than happy to assist you.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

About CYAUSE Audit Services

CYAUSE Audit Services is an Audit & Assurance firm with offices in Nicosia and Limassol in Cyprus. During 2015 we have been awarded by local regulator I.C.P.A.C the A.C.C.A for the Quality of our Audit Services and our Office Procedures. We open bank accounts to local and international companies on a weekly basis anywhere in the world.

Our Partnership with  BKR International  (No 10 Global Accounting Network) and ACCACE Circle (European Network) ensures that we are wired and closely connect in all jurisdictions getting the latest corporate and tax news ensuring our tax planning is accurate and validated before finalisation. Being part of international networks gives us fast access to accurate information for payroll, accounting tax and incorporation.

Feel free to contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 309.