The Cyprus Government has revised the criteria for granting the Cypriot citizenship, making it one of the most attractive schemes in the European Union. The revised scheme is part of the Cyprus Government effort to encourage foreign direct investment and attract high net worth individuals to settle and do business in Cyprus.
KEY CHANGES
- Minimum Investment: €2 million.
- Any investor can apply individually - Collective Investments have been abolished.
- The investment in special government bonds of the Republic of Cyprus is now limited to the amount of €500.000.
CRITERIA
A. Investment in real estate, land development and infrastructure projects
The applicant has to make an investment of at least €2 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector) or other infrastructure projects.
It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded.
B. Purchase or Establishment or Participation in Cypriot Companies or Businesses:
The applicant has to make a purchase or should have participated in companies or organizations established and operating in the Republic of Cyprus with investment costs of at least €2 million. The invested funds shall be channeled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan.
The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five (5) Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invests simultaneously or almost simultaneously in the same business or company. In addition, the employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date.
C. Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec:
The applicant shall buy units of at least €2 million from alternative investment funds (AIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Scheme or in areas approved by the Minister of Finance.
In order to confirm that the investments that meet the criteria of the current Scheme will be kept for at least three years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministries of Finance and Interior with reference to the value of the initial investment.
The purchase of financial assets of Cypriot companies or organizations of at least €2 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion.
It is noted that the purchase by an AIF of units of other AIFs is not considered eligible.
D. Combination of the aforementioned investments:
The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least €2 million.
If the applicant chooses the combination of investments it may also invest in special government bonds of the Republic of Cyprus, an amount no more than €500.000, which will be issued by the Public Debt Management Office of the Ministry of Finance, on condition that the investor will retain these bonds for a three year period. The characteristics and the terms of these special bonds will be determined by the General and Special Issue Terms of the Government Bonds of the Republic of Cyprus. Investments in government bonds through the secondary market are not considered eligible.
TERMS AND CONDITIONS
- Clean Criminal Record.
- Residential Property in the
Republic of Cyprus
In all cases listed above (A, B, C and D), the applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000 plus V.A.T.
It is noted that members of the same family, who apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of €500.000 per each applicant.
In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, part of this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria of above.
It is also noted that in case the applicant has invested in real estate (Criterion A), the purchase of another permanent residence in Cyprus will not be required, if any of the housing units is worth at least €500,000, plus VAT, provided that the applicant retains the possession of the residence for life. - Residence Permit in
Cyprus
The applicant must hold in advance a residence permit in Cyprus. The immigration permit may be submitted simultaneously with the application for citizenship. If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of the revised scheme, there are no other conditions than those stated in both in the criteria and the terms and conditions of this scheme.
It is noted that all of the above also apply for the adult members of the family of the investor, who will apply for naturalization.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
