Most Popular Article in British Virgin Islands, October 2016
Amendments to the Cyprus citizenship by investment programme in
September 2016 have amplified its appeal, leading to increased
interest from foreign nationals.
The changes include:
The investment amount has been
reduced from €5 million to €2 million plus VAT, provided
the investment is in one or more residential immovable properties,
one of which is at least €500,000 plus VAT in value. For all
other investments the amount is €2 million plus a residential
property of at least €500,000 plus VAT.
It is no longer necessary to be
grouped in a collective investment application with other
applicants making it now possible to proceed individually on the
basis of the thresholds in the first bullet point above. The
previous requirement for collective investment applications of at
least €12.5 million led to delays until a group of 5 or more
applicants (which had invested at least €2.5 million) were
grouped together in order for a collective investment application
to be submitted.
Importantly, the applicant's
parents are now entitled to apply for citizenship through the same
application, provided the parents have also purchased a permanent
residence in Cyprus of at least €500,000 plus VAT.
The investments attached to the
application must remain for a minimum of three years, noting
however that in order for Cyprus citizenship to remain valid the
permanent residence valued at €500,000 plus VAT or more must
be held indefinitely.
The maximum investment in Cyprus
government bonds is now €500,000.
Effective 31 October 2016, the
provision of fixed bank deposits for three years is abolished from
the citizenship by investment programme. In the event an applicant
wishes to proceed with an application for citizenship by investment
using a fixed bank deposit, he/she may do so until 31 October
Qualified applicants can be granted Cyprus citizenship approval
within 90 days from submission of all necessary documents, making
the Cyprus citizenship programme the fastest in Europe.
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.
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Now that the United Kingdom has served notice to leave the European Union under Article 50 of the Lisbon Treaty, managers of offshore funds have a clearer timetable for when Brexit will happen, with the UK scheduled to leave the EU in March 2019.
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