Current policy valid until 14th May 2019, click here to see new policy details which will be valid from the 15th May 2019
On the 13th of September 2016 the Council of Ministers of the Republic of Cyprus introduced the new financial criteria for investors and the modified procedure in obtaining citizenship of the Republic of Cyprus. With an investment of as low €2,000,000.00 plus tax in residential real estate, the investor can secure citizenship for himself/herself, spouse or civil partner and children, as described below.
The Investment criteria:
There are numerous investment options available as part of the citizenship by investment programme which are set out below:
A.1 Investment in immovable property (real estate), developments and infrastructure projects:
The applicant must invest at least €2,000,000.00 for the purchase or construction of immovable property or the creation of residential or commercial developments, either developments in the tourism sector or other infrastructure projects.
Investments in building plots or land which can be developed are acceptable investments under this criterion provided that a business/investment plan for the development of the land purchased must accompany the application for citizenship.
If the investor invests €2,000,000.00 in residential real estate then one of the units must be of a value of at least €500,000.00 and must be kept by the investor so long as the investor wishes to retain his/her citizenship.
A.2 Purchase or incorporation or participation in Cypriot businesses and companies:
The applicant must purchase, incorporate or participate in businesses or companies, established and operating in Cyprus, at an investment cost of at least €2,000,000.00. The investment capital made by the applicant will have to be used for funding the investment of the businesses or companies exclusively and only in Cyprus, on the basis of the investment /business plan submitted with the application.
The businesses or companies must have physical presence in Cyprus, with substantial activity and a significant turnover and employ at least (5) five Cypriot or EU nationals who for five years prior to the filing of the application lived legally and continuously in Cyprus.
A.3 Investments in Alternative Investment Funds (AIFs) or financial assets of Cypriot businesses or
organizations which are licensed by CYSEC (CYPRUS SECURITIES AND EXCHANGE COMMISSION) The applicant must purchase units of at least €2,000,000.00 from AIFs established in Cyprus and licensed by CYSEC. The investments must be made exclusively in Cyprus and should meet the criteria of this scheme or be in sectors approved by the Minister of Finance.
A.4 Combination of the above investments
The applicant may invest in a combination of the above investments (A1.-A.3) provided that the total investment is at least €2,000,000.00 (plus a residence of a value of at least €500,000.00). Under this criterion the applicant may include an investment in special government bonds of Cyprus up to the amount of €500,000.00.
The spouse and minor children of the applicant are also entitled to apply for citizenship as well as financially dependent adult children up to the age of 28.
The civil partner of the applicant may also be eligible to apply for citizenship provided that the applicant satisfies the economic criteria.
Parents of the investor, once the investor son or daughter is approved for naturalization, are entitled to apply for citizenship but must also have purchased before submission of their application a dwelling of least €500,000.00 plus VAT.
SIMPLE STEPS IN THE CITIZENSHIP PROCESS
Step 1 – Investor comes to Cyprus to look at potential investments. Investments are then made and concluded with funds from outside Cyprus. Our firm undertakes the necessary legal work such as due diligence, investigations and draft contracts in favour of the investor. In addition we ensure that safety mechanisms are in place and bank guarantees so ensure that the investors' position is protected where he/she is purchasing under construction real estate is protected.
Step 2- We prepare the citizenship application and supporting financial and personal documents of applicant and spouse or civil partner.
Step 3- Application for citizenship is submitted and investor with spouse visit Cyprus to complete process and apply for residency with our assistance and guidance.
Step 4- Application processing time takes 6 months.
Step 5- Upon approval the citizenship application the applicant visits Cyprus with spouse and minor children. Naturalization is concluded and passports are issued.
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.