The Government of Cyprus has announced that the Cyprus Citizenship by Investment Programme will be closing effective from November 1, 2020.

Cyprus Citizenship by Investment

Key Benefits of the Cyprus Citizenship

There are many ways that you can benefit from Cyprus citizenship. Apart from feeling truly at home on this beautiful island and enjoying all the rights that accompany full citizenship status, a few salient points always stand out.

Most of them are a result of Cyprus membership of the European Union.

Freedom of movement,Work and study

As a European Union citizen with a Cyprus passport, you will enjoy freedom of movement, as well as the freedom to work and study anywhere within the European Union.

Visa-free travel

A Cyprus passport allows you to travel to 18 countries visa-free. In cases where visa requirements are in place, the process is much smoother with an EU passport.

Mobility

Even if you don’t intend to live in Cyprus immediately, you will be free to relocate at any time, whenever you  are ready.

Independence

Having second citizenship and passport offers you a valuable sense of independence and flexibility.

Security

With your Cyprus passport in hand, you have the option to permanently reside or retire in one of the world’s safest countries.

Protection

As a Cyprus citizen you enjoy the protection provided by the social and legal system.

Cyprus Citizenship by Investment Program Highlights

Cyprus Citizenship is available for foreign investors, under the scheme for naturalization by exception on the basis of Section 111A / 2 of the Civil Registry Laws, who meet one of the following economic criteria;

The Cyprus Government’s recently revised Citizenship-by-Investment Program is regarded by many as the best in the world, as it is the perfect response to the needs of High Net Worth Individuals.

• Investment options starting from €2 million
• Government donation  €150,000
• Interesting investment opportunities in state telecoms, energy and ports companies, real estate and offshore gas fields
• Approval of citizenship application within 3 months
• Cyprus / European Union passport granted within 6 months from the date of application
• Investment, not a donation
• No need to reside in Cyprus
• High rate of approval
• Currently tax-free exit
• Simple and straightforward process
• Flexibility

How to qualify for the Cyprus Citizenship by Investment ?

Financial Criteria

1. Investment in real estate, land development or infrastructure projects

The applicant should have made an investment of at least € 2 million for the purchase or construction of real estate, or the creation of developments in the tourism sector, or the infrastructure.

This criterion also includes investments  in buildable land, provided that the application includes an investment plan for its development.

Plus government donation of € 150,000.

TOTAL INVESTMENT € 2,150,000

2. Purchase of establishment or participation in Cypriot business and companies

The applicant should have purchased, established or participated in business or companies established and operating in the Republic of Cyprus, with an investment of at least € 2 million. These invested funds will have to be used to finance the investment objectives of those businesses and companies exclusively in Cyprus, on the basis of an investment plan.

The business or companies in question must demonstrably have a physical presence in Cyprus, with substantial activity and significant turnover, and employ at least five (5) Cypriot citizens or citizens of the European Union who have held legal and continuous residence in Cyprus for a minimum period of five (5) years immediately preceding the date of application.

3. Investment in Alternative Investment Funds or financial assets  of Cypriot enterprises  or Cypriot organizations licensed by the Securities and Exchange Commission.

The applicant should have purchased units amounting to at least € 2 million  from Alternative  Investment Funds (AIF) established  in the Republic of Cyprus, licensed by the  SEC and supervised by it, and whose investments  are made exclusively in the Republic of Cyprus, in projects  that meet the criteria  of this Plan  or in areas approved by Minister of Finance. Such investment must be maintained for at least 3 years.

This criterion also covers the purchase of financial assets of Cypriot businesses or organizations for at least €2 million, in the form of  bonds, securities and debt securities, which have been issued following an approval by the SEC, by companies which have proven physical presence and substantial economic activity in the Republic of Cyprus.

The purchase of units by AIFs of other AIFs does not satisfy this criterion.

Qualitative Criteria

In addition to the financial criteria, applicants are also expected to satisfy the following qualitative criteria:

1. Clean Criminal Record

The applicant must have a clean criminal record. Furthermore, his name must not be included on the list of persons whose property has been ordered to be frozen within the boundaries of the European Union.

2. Residence in Cyprus

Before his/her naturalization as a Cypriot citizen, the applicant must hold a residence permit in the Republic of Cyprus for at least 6 months. If the applicant does not already hold a residence permit, he/she can apply for an immigration permit simultaneously with his/her for naturalization.

3. Residential property in the Republic of Cyprus    

In all cases the applicant must hold a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000,  plus VAT. If the market value of the permanent proprietary residence in the Republic of Cyprus exceeds €500,000, part of this additional amount can be used to supplement the amount of the investment. If the applicant has made investments in residential unit(s) on the basis of the aforementioned criterion, he/she will not be required to proceed with the purchase of another proprietary permanent residence in the Republic of Cyprus, if at least one of these housing units is worth at least €500,000, plus VAT, and provided he/she will keep such permanent residence for life.

What documents are required to apply to the Cyprus Citizenship by Investment?

In order for an application to be examined, form (M127) and the following documents must be submitted:

1.   Clean criminal record

Certificate of Clean Criminal Record from the country of origin and from the country of residence (if different).

2. Permanent private residence in Cyprus

(a) Sale And Purchase Agreement

(b) Ownership title or proof of submission of the Contract to the the Department of Land and Surveys

(c) Evidence of payment of the agreed purchase price

(d) Remittance from abroad to the Cypriot commercial bank in the name of the seller or the seller’s company

(e) Valuation certificate from an Independent Professional Valuer, as demanded by the  Ministry of Interior or the Ministry of Finance.

3. Financial Criteria (as applicable)

(a) Certificate of Registration of the company/companies from the Registrar of Companies

(b) Certificate of Shareholders from the Registrar of companies or certificates proving that the investor is the ultimate beneficiary of the company

(c) Audited accounts of the company/companies for the last three years preceding the year of application

(d) If the applicant is a senior manager, the presentation of his/her employment contract and Confirmation of Receipt by the Tax Department is required

(e) If the investment is made by the spouse of the applicant or jointly with him/her, the relevant marriage certificate must be submitted

In addition, the following are required for each type of investment:

Investment in real estate, developments and infrastructure projects

1. Sales and Purchase Agreement
2. Ownership title or proof of submission of the Contract to the Department of Land and Surveys
3. Evidence of payment of the agreed purchase price
4. Remittance from abroad to the Cypriot commercial bank in the name of the seller or the seller’s company
5. Valuation certificate by an Independent Professional Valuer as demanded by the Ministry of Interior or the Ministry of Finance.
6. Investment plan for land development in case of investment in building plots.

Purchase or establishment or participation in Cypriot business and companies.

1. Sales and Purchase Agreement
2. Proof of payment of the agreed purchase price
3. Certificate of Registrar of Companies for the shareholders
4. Remittance from abroad to a Cypriot commercial bank in the name of the Seller or the Seller’s company
5. Specific investment plan
6. Copies of employment contracts of the Cypriot and European Union citizens employed in the company in which the applicant made an investment
7. A certificate from the Social Insurance Department of the insurable earnings of the employees in the company in which the applicant made an investment
8. A copy of the Insurance Account from the Social Insurance Services for each of the Cypriots or EU citizens employed
9. Confirmation of Registration of an EU citizen (MEU1) or Certificate of permanent residence of EU citizens (MEU3) for workers who are nationals of Member States of the European Union.

Investment in Alternative Investment Funds or financial assets of Cypriot undertakings or Cypriot organizations licenced by the Securities and Exchange Commission

1. Title(s) and other documents of financial assets
2. Remittance from abroad to a Cypriot commercial bank in the name of the business or organisation
3. Specific investment plan
4. Certification by the CYSEC

Combination of Investments – Investment in Government bonds

1. Proof from the Public Debt Management Office for the purchase of special government bonds
2. Remittance from abroad to the account of the Treasury of the Republic of Cyprus

Note 1: The above does not constitute an exhaustive list. The Ministry of Interior and the Ministry of Finance reserve the right to request any additional documents they may see fit for purpose.

Note 2: All the documents issued by the foreign authority must be translated to Greek or English and duly certified. They should bear the stamp “APOSTILE”, if they are issued by countries that have signed the Hague Convention, otherwise they should be stamped by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country.

What are the governmental charges of Cyprus Citizenship by Investment?