On September 13th 2016 the Cyprus Council of Ministers approved several amendments to the Scheme for Naturalisation of Investors in Cyprus by Exception, s 111(A) of the Civil Registry Laws of 2002-2015, in an effort to further promote interest in Foreign Direct Investment as well as streamlining the process and providing a larger degree of accessibility.
Latest amendments:
Significant amendments have been made to the citizenship-by-investment program as follows:
Perhaps one of the more notable amendments was made to the minimum investment amount required, enabling the investor to acquire citizenship by investing in or more qualifying investments with a minimum total value of €2 million, rather than the previous minimum sum of €5 million (see below for description of qualifying assets).
All applicant investors must be holders of residence permits, though this amendment is likely to have minimal impact on the process, time consumption-wise, due to the fact that the applicant can also apply for a residence permit on the same day they apply for the citizenship program, for which the criteria are identical.
The parents of the applicant are now also eligible for citizenship under the latest amendments, provided that they purchase a residence with a minimum value of €500,000 (plus VAT if applicable)
Purchasing undeveloped land is now an eligible form of investment, provided it is annexed to a submission of a master plan for the development of it.
Qualifying investments:
The applicant must make an investment of at least €2 million:
for the purchase or construction of buildings, or for the construction of other land development projects;
for the purchase, creation or participation in businesses or companies that are based and operating in the Republic of Cyprus and employ at least five (5) Cypriot or other EU citizens; or
in alternative investment funds or financial assets of Cypriot companies or organizations as licensed by the CySEC (Cyprus Securities Exchange Commission)
Alternatively, the applicant may invest through a combination of any of the above, amounting to at least €2 million, and the applicant may additionally purchase special government bonds of the Republic of Cyprus for which the investor may purchase special state bonds of the Republic of Cyprus up to a maximum amount of €500,000.
Note:
The spouse and dependent children of an applicant may be included in the application.
In addition to the above-referenced investment of €2 million, there is an additional requirement that applicant acquire as his principal residence in Cyprus a property worth at least €500,000. However, where the investment of €2 million is being made in real estate and, in whole or in part, comprises the applicant’s principal residence in Cyprus, this additional requirement does not apply.
Verita Legal
20 April 2017
