Cyprus Investment Programme
Cyprus Investment Programme
On the 18.08.2020 new regulations regarding the Cyprus Investment Programme (CIP) have been enacted by the Council of Ministers of the Republic of Cyprus. The new regulations introduce new measures, some quite significant. The majority of the conditions remain as amended in 2019. Below are the significant changes that we focus on.
Who can make the investments?:
With the new provisions the investments as part of the citizenship process can be made either by the applicant personally or through a company or companies but also through investments made or to be made by the spouse, or civil partner.
Investments in real estate.
Where the value of the permanent residence to be purchased is over €500,000.00 plus VAT the surplus sum can be used as part of the total financial investment to be made. Thus, if investor has purchased a villa of €600,000.00 plus VAT then the €100,000.00 can be added to his remaining investments. Therefore, if the investor were to purchase additional new real estate he would only be bound to invest an additional €1,400,000.00 (excluding VAT). Conversely the additional sum paid over and above the €500,000.00 for the permanent residence can be put toward any other acceptable investment.
In the event that a foreign business person or investor makes an investment in residential real estate, at least one of those residential properties must be valued at €500,000.00 plus VAT.
In the event that investments are made in residential real estate which have already been used as part of a naturalization or citizenship application of any other person or persons then the total investment including the permanent residence shall amount to at least €2,500,000.00.
Adult family members – application can be filed simultaneously with applicant investor
Adult family members of the foreign investor who has submitted an application for naturalization according to the current provisions of the law, are able to apply at the same time with the applicant investor for their naturalization and citizenship. Prior to this change adult applicants eligible to apply for citizenship could only apply once the applicant investor had been approved for naturalization. This amendment greatly speeds up and facilitates the approval of applicant investor and Adult family members at the same time).
(Adult family members includes students in full time higher education from ages 18-28. Parents of the investor and now parents of the spouse or civil partner of the investor are eligible to apply provided that such parents purchase a permanent residence in Cyprus of at least €500,000.00 plus VAT). Therefore, the parents of the investor can apply for citizenship and invest together €500,000.00 plus VAT and also the parents in law now are eligible to apply with the applicant investor provided they also invest €500,000.00 plus VAT.
It is now permitted for parents of the investor and parents of the spouse or civil partner of the investor may invest together and purchase one permanent residence valued at €1,000,000.00.
Investment in company or business in the Republic
Where the investor applicant wishes to purchase, establish or participate in Cypriot businesses or companies which have their seat and are active in the Republic of Cyprus with a physical presence and substantive turnover, the minimum investment is €2,000,000.00 and that company or business entity should now employ at least 9 citizens of the Republic of Cyprus or the European Union.
Real Estate Development
With the new amendments, it is prohibited for an investor to incorporate a Cyprus company with the purpose of developing land in Cyprus and to channel the investment through it.
Police record or report.
With the new regulations the criminal record required to be produced for the applicant, spouse and all other adult family members may be 6 months old prior to the date of application.
The foreign investor is now bound to donate or settle €200,000.00 in total once approved for citizenship. The sum of €100,000.00 can be settled to any of the 4 government programmes or departments or funds designed to promote small businesses, renewable energy, and innovative business or to the National Support Fund established to replace the financial losses of individuals whose savings were affected by the banking crisis of 2013. The other €100,000.00 to be paid once again upon approval of citizenship of the investor applicant to the Cyprus Land Development Organization to aid lower income families with housing,
Terms for PEPS (Politically Exposed Persons)
Persons who are termed politically exposed under the relevant law were barred from applying for citizenship of the Republic of Cyprus if the applicant or family members had been ‘politically exposed’ any time within five years up until the date of application for citizenship. Now this provision has changed and the term has been reduced to 12 months prior to application. So the applicant or family member should not have been politically exposed or on any EU or EU sanctions list at least 12 months prior to the application for citizenship being submitted to the relevant examining body in the Republic of Cyprus.
Serious convictions a bar to application
Applicants convicted of a serious criminal offense punishable by imprisonment of five (5) years or more, or have committed any offense of a similar severity cannot be granted citizenship of the Republic of Cyprus. Moreover those under investigation for any offence that envisages a custodial sentence of 5 year or more are also barred from approval of citizenship.
All other criteria remain the same. Read more.
For legal advice and guidance on the Cyprus Investment Programme email us on firstname.lastname@example.org or call us on +357 22 3361 00