Index:
- Introduction
- Summary of the Amended Scheme
- Financial Criteria-Part A
- Terms and Conditions- Part B
- Introduction
The Cyprus Investment Programme was initially introduced in 2013 through the amendments to the Civil Registry Laws of 2002-2019 with the aim to boost foreign direct investment and to encourage high net worth individuals to settle in the island and conduct their business in Cyprus. Since then, Investors have the opportunity to obtain the Island’s citizenship via the investment route. The Government has introduced specific incentives, terms and conditions as well as control procedures which ensure thorough monitoring of the process.
Since 2013, there have been several amendments to the scheme with the latest ones adopted on the February 13th, 2019 and put into effect on May 15th, 2019.
- Summary of the amended Scheme
The Scheme provides that an interested person may apply for the acquisition of the Cyprus citizenship through naturalization by exception, if that person fulfils the financial criterion A.1 and one of the financial criteria A.2-A.5. An investor may satisfy the financial criteria personally or through legal entities in which he/she participates as a shareholder or through his/her spouse’s investments or jointly with the spouse or even as a high-ranking senior manager of a legal entity satisfying the abovementioned financial criteria.
A high-ranking senior manager may also apply for the Cyprus Citizenship if he/she receives remuneration which generates at least €100,000 over a three year period for the Republic tax revenues of and provided that this tax has already been paid or prepaid.
The applicant must have made the required investments within three years prior to submitting the application and must retain the same for a period of at least five years following his/her naturalization.
Any replacement of the investments made towards obtaining the Cyprus Citizenship during the said five-year period must be made with the approval of the Ministry of Finance.
- Financial Criteria-Part A
A.1 Donation to the Research and Innovation Foundation and the Cyprus Land Development Corporation
a) The applicant must have donated at least €75.000 to the Research and Innovation Foundation.
This obligation is lifted, if the applicant has invested at least €75.000 in a certified innovative enterprise or a certified social enterprise or if the applicant has made an investment under the criterion A.3 of a total amount equal to the 20% of the required investment amount of the abovementioned criterion A.3 in a company whose operations fall within the primary sector of the economy, or the secondary sector of the economy (excluding constructions), or in the sectors of research and development, education, health and renewable energy sources.
b) The applicant must have donated at least €75.000 to the Cyprus Land Development Corporation for the financing of housing schemes for affordable housing, but also for the materialization of other housing schemes/measures.
If the applicant wishes to donate more than the minimum of €75.000 for any of the a) and b), the additional amount can be used for supplementing the total amount of the investment made on the basis of the criteria A.2-A.5.
Α.2 Investment in real estate, land development and infrastructure projects
The applicant must have made an investment of at least €2.000.000 for the purchase or construction of buildings or for the construction of other land development projects or other infrastructure projects.
Investment in land under development may be included if the investment plan of the land is included in the application.
A.3 Purchase an establishment or Participation in Cypriot Companies or Businesses
The applicant must have invested at least €2.000.000 for the purchase or participation in companies or organizations established and operating in the Republic of Cyprus.
The invested funds must be directed towards the financing of the investment goals of the relevant companies exclusively in Cyprus, and provided that there is a specific investment plan.
The applications shall be evaluated to verify that the companies or organizations have proven the following:
- Physical presence in Cyprus, with significant activity and turnover
- Employ at least five Cypriot citizens or EU citizens
Α.4 Investment in Alternative Investment Funds or Registered Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus Securities and Exchange Commission
The applicant should have bought units of at least €2.000.000 from alternative investment funds (AIF) or Registered Alternative Investment Funds (RAIF) established in the Republic of Cyprus.
The AIF and the RAIF must be licensed/registered and supervised by CySec and their investments must be made exclusively in the Republic of Cyprus and in investments which meet the criteria of the Cyprus Investment Programme or in areas approved by the Minister of Finance.
In order to confirm that the investments that meet the criteria of the current Programme will be retained for at least five years.
The acquisition of financial assets of Cypriot companies or other legal entities of at least €2.000.000, which are issued with the approval of the CySec, by companies fall under this criterion if it is proven that:
- Such companies have physical presence and substantial economic activity in the Republic of Cyprus and;
- the purchase aims to finance the investment plans of these companies or legal entities exclusively in Cyprus based on an investment plan.
Α.5 Combination of the aforementioned investments
The applicant may follow a combination of the above requirements, provided that the total investment will amount up to the minimum of €2.000.000.
- Terms and Conditions-Part B
Further to the above, an applicant would be successful only if he/she fulfilled, in addition to Part A, the following criteria:
- Clean Criminal Record
The applicant must have a clean criminal record and his/her assets must not have been frozen within the boundaries of the European Union.
- Schengen Visa
Third-Country nationals who do not require an entry visa for travelling in the European Union as well as citizens of EU are excluded from this obligation.
- Residence in the Republic of Cyprus
The applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.
Members of a family, who apply separately as investors, can collectively purchase a residence, provided that the total value of this residence covers the amount of €500.000 for each applicant.
If the purchase value of the property exceeds the amount of €500,000, the additional amount can be used for supplementing the total amount of the investment required by Part A.
- Residence Permit in Cyprus
The applicant, prior to the acquisition of the Cypriot Citizenship must hold a residence permit in Cyprus for a period of at least six months.
If the applicant does not hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6(2) of the Aliens and Immigration Law, at the same time with the submission of the application for naturalization.
