New Revised Criteria and Procedure for Cyprus Citizenship by Investment
On the 13.09.2016, the Council of Ministers announced the implementation of an updated procedure and a series of financial criteria for investors wishing to obtain the Cyprus Citizenship to non-Cypriot entrepreneurs/investors. According to Minister of Finance, the revision of the procedure, aims to encourage real investments that would benefit economy and to give more options as to how they can invest in the Republic of Cyprus, providing greater flexibility. The new criteria are even more favourable than before with the minimum necessary amount of investment having been reduced from €2.500.000 to €2.000.000.
The new criteria have immediate effect; however, already submitted applications will be based on the provisions as were applicable at the time of submission. Although, investors who already submitted their applications have the possibility of withdrawing and applying anew based on the new criteria as of 13.09.2016.
Potential applicants will have a choice as to which of the two schemes they would like to apply for under until the 31.10.2016. From the 01.11.2016, only the new criteria will be applicable for the Cyprus Citizenship by investment scheme.
New Financial Criteria:
Investing in Real Estate Developments and Infrastructure
The most important change is that the revised scheme abolishes the provision for collective investment of €12million which is being replaced by an individual investment of €2 million and the purchase of a residence worth at least €500,000.
Purchase or Incorporation or Participation in Cypriot Businesses and Companies
The applicant should purchase, incorporate or participate in companies established and operating in the Re- public of Cyprus with investment costs of at least €2.000.000. Investments should be kept for three years and Companies in which investments are made must have physical presence in Cyprus, with significant activity and turnover, and must employ at least five Cypriot or European citizens.
The applicant should invest in units of at least € 2.000.000 of AIF’s established, licensed and supervised in Cyprus by “CYSEC”. Such investments should be made exclusively in Cyprus and should meet the criteria of this scheme and be approved by the Minister of Finance.
Acquisition of financial assets in Cypriot businesses or organizations of at least € 2.000.000, such as bonds, bills and securities issued by companies that have demonstrated physical presence and substantial economic activity in Cyprus, should be maintained for a period of 3 years.
Terms and Conditions:
- The applicant should have clean criminal record.
- The applicant should own a residential property of at least €500.000 + VAT.
- The applicant, before the naturalization as Cypriot Citizen, must hold a residency permit in Cyprus for a period of at least six months.
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