New Cyprus Investment Programme
The Cyprus Investment Programme was approved by the Council of Ministers on 13th September 2016 and was subsequently amended in May 2018 and February 2019. The latest amendments to the programme are effective as of 15th May 2019 onwards, introducing new criteria and terms aimed at high net worth individuals, investors and entrepreneurs by allowing the successful applicant and members of his/her family to hold a Cypriot passport and enjoy all the benefits of a Cyprus national.
Cyprus is a member of the European Union since 1st May 2004 and as an EU member its citizens enjoy the following rights:
- Free movement of people
- Free movement of services
- Free movement of capital
- Free movement of goods
Furthermore, becoming a Cyprus citizen also means:
- No requirement of live in Cyprus
- Attractive tax system
- High standard of living
- Visa free travel
- Dual citizenship
On the basis of the Cyprus Investment Programme, a non-Cypriot citizen may apply for the acquisition of the Cypriot citizenship through naturalization by exception, if he/she fulfils the financial criterion A.1 and one of the financial criteria A.2-A.5, either personally or through a company/companies in which he/she participates as a shareholder – in proportion to his/her holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/companies that fulfils the Economic Criterion A.1 and one for the Economic Criteria A.2-A.5.
A high-ranking senior manager may apply, provided that he/she receives such a remuneration that generates for the Republic tax revenues of at least €100,000 over a three year period and provided that this tax has already been paid or prepaid.
The applicant should have made the necessary investments during the three (3) years preceding the date of the application and must retain the said investments for a period of at least five (5) years as from the date of the naturalization. It is understood that the investor may replace the investment during the said five-year period, provided that he/she has obtained beforehand an approval by the Ministry of Finance
In addition, the applicant must fulfil the Terms and Conditions set out in Part B.
In the case where, following a periodic inspection, it has been established that a criterion, term or condition of the programme has been breached, the granted naturalization may be revoked.
A. Financial Criteria
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. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75,000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria A.2-A.5.
Furthermore, the aforementioned obligation is lifted, if the applicant has invested at least €75,000 in a certified innovative enterprise (i.e. an enterprise that had acquired the relevant certificate by the Ministry of Finance) or a certified social enterprise.
In addition, the obligation is lifted, if the applicant has made an investment under the criterion A.3 (Purchase or Establishment or Participation in Cypriot Companies or Businesses) of a total amount equal to the 20% of the required investment amount (i.e. €400,000) 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. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75,000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria A.2-A.5.
A.2 Investment in real estate, land development and infrastructure projects.
The applicant must have made an investment of at least €2,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector) or other infrastructure projects.
It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded.
A.3 Purchase or Establishment or Participation in Cypriot Companies or Business.
The applicant must have invested at least of €2,0 million for the purchase or participation in companies or organizations established and operating in the Republic of Cyprus. The invested funds shall be channelled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan. Moreover, investments in the shipping sector are eligible on the basis of measurable criteria that will be determined jointly by the Ministry of Finance and the Shipping Deputy Ministry.
The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five (5) Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company. In addition, the employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date.
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 the Cyprus Securities and Exchange Commission (CySec).
The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) or Registered Alternative Investment Funds (RAIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Programme or in areas approved by the Minister of Finance. It is permitted for these AIFs or RAIFs to invest in secondary market stock-market values of the Cyprus Stock Exchange an amount that does not exceed the €200,000
In order to confirm that the investments that meet the criteria of the current programme will be retained for at least five (5) years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministry of Finance and Interior with reference to the value of the initial investment.
The purchase of financial assets of Cypriot companies or organizations of at least €2,0 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion.
It is noted that the purchase by an AIF or RAIF of units of other AIFs or RAIFS is not considered eligible.
Α.5 Combination of the aforementioned investments.
The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least €2,0 million.
B. Terms and Conditions
Clean Criminal Record. The applicant must have a clean criminal record. Furthermore, his/her name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions.
Moreover, an applicant whose application for citizenship in any other member-state of the European Union had been rejected, is not eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme.
Schengen Visa. The applicant must hold a valid Schengen visa. Third-Country nationals that do not require an entry visa for travelling in European Union member-states, as well as citizens of European Union Member States are excluded from this obligation.
Residence in the Republic of Cyprus. In all cases listed in Part A, 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.
It is noted that members of the same family, who apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of €500.000 per each applicant.
In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, part of this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria of Part A above.
Additionally, it is noted that if the applicant has invested in housing unit/units on the basis of the aforementioned criterion A.2, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least €500,000, plus VAT, provided that the applicant retains the possession of the residence for life.
However, if the applicant has invested in housing units that have already being used for the purpose of acquiring the Cypriot citizenship via the programme, the above provision will be in force provided that the total amount of the investments, including the privately-owned residence, is at least €2,5 million.
Residence Permit in Cyprus. The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus for a period of at least 6 (six) months. If the applicant does not already 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, simultaneously with the application for naturalization.
If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this programme, there are no other conditions that those stated in both Part A and Part B of this programme.
It is noted that all of the above also apply for the adult members of the family of the investor, who will apply for naturalization.
In case the application for naturalization is rejected for any reason, the immigration permit, obtained in accordance with the provisions of this Decision, will be cancelled immediately.
C. Application by Family Members of the Investor
The Decision of the Council of Ministers dated 13th February 2019 provides for the grant of the Cypriot citizenship to the spouse or partner of the Investor, to the parents of the Investor and to the financially dependent adult children (18 years – 28) of the Investor. The minor children of the Investor have the right to acquire the citizenship according to the provisions of section 110(3) of the Civil Registry Law.
According to abovementioned decision and the relevant legislation, the parents, the financially dependent adult children (18 years old and above) and the minor children (under 18 years old) may apply for citizenship after the acquisition of the Cypriot citizenship by the investor. However, concerning the investor’s spouse or partner the Council of Ministers decided to allow the submission of his/her (spouse’s or partner’s) application along with the application of the investor, so that both spouses/ partners will be able to acquire the Cypriot citizenship simultaneously.
It is noted that the aforementioned decision clearly stipulates that the applicant must have a clean criminal record. Furthermore, his/her name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions. Additionally, an applicant whose application for citizenship in any other member-state of the European Union had been rejected, is not eligible to apply for the acquisition of the Cypriot citizenship through the Cypriot Investment Programme.
Furthermore, the applicant must hold a valid Schengen visa. Third-Country nationals that do not require an entry visa for travelling in European Union member-states, as well as citizens of European Union Member States are excluded from this obligation.
Moreover it is also noted that, according to the provisions of the above decision, the adult family members of the Investor prior to their naturalization as Cypriot citizens must hold a residence permit in Cyprus for a period at least of six (6) months. If the applicant does not already 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, simultaneously with the application for naturalization. In the case where the application for acquiring an immigration permit will be submitted solely for the purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this Scheme, there are no other conditions than those stated in the programme the details of which can be found hereinbelow.
Finally if the application for naturalisation is rejected for any reason, the immigration permit, obtained in accordance with the provisions of this Decision, will be cancelled immediately.
Spouse/ Partner. The investor’s spouse or partner may acquire the Cypriot citizenship after filing the relevant application. The applications are filed at the Ministry of Interior. In order to facilitate the procedure of the acquisition of the Cypriot citizenship by the investor’s partner or spouse, the Council of Ministers decided to allow the submission of the spouse’s or partner’s application along with the application of the investor, so that both spouses/ partners will be able to acquire the Cypriot citizenship simultaneously.
Furthermore, the decision of the Council of Ministers clarifies that for the purposes of the programme the term partner is interpreted in accordance with the provisions of the Civil Partnership Law 184(I)/2015. According to this law the State recognizes any civil partnership that had been concluded in the Republic of Cyprus, or any other state in accordance with the legislation of that state and that is still in force.
Minor Children. The application for the grant of the Cypriot citizenship to the children of the investor that are under the age of 18 (eighteen) is submitted after the investor had acquired the Cypriot citizenship and provided that the other parent consents to the grant of the citizenship. The application is filed at the Civil Registry and Migration Department.
Adult Children. The right to apply for citizenship is also granted to the financially dependent adult children of the Investor. The decision of the Council of Ministers has determined that it will regard as financially dependent adult children individuals belonging to one of the below categories:
(a) students up to the age of 28 that are attending an institution of higher education aiming to obtain a diploma or an undergraduate or a master’s degree. The decision excludes individuals who are studying for the acquisition of a professional qualification (e.g. chartered accountants or barrister);
(b) children with severe physical or mental disability that renders them unable to work.
The application can be submitted to the Ministry of Interior after the investor had acquired the Cypriot citizenship.
Investor’s Parents. The parents of the investor may apply for citizenship after the investor had acquired the Cypriot citizenship. These applications are filed at the Ministry of Interior.
In order for the investor’s parents to be able to apply for citizenship they need to hold 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.
It is noted that the investor and his/her parents, may collectively acquire a residence, provided that the total valueof this home-property is at least €1.000.000, plus V.A.T