Cyprus: E.U. Passport – Cyprus reduces investment thresholds for granting nationality

The Council of Ministers decision dated 24th of May 2013 laid the reduced economic criteria by which Cypriot/E.U. Citizenship can be acquired. 

Obtaining a Cyprus (E.U.) passport/nationality by investing in Cyprus 

Non Cypriot citizens are allowed to apply for Cypriot citizenship, provided they satisfy one of the following criteria: 

A. Criteria 

A1. Diverse investments and donation to a state fund 

The candidate must proceed to the following: 

(a) An investment of at least €2,000,000 for shares and/or bonds of the Cyprus Republic Investment Fund; and 

(b) A donation of at least €500,000 to the Cyprus Research and Technology Fund. 

OR 

A2. Direct investments 

The applicant must have direct investments in Cyprus of at least €5,000,000. The direct investments may be in respect of: 

(a) Purchase of buildings (houses, offices, shops, hotels or investments of similar nature with the exception of undeveloped land/plots) 

(b) Acquisition of Enterprises or Companies that are based and operating in Cyprus 

(c) Purchase of shares of Companies registered in Cyprus 

(d) Purchase of financial assets (bonds / securities / debentures registered and issued in the Republic of Cyprus including the ones to be issued by the Cyprus Solidarity Fund ) 

(e) Participation in a company/consortium of companies responsible for the execution of a public sector project 

Note: It is required that for (a), (b), (c) and (d) the applicant must have in his/her possession the above mentioned assets for a time period of at least three years. For investments in financial assets (shares and bonds) the value of the portfolio must not fall under the required amount for a three year period.

OR 

A3. Bank deposits 

The applicant must have fixed term bank deposits in a Cyprus Financial Institution of at least €5,000,000 for a period of three years. The deposits can be personal and/or of privately owned companies and/or of trusts of which the applicant is the beneficial owner. 

OR 

A4. Combination of investments and donations (A1), direct investments (A2) and bank deposits (A3) The applicant must arrange for a combination of the abovementioned criteria the sum of which must reach the amount of €5,000,000. 

OR 

A5. Entrepreneurial activities 

The criteria for the entrepreneurial activities option must be met for three (3) consecutive years prior to the application for citizenship. 

(a) €500,000 annually: the applicant must be a shareholder or the ultimate beneficiary of a company (or companies) operating in the Republic of Cyprus, which has duly paid to the State (Income Tax, V.A.T., or other obligations) and to local service providers (legal, accounting, audit services) at least €500,000 per year. 

(b) €350,000 annually: if the applicant is a shareholder or the ultimate beneficiary of a company (or companies) operating and have their headquarters in the Republic of Cyprus and employ at least five (5) Cypriot citizens then the minimum amount paid for the aforementioned authorities (income tax, V.A.T., purchase of services, legal, accounting, audit etc.) is reduced to €350,000 per year. 

(c) €200,000 annually: In case the requirements of (b) are met and the company employs ten (10) Cypriot citizens, then the required amount for the aforementioned expenses is reduced to €200,000 annually. 

A maximum of two (2) shareholders (preferably hold the majority of share capital) of each such company may apply for Cypriot citizenship. 

Note: in the event that the applicant has contributed to the Cypriot economy directly or via remunerations (as described above) with a smaller amount than the minimum required amounts, he/she can combine criteria A1 (Investments and Donation to a state fund) or A2 (Direct Investments) or A3 (Bank Deposits) in order to meet the requirements for a citizenship application. The sum of the payments made through Entrepreneurial activities (A5) will be deducted from the required investment for the fulfilment of criteria A1 or A2 or A3. 

OR 

A6. Persons whose deposits at the Popular Bank of Cyprus or at the Bank of Cyprus have been impaired as a result of the measures enforced on the two banks after 15th March 2013 

(a) The applicant’s deposits in one or both of the aforementioned banks must have been impaired by at least €3,000,000 aggregately. 

(b) In case the applicant’s deposits in the aforementioned banks have been impaired at a smaller amount than €3,000,000, he/she can still apply for citizenship provided that he/ she either makes a Direct Investment (A2) or Investments and Donation to a State Fund (A1) for the remaining amount in order to reach the €3,000,000. 

B. TERMS AND CONDITIONS 

1. Clean Criminal Record: The applicant must have a clean criminal record. Also, his name shall not be included in the list of persons whose assets are frozen within the European Union. 

2. Residence in Cyprus The applicant must be the owner of a residence in Cyprus the market value of which is at least €500,000 plus V.A.T.

*Regular inspections will be made and in the event that any requirement is not duly met the Cypriot citizenship might be revoked. 

Services provided by Reanda Cyprus 

Reanda Cyprus has extensive experience in immigration related services and can provide the following services: 

- Assistance and guidance during the application preparation and submission 

- Liaising with the relevant authorities during the examination process 

- Planning and cash flow management to limit the amount of actual investment required for passports (e.g. back to back loans arrangements) 

For further information please contact Mr. Alexis Hadjigeorgiou at ahadjigeorgiou@httaudit.com. cy or our Immigration Services Department at immigration@httaudit.com.cy

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