Modifications to the conditions for granting Cypriot (EU) citizenship to foreign investors
Contributed by Oxford Tax Solutions
21 March, 2017
In March 2014 the Cyprus government introduced the Cyprus (EU) Citizenship Program in an effort to attract investors from all over the world and boost the Cyprus economy. According to the scheme all non-European citizens have the opportunity to acquire a Cypriot passport and citizenship by investing into the Cyprus economy.
The benefits offered to potential investors were significant and numerous so as a result the whole program was a large success. In September 2016 the government formally approved the scheme but in order to attract even more investors it decided to introduce more flexible conditions. The new measures take into consideration the current global economic situation.
The main reform was the abolishment of the rule that related to the collective investment plan whereby investors had to invest €2.5million each. Now the personal investment stands at €2million accompanied with an acquisition of residential property worth a minimum of €500.000.
The investment should be upheld for at least 3 years and may consist of:
- Purchase or construction of immovable property.
- Participation in development projects that include residential, tourist or commercial facilities and infrastructure projects.
- The acquisition or participation in a registered Cyprus based company that employs at least 5 Cypriot citizens.
- The investment in Alternative Fund Organizations that have a physical presence and are registered in Cyprus and licensed by the Cyprus Securities and Exchange Commission (CYSEC). The investments have to be exclusively carried out in Cyprus and may include the purchase of financial assets of at least €2million for example bonds, securities and other.
- Combination of the above investments contributing to as total investment value of at least €2million with the option to purchase bonds of the Republic of Cyprus to the maximum amount of €500.000 per investor.
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