24 Apr CYPRUS INVESTMENT PROGRAMME
CYPRUS INVESTMENT PROGRAM
On the 31st of July, 2020 the Parliament of Cyprus adopted new regulations in improving the Cyprus investment Program and making it more attractive. The new regulations are determined under section 111A and 117 of the Civil Registry Laws of 2002 to 2020 and main amendments are the following:
The amount to be donated has been increased from €150.000 to €200.000. Donation is made after the applicant has approved by the Ministry of Interior and before the issuance of the Certificate of Naturalisation.
The Applicant needs to donate €100.000 to the Cyprus Land Development Corporation and at least €100.000 to one of the following causes:
- The Research and Innovation Foundation; or
- The Service of Industry and Technology; or
- The Funds for Renewable Sources of Energy and Conservation of Energy; or
- The National Solidarity Fund
- FAMILY MEMBERS
a) Family members can now apply either simultaneously with the investor or separately at a later stage. This is expected to significally accelerate the application’s processing time.
b) Parents of the investor’s spouse may also apply now, provided they own a permanent residence, purchased at a price of at least €500,000 plus VAT.
- ELIGIBLE APPLICANTS /INVESTORS
The Government has chosen to continue to exclude from the Programme persons who themselves or whose family members fall into the following categories:
- Applicants whose assets have been subject to a seizure order within the EU;
- Politically Exposed Persons (PEPs): Under the new regulations, Politically Exposed Persons are eligible to apply for the Cyprus Investment Program, provided they did not hold such a position for at least 12 months prior to the submission of the application.
- Applicants sentenced for a serious criminal offence which carries a sentence of five years or more or for any other serious offence or offences that involve moral obscenity.
- Applicants subject to criminal investigation, whether in Cyprus or abroad, in relation to a serious criminal offence which carries a sentence of five years or more or for any other serious criminal offence or which involves moral obscenity;
- Applicants who are affiliated with any person or legal entity or organisation against which sanctions were imposed by the European Union and these sanctions are still in force, such as shareholders and high-ranking officials of such companies;
- Applicants who were, but who no longer are, affiliated with any physical person or legal entity against which sanctions were imposed by the European Union and these sanctions are still in force, such as shareholders and high-ranking officials of companies included in the sanctions list, provided they were affiliated with these companies when the sanctions were enforced;
- Applicants who have been subjected to sanctions by the European Union or the United Nations and such sanctions are still in force or were in force up to twelve months prior to the submission of the application;
- Applicants who are affiliated with any physical person or legal entity against which sanctions were imposed by the European Union or the United Nations and these sanctions are still in force or were in force up to 12 months prior to the submission of the application;
- Applicants who were affiliated with any physical person or legal entity against which the EU or the United Nations have imposed restrictive measures and such restrictive measures are in force or were in force up to twelve months prior to the submission of the application, but these Applicants are no longer affiliated with these legal entities, such as shareholders and high-ranking officials of companies, provided they were affiliated to the particular companies or physical persons when the sanctions were imposed;
- The Applicant is wanted at a European level by EUROPOL or at an International level by INTERPOL.
- CRIMINAL RECORD CERTIFICATE
Previously, a CCR was required from both the country of origin and the country of residence and it should be issued 3 months prior to the submission of the application. The revised legislation requires only a CCR from the country of permanent residence, with a validity of 6 months.
- FINANCIAL CRITERIA
The investor shall make an investment of at least two million euros (€ 2.000.000), as follows:
- In the primary sector of the economy or in the fields of research and technology, education, health or renewable energy, or
- the creation of developments, such as residential or commercial development, tourism development or other infrastructure, or
- for the purchase or construction of real estate, including investment in building land, provided that the application includes an investment plan for their development
It is noted that the investor is not allowed to set up a land development company in order to channel the investment.
It is still possible for an Investor to qualify under the CIP if he/she purchases, establishes or participates in a Cypriot business or company formed and operating in The Republic of Cyprus an investment cost of at least 2 million euros. Applications shall be assessed and it must be proven that enterprises or companies have a physical presence in the Republic of Cyprus, with substantial activity and significant turnover, and that they employ at least 9 Cypriot or European Union citizens (the minimum number of employees was 5).
CURRENT ECONOMIC CRITERIA & CONDITIONS
- The Investor shall make the investments during a 3-year period prior to the submission of the application and maintain and retains the investment for at least 5 years since the naturalisation date. Every year and for a 5-year period since the naturalization date the Investor shall provide the Ministry of Interior and the Ministry of Finance with a written information proving that he/she retains the investment as well as his/her permanent residence in the Republic. It is noted that the Investor is eligible to replace the investment with another one, provided he has previous approval from the Ministry of Finance.
- The investor must maintain a permanent residence of at least €500,000 plus VAT for a lifetime.
- The financial criteria remain the same with investors having the option to choose between an investment of at least 2 million in the following categories:
- Investment in real estate and infrastructure projects. (see amendment)
- Purchase, establishment or participation in Cypriot companies or businesses. (see amendment)
- Investment in Alternative Investment Funds or financial assets of Cypriot companies or organizations that are licensed by CySec.
- Combination of the aforementioned investments.
- In case the investment concerns the purchase of housing units that have already been used for naturalization based on the provisions of paragraph (2) of article 111A of the Law, the provisions of this Regulation apply, provided that the total investments including the permanent privately owned house amount to at least two million five hundred thousand euros (€ 2,500,000).
- Clean Criminal Record (CCR).
- Valid Schengen visa
- Permanent residence permit in Cyprus of at least €500,000 plus VAT.
- Declaration that the Investor has not applied for citizenship in any other member state of the EU.
Our law firm has been approved by the Registry of Service Providers of the Cyprus Investment Programme with Registration number 056 and can legally advice and submit any application on behalf of the client. For more information you may contact us at email@example.com or +35725255059
Note: The above article does not constitute a legal advice and may not be relied upon for such purposes. Readers are recommended to take appropriate legal advice on the above subject matter.