Acquisition of Cypriot citizenship by investment

作者: N. Pirilides & Associates LLC
日期:2014-04-10

As a part of its policies aiming to attract foreign investors in Cyprus, the Council of Ministers on 19.3.2014 revised the “Scheme for naturalization of Investors in Cyprus by exception” and established the new financial criteria based on which Cypriot citizenship may be acquired.

 

A non-Cypriot citizen, who fulfills one of the following Economic Criteria, either personally or through a company/ies, in which he participates as a shareholder or even as a high-ranked senior manager of a company/ies may apply for the acquisition of Cypriot citizenship through Naturalization by exception.

 

A high-ranked senior manager may apply, provided that he receives such a salary that generates for the Republic tax revenue of at least €100,000 for a 3 year period and provided that this tax has already been paid or prepaid. 

The applicant must have concluded the necessary investment during the 3 years preceding the submission date of the application (that is to say that if the applicant submits an application in 2014, the investment must have been concluded during 2011-2014) and must retain these for a period of at least 3 years since the date of the Naturalization.

The applicant must also fulfill the Terms and Conditions set out in Part B.  The application process will take approximately three months to complete. 

 

A. Economic Criteria

A.1.    Investment in government bonds

The applicant must have purchased state bonds of the Republic of Cyprus of at least €5 million.

or

A. 2.   Investment in financial assets of Cypriot companies or organizations

The applicant must have purchased financial assets of Cypriot companies or Cypriot organizations (bonds/securities/debentures) of at least €5 million.

or

A.3.    Investment in real estate, land development and infrastructure projects

The applicant must have made an investment of at least €5 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial in the tourism sector or other infrastructure projects).  The term “investment in real estate” cannot be interpreted broadly and the restriction concerning the purchase of land exists.

VAT is neither included in the amount of €5 million nor in the amount of €500,000 required as a minimum purchase value of the property- residence. Transfer duties are not included either.  The eligible investment is not limited to properties purchased for the first time only.

or

A.4.  Purchase or creation or participation in Cypriot businesses or companies

The applicant must have made an investment of at least €5 million in the purchase, creation or participation in businesses or companies which are based and operating in Cyprus. These businesses or companies must have a tangible presence in the Republic and must employ at least five (5) Cypriot citizens”. 

The mandatory conversion of deposits into shares is included in this criterion.

or

A.5.  Deposits in Cypriot banks (local banks or subsidiaries of foreign banks)

Applicant must have personal fixed term deposits for three years in Cypriot banks or deposits of privately owned companies or trusts in Cyprus of at least €5 million.  The total amount of the deposit can be deposited in various banks in Cyprus.

or

A.6. Combination of the aforementioned criteria A.1, A.2, A.3, A.4 and A.5 amounting to at least €5 million.

or

Α.7. Persons whose deposits with the Popular Bank Public Company Ltd have been impaired due to the measures implemented after the 15th March 2013

The applicant has incurred impairment in deposits amounting to a total of at least €3 million.   

In the case where the applicant has incurred an impairment in his deposits under €3 million he may apply, having made an additional investment through the criteria A.1, A.2, A3, A.4 and A.5.

The investor is eligible to apply if deposits are not personal but they are deposits of a company of whom he is the major shareholder or the ultimate beneficiary owner, provided there is a proven correlation between the investor and the company.  

or

Α.8.  Major Collective Investments

The Council of Ministers shall have the right on special occasions, to reduce the above criteria (Α.1, Α.2, Α.3 and Α.4):

i. To €2,5 millions for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least €12,5 millions.

ii. To €2 millions for investors who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is more than €12.5 millions. This provision will be in force until the 1st of June 2014.  This means that the application must be submitted until the 1.6.2014.

 

B. Terms and Conditions

1. Clean Criminal Record

2.  Residence in the Republic of Cyprus. The applicant must 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.   The purchase value of the privately owned residence of the applicant is not included in the minimum investment which is required but is additional.

Members of the family (spouse or children under 18) can acquire Cyprus citizenship automatically with the applicant.  The application for the investor, the investor’s spouse' and the adult child's is submitted to the Ministry of Interior.

Concerning the investor the amount of €2.000 is paid at the submission of the application and, if the application is approved, €5,000 is paid as a fee for the issuance of the Naturalization Certificate.

Concerning the investor’s spouse – the same amounts as mentioned above should be paid. Concerning the investor’s adult child – the same amounts as mentioned above should be paid. Concerning the investor’s minor child the amount of €80 is paid at the submission of the application. The application is submitted to the Civil Registry and Migration Department.

 

Investors wishing to apply for citizenship using the above criteria and/or for any enquiries and/or questions, please contact us at info@pirilides.com and we will be happy to assist. 

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