On 13th September 2016, in an effort to build on the experience of practitioners advising HNW applicants for Cyprus Citizenship, the Cypriot government approved a number of revisions to the Cyprus Citizenship by Investment Programme. This revamp was carried out by the Ministries of Interior and Finance which carefully considered the needs of the target audience and their motives for attaining citizenship, the increasing need for further transparency and the need to facilitate the evaluation process of the application.
Cyprus Citizenship Program: The Changes
The fast-track 3 months period for the attainment of Cyprus Citizenship is already a highly attractive factor that adds to the lure of the programme, but the amendments carried out make the programme simpler and even more efficient than ever, further smoothing the path for those interested in attaining a European citizenship. The changes include provisions which ensure further safeguards for investors and facilitate the main applicant’s ability to ensure his/her dependant parents will be granted citizenship as well. The agility and simple, straightforward character of the application process is reflected in the Cyprus Citizenship by Investment Programme's ranking as one of the “top ten best in the world”.
Minimum Investment now €1.5m + €500k Residence
The most important change announced by Cypriot Finance Minister Harris Georgiades is the elimination of the provision for a collective investment of €12.5 million. Instead, the minimum individual investment will now stand at a straight €1.5 million plus the purchase of a residence worth a minimum of €500,000. This effectively reduces the original minimum investment of €5 million whilst allowing investors to apply independently.
Property Investment Route extended
Land, with a non-binding development plan (not building licenses), shall now also be considered eligible property under the Cypriot Citizenship program.
Family Applications
After the changes, parents of the main applicant can now be included within the same application provided there is an additional investment in residence worth €500K.
Cypriot Residency while you wait
Moreover, under the revised programme, applicants will benefit from the granting of a Cyprus Residence Permit while they wait for their passport to be secured, a factor which not only caters for the immediate needs of the applicants, but also makes the programme a highly advantageous one vis-a-vis other citizenship programmes.
Residential Property for Life
The original requirement that investors maintain a genuine link with Cyprus demonstrated by keeping a €500k residence for the duration of their lifetime has remained. This ensures that new Cypriot citizens will always have a permanent housing unit in Cyprus as a basis for retaining their Cypriot Citizenship.
Grandfathering
We are informed that the new program will give a short notice/grace period possibly as little as one month, but possibly as long as three months.
Cyprus: A Destination of Choice for HNWIs
Cyprus, with its strategic geographical position at a crossroads between three continents and its warm climate which offers a calm Mediterranean lifestyle with a European standard of living stands as an ideal relocation destination through which one can do business. The Cypriot economy is also recovering splendidly and now vaunts robust economic management as it sets new records in recovery. Cyprus is ripe with opportunities waiting to be explored by investors under the Cyprus Citizenship by Investment Programme.
Summary of Changes to Cyprus Citizenship
| Before the Changes |
After the Changes |
| Provision for a Collective Investment of €12 million (grouping of five or more investors) |
The cumbersome requirement to group applications has now been removed so that applications can be submitted without waiting for a group of five to be completed. Likewise, difficulties in the processing of one file won't hold up the other 4 files. |
| The granting of citizenship with €5 million bank deposit |
This route to Cyprus Citizenship has been eliminated |
| €5 million individual investment |
Minimum individual investment is now reduced to €1.5 million + purchase of a residential property worth €500,000 +VAT, if applicable. |
| Fast track process of 3 months to be granted citizenship |
Fast track process of 6 months to be granted citizenship + Granting of a Residence Permit while you wait for your passport. |
| Parents of main applicants were not eligible |
Parents of main applicant may be included in the same Cyprus Citizenship application, provided an additional €500,000 investment is made in residential property in Cyprus. |
| No need to physically visit Cyprus |
While there is no need to physically reside in Cyprus, one visit is required to obtain Biometrics and receive PR Permit. |
The fast-track period for the attainment of Cyprus Citizenship has been the main factor making the Cyprus Citizenship programme so attractive.
Light Residency Requirement Introduced
A 6-month residency requirement has been introduced to bring the Cypriot Citizenship program closer to EU approval. This will result in the need to apply for Cyprus PR (via fast track method) in parallel to working on a Cyprus Citizenship application. The only physical presence requirements that will need to be met are those of the PR program, being one visit in the first year (usually for issuance of residency card).
Minimum Investment now €2m + €500k Residence
The most important change announced by Cypriot Finance Minister Harris Georgiades is the abolishment of the provision for a collective investment of €12.5 million. Instead, the minimum individual investment will now stand at a straight €2 million plus the purchase of a residence worth a minimum of €500,000. This effectively reduces the original minimum investment of €5 million whilst allowing investors to apply independently.
Property Investment Route extended
Land, with a non-binding development plan (not building licenses), shall now also be considered eligible property under the Cypriot Citizenship program.
Family Applications
After the changes, parents of the main applicants can now be included within the same application as long as each set of parents acquires an additional residence worth €500K separately from that required of the main applicant.
Cypriot Residency while you wait
Moreover, under the revised programme, applicants will benefit from the granting of a Residence Permit while they wait for their passport to be secured, a factor which not only caters for the immediate needs of the applicants, but also makes the programme a highly advantageous one vis-a-vis other citizenship programmes.
Residential Property for Life
The original requirement that investors maintain a genuine link with Cyprus demonstrated by keeping a €500k residence for the duration of their lifetime has remained. This ensures that new Cypriot citizens will always have a permanent housing unit in Cyprus as a basis for retaining their Cypriot Citizenship.
Grandfathering
We are informed that the new program will give a short notice/grace period possibly as little as one month, but possibly as long as three months.
Summary of Changes to Cyprus Citizenship
| Before the Changes |
After the Changes |
| Provision for a Collective Investment of €12 million (grouping of five or more investors) |
The cumbersome requirement to group applications has now been removed so that applications can be submitted without waiting for a group of five to be completed. Likewise, difficulties in the processing of one file won't hold up the other 4 files. |
| The granting of citizenship with €5 million bank deposit |
This route to Cyprus Citizenship has been abolished |
| €5 million individual investment |
Minimum individual investment is now reduced to €2 million + purchase of property worth €500,000 +VAT, if applicable. |
| Fast track process of 3 months to be granted citizenship |
Fast track process of 3 months to be granted citizenship + Granting of a Residence Permit while you wait for your passport. Overall 3 month processing time remains |
| Parents of main applicants were not eligible |
Parents of main applicants may be included in the same Cyprus Citizenship application, provided an additional €500,000 investment is made in residential property in Cyprus.
|