Major Changes Implemented To The Cyprus Citizenship By Investment Program

The Cyprus Citizenship by Investment Program (CIP) was launched by the Cypriot Government with the purpose of attracting foreign direct investment into the country. This program grants full Cypriot Citizenship to those individuals who invest more than EUR 2 million in real estate along with meeting the other requirements.
In September 2016, the Cypriot Government implemented changes to the already famous Cyprus Citizenship by Investment Program. Following are the major changes:

• Reduction in the minimum investment amount to EUR 2 million from EUR 2.5 million.
• Main applicants can secure citizenship for dependent parents, provided that an additional EUR 500,000 + VAT will be invested in the purchase of a private residence in Cyprus.

The restructured Cyprus Investor Program aims to maintain the exclusive nature of the Cypriot passport, which is currently ranked at 12^th position according to the Passport Index. These changes will in no way interfere with the unique features of this program which includes a fast processing time of 3 months for the qualified investors to receive Cypriot Citizenship approval. This feature makes it the fastest programs in Europe, beating similar Citizenship by Investment Programs for Malta, Portugal or Bulgaria.
Any non-Cypriot citizen may apply for Cypriot citizenship through Naturalization by Exception if they meet one of the investment criteria given below. The qualification may either be done personally or through company/companies in which the applicant acts as a shareholder or even as a high-ranking senior manager:

1. Real estate, land development and infrastructure projects: Under this option the applicant must make an investment of at least € 2,000,000 in the purchase or construction of buildings, land development projects (residential or commercial) or infrastructure projects.

1. Investment in the purchase/creation/contribution of Cypriot businesses or companies:
   Applicants opting for this option must invest at least € 2 million in the purchase, creation or participation of businesses or companies currently functioning in the Republic of Cyprus.
   These businesses or companies should evidently have a tangible presence in Cyprus and employ at least five Cypriot citizens or European citizens

3. Financial assets of Cypriot companies or organizations:  Applicants must make an investment of at least €2 million in regulated funds in the Republic of Cyprus. Investors need to maintain the purchased assets for a period of three years.

3. Combination of any of the investment options amounting to at least € 5,000,000: 
   Applicants can choose a combination of options 1, 2, 3 which should amount to an investment of at least € 5,000,000 in total.

The Cyprus CIP comes with many benefits, including attainting citizenship of an EU member state, the right to live, work and study in any of the 28 EU countries and visa free travel to 155 countries. Moreover, this program also has flexible options with no physical residence requirement and approval granted usually within 90 days. Lastly, the main benefit is the granting of full citizenship and passports to the principal applicant and included family members.
For more information about the Cyprus Citizenship by Investment Program, please feel free to visit Lalani &  Associates.