The government of Cyprus has lowered the financial threshold for its citizenship by investment program. As of 1 November 2016, property investors can become Cypriot citizens by investing EUR 2 million, a EUR 0.5 million decrease from the previous lower limit.
As an added bonus, the parents of investors who participate in the program can now obtain Cypriot citizenship if they purchase a residential property in Cyprus worth at least EUR 500,000. In the past, the parents – like their kids – would have had to invest EUR 2.5 million in order to benefit from the program.
Though the new regulations may have made it cheaper to take advantage of the program,
Another change: in the past, you could have obtained citizenship by investing in real estate, government bonds or bank deposits. The new regulations stipulate that investors can only obtain citizenship by investing in real estate worth upwards of EUR 2 million, or by investing in property worth at least EUR 1.5 million and government bonds worth at least EUR 500,000. It is no longer possible to benefit from the program by investing in bank deposits.
In the past, investors were not granted special residence permits while awaiting their citizenship decisions in Cyprus. In accordance with the new rules, investors are now able to obtain permanent residence permits while they await the decision. That said, investors are not required to reside in Cyprus while awaiting their grants of citizenship.
Changes to Cyprus Immigration Programme
|Old rules||New rules|
|Minimuminvestmentamount||€5M under the individualinvestment scheme,€2.5M under the group one||€2M; the group investment scheme has been cancelled|
|Investment vehicles||Real estate, government bonds, bank deposits||You can buy property for at least €2Mor bonds for up to €500,000and property for at least €1.5M;the bank deposit option has been cancelled|
||To obtain citizenship,
|Residence permit||The investor did not get a residence permitwhile the application was considered||The investor gets a category F residence permitwhile awaiting a citizenship decision.However, the procedure is a formality, as the investor is still not required to live in Cyprusto obtain citizenship|
|Application processing time||Three months on average||Six months on average|
The following terms
- Citizenship is granted
to the investor´sspouse, all the financially dependent children up to 28 years of age, and automatically transfers to the representatives of all subsequent generations of the investor'sfamily
- Cyprus recognizes dual nationalities
- The investor must retain ownership of the property/properties
(or property/propertiesand stocks) for at least three years after obtaining citizenship, after which he or she can sell it/them. However, to maintain citizenship upon selling the initial property/properties, the investor must retain ownership of a Cypriot residential property worth at least EUR 500,000 in value.
Cypriot citizenship is popular with the investors from all over the world as it allows them to travel throughout the European Union without needing to obtain visas.Yulia Kozhevnikova, Tranio.com