On 13th February 2019, the Cyprus government introduced significant new economic & procedural changes to the Cyprus Citizenship by Investment Program, with the objective of making it more secure, transparent, encourage investment in the shipping sector, as well as promote research & development activities & fund housing schemes. The changes are effective w.e.f. 26.02.2019. However, some changes become effective w.e.f. 15.05.2019.

The economic changes are as follows :

1. A donation of €75,000 for research & development shall, henceforth, become mandatory. However, this obligation can be waived under certain circumstances.
2. A further donation of €75,000 to the land development organization shall also become mandatory. This is to fund affordable housing schemes in Cyprus.
3. Applicants also now have the option of investing in the Cyprus Shipping industry. However, investments in government bonds will no longer be available as an option.
4. Applicants can also now invest in ‘Registered Alternative Investment Funds (RAIF)’, apart from investments in ‘Alternative Investment Funds’ already allowed
5. An applicant will now have to maintain his/her  investment for 5 years from the date of naturalization, instead of the previous 3 years
6. Applicants will now have the right to change their investments during the 5-year period, provided prior consent is obtained from the Ministry of Finance.

The Procedural changes are as follows :

1. An applicant, and eligible family members, must hold a valid Schengen Visa in order to be eligible to apply for the Cyprus Investment Program
2. An applicant who has been rejected by any other EU citizenship program, will not be allowed to submit an application for any Cyprus Investment Program
3. For an investment in any real estate property, the following document must be provided to the concerned authorities :
• Planning Permit
• Certificate of Completion, signed by the project architect
• When a property is under construction, 5% of the total value of the property should be maintained in a special account or a 5% bank guarantee should be issued in favour of the buyer
• In cases where there is a mortgage on the property, a bank waiver must be obtained.

4. Enhanced due diligence & background checks of the applicant.

Contact Us to understand the new changes in Cyprus Citizenship Law & how it might impact your intention of investing in the Cyprus Citizenship Program.