February 28, 2019
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 :
- A donation of €75,000 for research & development shall, henceforth, become mandatory. However, this obligation can be waived under certain circumstances.
- A further donation of €75,000 to the land development organization shall also become mandatory. This is to fund affordable housing schemes in Cyprus.
- 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.
- Applicants can also now invest in ‘Registered Alternative Investment Funds (RAIF)’, apart from investments in ‘Alternative Investment Funds’ already allowed
- An applicant will now have to maintain his/her investment for 5 years from the date of naturalization, instead of the previous 3 years
- 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 :
- An applicant, and eligible family members, must hold a valid Schengen Visa in order to be eligible to apply for the Cyprus Investment Program
- 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
- 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.