Cyprus Passport

Cyprus

Cyprus Investment Programme

The Cyprus Council of Ministers revised the Cyprus Investment Programme and implemented new rules on 15 May 2019, enabling foreign nationals to gain citizenship if they meet certain criteria. When you acquire citizenship under the program, you and your family enjoy full citizenship for life, which is transferable by descent.

Cyprus has been a full member of the EU since 2004. The island is located in the southeastern Mediterranean Sea, at the crossroads of Europe, Asia, and Africa. The strategic location of the island has played an important role in its development as a financial center.

Cyprus, with its warm and stable climate and convenient geographical position, is considered an attractive place for residence. The investment landscape in the country is beneficial due to the island’s well-qualified labor force, attractive taxation, and a reliable transport and telecommunications system.

Cyprus has a modern, free-market, service-based economy, with an effective and transparent regulatory and legal framework, giving international investors and businesses the confidence to invest, grow, and prosper.

The country has a resilient economy and showed continued growth following the last recession. Measures implemented to stimulate the economy have accelerated Cyprus’s GDP growth, placing the island among the highest accelerating economies in Europe.

Requirements

The Cyprus Investment Programme requires applicants to make a significant economic contribution to the country. In exchange, and subject to a stringent vetting and due diligence process, including thorough background checks, the applicants and their families are granted citizenship.

To qualify for citizenship, the primary applicant must be over 18 years of age and meet the following application requirements:

1. Fulfill both the below contributions:

a. Donation of EUR 75,000 to the Research and Innovation Fund or another certified innovation enterprise

b. Donation of EUR 75,000 to the Cyprus Land Development Corporation

2. Select one of the following options:

a. Real estate, developments, and infrastructure projects: The applicant must commit at least EUR 2 million to the purchase or construction of real estate.

b. Purchase or establishment of or participation in Cypriot businesses and companies: The applicant must commit at least EUR 2 million to the purchase or creation of or participation in businesses or companies that are based and operating in the republic. These businesses or companies should have a demonstrable and tangible presence in Cyprus and employ at least five Cypriot or EU citizens.

c. Participation in alternative investment funds or the purchase of financial assets of Cypriot enterprises or organizations licensed by the Securities and Exchange Commission: The applicant must purchase units amounting to at least EUR 2 million from alternative investment funds.

d. Combination of the above options: The applicant may choose a combination of the above options, provided that the total amounts to at least EUR 2 million.

In all cases, the applicant must have a clean criminal record. Also, the applicant must not be included in the list of persons who have a freezing or confiscation order of property within the boundaries of the EU. The final decision on the approval of the application is made by the ministry, following strict and detailed due diligence checks. Any applicant who has previously submitted an application

for citizenship in any other EU member state and has been rejected will not be eligible for Cyprus citizenship under the Cyprus Investment Programme. All applicants must hold a valid Europe’s Schengen Area visa.

In addition, every applicant must be the owner of a permanent residence in Cyprus, with a market value of at least EUR 500,000 plus VAT. It is understood that the members of the same family who submit different applications as investors can buy a residence collectively, provided the total amount of the residence or house covers the amount of EUR 500,000 for each applicant.

Under each of these options, there are government processing fees of EUR 7,820 per applicant over 18 years old.

All options for citizenship allow dependents. ‘Dependent’ refers to the spouse of the main applicant, children under the age of 18, and children between the ages of 18 and 28 who are full-time students and financially dependent on the main applicant. The parents of the main applicant may also be included, provided they purchase another residence in Cyprus for at least EUR 500,000 plus VAT. The main applicant and any dependent over the age of 18 must have clean criminal records.

Procedures and time frame

Typically, the full process for obtaining approval of an application in Cyprus takes six to eight months. At Henley & Partners, we provide the most effective application process. There are four steps in the citizenship application when choosing the real estate option:

Step 1 — Review and select qualifying real estate

Our market intelligence team has conducted extensive research on the real estate market, and can advise on unique or specific searches and present options that have passed our due diligence processes.

Step 2 — Prepare citizenship application

The applicant will receive a detailed application package and checklist of the documents that must be collected and submitted with the application. The most time-consuming documents may be requested ahead of time, such as birth certificates, marriage and divorce certificates, and police clearance certificates from your country of origin (and residence if different).

Step 3 — Submit citizenship and immigration permit applications

Once the citizenship application file of the applicant is duly completed, it will be submitted to the Ministry of Interior. Afterwards, the immigration permit application will be submitted to the Migration Department, where applicants are required to organize a visit for the collection of biometric data.

As of 31 July 2018, the ministry only accepts applications submitted by approved and registered service providers

The immigration card will be issued five to 10 working days from the date of submission of the immigration application. This period will allow the applicant to travel and reside in Cyprus while waiting for the issuance of the Cypriot passport.

Once a citizenship application is submitted to the Ministry of Interior, it is forwarded to the Ministry of Finance for examination of the financial criteria. When clearance from the Ministry of Finance is given, the application is sent back to the Ministry of Interior. Then, once the Ministry of Interior is satisfied, the application is routed to the Council of Ministers for ratification. The expected time for approval of the citizenship application is approximately six to eight months.

Step 4 — Issue of Cypriot citizenship certificate

Once ratified by the Council of Ministers, a letter of approval will be issued. In order to satisfy the program requirements and receive the documents, the applicant must hold the immigration permit for six months prior to visiting Cyprus for the issuance of the documents. As the applicant, you will need to visit Henley & Partners’ offices in Cyprus, where you will be led through the final steps. You will take an oath to the republic and have your citizenship certificate stamped. With the stamped citizenship certificate at hand, Henley & Partners is then able to facilitate the application for your biometric Cypriot passport and ID, which can be issued in two to three hours. The applicant is required to be physically present in Cyprus for one working day in order to complete the above process.

Dual citizenship

There are no restrictions on dual citizenship in Cyprus.

Taxation

Cyprus has a very attractive taxation system, which became even more attractive to high-net-worth individuals after the introduction of the non-domicile scheme by the Cypriot government. Taxation in Cyprus is based on residence and not on citizenship — therefore, once you obtain Cypriot citizenship, there are no effects on income earned abroad.

Personal tax on income generated in Cyprus is taxed at progressive rates up to 35%. Tax varies according to the individual’s tax status. Immovable property tax was abolished in 2016. The corporate tax rate is 12.5%.

VAT of 19% is imposed on the supply of goods and delivery of services in Cyprus, including the acquisition of goods from the EU and the importation of goods into Cyprus.

Key advantages

• Visa-free or visa-on-arrival travel to 174 destinations including Canada, Hong Kong, Singapore, and the UK
• Right of free movement, freedom to work and study, and security within the social and legal system of the EU
• Benefits for the whole family of the main applicant
• Completion in approximately six to eight months
• Straightforward documentation process
• Citizenship passed down to future generations