The Treasury decided to issue government bonds for foreign investors interested in acquiring Cypriot (EU) citizenship The Public Debt Management Office announced that it will accept applications for the new bonds, for naturalization purposes, from 3rd October 2016.
These special bonds will be medium to long term and the first edition will run for 7 (seven) years with no possibility of any early repayment. The interest rate will be fixed 0.75% and will be subject to existing tax legislation. The minimum application amount for the purchase of these special bonds is € 1,000 Euros.
It should be noted that new scheme regarding the provision of Cypriot citizenship to foreign investors approved by the Council of Ministers on Tuesday 13/09/2016 provides inter alia for a personal investment of only €2 millions, along with a residence purchase with a minimum value of €500.000 at current prices.
The investment, which should be maintained for at least 3 years, may be alternatively comprised by:
- acquisition or construction of immovable property;
- development projects (residential or commercial facilities, tourist facilities or infrastructure projects);
- urchase, registration or participation in businesses and/or companies that are based in Cyprus and employ at least 5 Cypriot citizens;
- nvestments in Alternative Fund Organizations, which are registered in Cyprus and licensed by Cyprus Securities and Exchange Commission and carry out investments exclusively in Cyprus (e.g. purchase of financial assets of at least €2 millions, such as bonds, securities etc. licensed by CYSEC, by companies that have a physical presence in Cyprus);
- Combination of the above-mentioned investments, whilst additional conditions shall be met (such as total value of at least €2 millions, possibility of purchase bonds of the Republic of Cyprus up to €500.000 by the investor).
Sources: www.philenews.com and CNA.