On Tuesday 13.09.2016 the Council Of Ministers approved the scheme regarding the provision of Cypriot citizenship to foreign investors. In particular, the naturalization of these persons has been in force the last few years, given that the criteria and conditions foreseen in law are met. However, in order to encourage real investments and, therefore, strengthen the Cypriot economy, these criteria had to be reviewed, in order to become more flexible, taking into account the current global economic conditions.
The main change lies in the criterion regarding collective large investments, which is amended as follows: the prerequisite of €2,5 millions in relation to investors, who have been proved to participate in a collective investment plan, is no longer in force and is replaced by another, which requires a personal investment of only €2 millions, along with a residence purchase with a minimum value of €500.000 at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);
- purchase, registration or participation in businesses and/or companies that are based in Cyprus and employ at least 5 Cypriot citizens;
- investments 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).