The Cyprus Investment Programme is expected to be one of the main contributors towards the restitution of the economy of the Republic of Cyprus following the adverse economic impact sustained due to the coronavirus.
Taking into account its important contribution to the economy, the Government of the Republic of Cyprus may implement additional changes to the Cyprus Investment Programme in order to further strengthen and enhance the programme for the purpose of attracting foreign investment into the Republic of Cyprus.
One of the changes implemented is that of the enforcement of the competent departments undertaking the examination of Cyprus Investment Programme applications with the aim of shortening the examination period of the applications.
The investors’ applications pursuant to the Cyprus Investment Programme are submitted at the competent departments through Service Providers, who are registered with the Registry of Service Providers of the Cyprus Investment Programme. In this regard, the eligibility criteria required for registration at the Registry of Service Providers could be amended so that the persons being eligible to register, are only experienced professionals who are regulated and supervised for compliance with Anti-Money Laundering regulations and undertake a satisfactory level of due diligence procedures.
The Cyprus Investment Programme offers the investor the possibility to invest in several sectors including real estate, infrastructure projects, Cypriot companies or businesses and in alternative investment funds. These sectors of investment offered to the investor could be broadened with the introduction of additional eligible sectors of investment to the programme, such as the environmental sector or the investment in small and medium businesses, allowing the investment to be spread throughout even more parts of the economy.
Another aspect of the programme that could be affected due to the changes, is the one requiring the presence of the investor in the Republic of Cyprus. Due to the measures taken by several countries around the world and the travel restrictions being implemented as a result of the pandemic, the programme could be amended in way which, by adopting remote application procedures, does not require the physical presence of the investor in the Republic of Cyprus.
With the scope of strengthening and enhancing the Cyprus Investment Programme in 2019, new regulations and policies were implemented to the Programme which resulted in former civil servants or persons who held public offices as well as their family members (“Politically Exposed Persons”) not being eligible for the Programme. The eligibility criteria for PEPs could be amended with the removal of several restrictions and the examination of each application on a case by case basis, allowing PEPs to apply for the Programme.
The Cyprus Investment Programme is expected to be one of the main contributors in the restitution of the economy in the Republic of Cyprus following the pandemic and could be subject to various other procedural changes in order to attract investors and foreign investment to the Republic of Cyprus.
The present article is destined for informational purposes only and does not, under any circumstances, constitute legal advice. For further information on the subject, kindly contact Arsen Theofanidis LLC and one of our legal advisers shall be glad to assist you.
Costas Neophytou
Advocate – Legal Consultant
Arsen Theofanidis LLC