On February 13th of 2019, the Cabinet approved a number of changes to the Cyprus Investment Program, making it more targeted and trustworthy. The new requirements were introduced after the issuance of the recent results of an economic impact study that had been made for the evaluation of the Program.
According to the Minister of Finance, Harris Georgiades, the investments made over the past few years have marked a positive contribution to the growth of the real estate and construction sector, however, very little impact has been made on the general economy of the country (1,2% over the last three years).
As a result, the Government has decided to update the Program, in order to create a more competitive economy and bring more growth into all sectors, particularly highlighting the areas of research and innovation.
The new requirements voted by the Cabinet are as follows:
1. The applicant must first obtain a Schengen visa in order to be eligible to apply for citizenship.
2. Investment into government bonds is no longer a criteria of eligibility.
3. All investments must be maintained for at least a period of five (5) years from the day of naturalization, as opposed to the three (3) year period which was required under the previous legislation.
4. The applicant must first hold a residence permit for a period of at least six (6) months prior to naturalization.
5. An applicant who has been refused another EU member states’ citizenship cannot be granted the Cypriot citizenship.
6. An Annual Implementation Report publication, containing the nationality, numbers and investment sector, is required.
7. A donation of at least €75.000 to the Foundation for Research and Innovation is now mandatory. Furthermore, if the applicant makes an investment under the criterion “Buy or Set Up or Participation in Cypriot Businesses and Companies” that equals to ay least 20% of the requirements investment amount of the stated criterion (€400.000) to an enterprise from the primary or the secondary sector of the economy, or from the fields of research and technology, health, education and renewable energy, this obligation is lifted.
8. A donation of €75.000 to the Cyprus Land Development Corporation is now mandatory.
9. The applicant has also the right to invest in listed Alternative Investment Products for an amount up to €200.000.
10. Investment into the shipping sector is now possible, on the basis of specific measurable criteria.
11. Reaffirmation of the ban on advertising of the Program on the internet and in public areas, emphasizing the passport of the Republic of Cyprus and the EU.
The approved changes listed above came into force on May 15th of this year.
For further information on the rules and regulations regarding the Cyprus Investment Program, please contact Arsen Theofanidis LLC, and one of our associates will be happy to assist you!
By N. Kalifatidou
Advocate – Legal Consultant
Arsen Theofanidis LLC