New Criteria Regarding The Scheme For Naturalisation Of Investors In Cyprus By Exception
New Criteria Regarding The Scheme For Naturalization Of Investors In Cyprus By Exception on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015 and providing of Cypriot Passport
The Cabinet within the implementation framework of its objectives, one of which is to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus, proceed to a further review of the economic criteria and other terms and conditions of the Plan, which was adopted at the meeting of Ministers dated 13.09.2016.
The new plan is consistent with the basic objective of economic policy of the Republic, which is to further encourage foreign direct investment and to attract individuals with high income level for installation and activation of Cyprus.
On the basis of the Scheme, a non-Cypriot citizen, who meets one of the following economic criteria (A), either personally or through a company/ companies in which he/ she participates as a shareholder – in proportion to his holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/ companies that meets one of the economic criteria (A), may apply for the acquisition of the Cypriot citizenship through naturalization by exception. The economic criteria are the follows:
Α.1 Investment in real estate, land development and infrastructure projects:
The applicant must have made an investment of at least €2,0 million for the purchase or construction of buildings or for the construction of other land development projects or other infrastructure projects.
Α.2 Investment in financial assets of Cypriot companies or Cypriot organizations:
The applicant should have made a purchase or should have participated in companies or organizations established and operating in the Republic of Cyprus with investment costs of at least €2,0 million. The invested funds shall be channeled towards the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan. The applications shall be evaluated to verify that the companies or organizations have proven physical presence in Cyprus, with significant activity and turnover and employ at least five (5) Cypriot or citizens of European Union member-states.
Α.3 Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec :
The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Scheme or in areas approved by the Minister of Finance.
Α.4 Combination of the aforementioned investments:
The applicant may proceed with a combination of the above investments, provided that the total investment will amount up to at least €2,0 million.
Within this criterion (combination of investments) the applicant may purchase special government bonds of the Republic of Cyprus, up to €500.000, which will be issued by the Public Debt Management Office of the Ministry of Finance, on condition that the investor will retain these bonds for a three year period.
Some of the terms and conditions in order for an application submitted based on the above criteria, to be approved, is the Clean Criminal Record of the applicant, the applicant must have Residence in the Republic of Cyprus (the purchase price of which must be at least €500.000, plus V.A.T) and the applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus.
Edited by Stella Makris, Attorney