Cyprus Investment Plan

CYPRUS INVESTMENT PLAN

Investment :€2,0 million

Residential Premises : €500,000

Financial Criterion: Investment in residential premises:

A foreigner  may apply for Cypriot citizenship provided that he have made an investment of at least €2,0 million (net)  in the real estate sector.  (i.e purchase or construction of buildings or construction of other land development projects (residential developments in the tourism sector) or other infrastructure projects).  Additionally, it is noted that if the applicant has invested only in housing unit/units on the basis of the aforementioned criterion, the purchase of another permanent residence in Cyprus of €500,000.-  will not be required, if at least one of these housing units is worth at least €500,000, plus VAT, provided that the applicant retains the possession of the residence for life.

Investment in residential  and commercial premises:

In case of a combination of residential and commercial properties then the total amount of investment is €2,500,000.-  since the purchase of another permanent residence in Cyprus of €500,000 will  be required.

Timeframe and Procedure:

The investor  may acquire a Cypriot citizenship within six months following the submission of the application for citizenship along with the required documents. The obtaining of the Cypriot citizenship requires also the simultaneous submission of an application for immigration permit without the obligation of the investor or his family members  to reside in Cyprus prior or after the submission of both applications.

Briefly, we outline the changes of the Cyprus Investment  Programme with immediate effect, which are the following concerning investment in commercial and /or residential premises:

  1. According to the Programme the investor should have made the necessary investments during the 3 (three) years preceding the date of the application and must retain the said investments for a period of at least 3 (three) years from the date of the naturalization. However, the Council of Ministers added the provision that the investor may replace the investment during the said period, provided that he/she has obtained beforehand an approval by the Ministry of Finance. if the investment involves the purchase of property or properties under construction for which the town-planning and building permits had not been ensured, this mandatory three-year period commences on the date that the town-planning permit  is issued.
  2. A further condition has been added providing that an applicant whose application for citizenship in any other member-state of the European Union has been rejected, that person is not eligible to apply for the acquisition of the Cypriot citizenship through the Cypriot Investment Programme. This condition also applies for the family members of the investor that are eligible to apply for the acquisition of Cypriot citizenship, i.e. for the spouse/partner, the financially dependent children and the parents of the investor. In order to evaluate this condition an additional mandatory document has been added to the application which is a “Declaration by the applicant concerning any citizenship applications he/she may have submitted in any other member-state or member-states of the European Union”. This Declaration needs to be signed before a registrar of a Cypriot court or a consular officer of the Republic of Cyprus. In case the applicant has not submitted any such application in the Declaration he/she needs to assure that he/she has never submitted such an application. This Declaration needs to be provided either in Greek, or in English.
  3. Concerning the applications of the financially dependent children it is mandatory to include in the application a Due Diligence Report issued through an internationally accepted database ensured through a subscription (e.g. World Check, LexisNexis Diligence, Regulatory DataCorp Inc. etc.). The report must be dated no later than thirty days from the date of its submission. It goes without saying that the obligation of including a due diligence report in the applications of the investors, the spouses/partners and parents of the investors is still in force.
  4. The Council of Ministers confirms the condition that the applicant prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus for a period of at least 6 (six) months. Bear in mind that this six-months period commences on the issuance date of the residence permit (card).

 

Further, briefly, we outline the new additional  conditions which  will be put into effect from the 15th of May 2019  concerning investment in commercial and /or residential premises as follows:

  1. A mandatory donation of 75,000 to the Research and Innovation Foundation (rename of the Research Promotion Foundation) to promote the creation of an entrepreneurial innovation ecosystem. The obligation to contribute to the research and innovation institute is lifted if the applicant is investing at least 75,000 in a certified innovative enterprise which has obtained a certificate from the Ministry of Finance or a certified social company.  In addition, this obligation is lifted if the applicant has made an investment under the purchase or registration or participation in Cypriot companies of a total amount equal to at least 20% of the required investment cost of the stated criterion namely 400.000 to a company operating in the primary sector of the economy or one of the fields of research and technology, education, health and renewable energy.
  2. A mandatory donation of 75,000 to the Cyprus Land Development Agency, aiming at the contribution of the program to the new integrated housing policy, namely for the implementation of affordable housing projects and the implementation of other housing plans / measures.
  3. In the case of residential units already used for the purposes of the Scheme and reused under the same scheme, the provision stipulating that if the applicant has made investments in a residential unit on the basis of the criterion, investment in real estate, development and infrastructure, it is not required to purchase another permanent privately owned house in the Republic of Cyprus if at least one of these residential units is worth at least 500,000, provided that the total investments including the privately owned house are at least 2,5 million.
  4. Schengen Visa: The applicant must hold a valid Schengen visa. Third-Country nationals that do not require an entry visa for travelling in European Union member-states, as well as citizens of European Union Member States are excluded from this obligation.

In cases where the investment relates to the purchase of real estate or immovable property, as well as in the case of a permanent privately-owned house, the following isrequired:

a)A planning permission in the cases proposed by the county planning and planning law.

b)A project completion certificate signed by the architect of the project. In the case of construction of a property it is necessary to maintain an amount corresponding to 5% of the value in a special account or to issue an equivalent bank guarantee from the seller of the property to the buyer (Performance bank guarantee).

An attestation by the mortgagee for the benefit of which the property in question may be mortgaged to undertake to withdraw the corresponding mortgage completely, provided that the investor or the seller will pay to the lender the amount to be indicated on that certificate (bank waiver).

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