• 27

    Oct
    2016
    news-image

    Revised Cypriot Citizenship Scheme Sees Reduction in Amount for Investment

    Cyprus has become an even more attractive business base for non-Europeans thanks to a recently revised Cypriot Citizenship scheme.

    The new scheme, which was issued by the Council of Ministers of the Republic of Cyprus and came into effect on 13th September 2016, sees the abolishment of the €12 million collective investment scheme in favour of a reduced investment amount of €2 million, with the intention of making a Cyprus/EU Citizenship investment more attractive to investors.

    The reduction to €2 million for the threshold of investment will further boost the economy of Cyprus as foreign investments continue to rise. The scheme also offers non-EU Citizens a fast track procedure while the same rights given to investors as with European Citizens.

    In order to be eligible, the investor must purchase a residence worth at least €500,000 as their main investment. In the event that the main investment is not in housing properties then an investment of €2 million plus a residential unit of €500,000 will be required.

    Another amendment to the regulation is that parents of the investor are also allowed to apply for Cyprus/EU Citizenship, provided that they purchase a housing property of at least €500,000 (meaning they will therefore not need to proceed with an additional main investment). 

    The investor will be eligible for Cyprus/EU citizenship by exception in the event that the following investment options (mentioned below in section A) and requirements (in section B) are fulfilled:

    Section A

    €2,000,000 (two million euros) investment option:

    Investment in real estate:

    An investment of at least €2 million must be made for the purchase or construction of a building or for the construction of other land development projects.

    OR:

    Participation in Cyprus companies:

    The applicant must be the shareholder or the ultimate beneficial owner of a company or companies based in Cyprus. The management must be situated in Cyprus and the company where the investment is being made must employ at least five Cypriot or European citizens. 

    OR:

    Investment in Alternative Investment Organisations or in assets or Cypriot companies:

    An investment of at least €2 million must be made by the applicant in Alternative Investment Organisations licensed by CySEC or in the assets of Cyprus companies. 

    OR:

    A combination of the above (+ bonds)

    An investment of a combination of the above-mentioned options in addition to an investment in government bonds for the amount of up to €500,000.

    Section B

    Clarifications:

    €500, 000 plus VAT residential property:

    In the event that the applicant invests in real estate under provision Section A1 then he or she will not need to fulfil the provision of Section B, provided one of the properties purchased is at least €500,000 + VAT and provided that he or she will maintain the property as his or her permanent residence house for life.

    Further to the above, the applicant must have a Permanent Residence permit before his or her naturalisation. If the individual does not yet have the permit, then a permanent residence permit application must be submitted.

    The investments must have been made by the applicant in the last three years preceding the date of application and he or she must maintain his or her investment for a further three years from the date of obtaining the Cypriot/EU Citizenship.

    In the event that the purchase price of the residence property exceeds the required €500,000 then the part of the purchase price that exceeds €500,000 may be used to complete the €2 million requirement of investments under Section A’s requirements.

    There is no provision for collective investment. 

    Applications based on the new amended regulation may be filed beginning 13th September, 2016.  The timeframe for submission of applications under the previous regulation has been extended to 30th October 2016.

    Fairfax Yeaman is a leading reputable agency specialising in the outsourcing of payroll, immigration and investment. The company possesses many years of experience in a range of immigration requirements including permanent residence, Cypriot Citizenships, visas and permits.

    The team of highly experienced agents at Fairfax Yeaman remain on hand assist you throughout the entire investment procedure. To learn more, please contact the team today on +357 25558025 or email accounts@fairfaxyeaman.com for more information on how to obtain your EU Citizenship.