Cyprus Citizenship-by-Investment Program allows foreign nationals to legally acquire citizenship; if certain criteria set out by the Council of Ministers are met. The Cyprus Citizenship-by-Investment Program approval means that you and your family enjoy full citizenship for life, which can be passed on to future generations by descent.
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Overview
Cyprus has been a full member of the EU since 2004. Cyprus is located in the southeastern Mediterranean Sea, at the crossroads of Europe, Asia, and Africa. The strategic location of the island has played an important role in its development as a financial center. Cyprus is also the third largest and third most populous island in the Mediterranean.
The warm and stable climate and the geographical location are the two main reasons in considering the island an attractive place for residence. The investment landscape in Cyprus is beneficial due to the island’s well-qualified labor force, attractive taxation, and a reliable transport and telecommunications system.
Cyprus has a modern, free-market, service-based economy, with an effective and transparent regulatory and legal framework, giving international investors and businesses confidence to invest, grow and prosper.
A number of new measures have been implemented to reboot the economy in the wake of the massive restructuring of the country’s banking sector, which aim, among other things, to help stimulate economic growth.
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Requirements
The Cyprus Citizenship-by-Investment Program requires the applicants to make a substantial economic contribution to the country.
In exchange, and subject to a stringent vetting and due diligence process, including thorough background checks, the applicants and their families are granted citizenship.
The Council of Ministers reduced the capital requirement to only EUR 2 million. To qualify for citizenship, the primary applicant must be over 18 years of age and meet the application requirements under one of the following options:
1. Real estate, developments and infrastructure projects:
the applicant must commit at least EUR 2 million to the purchase or construction of real estate
2. Purchase, establishment, or participation in Cypriot businesses and companies:
the applicant must commit at least EUR 2 million to the purchase, creation or participation in businesses or companies that are based and operating in the Republic. These businesses or companies should have a demonstrable and tangible presence in Cyprus and employ at least five Cypriot or EU citizens
3. Participation in alternative investment funds or the purchase of financial assets of Cypriot enterprises or organizations licensed by the Securities and Exchange Commission:
the applicant must purchase units amounting to at least EUR 2 million from alternative investment funds (AIF). This criterion also covers the purchase of financial assets of Cypriot businesses or organizations for at least EUR 2 million, in the form of bonds, securities and debt securities
4. Combination of the above options:
the applicant may choose a combination of the above, provided that the total amounts to at least EUR 2 million. The applicant’s combination may include the purchase of special government bonds of the Republic of Cyprus of up to EUR 500,000
In order to apply for the Cyprus Citizenship-by-Investment Program, the applicant must have no criminal record and the applicant’s name must not be in the list of persons on whose name there is a freezing or confiscation order of property within the boundaries of the EU.
In addition, every applicant must be the owner of a permanent residence in Cyprus, with a market value of at least EUR 500,000 plus VAT.
All options for citizenship allow dependents.
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Procedures and Time Frame
Typically, the full process for obtaining approval for citizenship in Cyprus takes three months or less if choosing the real estate option.
Given below is the five steps in the citizenship application process – when choosing the real estate option:
Step 1 — Review and select qualifying real estate
Step 2 — Prepare citizenship application
The applicant will receive a detailed application package and checklist of the documents that must be collected and submitted with the application.
Step 3 — Acquire pre-approval
Step 4 — Submit citizenship and Immigration Permit applications
The applicants are required to organize a visit for the collection of biometric data. The immigration card will be issued five to 10 working days from the date of submission of the immigration application. This will allow the applicant to travel and reside in Cyprus while waiting for the issuance of the Cypriot passport.
The expected time for approval of the citizenship application is approximately three months.
Step 5 — Issue of Cypriot citizenship certificate
The applicant is required to be physically present in Cyprus for one working day in order to complete the above process.
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Dual Citizenship
There are no restrictions on dual citizenship in Cyprus.
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Taxation
Cyprus has a very attractive taxation system, which became even more attractive to high net worth individuals after the introduction of the non-domicile scheme by the Cypriot Government. Taxation in Cyprus is based on residence and not on citizenship — therefore, once you obtain Cypriot citizenship, there are no effects on income earned abroad.
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Key Advantages
- Citizenship of an EU member state, and as an EU citizen you enjoy the right to freedom of movement;
- freedom to work and study; and security within the social and legal system
- Full citizenship with passport is granted to the applicant and family
- A Cypriot passport allows visa-free travel to 163 countries including Canada
- Flexible options with no residence required; and granting of citizenship within 180 days