Cyprus lies in the eastern Mediterranean region and is a very important hub for trade and business. It offers a plethora of benefits to its citizens, making it an excellent choice for securing citizenship. It is a respectable member of the European Union and is the quickest route for getting an EU citizenship. It offers amazing benefits in terms of trade, taxation, healthcare facilities, education, and standard of living. There are different ways of obtaining Cyprus economic citizenship, namely through investments and permanent residency. Cyprus citizenship by investment is extremely viable for a person who wants to explore new business ventures and avenues by acquiring Cyprus passport by investment. But also connected with some conditions and financial aspects that have to be met according to the department of Cyprus.
Cyprus Citizenship By Investment Program
Obtaining a Cyprus passport by investment enables an applicant to acquire residency in less than 6 months. It is a golden opportunity for an applicant because Cyprus citizenship by investment does not give the candidate only a short-term or temporary visa but entitles the applicant to lifelong citizenship and allows permanent relocation.
Why Obtain Citizenship Through Investment?
- It gives the main applicant and family members the freedom to travel, work, and study in Cyprus and the EU.
- The procedure for Cyprus economic citizenship is direct and straightforward.
- It is issued in within 6 months.
- It is approved by the EU and does not require the applicant to make any additional investment in the form of a donation to the government other than the original investment.
- A Cypriot citizen has the benefit of dual citizenship.
- Any investment made to acquire citizenship through investment can be liquidated within 5 years by the applicant.
- It gives an opportunity to travel visa-free to 122 countries and with visa on arrival to 39 countries.
- A number of social and economic benefits.
- It is a very safe country with a low population.
- It is a favorable country for trade and business because of its geographical location.
- It has a dedicated economic zone for applicants who want to invest in oil and gas industries.
- The Cyprus government has created a conducive environment for FDI (Foreign Direct Investment).
- The recipients of Cyprus citizenship by investment do not need to pay any inheritance tax.
- English is an acceptable language for trade and business and is spoken by a majority of the population.
- The legal system of Cyprus is also English based.
- It has a presidential democracy which makes it a democratic economy where citizens have many rights and can question the law.
- A citizen can enjoy international tax treaties.
Cyprus Golden Passport
Owning multiple passports is a symbol of prosperity and status for the rich and elite all over the world. The most sought-after citizenships are of the countries belonging to the European Union as they often include EU citizenship. There are different procedures and ways (through investment, residency or ownership of private property) through which foreigners can apply for citizenship for a lifetime with its benefits that can be passed to the future generations.
It’s well known that having a Cyprus passport by investment has a huge amount of Cyprus citizenship benefits for an individual and his family members. A Cyprus passport holder is not only a citizen of Cyprus but a citizen of the EU, which means they have the liberty to travel, study, trade, and invest in any part of the European Union. The applicant can enjoy citizenship for a lifetime along with his/her family and this privilege can be passed to generations to come.
The Cyprus passport holds a desirable and powerful global ranking in terms of the benefits it offers through Cyprus economic citizenship. It is known as a golden passport as it grants foreign investors citizenship by investing a minimum of €2 million. It is extremely beneficial for trade and business with comparatively low corporate tax rates at 12.5%. A Cyprus passport is granted directly through citizenship by birth, by naturalization or through marriage. An applicant has to have a clear idea of how much they are willing to invest to gain citizenship and what they are expecting out of this citizenship. Once an applicant has the required funds and documents in place, it is easier to begin with the citizenship procedure, which can take 6 to 9 months depending on the type of investment.
Attracting Foreign Direct Investment
The government of Cyprus has introduced various incentives and perks through the Cyprus economic citizenship program with the major goal being to attract foreign direct investment in the country. This, in turn, leads to more employment and economic activities. A few changes in the Cyprus investment program have now been made, which includes an additional contribution of €75,000 in each of government bonds with an approval time of 6 to 8 months.
Requirements For Cyprus Citizenship By Investment Program
- The main applicant should be of 18 years and above
- The applicant has to invest a minimum amount of € 2 million to qualify for the economic citizenship by investment program
- The applicant has to have a clear criminal record
- The additional applicants need to have a clean criminal record as well
- The investment has to be maintained for not less than 3 years
- The investor already has to have a local residence permit to apply for Cyprus citizenship by investment
- The candidate has to be available to visit Cyprus for biometrics and to collect the permanent residency permit
- The investor should have a private residence in Cyprus the value of which should be more than €500,000 plus value-added tax, and this amount should be cleared before applying for the Cyprus citizenship by investment
The following dependents can be added in the same application along with the main applicant:
- Spouse of the main applicant
- Children of the applicant up to the age of 18 years
- Children between the ages of 18 years and 28 years who are still unmarried and financially dependent on the main applicant or want to seek admission in an educational institution.
- If the candidate wishes to apply for his/her parents or his/her spouse’s parents in the same Cyprus citizenship application, it can be done if the applicant invests an additional €500,000 in a residential property.
Amendments To The Cyprus Citizenship By Investment Program:
The Cyprus citizenship by investment program has had many changes made by the Cyprus Council of Ministers to make it easier and more beneficial for people who want to invest in the country and gain citizenship for themselves and their families. The recommendations made in the 2016 program enable a person to seek citizenship through naturalization for the applicant and the applicant’s family. A few amendments were also made in 2018 under the following categories:
- The due diligence process was enhanced, for which the cost has to be paid by the applicant.
- An additional cap of 700 applicants was added per year starting from 2018.
- The Cyprus citizenship by investment program is now known as ‘Cypriot Investment program’.
List Of Legal Investments For The Cyprus Citizenship By Investment Program
- Investment in real estate
- Investment in infrastructure development
- Investment in land development
- Investment in financial assets
- Investment in alternative investment
- Investment in combination options
Cyprus Citizenship By Investment Options
Anyone who wants to apply for Cyprus citizenship by investment receives not a residence permit or a temporary visa but full citizenship of Cyprus, which makes this investment option rather appealing to any applicant.
Investment in real estate, infrastructural projects, and land under development
In this option, an applicant has to invest a minimum of €2 million. This amount doesn’t include any additional tax and the applicant has to pay taxes separately. The investment in this option involves buying or investing in the construction of buildings or construction of any other development projects which can either be a residential or commercial project or a tourism development project. The applicant can also make this investment in a resale property.
Purchase /establish/participate in a Cypriot business or company
The applicant has to purchase or participate in any company or business that has its origin in Cyprus and has been established and is operating in Cyprus. The applicant has to invest a minimum of €2 million. These companies need to employ at least five employees of Cypriot origin or citizens of European Union compulsorily. The money invested in citizenship planning has to be used to finance the investment objectives of a company that has been exclusively operating in Cyprus. Also, the funds have to be invested in a specific investment plan. The companies should have a consequential turnover as well. If more than one applicant is applying for Cyprus citizenship by investment under the same application, the number of employees of Cypriot or EU origin to be employed by the company increases.
Investment in Alternative Investment funds of financial assets of companies and organizations of Cypriot origin
The company for alternative investment has to be licensed by the CySEC (Cyprus Securities and Exchange Commission). Under this option, the applicant needs to purchase units, the value of which should not be less than €2 million. The purchase has to be made from an investment fund that was established in Cyprus and is licensed and controlled by CySEC. Furthermore, these investments should be made only in Cyprus and should fulfill all the criteria given by the nation’s Ministry of Finance.
Combination of the above options
If an applicant wishes, he/she can go for a combination of the above investments by combining the investments on the condition that the combined investment will be of a value of at least €2 million. Through this investment, the applicant has the option to purchase exclusive government bonds of the Republic of Cyprus issued by the Ministry of Finance, the value of which has to be €500,000. Also, this investment has to be maintained for a period of 3 years. A candidate has to keep in mind that investment in bonds of a secondary market is not an acceptable investment.
Cost Effective Investment
An applicant can choose whichever investment option suits him/her the best but the most cost-effective and economically viable investment option is to acquire a residential property in Cyprus, the value of which should be €2 million or more. Here, there is no need to buy a residential property of €500,000. If an applicant chooses to invest in government bonds or a commercial property, the applicant will have to purchase either one or more than one residential property of €500,000, in addition to the €2 million investment.
Steps To Apply For Cyprus Citizenship By Investment
There are certain steps that need to be followed to apply for Cyprus citizenship by investment.
Select an investment that is viable and practical
It is important for the applicant to analyze and decide which investment is best suited in terms of capital required, size of the investment, procedure, and benefits. Once the decision is taken, it is very important to keep the documents and agreements in place. This ensures smooth and hassle-free processing of citizenship application.
Preparing an Application
At this stage, the application should be prepared to be submitted to the Ministry of Interiors. The documents will include important information like the type of investment, the total value of the investment, etc. The investment details will be scrutinized by the Ministry of Finance and the applicant has to go to Cyprus in person for biometrics and issuance of passport.
Follow up the application with the Ministry
Acquiring a Cyprus passport by investment takes approximately a period of 6 to 9 months. It is important for an applicant to follow up with the ministry at regular intervals to know about the status of the application. Once the application is accepted and the passport is issued, the applicant needs to go to Cyprus again to collect the passport and other documents.
An economic citizenship represents financial contributions made by a citizen to acquire citizenship, resulting in a direct impact on their rights and duties as a citizen. Obtaining a Cyprus passport by investment has its own advantages and disadvantages. It is important to weigh the pros and cons before applying for Cyprus citizenship by investment to get a clear idea of the procedure and the benefits.
Advantages of Cyprus citizenship by investment
- Great standard of living: Citizenship by investment programs have a major benefit of upgrading the standard of living of an individual with a whole lot of social, lifestyle, and economic benefits.
- Free mobility: A Cyprus passport by investment gives the applicant the freedom to move freely with visa-free access to travel in a number of countries without the hassle of facing the time-consuming and expensive visa application process time and again.
- Security and stability: An alternative passport is always a safe investment since it does not require you to give up on your current nationality, but is extremely beneficial in times of political unrest and other unforeseen circumstances. A holder of a second passport can decide to shift base anytime in case of emergency situations.
- Quality education: It gives the kids a golden opportunity to study and work freely in Cyprus or any other European Nation without applying for additional visas or going through complex procedures. The only condition is that the kids have to be over 18 years of age and should be financially dependent on the main applicant.
- Dual citizenship: Cyprus allows dual citizenship, but it may be possible that the current citizenship that an applicant possesses does not allow dual citizenship. This makes it important for the applicant to check with the laws of their own country.
Disadvantages Of Citizenship By Investment Program
- Different time for every application: Although the time taken for an application for Cyprus citizenship by investment is normally 6 to 9 months, it can differ from application to application, depending on the documentation and physical ability of the candidate to be present in Cyprus at the right time.
- High level of investments: Although the program comes with a huge amount of benefits, the investment levels are significant. Applicants need to carefully make an investment considering a lot of factors and arrange for the funds before the application process.
- Change of policies: With globalization impacting every part of the world, it is not uncommon for governments to change their investment and citizenship policies. The amount to be invested can increase or decrease anytime without a detailed notice and it is possible that the applicant may need to make revisions in the investments even after submitting the application.
- Increased scrutiny over the years: In recent years, citizenship by investment programs have come under suspicion and scrutiny, as a result, the due diligence policy has become even more strict, in order to veto unsuitable candidates.
Procuring a second citizenship by means of an investment may be expensive, but it comes with a host of benefits. To ensure that the program you select is best suited for your needs, allow our experts at Citizenships.com to guide you through the process. Register with us now!