fbpx

8:00 - 19:00

Our Opening Hours Mon. - Fri.

+357 25 660 092

After Hours Call +357 99 345 000 Call Us For Free Consultation

Facebook

Twitter

LinkedIn

 

Cyprus Investment Programme

Michalaki Pitsillidou Rozen Law Firm > English Articles  > Cyprus Investment Programme

Cyprus Investment Programme

As a part of its policies aiming to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus the Council of Ministers established the “Cyprus Investment Programme“.

On the 13.2.2019 the Council of Ministers purposing, to ameliorate the “Cyprus Investment Programme”, introduced new criteria and terms based on which non–Cypriot entrepreneurs/ investors and members of their families may submit applications in accordance with the provisions of the “Programme”.

According to the relevant decision of the Council of Ministers the revised “Programme” is put into effect from the date of its publication in the Government Gazette – i.e. the 26th of February 2019 – with the exception of certain clauses which the decision specifies that will be put into effect from the 15th of May 2019.
Furthermore the Council of Ministers on the 9.1.2018 and 21.5.2018 decided the establishment of the Committee for Supervision and Control as well as of the “Registry of Service Providers for the Cyprus Investment Programme.”

Our Law Firm is a licensed Service Provider approved from the Ministry of Interior.

In the case where, following a periodic inspection, it has been established that a criterion, term or condition of the Programme has been breached, the granted naturalization may be revoked.

None of the clauses mentioned in the Programme affects the absolute discretion of the Cabinet of Ministers on taking a decision.

Α. FINANCIAL CRITERIA

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 (residential or commercial developments, developments in the tourism sector) or other infrastructure projects. It is noted that investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. It is understood that investment in land that is situated in a building zone of zero development, is excluded.

Α.2 Purchase or Establishment or Participation in Cypriot Companies or Businesses:

The applicant must have invested at least €2,0 million for the purchase or participation in companies or organizations established and operating in the Republic of Cyprus with investment cost 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. Moreover, investments in the shipping sector are eligible on the basis of measurable criteria that will be determined jointly by the Ministry of Finance and the Shipping Deputy Ministry. 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 5 (five) Cypriot citizens or citizens of European Union member-states. The minimum 3 number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company.

Α.3 Investment in Alternative Investment Funds or Registered Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus Securities and Exchange Commission:

The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) or Registered Alternative Investment Funds (RAIF) established in the Republic of Cyprus, licensed/registered and supervised by Cyprus Securities and Exchange Commission (CySec) and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Programme or in areas approved by the Minister of Finance. It is permitted for these AIFs or RAIFs to invest in secondary market stock-market values of the Cyprus Stock Exchange an amount that does not exceed the €200.000.

In order to confirm that the investments that meet the criteria of the current Programme will be kept for at least 3 (three) years, the manager or the auditor of the Fund shall inform in writing and on an annual basis, the Ministry of Finance with reference to the value of the initial investment.

The purchase of financial assets of Cypriot companies or organizations of at least €2,0 million, such as bonds, bills and securities, issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus, and have as a purpose the financing of the investment plans of these companies or organizations exclusively in Cyprus, based on an investment plan, fall under this criterion.

It is noted that the purchase by an AIF or RAIF of units of other AIFs or RAIFs is not considered eligible.

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.

  1. TERMS AND CONDITIONS
  2. Clean Criminal Record:

The applicant must have a clean criminal record. Furthermore, his/her name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions.

Moreover, an applicant whose application for citizenship in any other member-state of the European Union had been rejected, is not eligible to apply for the acquisition of the Cypriot citizenship through the Cypriot Investment Programme. It is noted that all the aforementioned in paragraphs also apply for the family members of the investor that are eligible to apply for the acquisition of Cypriot citizenship.

  1. Residence in the Republic of Cyprus:

In all cases listed in Part A, the applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.

It is noted that members of the same family, who apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of €500.000 per each applicant.

In case that the purchase value of the permanent privately owned residence in Cyprus exceeds the amount of €500,000, this additional amount can be used for purposes of supplementing the total amount of the investment made on the basis of the criteria of Part A above.

Additionally, it is noted that if the applicant has invested in housing unit/units on the basis of the aforementioned criterion A.1, the purchase of another permanent residence in Cyprus 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.

  1. Residence Permit in Cyprus:

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.

If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6(2) of the Aliens and Immigration Law, simultaneously with the application for naturalization. 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

If the application for acquiring an immigration permit is made solely for purposes of acquiring the Cypriot citizenship, in accordance with the provisions of this Programme, there are no other conditions than those stated in both Part A and Part B of this Programme.

It is noted that all of the above also apply for the adult members of the family of the investor, who will apply for naturalization.

In case the application for naturalization is rejected for any reason, the immigration permit, obtained in accordance with the provisions of this decision, will be cancelled immediately.

 

  1. SUBMISSION OF DOCUMENTS

For the evaluation of the applications the form (M127) as well as the following documents must be submitted:

  1. Clean Criminal Record:

(a) Certificate of Clean Criminal Record from the country of origin and the country of residence (if different).

(b) Due Diligence Report issued through an internationally accepted database ensured through a subscription (e.g. Wolrd Check, LexisNexis Diligence, Regulatory DataCorp Inc. etc.). The report must be dated no later than thirty days from the date of its submission.

(c) 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.

  1. Residence in the Republic of Cyprus:

(a) Contract of Sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.

(c) Proof of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

  1. Criteria regarding the investment (when applicable):

(a) Certificate of Registration of the company/ companies by the Registrar of Companies.

(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies.

(c) Audited accounts of the company (or companies) for the last three years preceding the year of the application.

(d) If the applicant is a high-ranking senior manager, the submission of the employment contract and the receipt from the Department of Inland Revenue are additionally required.

(e) If the investment is made by the spouse of the applicant or jointly, a marriage certificate is required.

 

 

 

Furthermore, depending on the case, the following are required:

  1. Investment in real estate, land development and infrastructure projects **

(a) Contract of sale.

(b) Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department.

(c) Proofs of payment of the agreed purchase price.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company.

(e) An evaluation certificate from an independent registered land surveyor, if required by the Ministry of Interior or the Ministry of Finance.

(f) Investment Plan for the development of the purchased land, if the investment involves the purchase of land under development.

  1. Purchase or Establishment or Participation in Cypriot Companies or Businesses

(a) Contract of sale.

(b) Proof of payment of the agreed purchase price.

(c) Certificate of shareholders by the Registrar of Companies.

(d) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(e) Specific investment plan.

(f) Copies of the employment contracts of the Cypriot or European Union citizens employed by the company in which the applicant has invested.

(g) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot or European Union citizens employed in the company.

(h) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.

  1. Investment in Alternative Investment Funds or Registered Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by Cyprus Securities and Exchange Commission:

(a) Title/Titles and other relevant documents of the financial assets / units purchased. (b) Copy of the wire transfer to a Cypriot commercial banking institution in the name of the company or the organization.

(c) Specific investment plan. (d) Confirmation by the CySec.

At this point please advise us as to which program you believe fits your criteria and you believe that you will be eligible.

SPOUSE/PARTNER OF THE INVESTOR

The application for the Naturalization by Exception needs to be submitted at the Ministry of Interior and the amount of €2.000 as fees will need to be paid.

At the Ministry of Interior, the original documents should be submitted, along with a photocopy of all the documents.

For the submission of the application an appointment will need to be arranged beforehand with the person in charge at the Ministry of Interior.

The application of the spouse or partner of the investor can be submitted along with the application of the investor, so that both spouses/ partners will be able to acquire the Cypriot citizenship simultaneously. The documents that need to be submitted are the following:

  • Completed “Check List of Investors Family Members Application Documents”
  • Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer
  • Birth Certificate
  • True Copy of passport
  • Certificate of Clean Criminal Record from the country of origin and the country of residence (if different)
  • Marriage Certificate or Civil Partnership Certificate 2
  • Copies of advertisements in a daily newspaper two consecutive posts
  • Two passport size photographs
  • Curriculum Vitae
  • Copy of Residence Permit in the Republic of Cyprus.

If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization.

  • If the application is not submitted on the same time as the investor’s application the following documents should, also, be submitted:
  • Copy of the Investor’s Naturalization Certificate
  • Copy of the Investor’s Cypriot Passport

 

 

 

ADULT CHILDREN OF THE INVESTOR

The application for the Naturalization by Exception needs to be submitted at the Ministry of Interior after the acquisition of the Cypriot citizenship by the investor and the amount of €2.000 as fees will need to be paid.

At the Ministry of Interior, the original documents should be submitted, along with a photocopy of all the documents.

For the submission of the application an appointment will need to be arranged beforehand.

The documents that need to be submitted are the following:

  • Completed “Check List of Investors Family Members Application Documents
  • Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer
  • Copy of the investor’s Naturalization certificate
  • Copy of the Investor’s Cypriot passport
  • Birth Certificate
  • True Copy of passport
  • Certificate of Clean Criminal Record from the country of origin and the country of residence (if different)
  • Marriage Certificate or Civil Partnership Certificate (if applicable)
  • Copies of advertisements in a daily newspaper two consecutive posts
  • Two passport size photographs
  • Curriculum Vitae
  • Copy of Residence Permit in the Republic of Cyprus.

If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of 3 Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization.

  • Copy of undergraduate degree (if the applicant is studying for a postgraduate degree)
  • Certificate of attendance by an academic institution (original) Or · Medical Certificate attesting the disability (Original)

PARENTS OF THE INVESTOR

The application for the Naturalization by Exception needs to be submitted at the Ministry of Interior after the acquisition of the Cypriot citizenship by the investor and the amount of €2.000 as fees will need to be paid. At the Ministry of Interior, the original documents should be submitted, along with a photocopy of all the documents. For the submission of the application an appointment will need to be arranged. The documents that need to be submitted for each applicant are the following:

  • Completed “Check List of Investors Family Members Application Documents”
  • Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer · Copy of the investor’s Naturalization certificate
  • Copy of the Investor’s Cypriot passport
  • Birth Certificate
  • True Copy of passport
  • Certificate of Clean Criminal Record from the country of origin and the country of residence (if different)
  • Marriage Certificate or Civil Partnership Certificate
  • Copies of advertisements in a daily newspaper two consecutive posts
  • Two passport size photographs
  • Curriculum Vitae
  • Copy of Residence Permit in the Republic of Cyprus. If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization.
  • Documents concerning the acquisition of the permanent residential property:
  • Contract of Sale
  • Title Deeds or Proof of Registration of the contract with the Lands and Surveys Department
  • Proof of payment of the agreed purchase price
  • Copy of the wire transfer to a Cypriot commercial banking institution in the name of the seller or the seller’s company

Concerning the abovementioned applications (i.e. of the investor’s spouses/partners or adult children or parents) the following must be taken into consideration:

Note 1: The original application (M127) and all the required documents in their original form need to be submitted at the Ministry of Interior. Along with the original application and documents, an additional photocopy of the application and all the documents should also be submitted.

Note 2: All the documents issued by a foreign authority should be translated to either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

Examination procedure of an application by an adult member of the investor’s family

Once an application is submitted the Ministry of Interior investigates whether the applicant meets the conditions of the Decision of the Council of Ministers dated 13.9.2016. If the applicant meets the Conditions of the Decision, the Minister of Interior presents the case to the Council of Ministers for final decision.

Provided that the application is dully submitted and accompanied by all the necessary supporting documents and the investor meets the criteria and conditions of the Decision of the Council of Ministers, the time frame for the completion of the process is approximately 3 (three) months. It should be noted that the application submission date is the date on which the submission fees were paid that is noted on the receipt issued by the Cashier’s Office of the Ministry.

Once the application is approved, the applicant will be able to take all actions for the acquisition of the Citizenship and the issue of a Cypriot passport. The procedure for the acquisition of the Cypriot citizenship will be completed, provided that the applicant holds a residence permit for a period of at least 6 (six) months. If the applicant does not hold a 5 residence permit for the aforementioned time period, he/she will need to wait until the six month period is completed. Afterwards, the Civil Registry and Migration Department issues the Certificate of Naturalization, following payment of the amount of €5.000 that constitutes the Naturalization Certificate issuing fee.

Subsequently, the applicant will need to give the Oath of Faith to the Cypriot Republic before a Registrar of a Cypriot court or a consular officer of the Republic of Cyprus. Once this procedure is completed the applicant will be able to acquire a Cypriot passport and Identity Card.

MINOR CHILDREN OF THE INVESTOR

The application for the grant of the Cypriot citizenship to the minor children of the investor needs to be submitted at the Civil Registry and Migration Department.

The documents that need to be submitted are the following:

  • Application Form M126 fully completed and signed before a Registrar of a Cypriot court or a consular officer
  • Copy of the investor’s Naturalization certificate
  • Copy of the Investor’s Cypriot passport
  • Birth Certificate of the child
  • Marriage Certificate or Civil Partnership Certificate of the child’s parents
  • Copy of the child’s and parents passports
  • Consent of the non-Cypriot/ other parent
  • Fees €80

Note: All the documents issued by a foreign authority should be translated to either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

 

Furthermore to the above information please be advised that as mentioned prior, our Law Firm , Michalaki, Pitsillidou & Co LLC is a licensed firm by the Ministry of Interior under the citizenship by investment program and is a firm which is constantly updated on all changes.

The Cyprus Cabinet approved a series of changes in the Cyprus Investment Programme in order to make the Cyprus Investment Programme even more targeted and trustworthy.

The main changes on the plan are:

  • A mandatory donation of € 75,000 to the Foundation for Research and Innovation to promote the creation of an entrepreneur.

An obligation that can be waived under certain conditions, i.e.  where the investor shall invest in an innovative business (which has acquired a relevant certificate by the ministry of finance) or in a certified social company.

The mandatory donation is also waived where the applicant has made an investment under the criterion “Purchase or Establishment or Participation in Cypriot Companies or Businesses” amounting to at least 20% of the investment cost of the prerequisite amount (i.e. € 400,000 ) to a company operating in the primary sector of the economy or in the secondary sector of the economy, or in one of the fields of research and technology, education, health,

  • A mandatory donation of € 75,000 to the Cyprus Land Development Corporation, aiming at the contribution to the integrated housing policy, specifically for the purpose of implementing affordable housing projects and the implementation of other housing plans / measures.
  • The inclusion of investments in the shipping sector in the eligible investments, on the basis of specific measurable criteria. (Already specified above)
  • The inclusion of investment in Registered Alternative Investment Funds in the eligible investments, as well as the possibility for these Organizations to invest up to € 200,000 in Cyprus Stock Exchange’s secondary market. (Already specified above)
  • Obligation to maintain the required investments for a period of at least 5 years from the date of naturalization, instead of 3 years.
  • A complete abolition of investment in government bonds as an acceptable investment within the Programme.
  • Where the investment relates to the purchase of real estate or property as well as in the case of a permanent homeowner, a planning permission, a completion certificate and a bank waiver will be required.
  • The applicant must have a Schengen visa in order to be able to apply for naturalization. (Already specified above)
  • An applicant who has applied for the acquisition of citizenship in any other Member State of the European Union and has been rejected will not be entitled to acquire Cypriot citizenship within the framework of the Cyprus Investment Programme. (Already specified above)
  • The applicant should be in possession of a residence permit in the Republic of Cyprus for at least six (6) months prior to naturalization as a Cypriot citizen. (Already specified above)
  • An Annual Implementation Report that includes the number of naturalizations, nationality of the applicants and the sector in which the investments were made will be prepared for the sake of transparency and correct information.
  • Reaffirmation of the ban on the advertising of the Investment Programmes in public places and on the Internet, with particular emphasis on the visibility of the Cypriot passport and the symbols of the Republic and the EU.

Although the amendments have been approved by the Cabinet of Ministers, these have not yet been implemented in the law and will be enforced from May 2019.

 

No Comments

Leave a Comment

Translate »
GET IN TOUCH


[recaptcha]