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ADVICE #272

How can the foreign investor receive the Cypriot citizenship?

Consider the question of citizenship in Cyprus, as an exception under subsection 111A, paragraph (2) of the Law on Civil Registry on 2002-2013.

 

On 03/19/2014 on the basis of the above-mentioned legal act Ministerial Council issued decision on the setting criteria and conditions for Cyprus citizenship receiving by foreign investors.

 

In order for a foreign investor receives citizenship in Cyprus, it is necessary to prepare appropriate forms for application to the Civil Registry and Migration Department of Cyprus (CRMD) and invest a certain amount of money.

Thus, the applicant must invest 5 million Euros (excluding VAT) in the following ways:

 

1. Buy financial assets (bonds, securities, debentures) of the Republic of Cyprus.

2. Buy financial assets of Cypriot companies and organizations (e.g. bonds, securities and so on), issued and registered in the Republic of Cyprus.

3. Invest in real estate purchase or building.

4. Purchase or register a business or companies established and operating in the territory of Cyprus, or interest in such business or company. In this case, you must confirm the physical presence of the business or company in Cyprus and provide employment for at least five citizens of the Republic of Cyprus. Contribution transaction into the shares is an obligatory condition.

5. Be an owner of personal deposits in Cypriot banks for a period of three years or deposits in private companies or trusts in which he is the ultimate beneficiary.

6. Combine the above conditions 1-5.

 

It has also been decided on those applicants whose deposits in the National Bank (Popular Bank Company Ltd) were impaired because of measures taken after March 15, 2013: if the deposit is not less than 3 million Euros, such investors have the right to apply for Cypriot citizenship. If the applicant has suffered losses, not exceeding 3 million Euros, it also has a partial benefit - the ability to further invest in accordance with above paragraphs 1-5 the remaining amount so that the total investment amounted will be 5 million Euros.

 

It is important to understand that both private individuals and companies must conform to the economic criteria. In the second case, the applicant must be a shareholder of a company and the size of the investment is calculated in proportion to the applicant’s shares in the company.

 

The applicant must perform the above-described investment over 3 years before applying for citizenship, and keep them in his possession for at least three years from the date of naturalization.

 

If the applicant takes part in a collective investment with the amount of 12.5 million Euros, the amount of investment necessary for the application may be reduced to 2.5 million. In addition, for the collective investment over 12.5 million Euros the amount of the applicant's individual investments could be reduced to 2 million Euros if the application was filed before June 1, 2014

 

Also, it is made a request to the applicant of criminal record. In addition, the Republic of Cyprus must be the place of residence. In all cases, the applicant must possess a permanent private housing property in Cyprus, market value of which must not be less than 500 thousand. Euros, excluding VAT.

 

However, if the periodic inspection finds that any of the conditions are violated, citizenship can be revoked!

 

The husband / wife and minor children of the applicant are also eligible to apply for citizenship of Cyprus. At the same time no economic requirements are made to them.

 

Application of husband / wife may be submitted simultaneously with the application of the principal applicant. Applications for naturalization of children of the applicant may be submitted after the applicant had received the citizenship of Cyprus. Adult children of the applicant in age from 18 to 28 years old who are on his / her dependence, students, or children who are disabled persons due to physical or mental illness, are also eligible for naturalization.

Кипр
Eugenia Lopatko

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Eugenia Lopatko

Tax and Legal Group lawyer

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