CITIZENSHIP BY INVESTMENT IN CYPRUS By: Danos & Associates

Introduction:

Cyprus has been offering a program of citizenship by investment for several years and the program is one of the most successful ones internationally. The program has brought billions of Euros into the island and benefited the economy of the country. The program has been amended several times throughout the years with the last amendments taking place in September 2016. The minimum required investment is now the lowest it has even been and stands at just €2 Million.

The current program provides for 4 different options for investment:

1. Investment in Real Estate Developments

The minimum required investment, as with all other options, is €2 Million. The investment can be on residential or commercial property. This is possibly the most common and popular way of investment.

2. Investment in Cyprus Companies and other Cyprus Businesses

This option involves an investment of a minimum of €2 Million with the purpose of setting up, buying or participating in Cypriot companies or other businesses. The investment must related to businesses that employ a minimum of 5 Cypriot citizens or EU citizens who have been residents in Cyprus for the 5 years preceding the application for the citizenship.

3. Investment in alternative investment funds, financial assets of Cyprus legal entities licensed by CySEC

The investor must invest a minimum of €2 Million in units of alternative investment funds or in bonds, securities and debt securities of Cypriot legal entities licensed by Cyprus Securities and Exchange Commission or other businesses with substantial economic activity.

4. Combination of the above investments

This option allows for an investment that includes a combination of any of the aforementioned ways of investment. Besides the above options of investment, this option can include an investment in government bonds up to a maximum of €500.000.

Requirements:

The investment itself is not sufficient to obtain the citizenship. The applicant must have a clean criminal record and his/her name should not be on the EU list of persons whose property is under an order to be frozen.

Moreover, the applicant must also purchase in Cyprus a property that is going to serve as his/her permanent residence in Cyprus. This property must be worth a minimum of €500.000.

The applicant and his dependents must hold a permanent residence permit in Cyprus for a period of at least 6 months before naturalisation can take place. The application for the permanent residency can be filed at the same time with the application for the citizenship and can be approved within the same day provided that the requirements for the citizenship are fulfilled.

Documentation:

Documentation required varies depending on each different criterion. Below is a list of documents required for all applications irrespective of the way of investment. The documents must be officially translated and apostilled. For countries which are not members of the Hague Convention documents can be attested by the Ministry of Foreign Affairs of the country of origin of the applicant and the relevant Cypriot embassy or consulate.

The documents are:

(1) Copy of passport;

(2) Birth certificate;

(3) Marriage certificate (if applicable);

(4) Divorce certificate (if applicable);

(5) Curriculum Vitae;

(6) Clean criminal record certificate from the country of origin and the country of residence (if different);

(7) Four recent passport size photographs;

Below is a list of the documents that may be required for different types of investment.

INVESTMENT IN REAL ESTATE DEVELOPMENTS

■ Contract of Sale;

■ Title deeds or receipt from the Land Registry showing that the Contract of Sale has been deposited at the Land Registry;

■ Proof of payment;

■ Inward transfer receipt from a Cypriot bank in the name of the seller;

■ Valuation from a certified independent valuer;

■ Master plan for the development of the land.

INVESTMENT IN CYPRUS COMPANIES AND OTHER CYPRUS BUSINESSES

■ Sale and purchase agreement;

■ Shareholders certificate;

■ Business plan;

■ Proof of payment of purchase price;

■ Inward transfer receipt from a Cypriot bank in the name of the seller;

■ Copies of the employment contracts of Cypriot and EU employees;

■ Certificates from the Department of Social Insurance certifying the accounts of the EU employees and the contributions of all employees;

■ Certificate from the tax authorities confirming the taxable income of Cypriot and EU employees;

■ Registration certificates or certificates of permanent residence of EU citizens for the EU employees.

INVESTMENT IN ALTERNATIVE INVESTMENT FUNDS, FINANCIAL ASSETS OF CYPRUS LEGAL ENTITIES LICENSED BY CySEC

■ Investment plan;

■ Inward transfer receipt from a Cypriot bank in the name of the investment manager;

■ Title documents;

■ Confirmation from Cyprus Securities and Exchange Commission.

COMBINATION OF THE ABOVE INVESTMENTS

■ Receipt from the Public Debt Management Office if the investment includes government bonds;

■ Inward SWIFT confirmation.

 By: Danos & Associates