SCHEME FOR NATURALISATION OF INVESTORS IN CYPRUS BY EXCEPTION on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015
One of the main objectives of the economic policy of the Republic of Cyprus is to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus. Key factors that make Cyprus an attractive destination for investment, is the highly specialized human capital, the reliable legislative and regulatory framework, the stable tax system and the safety and stability conditions prevailing in the country.
Within this framework and taking into account the strong investor interest, the Government of Cyprus has established and revised a "Scheme for Naturalization of non-Cypriot investors by exception" on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2015, with specific incentives, terms and conditions and control procedures in order to prevent abuse.
On the basis of the Scheme, a non-Cypriot citizen, who meets one of the following economic criteria (A), either personally or through a company/ companies in which he/ she participates as a shareholder – in proportion to his holding percentage, or through investments done by his/her spouse or jointly with the spouse or even as a high-ranking senior manager of a company/ companies that meets one of the economic criteria (A), may apply for the acquisition of the Cypriot citizenship through naturalization by exception.
Major Benefits of the Cyprus Investment Programme
Travel to 158 countries around the world with all the rights of residing, working and doing business in the EU..
Double-taxation treaties with more than 40 countries. No inheritance tax and the lowest rate of corporate income tax in Europe..
Right for sale of the investment objects in 3 years, however the possession of at least €500,000 worth of residential property is required..
Purchase of a residential property for at least €2 million or acquisition of investment property for at least €2 million and residential property for at least €500,000..
A straight forward and time-efficient route, enabling applicants to have their application reviewed in 6 months from the day of submission..
Approved by the EU (being one of only two CIP programmes in Europe with official EU approval)..
Cyprus legislation permits dual citizenship..
No donation requirements
No requirement to make a donation to the local government..
Criteria of the cyprus investment programme
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.
Purchase or Establishment or Participation in Cypriot Companies or Businesses: The applicant should have made a purchase or should have participated in companies or organizations established and operating in the Republic of Cyprus with investment costs 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. 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 five (5) Cypriot or citizens of European Union member-states. The minimum number of employees shall increase, if more than one applicant invest simultaneously or almost simultaneously in the same business or company. In addition, the employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date.
Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec: The applicant should have bought units of at least €2,0 million from alternative investment funds (AIF) established in the Republic of Cyprus, licensed and supervised by the CySec and whose investments are made exclusively in the Republic of Cyprus, in investments that meet the criteria of this Scheme or in areas approved by the Minister of Finance. 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 of units of other AIFs is not considered eligible.
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. Within this criterion (combination of investments) the applicant may purchase special government bonds of the Republic of Cyprus, up to €500.000, which will be issued by the Public Debt Management Office of the Ministry of Finance, on condition that the investor will retain these bonds for a three year period. The characteristics and the terms of these special bonds will be determined by the General and Special Issue Terms of the Government Bonds of the Republic of Cyprus. Investments in government bonds through the secondary market are not considered eligible.
TERMS & CONDITIONS
Clean Criminal Record: The applicant must have a clean criminal record. Furthermore, his 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
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, part of 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.
Submission of Documents
For the evaluation of the applications the form (M127) as well as the following documents must be submitted:
Clean Criminal Record:
Certificate of Clean Criminal Record from the country of origin and the country of residence (if different).
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.
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
2. 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) Copy of the Social Insurance Contributions for every Cypriot or European Union citizen employee. (i) Registration Certificate (MEU1) or Permanent Registration Certificate of Union Citizen (MEU3) for employees that are European Union citizens.
3. Investment in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec: (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. 7
4. Investment in government bonds: (a) Proof from the Public Debt Management Office for the purchase of special government bonds. (b) Copy of the wire transfer into a bank account of the Treasury of the Republic of Cyprus. Any other document that might be requested either by the Ministry of Interior, or by the Ministry of Finance. None of the above affects the absolute discretion of the Cabinet of Ministers on taking a decision.
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