Cyprus Investment Program
As a way of encouraging the foreign direct investment and conducting business in Cyprus, the purpose of the Cyprus Investment Program is to simulate the economy via the creation of new economic activity in the fields of real estate development, participation in Cyprus businesses and investment in alternative investment funds. The Main Requirements of the Cyprus Investment program are separated into rather three major pillars :
The Investment in Real Estate, Infrastructure Projects and Land Development
The Purchase or Establishment or Participation in Cyprus Companies and Business
The Investment in Alternative Investment Funds or Financial Assets of Cyprus Companies or Cyprus Organisations Licenses by the CySec
Key Features of each Pillar:
1. The Investment in Real Estate, Infrastructure Projects and Land Development
An Investment of at least €2.000.000 (Euro two million) in real estate (purchase or construction) is required. In terms of construction, the applicant may invest in the land development or other infrastructure projects or other investment in land under development (residential/commercial/tourist section related) provided that an investment plan of the project is included.
2. The Purchase or Establishment or Participation in Cyprus Companies and Business
An Investment of at least €2.000.000 (Euro two million) in purchasing, establishing or via participation in businesses or companies registered and operating in Cyprus. This included capital investment exclusively in Cyprus according to a specific investment plan and the employment of at least 5 Cypriot or EU citizens with legal and continuous residency in Cyprus for the last 5 years prior to the submission of the naturalisation application.
3. The Investment in Alternative Investment Funds or Financial Assets of Cyprus Companies or Cyprus Organisations Licenses by the CySec
This includes the purchase of units from AIF established in the Republic of Cyprus, licensed and supervised by Cysec and whose investments are made exclusively in the Republic of Cyprus as provided by the Ministry of Finance. Retaining the investment for at least 5 years provided that such can be annually confirmed from the auditor of the Fund to the Ministry of Finance and the Ministry of Interior. This also included the investment of at least €2.000.000 (Euro two million) in purchase of financial assets of Cyprus Companies issued with the approval CyseC.
A combination of Investments provided in 3. above is also permissible via investment in Government Bonds up to €0.5 million, special Bond issued by the Public Debt Management Office and retaining the special government bonds for at least a period of 5 years.
Other important information in terms of the Cyprus Investment Program:
The requirements to Keep the real estate investment (Apartment, home, villa) for a minimum period of 5 years. Special notice should be attributed to the fact that the applicant is only entitled to sell the investment after the expiration of the 5 years.
In the event where the sale of the investment is desired after these 5 years then the applicant must have at least one property in Cyprus the value of which (the purchase price) will be minimum €500,000+V.A.T.
The additional requirement as of 15/05/2019 is that of the payment/ Donation of €75.000 to the Research and Innovation Foundation and furthermore the payment/ donation of €75.000 into the Cyprus Land Development Corporation.
How lengthy is the procedure under the Cyprus Investment Program?
The process under the Cyprus Investment and as from the date that all relevant forms have been submitted as required by the program vary and can take up to 6 months or more.
The applicant must, prior to his/her naturalisation, possess a residency permit in the Republic of Cyprus, for a period of six (6) months.
Please do not hesitate to contact us should you require any further information or clarifications.