Cyprus Citizenship by Investment: The Ultimate Guide

What is the Cyprus Citizenship by Investment Program?

The Cyprus Citizenship by Investment (CBI) program was established to attract foreign investment to the country and offer investors the opportunity to acquire Cypriot citizenship in return. The program provides a straightforward and expedited pathway to EU citizenship, allowing successful applicants to enjoy the full benefits of being an EU citizen.

Key Benefits of Cyprus Citizenship:

• EU Citizenship: Cypriot citizens enjoy the right to live, work, and study in any of the 27 EU member states, as well as in Norway, Iceland, Liechtenstein, and Switzerland.
• Visa-Free Travel: Cypriot passport holders can travel visa-free or with visa-on-arrival access to over 170 countries worldwide.
• Favorable Tax Environment: Cyprus offers a favorable tax regime with low corporate tax rates, no inheritance tax, and access to double taxation treaties with more than 60 countries.
• High Quality of Life: Cyprus is known for its excellent healthcare, education, and lifestyle, making it an ideal location for families and retirees.

Eligibility Criteria for Cyprus Citizenship by Investment

To qualify for the Cyprus Citizenship by Investment program, applicants must meet specific eligibility criteria, including financial, residency, and due diligence requirements. Here’s what you need to know:

1. Investment Requirements

To obtain Cypriot citizenship through investment, applicants must make a significant financial contribution to the country. The primary investment options include:

• Real Estate Investment: Applicants must invest at least €2 million in real estate, such as residential or commercial properties. This is the most popular investment option due to its stability and potential for capital appreciation.
• Business Investment: An investment of at least €2 million in a Cypriot business or company is required. The business must employ at least five Cypriot or EU citizens and must contribute to the economy through its activities.
• Alternative Investment Funds (AIF) or Financial Assets: Applicants can invest a minimum of €2 million in Alternative Investment Funds (AIF) or other financial assets of Cypriot companies or organizations licensed by the Cyprus Securities and Exchange Commission (CySEC).
• Government Bonds: Although this option is no longer available as of 2020, investors previously had the option to invest in government bonds. However, current regulations do not include this option.
• In addition to the primary investment, applicants are required to purchase a residential property in Cyprus with a minimum value of €500,000 (plus VAT). This property must be held for life and serve as the investor’s permanent residence in Cyprus.

2. Residency Requirements

While there is no minimum residency requirement before applying, applicants must hold a Cyprus residency permit for at least six months before citizenship is granted. This means that after making the necessary investment, applicants need to apply for and obtain a Cyprus residency permit and maintain it until citizenship is granted.

3. Due Diligence and Background Check

All applicants must undergo a stringent due diligence process to ensure they meet the program’s requirements. This includes a comprehensive background check to confirm that the applicant has a clean criminal record, is not subject to any international sanctions, and has not previously been rejected by another EU country.

4. Additional Criteria

• Clean Criminal Record: Applicants must provide a clean criminal record from their country of origin and any country where they have resided for more than six months in the past ten years.
• Source of Funds: Applicants must demonstrate that the funds used for the investment were legally obtained and have a clear origin.
• Residence in Cyprus: While there is no requirement to physically reside in Cyprus before or after obtaining citizenship, applicants must visit Cyprus to complete the naturalization process.

The Application Process for Cyprus Citizenship by Investment

The process of acquiring Cyprus citizenship through investment is straightforward and typically takes around six to eight months from the date of application. Below is a step-by-step guide to the application process:

1. Choose an Investment Option

The first step is to decide on the investment option that best suits your financial goals and circumstances. Most applicants choose to invest in real estate due to its stability and the potential for capital appreciation. Alternatively, you can invest in a Cypriot business, AIF, or financial assets.

2. Engage a Professional Service Provider

To navigate the complexities of the application process, it is advisable to engage a professional service provider, such as Cyprus Company Set Up. We offer comprehensive services that include legal advice, due diligence, and assistance with selecting and managing your investment. Our experts will guide you through each step of the process to ensure a smooth and successful application.

3. Make the Required Investment

Once you have chosen your investment option, the next step is to complete the investment. This involves purchasing real estate, acquiring shares in a Cypriot business, or investing in financial assets. It is important to ensure that the investment meets the program’s requirements and is properly documented.

4. Apply for a Cyprus Residency Permit

After making the required investment, you must apply for a Cyprus residency permit. This permit is granted within a few days and allows you to reside in Cyprus while your citizenship application is being processed. You must hold the residency permit for at least six months before citizenship is granted.

5. Submit the Citizenship Application

Once the residency permit is obtained, you can submit your citizenship application to the Cyprus Ministry of Interior. The application must include all required documentation, such as proof of investment, clean criminal record, and evidence of residence in Cyprus.

6. Undergo Due Diligence and Background Check

The Cyprus government will conduct a thorough due diligence process to verify the information provided in your application. This includes a background check to ensure that you meet the program’s requirements and have a clean criminal record. The due diligence process is conducted by third-party agencies to ensure impartiality.

7. Receive Approval and Obtain Citizenship

If your application is approved, you will receive a Certificate of Naturalization, confirming your Cypriot citizenship. You will then need to visit Cyprus to take an oath of allegiance and collect your Cypriot passport. Once citizenship is granted, you will enjoy the full rights and privileges of an EU citizen.

Post-Citizenship Considerations

After obtaining Cyprus citizenship, there are several important considerations to keep in mind:

1. Tax Residency

Cyprus offers a favorable tax regime for residents, including low personal income tax rates, exemptions on foreign income, and no inheritance or wealth taxes. However, obtaining citizenship does not automatically make you a tax resident in Cyprus. To become a tax resident, you must spend more than 183 days in Cyprus within a calendar year or meet the requirements of the 60-day rule.

2. Holding and Managing Your Investment

As a Cypriot citizen, you are required to maintain your investment in Cyprus for at least five years after obtaining citizenship. This includes holding onto your real estate property or shares in a Cypriot business. After five years, you can sell or transfer your investment, provided that you retain a residential property in Cyprus worth at least €500,000.

3. Compliance with EU Laws

As a citizen of Cyprus, you are also a citizen of the European Union and must comply with EU laws and regulations. This includes the free movement of goods, services, capital, and labor within the EU. Additionally, you will have the right to vote in European Parliament elections and enjoy the protection of EU laws.

4. Family Reunification

The Cyprus Citizenship by Investment program extends to the applicant’s spouse, children under 18, and adult children who are financially dependent on the applicant (up to age 28 if they are full-time students). Additionally, parents of the main applicant can also obtain citizenship by making an additional investment in residential property worth at least €500,000.

Why Choose Cyprus Company Set Up?

At Cyprus Company Set Up, we specialize in helping high-net-worth individuals and investors navigate the Cyprus Citizenship by Investment program. Our team of experienced professionals provides personalized guidance and support throughout the entire application process, ensuring that you achieve your goals efficiently and with peace of mind.

Our Services Include:

• Legal Advice and Due Diligence: We provide expert legal advice and conduct thorough due diligence to ensure that your investment and application meet all program requirements.
• Investment Management: We assist with selecting and managing your investment, whether it’s real estate, business shares, or financial assets.
• Application Preparation and Submission: We handle all aspects of your citizenship application, including document preparation, submission, and liaising with the Cyprus government.
• Post-Citizenship Support: We offer ongoing support after you obtain citizenship, including tax planning, investment management, and compliance with Cypriot and EU laws.