Cyprus Investment Scheme

On the basis of section 111A (2) of the Civil Registry Laws 2002-2017, the Government of the Republic of Cyprus has established and subsequently revised (revisions dated 13th September 2016, 9th January 2018 and 21st May 2018) a “Cyprus Investment Scheme” (CIS).

This scheme contains the following 3 requirements:

Purchase of a residence in the Republic of Cyprus (Cyprus) for an amount of at least EUR 500,000 excluding VAT.

The investor is obligated to retain this residence for life. This does not prohibit the investor from selling the residence and immediately purchasing another;

Investment of an amount of EUR 2 million in one of the following options:

  • Investment in real estate, land development and infrastructure projects. If the investor chooses to invest solely in residential real estate, the investment amount is reduced from EUR 2 million to EUR 1,5 million;
  • Purchase/establishment/participation in Cypriot companies or businesses;
  • Investment in Alternative Investment Funds/financial assets of Cypriot companies or Cypriot organizations that are licensed by the Cyprus Securities and Exchange Commission;
  • Combination of the aforementioned investments. When proceeding with this option the investor may also purchase special government bonds of the Republic of Cyprus for a maximum amount of EUR 500,000.

The investor is obligated to retain the investment under this requirement for 3 years. This does not prohibit the investor from disposing of the investment and immediately making another investment.

Provision of the following documents of the investor and the spouse (additional documents are requested from the investor’s family):

  • True copy of the passport;
  • Translated and original duly legalized birth certificate;
  • Translated and original duly legalized clean criminal record from the country of origin and the country of residence. This document should not be older than 3 months at the time of filing the application;
  • Translated and original legalized marriage certificate/civil partnership certificate;
  • Curriculum Vitae;
  • Two passport sized photographs;
  • Copies of advertisements in a daily newspaper for two consecutive days (this will be handled by your law firm);
  • Signed M127 form before the Embassy of Cyprus abroad or the District Court of Cyprus (this form will be provided to you by your law firm);
  • Original self-Declaration form (this form will be provided to you by your law firm);
  • Due diligence report (this will be handled by your law firm).

The documents should be translated by a governmental department/authority of the issuing country and legalized by Apostille, in the event that the issuing country has signed The Hague Convention. In the event that the issuing country has not signed The Hague Convention, the documents should be duly legalized by the Ministry of Foreign Affairs of the issuing country, the Embassy of Cyprus in the issuing country and the Ministry of Foreign Affairs of Cyprus.

The first and second requirement may be fulfilled either personally by the investor or through a company in which the investor is a shareholder, in proportion to the investor’s shareholdings percentage.

Moreover, a high-ranking senior manager of a company which has met the second requirement may apply for the CIS Scheme if:

  1. This high-ranking senior manager receives remuneration which generates tax revenues of at least EUR 100,000 for Cyprus; and
  2. This tax has been paid or pre-paid; and
  3. This high-ranking senior manager has met the first requirement.

In this case the following additional documents should be provided:

  • Copy of the employment contract;
  • Receipt from the Department of Inland Revenue.

Furthermore, the investor, the investor’s spouse and the investor’s adult children will need to obtain a Permanent Residence Permit (PRP) on the basis of Regulation 6 (2) of the Aliens and Immigration Law.

Note that this requirement does not require the investor or the investor’s family to:

  • Learn the language;
  • Take any exams.

It does however, require the investor and the investor’s spouse to travel to Cyprus so as to provide their biometrics (digital photographs, signature and fingerprint) for the issuance of this PRP as these cannot be obtained by an Embassy of Cyprus abroad for this purpose.

Eligible persons under the CIS are:

  • Any non-Cypriot investor, whose name is not included in the list of persons whose property is ordered to be frozen by the European Union;
  • The investor’s spouse;
  • The investor’s minor children;
  • The investor’s adult children up to the age of 28 provided that these children are financially dependent on the investor and are either children with severe physical or mental disability that renders them unable to work or are students enrolled in a first bachelor, first master or first diploma. Adult children who are married are also included provided that they can evidence that they are financially supported by the investor instead of their spouse;
  • The investor’s parents, provided that they have also fulfilled the first requirement.

The entire CIS procedure from filling the CIS application until receipt of the passport by the investor and the investor’s spouse will take approximately 6 months. The applications of the minor and adult dependants (including the investor’s parents) of the investor are filed after the issuance of the passport to the investor and the investor’s spouse.

Government fees for each adult application are approximately EUR 7,738.

Lastly, it is important to note that:

  • Multiple citizenship is not prohibited under the laws of Cyprus;
  • Non-Cypriots who have acquired citizenship through CIS, their spouse and their children are exempted from military service. It is advisable to obtain an official exemption in order to avoid inconvenience.

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