Scheme for Naturalization of Investors in Cyprus by exception | Cypriot Citizenship
Scheme for Naturalization of Investors in Cyprus by exception
The Council of Ministers in Cyprus, on the 24th of May 2013, concluded the new “Scheme for Naturalization of non-Cypriot investors by exception” and established the new financial criteria based on which non–Cypriot entrepreneurs/ investors may acquire the Cypriot Citizenship.
By obtaining the Cyprus Citizenship, successful applicants become holders of a Cypriot passport; which effectively offers the benefits of a European Union (EU) passport and carries the same rights as other Cypriot and EU citizens, including certain immigration and Cyprus Investor Visa travelling benefits across Europe and worldwide.
A Bespoke Service Dedicated to Ultra High-Net Worth Individuals and Families
GC Privé Wealth is in the ideal position to assist with all investor enquiries, cater to the requirements of ultra high-net worth individuals and families and guide each of the family members (including the investor, investor’s spouse and adult/non-adult dependent children) through the application process.
Our service is truly bespoke, while maintaining professional integrity and 24/7/365 service support throughout the length of the Cyprus citizenship application procedure, as well as, the required Cyprus real estate and associated Cyprus business investments.
FREQUENTLY ASKED QUESTIONS
1. What is the time frame for the examination of an application?
Approximately three months.
2. What is the amount of the fees payable for each application?
Concerning the investor the amount of €2.000 is paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate. Concerning the investor’s spouse the amount of €2.000 is also paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate.
Concerning the investor’s adult child the amount of €2.000 is also paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate.
Concerning the investor’s minor child the amount of €80 is paid at the submission of the application.
3. Investments must necessarily be made by the investor personally or can they be made through company/companies of the investor or an investment fund or an investment foundation?
An investment through a company or fund or foundation is eligible, provided that there is a proven correlation between the investor and the company or fund or foundation.
CRITERION A2 (DIRECT INVESTMENTS)
1. Is the VAT included in the amount of the €5,0 million investment or in the amount of the €500.000 purchase value of the privately-owned residence?
The VAT is neither included in the amount of €5,0 million for the “Direct Investments”, nor in the amount of €500.000 required as a minimum purchase value of the privately-owned residence.
2. In the case of purchase of real estate are transfer duties included in the amount of the €5,0 million investment?
The transfer duties are not included in the amount of the investment, as no other charges or taxes are.
3. If the investor chooses to invest in the purchase of real estate of total value €5,0 million, can the purchase value of the privately-owned residence be included in the amount of investment?
The condition for obtaining privately-owned residence worth at least €500.000 applies to all criteria and the purchase is always an additional investment. Under no circumstances can the value of the privately owned residence be included in the amount of €5,0 million of the “Direct Investments”, since this will basically circumvent the essence of the Council of Minister’s Decision, which is an investment of €5,0 million (either purchase of real estate, stocks, bonds or companies, or bank deposits) plus a privately-owned residence of at least €500.000. Also, the equality between applicants, who choose different types of investment, will be circumvented.
In addition, the Criterion A2 states that the investor must hold the investment for at least three years and afterwards he/ she has the right to sell the investment, whilst the Condition of privately-owned 3 residence expressly states that the residence should be permanent, therefore it should be maintained indefinitely.
4. Can real estate that was purchased at an earlier time (e.g. for purposes of obtaining an Immigration Permit Category “F “)be included in the amount of the €5,0 million investment?
According to the contents of the Council of Ministers’ Decision, an investment made at an earlier time is not to be excluded.
5. If there is a difference between the market value and the purchase value of a real estate, which amount is taken into consideration?
The purchase value.
6. Can real estate sold for a second time be considered as an investment for the purposes of applying for citizenship?
According to the contents of the Council of Ministers’ Decision, the eligible investment is not limited to properties purchased for the first time.
7. Concerning the purchase of financial assets (paragraph d of the Criterion ), existing government bonds which can be purchased from the secondary market from existing owners are included or only bonds purchased from the primary market, i.e. directly from the Cypriot Government are eligible?
For purposes of the citizenship application only financial assets purchased from the primary market, i.e. those purchased directly from the state are eligible.
8. The Decision provides that for the conditions (a) – (d) the applicant must retain possession of the assets for a period of at least three years, etc. When does the period of three years begin?
According to this provision, the investor is obliged to retain possession of the assets for at least three years following the acquisition of the Cypriot citizenship. The three-year period begins on the date of the approval of the application by the Council of Ministers.
Criterion A3 (DEPOSITS IN BANKS)
1. What do we mean by «Cypriot banks»?
We mean Local Banks and the Subsidiaries of Foreign Banks. The list is being prepared by the Central Bank of Cyprus and is posted on its website. You may see the List following the link below: http://www.centralbank.gov.cy/nqcontent.cfm?a_id=8154&lang=en
2. The total amount of the deposit has to be deposited in a single bank or can it be deposited partially in various banks?
The total amount can be deposited in various banks, provided that all the banking institutions lie within the two categories referred in the previous Question.
3. Must the deposit necessarily be in euro or can it be made in another currency?
Is not necessary to make the deposit/ deposits in euro. They can be made in a different currency.
CRITERION A.6 (IMPAIRED DEPOSITS)
– Persons whose deposits with the Bank of Cyprus or Popular Bank have been impaired due to the measures implemented in both Banks after the 15th March 2013
1. Is the investor eligible to apply if deposits are not personal, but rather deposits of a company (or companies) of whom he/ she is the major shareholder or the ultimate beneficiary owner?
The investor is eligible to apply, provided that there is a proven correlation between the investor and the company (or companies).