NATURALISATION OF INVESTORS IN CYPRUS
On 19 March 2014 the Council of Ministers of the Republic of Cyprus (“Cyprus”) revised its previous criteria and conditions dated 24 May 2013 for the Naturalisation by Exception of non-Cypriot entrepreneurs investing in Cyprus (Cyprus Citizenship “CC”). A non-Cypriot citizen, who meets one of the below economic criteria (A) may apply for the acquisition of the CC through Naturalisation by Exception, either:
ii. through a company / companies in which he / she participates as a shareholder; proportionally based on the percentage of participation,
iii. as a high-ranking senior manager of such company / companies that meet the economic criteria (A) provided that:
a. he / she receives such a remuneration that generates for the Republic tax revenue of at least €100.000 for a three (3) year period and that;
b. this tax has already been paid or prepaid.
LSTS will assess the eligibility of the applicants based on their current position, advise on the additional actions needed and assist them in successfully and efficiently obtaining the Cyprus citizenship by exception.
Α.1 Investment in government bonds: The applicant must have purchased Cyprus bonds of at least €5,0 million. or Α.2 Investment in financial assets of Cypriot companies or Cypriot organizations: The applicant must have purchased financial assets of Cypriot companies or Cypriot organizations (bonds / securities / debentures registered and issued in Cyprus) of at least €5,0 million; purchased either at issuance or subsequently by the market.
Α.3 Investment in real estate, land development and infrastructure projects: The applicant must have made an investment of at least € 5,0 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).
Α.4 Purchase or creation or participation in Cypriot businesses or companies: The applicant must have made an investment of at least € 5,0 million in the purchase, creation or participation in businesses or companies, that are based and operating in Cyprus. These businesses or companies should evidently have a tangible presence in Cyprus and employ at least five (5) Cypriot citizens.
*It is noted that the mandatory conversion of deposits into shares is included in this criterion.
Α.5 Deposits in Cypriot banks: The applicant must have personal fixed term deposits for three years in Cypriot banks or deposits of privately owned companies or trusts (in which he / she is the beneficiary owner) in Cyprus of at least €5,0 million.
Α.6 Combination of the aforementioned criteria Α.1 to Α.5: The applicant is required to have a combination of the above A.1 (Investment in Government bonds), A.2 (Investment in financial assets of Cypriot companies or Cypriot organizations), A.3 (Investment in real estate, land development or infrastructure projects), A.4 (Purchase or creation or participation in Cypriot businesses and companies) and A.5 (Deposits in Cypriot Banks) amounting to at least €5,0 million.
Α.7 Persons whose deposits with the Popular Bank Public Company Ltd have been impaired due to the measures implemented after 15 March 2013: The applicant has incurred an impairment in deposits amounting to a total of at least €3,0 million. In the case where the applicant has incurred an impairment in his / her deposits under €3,0 million he/she may apply, having made an additional investment through the criteria A.1 to A.5 for the balance of the required amount of the above mentioned criteria.
Α.8 Major Collective Investments: The Council of Ministers shall have the right on special occasions, to reduce the above criteria Α.1 to A.4:
i. To €2,5 million for investors, who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is at least €12,5 million.
ii. To €2,0 million for investors who demonstrably participate in a special collective investment scheme, provided that the total value of the investment is more than €12,5 million. It is noted that this present provision (i), will be in force until the 1st of June 2014.
In addition, it is noted that for the above mentioned provisions (i) and (ii), the investment for the Criteria Α.1 to Α.4 may be realized through a different sales rep / provider (physical or legal entity).
B. Terms and Conditions
In addition to meeting the above criteria the applicant must:
i. have a clean criminal record and not be included on the list of persons whose property is ordered to be frozen within the boundaries of the EU, and;
ii. in all cases listed in Criteria (A), hold a permanent privately owned residence in Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.
- members of the same family, which 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.
iii. have concluded the necessary investments during the three (3) years preceding the date of the application and retain the said investments for a period of at least three (3) years since the date of the Naturalisation.
iv. the CC may be revoked if it has been ascertained that any condition has been breached.
How We Can Assist You:
LSTS will guide you through the application process and act as your agent in submitting all the required documents successfully.
We will provide clarification and advice on the matters of your concern, assist in drafting the required documents and continuously reviewing the documentation to ensure the quality and success of the process.
We will also closely monitor the status of the review of the application by the authorities and address any issues that may arise providing complete support throughout the process for a successful outcome.