Proposed Changes in Cyprus Citizenship Investment Program
The Cyprus Citizenship Investment Program (CIP) will be changed in the near future. During a meeting of the Council of Ministers of the Republic of Cyprus on the February 13, 2019, new provisions for the CIP were approved.
Proposed changes to Cyprus Investment Program
Although the new CIP has not been officially published, it appears that the following changes are being introduced:
- Applicants will be required to obtain a Schengen visa prior to the submission of their citizenship application
- Applicants who have applied previously for citizenship in another EU country shall be excluded from the CIP
- Investors will be required to keep their investment for five years after the completion of their naturalisation (previous requirement three years)
- During the five-year period the investor will be able to change his investment, provided that consent is granted by the Ministry of Finance
- Shipping will be introduced as a new investment criterion
- Investment in government bonds shall no longer be available for the purposes of the CIP
- A planning permit shall be mandatory to be included in the citizenship application where the investment has been made in properties under construction;
- A donation of €75,000 for research and development shall be mandatory;
- A donation of €75,000 to the Land Development Organisation to fund affordable housing schemes shall be mandatory;
- Due diligence and background checks shall be carried out on each applicant
There are no changes to the investment amount, which remains €2,000,000,000 plus VAT when buying a new build property. When investors buy a second-hand property, which has already been included in a citizenship application, the investment amount will be €2,500,000,000 plus VAT.
The main target of the changes is to enhance the credibility of the CIP and ensure its longevity as well as to provide for social contributions. The date of enforcement of the above changes is under consideration and will be announced in due course.
We are on top of this matter and shall provide you with the official new CIP as soon as it is published.