Cyprus citizenship and residency schemes

There are various reasons that people seek to acquire alternative citizenship or residence. In this article we focus on new legislation introduced in Cyprus, aimed at making the country an ideal place of residence for those looking to relocate.

Headline reasons

• To escape economic or political unrest.
• To live in a stable country that permits economic prosperity and security for assets and wealth accumulation.
• To access educational and cultural opportunities for children in the family.
• To enjoy the quality of life associated with European democratic countries.

Why Cyprus?

Cyprus is famous for its life-style, weather, cuisine, beauty, history and low crime rate; all which contribute to making it one of Europe's most popular tourist destinations.

Cyprus is an EU member-state and is situated in the eastern Mediterranean. Its geographical location means that it is easy to travel directly to airline-hubs in the UK, EU, Russia, and the Middle East on a daily basis.

Cyprus' competitive corporate tax regime and newly introduced legislation for non-domiciles make it an ideal location for any high net worth investor looking to relocate.

1. Cyprus Citizenship by Investment

Under the 2013 amendments to the Civil Registry Laws of 2002-2013 Subsection (2) of Section 111A, any non-Cypriot may apply for Cypriot Citizenship through Naturalization by Exception, if one of the following economic criteria are met:

• Investment of €5m into Government Bonds
• Investment of €5m into Cyprus real estate or other developments
• Investment of €5m into Cyprus companies or Cyprus organisations
• Maintain a minimum fixed deposit of €5m in a Cypriot bank
• A combination of the above options amounting to €5m

Other criteria:

Individuals with at least €3m impaired due to the measures implemented after 15th March 2013, may make an additional investment in any of the above, which amounts to the €5m investment requirement.

Major collective investments may reduce the above criteria, to a €2.5m investment, if such investments are made into the areas specified above, on condition that the total value of the investment is at least 12.5m.

Terms and Conditions

In addition to the criteria mentioned above, the Investor must fulfil the following Terms and Conditions:

• No Criminal Record issued at his/her country of origin or the country of previous residence (if different)
• Confirmation that the applicant's name is not included in the list of persons whose property has been ordered to be frozen within the boundaries of the European Union
• Own a permanent private residence in the Republic, with a (fully paid) purchase cost of at least €500.000 plus VAT

2. Cyprus Permanent Residency Scheme

Regulation 6(2) of the Aliens and Immigration Regulations provide that an Immigration Permit (Permanent Residency Certificate) may be issued to Non-EU nationals, thus giving them the right to reside in Cyprus under the following conditions:

• The applicant must demonstrate proof of purchase of immovable property with a minimum value of €300.000 (non-inclusive of VAT)
• The applicant must demonstrate the deposit in a Cypriot bank account the minimum amount of €30.000 (thirty thousand euros) which will be pledged for more than three years
• The applicant must provide evidence of secured annual income of at least €30.000 (thirty thousand euros), originating from abroad (increased by €5.000 for each dependent included in the application)

Terms and Conditions

• No Criminal Record issued at his/her country of origin or the country of previous residence (if different)
• The applicant must NOT intend to be engaged in any employment in Cyprus in any direct or indirect manner
• Confirmation that the applicant's name is not included in the list of persons whose property has been ordered to be frozen within the boundaries of the European Union