Cyprus Citizenship by Investment – The Ultimate Guide by Experts

CYPRUS CBI HAS ENDED

IMPORTANT UPDATE: As of 1 November 2020, Cyprus cancelled its popular citizenship by investment program. This means that investors will no longer be able to acquire Cypriot citizenship and a passport by investment directly. However, the Cyprus Golden Visa provides an alternative path to permanent residency through investment. Those still looking for European citizenship can apply to the Malta citizenship program, which offers a direct investment route to a Maltese passport.

Cyprus canceled citizenship by investment program in 2020, but the most common alternative to permanent residency is the Cyprus Golden Visa.

Cyprus Golden Visa is an amazing opportunity to fast-track your residency since it’s typically approved in the span of two months. To be eligible for Cyprus Golden Visa, you need to invest in Cyprus by purchasing a property or investing in one of the other sectors in the country.

This guide will break down the most important details about:

• Benefits of the Golden Visa scheme
• Eligibility requirements
• Cyprus Investment program requirements
• Routes to Cypriot citizenship by investment
• Golden Visa processing fees
• Tax treatment for new Cypriot citizens
• Application process
• How to get Cypriot Citizenship
• Required documents for the Golden Visa Scheme

Cyprus Citizenship by Investment Overview

Cyprus has suspended its citizenship by investment program as of November 1, 2020.

The key features of the program included:

• Minimum investment and contribution of €2.2 million
• Processing time which would take eight to twelve months to get approved after submission
• The right of movement to Cyprus, Europe’s Schengen Area, Canada, and many other countries

What is the Cyprus Golden Visa Program?

Cyprus Golden Visa is a unique investor program which allows non-EU nationals to get residency and citizenship rights in exchange for financial contribution to Cyprus. There are a number of ways you can contribute to Cyprus financially, including buying a property, investing in a share capital of a Cypriot company, and investing in the Cyprus Investment Fund Association.

The Cyprus Golden Visa program was first proposed in 2013 before it was officially implemented in 2016. Since then, over 3,000 successful investors have acquired Cypriot citizenship via the program. The Republic’s Golden Visa scheme sought to bring large-scale investment to boost the nation’s economy and has been incredibly successful in that respect.

Using Cyprus Golden Visa, you get a number of benefits, including visa-free travel, tax benefits, high return on investments, and being on the road to European citizenship.

The Republic is strategically located to conduct international business and offers a high standard of living, cost of living, leading education institutions, incredible healthcare systems, and a plethora of tax benefits and initiatives, which makes it all the more attractive for business investors across the world.

7 Benefits of the Cyprus Golden Visa Scheme

There are plenty of benefits to be reaped by those who choose to invest in Cyprus via the Cyprus Golden Visa scheme.

1. Cyprus is a member of the European Union

First of all, Cyprus is a full member of the European Union and is also currently in the process of becoming part of the Schengen Area. It has only been unable to join so far due to its territorial division following the events of 1974. However, the Greek area of Cyprus has used the Euro as its official currency since January 2008.

2. Developing tourism sector

Cyprus has a booming tourism sector which means an investment in property will only yield high returns. Foreign investors looking to invest in real estate in the popular tourism areas can expect a serious return on investment.

3. The Cypriot passport grants access to the EU

The Cypriot passport entitles its bearers to EU citizenship and visa-free travel to 168 countries worldwide. It also grants them freedom of movement throughout the EU and the right to live, work, and study there as well. This means that Golden Visa holders will have access to all the benefits Europe has to offer, including world-class healthcare and education.

4. Quick applications

Your application to the Cypriot citizenship program can be approved in just six to eight months, making it one of the fastest citizenship by investment programs.

5. Family benefits

The Cypriot citizenship by investment program allows you to include your entire immediate family in your application. This means that any dependent will be included with you on a single application – from your spouse to children up to the age of 28 (excluding parents and/or on laws).

6. No residency requirements

The Cypriot Golden Visa scheme has no residency requirements, meaning that investors are not obliged to live in Cyprus prior to, during, or after submitting their application. They just have to maintain their residence permit. There are also no tests or language requirements for individuals to be successful in their applications to the investment program.

7. High quality of life

The Republic has a high expat community and its population of 1.2 million is well proficient in the English language. Cyprus is consistently ranked as one of Europe’s safest countries, and one of the most tax-efficient to live in, as it does not impose tax on non-domiciled residents, and has no inheritance tax, or tax on dividends.

Eligibility Requirements for Cyprus Golden Visa

In order for applicants to be considered for the Cyprus Golden Visa, they will have to prove that they are qualifying individuals with high moral standing. Applicants can demonstrate proof of their moral standing by presenting the relevant authorities in Cyprus with documents pertaining to their character, stating that they have:

• A clean criminal record
• Not previously been denied citizenship to another EU country
• Not been subject to any criminal investigation
• Not been facing criminal prosecution
• Not been associated with companies or legal entities restricted in the EU
• Not been on the wanted lists of EUROPOL or INTERPOL
• Not be considered a “politically exposed person”

The Cyprus citizenship program bars applications who are considered “politically exposed persons”, specifically those who have held office in the past five years, including their relatives and spouses. This means members of parliament, heads of state, government ministers, members of governing bodies of political parties, members of courts of judicial bodies, ambassadors, high-ranking officers of the armed forces, high-ranking functionaries of state-owned enterprises, and mayors are ineligible for the scheme.

Cyprus Golden Visa Requirements

In order for individuals to be successful in their application to the investment program, they will have to meet the following qualifying criteria:

In order to qualify for citizenship in Cyprus, investors must live for seven years in the country prior to their application.

Routes to Cypriot Citizenship by Investment

Let’s explore some of the best ways to invest in Cyprus.

1. Purchasing a Residential Property

To qualify for a property investment, investors have two options: buying a residential property or a commercial one. If you choose the residential route, you’ll need to purchase a property valued at a minimum of €300,000 (excluding VAT). Before you can submit your application, the first €200,000 plus VAT must be invested. To ensure a successful purchase, you’ll need to demonstrate that the funds were transferred from abroad and not borrowed from within the Republic. Additionally, these funds should be deposited in a Cypriot financial institution and transferred to the vendor’s bank account.

2. Purchasing a Commercial Property

If you prefer to invest in commercial real estate, you’ll need to buy a property such as an office, shop, hotel, or a similar development with a minimum value of €300,000 (excluding VAT). One advantage of this option is that the property or properties you purchase can be resold.

3. Investing in the Share Capital of a Cypriot Company

Another qualifying option is to invest at least €300,000 in the share capital of a company registered in the Republic of Cyprus. This company must generate employment for at least five people.

4. Investing in Units of a Cyprus Collective Investment Organization

Finally, you can choose to invest in units within a Cyprus Collective Investment Organization. These funds are regulated by the Cyprus Securities and Exchange Commission and managed by professional fund managers. 

By working with a fund manager, you can be confident that your investments are managed effectively, particularly in promising Cypriot start-ups or medium-sized projects with significant growth potential. Additionally, other qualifying investment funds are available, particularly in sectors like energy, industry, technology, and real estate.

New revisions for the Cyprus Golden Visa

New revisions came into play for the Cyprus Golden Visa, effective from 3 May 2023, including:

• Parents and/or in-laws of the applicant are no longer eligible.
• Required annual income (generated abroad) of €50,000 per applicant and a further 15,000 for the applicants’ spouse, and a further 10,000 for each of the applicants’ dependents (previously this was €30,000 per applicant).
• Introduction of mechanism introducing stricter compliance requirements, namely that the applicant must, on an annual basis, submit to the Civil Registry and Migration Department such evidence proving that (i) the investment is maintained, (ii) that he/she maintains the same required income that is defined for him/her and his/her dependents, (iii) that he/she still retains an active insurance policy for him/her and his/her dependents and (iv) the applicant must submit a clean criminal record certificate from himself/herself and dependents from their country of origin and from the Republic of Cyprus.

Application Process of the Cyprus Golden Visa Program

Here is a list of the Cyprus Golden Visa application process:

1. Choose your investment: decide on the type of investment you want to pursue.
2. Initial investment: make an initial investment of at least €200,000 when submitting your application.
3. Gather documents: prepare all the necessary documentation to support your application.
4. Complete the application: fill out the application form thoroughly.
5. Open a local bank account: set up a bank account in Cyprus to manage your investment funds.
6. Submit your application: submit your completed application to the Civil Registry and Migration Department.
7. Pay the application fee: ensure you pay the required application fee.
8. Await approval: wait for your application to be processed and approved.
9. Receive confirmation: if approved, you’ll receive a letter confirming your investment route. proceed with the investment as specified in the approval.
10. Biometrics and residency: once approved, visit Cyprus to complete your biometrics and obtain your permanent residence, valid for 10 years.
11. Maintain residency: visit Cyprus at least once every two years to maintain your residence status.
12. Apply for citizenship: after 7 years of continuous residence, you can apply for Cyprus citizenship.

Step-by-Step Guide to Cypriot Citizenship

Required Documents for the Golden Visa Scheme

You will require the following documents in order to complete your application for the Golden Visa scheme, including official and certified translations:

• Passport from country of origin
• CV for main applicant, plus any adult dependents
• Birth certificate
• Criminal record certificate
• Marriage certificate
• Three passport photographs
• Documents proving evidence of required investments

Cyprus Golden Visa Processing Fees

Processing fees charged by the government are not included in the minimum investment sum for any of the investment routes.

• Program Application Fee: €500 for the main applicant (includes the spouse). An additional fee of €500 applies for each dependent aged 18 and older
• Cypriot Passport Issuance Fee: €120 per person
• ID Card Issuance Fee: €30 per person
• Lawyer’s Fees: Lawyer’s fees apply for the processing of the citizenship application and the purchase of the property. This typically amounts to around €30,000 – €40,000 per family.

Taxes for New Cypriot Citizens

Tax in Cyprus is not charged based on citizenship but by residency, and individuals are considered a tax resident in the country only when they spend more than 183 days per year in the Republic. Golden Visa applicants are required to keep a residence in Cyprus, but are not required to be physically present. This means non-domiciled citizens are not liable to taxation on international income earned outside of the Republic, and can benefit from incentives under the Cyprus tax for non-residents.

Moreover, residents and citizens of Cyprus can benefit from:

• One of the lowest income tax rates in the European union
• One of the lowest corporate tax rates in Europe
• No tax on interest, dividends, or royalties earned outside of Cyprus
• No tax on personal income earned outside of Cyprus
• No inheritance tax under certain conditions

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About Cyprus Citizenship by Investment

How can I get Cyprus citizenship?

There are a few options for obtaining Cyprus citizenship, including investing in real estate, contributing to a Cypriot business, and investing in units of a Cyprus collective investment organization.

Is there a language requirement?

There is no language requirement for the Golden Visa program in Cyprus.

Can I bring my family with me?

Yes, you can include your family members in your application. Meaning your spouse and children up to the age of 28. Under the new revisions, effective from 3 May 2023, parents and/or in-laws of the applicant are no longer eligible.

Is Cyprus a member of the European Union?

Yes, Cyprus is a member of the European Union.

How much does Cyprus citizenship by investment cost?

The Golden Visa program costs a minimum investment of €300,000.

Can I pass Cypriot citizenship on to my children and grandchildren?

Yes, children of Cyprus citizens are automatically eligible for citizenship, which means you can pass on European citizenship and the Cypriot passport to your children and grandchildren.

Can my Cyprus passport be revoked?

Yes, your Cypriot citizenship and Cyprus passport can be revoked if you do not fulfill the requirements of the Golden Visa program, such as if you sell your required investments before the holding period of 5 years, or if you sell your permanent residence in Cyprus.

You can also have your Cypriot citizenship revoked if you are revealed to be involved in criminal activity.

Can I buy Cyprus citizenship?

You can qualify for citizenship by route of investment under the Golden Visa program.

Can I use Bitcoin for Cyprus citizenship by investment?

Bitcoin is not an accepted form of payment for the Golden Visa program in Cyprus.

Is Cyprus citizenship by investment the best in Europe?

If you are looking to obtain citizenship in Europe fast, then Cyprus is the best place to invest as you can yield a high return on your investment, and acquire residency in just six to eight months.

Does Cyprus allow dual citizenship?

Yes, Cyprus allows dual citizenship, which means that you can keep your citizenship from your country of origin if you want to.

Can I make multiple investments for Cyprus citizenship?

Yes, you can choose multiple investment options and still be eligible for the program, as long as they add up to the required amount.

Do I need to have a permanent residence as long as I have Cyprus citizenship?

Yes, you must maintain a permanent residence with a minimum value of €300,000 in order to keep your Cypriot citizenship.

Can I rent out my Cyprus residence?

Yes, you can rent out the real estate you own in Cyprus.

Is Cyprus part of the Schengen Area?

Cyprus is not a part of the Schengen Area. There are currently plans to join, however, the division between Turkish Cyprus and Greek Cyprus remains an obstacle.

How long does it take to get Cyprus citizenship by investment?

Usually, successful applicants obtain their residency status in as little as six to eight months. After 7 years applicants can qualify for citizenship as long as they meet the various requirements.

What are the requirements for Cyprus citizenship by investment in 2024?

You can apply to the Golden Visa program in Cyprus, make a contribution of investments in the country, and abide by the program’s requirements to qualify for citizenship.