Cyprus is at the crossroads of Europe, the Middle East and Africa, making it ideally suited for inward investment. In addition to its geographical location, the island has a favourable tax regime and a legal system based on English common law. A former British colony, Cyprus is an English-speaking independent and sovereign state, and is also a member of the EU. Cyprus is the fastest country in Europe to make decisions on applications for naturalisation as a Cypriot citizen (three months), and its membership in the EU automatically grants anyone naturalised within Cyprus an EU Passport, and the right to move, live or work anywhere within the EU. Additionally, the jurisdiction has international airport connections to all major European cities and other major destinations including Dubai, Doha and Russia. The Cyprus Government welcomes business to the island, and has established a number of initiatives to facilitate investment in Cyprus, including the Scheme for naturalisation (citizenship) of investors (Scheme).

The Scheme was established pursuant to subsection (2) of section 111A of the Civil Registry Laws of 2002-2015 and dates back to 2007. It features a number of favourable provisions and is periodically amended. This Guide outlines eligibility criteria and options for family members of applicants to the Scheme, and our infographic on the final page of this Guide represents the prerequisites.

A. Eligible applicants under the investment programme

A non-Cypriot citizen is considered an eligible applicant if, at the time of application, he/she fulfils the following prerequisites:

  • is over the age of eighteen
  • is or becomes a resident of Cyprus
  • has a clean criminal record
  • is not subject to EU sanctions
  • is either a high ranking senior manager or a person who meets the investment criteria as set out in this Guide

1. Over the age of eighteen

The eligible applicant must, at the time of the application, be over eighteen years of age. The actual moment at which the age is tested is at the time of application and not the time when the decision is made.

2. Resident of Cyprus

Unless the applicant is already a resident of Cyprus by virtue of a separate provision/law, the applicant may become a resident through the acquisition of real estate which is to be used as the permanent residence of the applicant and the cost of which must not be less than €500,000 (excluding VAT if applicable).

The permanent residence may not be disposed of at any time, in other words it should be held indefinitely. The only possibility of disposing of the permanent residence would be with the prior approval of the Government and only on the condition that:

  • a residential property of equal value has been purchased and shall be used for permanent residence
  • the sale would not in any way amend the criteria on which the applicant successfully obtained his citizenship

In practice, immediately after the filing of the application for the acquisition of citizenship, the applicant may apply for a residence permit pursuant to the relevant provisions of the Aliens and Immigration Law Cap 109. A temporary residence permit shall be granted upon the presentation of the relevant evidence which proves filing of the application for citizenship under the Scheme. Such permit is revoked if the applicant fails to acquire citizenship.

3. Clean criminal record

The applicant must prove that he has a clean criminal record by producing, at the time of application, a certificate from his country of origin and of his country of residence (if different to the country of origin) confirming his/her clean criminal record.

4. Not on sanctions list

An applicant whose name has appeared on a sanctions list, and, as a result of that, had his/her property within the European Union frozen, shall not be considered an eligible applicant.

To view the full article please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.