Glafkos N.Raphael & CO LLC
Advocates Since 1956
Cyprus Investment Program
The Cyprus Investment Program has attracted many foreign investors who have taken advantage of what our small island has to offer. More than 4 billion EURO have been invested in the Cypriot economy in the last 2 years.
Cyprus Investment Program
In order to be eligible to invest under the Cyprus Investment Program the applicant must:
- Have a clean record form from his/her country of origin and country of residence (if not the same),
- His name must not be included in the list of persons whose assets, within the boundaries of the European Union, have been frozen as the result of sanctions,
- The applicant, prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus. If the applicant does not already hold a residence permit, he/she may apply for an immigration permit on the basis of Regulation 6 (2) of the Aliens and Immigration Law, simultaneously with the application for naturalization,
- The applicant must hold a valid Schengen visa,
- The applicant must have donated at least €75.000 to the Research and Innovation Foundation,
- The applicant must have donated at least €75.000 to the Cyprus Land Development Corporation for the financing of housing schemes for affordable housing, but also for the materialization of other housing schemes/measures,
- Own residential property in Cyprus valued at least at EURO 500.000(excluding VAT),
- The investor should have made the necessary investments (as described below) during the three years preceding the date of the application and must retain the said investments for a period of at least three years as from the date of the naturalization.
The ways through which the applicant can qualify for naturalization in Cyprus are:
- Invest EURO 2 million or more in immovable property and other related projects,
- Purchase or participation in companies or organizations established and operating in the Republic of Cyprus with investment costs of at least EURO 2 million,
- Invest EURO 2 million in Alternative Investment Funds or financial assets of Cypriot companies or Cypriot organizations that are licensed by CySec,
- Invest EURO 2 million or more in a combination of the above criteria.
It is important to underline that the EURO 500,000 (excluding VAT) residential property ownership is essential in all of the above scenarios.
- It must be noted that any amount that exceeds the minimum amount of EURO 500,000 (excluding VAT) may be deducted from the minimum amount needed for the Investment Scheme, namely EURO 2 million.
- If the Investment Scheme in immovable property is to be chosen, there is no need for buying a residential property provided that one of the properties bought is valued at least at EURO 500,000 (excluding VAT) and the applicant remains a lifetime ownership of that property.
The above investments may be made:
- personally or
- through a company/companies in which the applicant participates as a shareholder – in proportion to his holding percentage, or
- through investments done by his/her spouse or
- jointly with the spouse or
- as a high-ranking senior manager of a company/companies that meets one of the economic criteria (A high-ranking senior manager may apply, provided that he/she receives such a remuneration that generates for the Republic tax revenues of at least €100,000 over a three year period and provided that this tax has already been paid or prepaid).
In a nutshell the main benefits deriving from obtaining Cypriot Citizenship are the following:
- Cyprus is strategically located in the Eastern Mediterranean forming a bridge between the Europe, the Middle East and Asia, with a very low crime rate and is an outstanding holiday destination.
- In EU countries Cypriot passport holders may travel using only their Cypriot ID Card. Cypriot passports can of course be used for travel visa-free to more than 150 countries.
- Passports will be issued to the investor, their married spouse and dependent children up to age 28, provided they are in full-time education.
- Future generations obtain passport through “derivation” of citizenship.
- The Republic of Cyprus allows investors to keep their original passport.
- No further fees and dues to the local government.
- The investor does not become tax resident in Cyprus, unless he/she specifically applies for the Cypriot tax residency. As a result no dividend tax on worldwide income is payable in Cyprus. Added to this Cyprus has no inheritance tax and the lowest rate of corporate income tax in Europe.
- It is not necessary for the applicant to reside in Cyprus before or after obtaining Cypriot passport.
The type of ownership is freehold residential and freehold commercial properties with excellent rental yield from investments.
- The investors have the right to rent the permanent residence in Cyprus or sell it given that another permanent residence will be purchased.
- After 3 years investments can be sold.
- The applicant’s parents are also entitled to apply for Cyprus Citizenship provided that they own a residence valued at least EURO 500,000 (excluding VAT).
- Legal advice regarding the choice of immovable property and/or Investment scheme on which the residence or passport application will be based ensuring very favorable prices.
- Drafting of the necessary immovable property or investment purchase agreement and generally assist with the legal review of the transaction documents for the investment.
- Completing and submitting the necessary documents and relevant forms.
- Following up of the application through local staff to ensure smooth passage and approval within the specific time schedule.
- Legal advice and assistance for the transfer of funds to Cyprus or Greece.
- After sale services for the smooth settlement and enjoyment of the benefits offered by the Cyprus Investment Program.
Through our experienced and qualified network of legal and financial advisors with real estate agents in Cyprus, Greece, Hong Kong and the UAE our Companies HOMERLAW COMPANY MANAGEMENT SERVICES LTD and GLAFKOS N. RAPHAEL & CO L.L.C. are able to offer the following services to prospective investors
We remain at your disposal should you need any additional information.