How to Get EU Nationality

How to Get EU Nationality by Investing in Cyprus

How to Obtain EU Nationality by Investing in Cyprus

How to Obtain EU Nationality by Investing in Cyprus

September 27, 2016 | Credit: http://www.goldnews.com.cy

The Council of Ministers decision dated 13th September 2016 laid the reduced economic criteria by which Cyprus/E.U. Citizenship can be acquired by foreign investors. The focus remains in providing further incentives to attract foreign investment into the island and induce high net worth individuals to relocate. Given the attractive taxation system, coupled with the reduced thresholds for opting for citizenship, the Cyprus citizenship package is the most attractive within the European Union.

Obtaining a Cyprus (E.U.) Passport/Nationality by Investing in Cyprus

Non Cyprus citizens are allowed to apply for Cyprus citizenship, either personally or through company as a shareholder or as a senior member in a company/organization, given that they satisfy one of the following criteria:

A.CRITERIA

The applicant must:

A.1 Investment in Financial Assets of Cyprus Organizations/Enterprises
Acquisition of financial assets of Cyprus enterprises regulated by the Cyprus Securities and Exchange Commission (CySEC), such as units of Alternative Investment Funds and shares/bonds/debentures of Cyprus companies, (issuance regulated by CySEC) of at least €2.000.000. The investee companies need to have a physical presence in Cyprus and the funds need to be utilized based on an investment plan for projects within Cyprus.

OR

A.2 Investment in Real Estate, land Development and Infrastructure Projects
Invest in Cyprus at least €2.000.000 for the purchase or construction of buildings or for the construction of other land development projects. The acquisition of land also qualifies as long as the application is accompanied by a development plan. Acquisition of land with no development rights does not qualify.

OR

A.3 Purchase or Creation or Participation in Cyprus Enterprises/Companies
Invest at least €2.000.000 in purchasing or creation or participation in companies that are based and operating in Cyprus. The investment funds need to be utilized solely in Cyprus. The companies need to prove tangible presence in Cyprus and employ at least 5 citizens of the Republic of Cyprus and/or European Union. The number of required employees increases if more than one citizenship application is made utilizing the same company. In addition, the employees need to have a 5 year continuous presence in Cyprus prior to the application.

OR

A.4 Combination of Investment in Financial Assets of Cyprus Organizations/Enterprises (A.1), Investment in Real Estate, Land Development and Infrastructure Projects (A.2), Purchase or Creation or Participation in Cyprus Enterprises/Companies (A.3)
Cumulatively invest at least €2.000.000 in any combination of criteria A.1, A.2 and A.3. In the combination the applicant is allowed to invest up to €500.000 in Government Bonds of the Republic of Cyprus, as long as they are retained for 3 years. The bonds can only be accepted in the combination, if acquired directly from the Ministry of Finance; secondary market acquisitions are not allowed.

A.5 Senior Member of a Company – Tax Payment
In case where a senior member of a company would like to apply for obtaining Cyprus passport/nationality can proceed with the application given that he/she has such remuneration in this company that creates tax revenue for the Republic of Cyprus at least €100.000 for a three years period and given that this tax liability has been paid or prepaid.

B. TERMS AND CONDITIONS

Along with the above mentioned criteria, applicant must fulfil the following terms and conditions:

1. Investment timing: The investments cannot be dated more than 3 years back from the date of the citizenship application and they must be retained for at least 3 years from the date of the passport issuance.

2. Clean Criminal Record: The applicant must have a clean criminal record. Also, his name shall not be included in the list of persons whose assets are frozen within the European Union.

3. Private Residence in Cyprus
The applicant must be the owner of a residence in Cyprus, the market value of which is at least €500.000 plus V.A.T.

* In cases where family members apply separately as individual investors, can jointly buy a residence, given that the total value of the residence covers the amount of €500.000 for each applicant.
* In cases where the value of the residence exceeds €500.000, the excess can be utilized to complete the investment criteria of the €2.000.000.

4. Residence permit in Cyprus
The applicant needs to have a residency permit in Cyprus before obtaining his passport. In cases where the applicant does not have such a permit, the necessary applications can be submitted together with the citizenship application, with no further investment requirements.

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