What do you need to know when going to get a passport of Cyprus by an investment
In early 2019, Cyprus made changes to its citizenship program when investing a certain amount in the local economy. Most of the reforms concerned the procedure for checking foreigners. Despite the revision of conditions, to obtain a passport of Cyprus in exchange for investment is still the same available option to change your place of residence.
This government program has existed for 5 years. During this time, about 6.5 billion euros were invested in the construction sector, but other sectors of the economy practically did not receive funds. In practice, it turned out that the project of investment citizenship did not yield the results that were initially expected from it. Therefore, the government decided to revise the terms of the program in order to increase investments in different segments, not only in construction.
Another factor that has contributed to the revision of conditions is EU membership. This primarily affects people who have already applied for residence permits in other states that are members of the European Union, but their candidacy was rejected. These people will not be able to participate in the program in Cyprus either.
The changes have touched upon various items, but they are quite feasible. In addition, the government said it would make concessions to investors.
The main point of the reform is the cost of citizenship. It grew by 150 thousand euros. This amount includes contributions to the Fund for Assistance to Innovations and to the organization that deals with land development issues.
Now in order to live permanently in Cyprus you have to invest:
- 2 million euro to the housing stock and pay additional 150 thousand euro;
- when buying commercial objects to invest 2 million euros, in addition, to invest 500 thousand euros in housing and pay 150 thousand euros in funds;
- acquisition of securities of local companies: 2 million euros + 500 thousand euros in an apartment or house + 150 thousand euros.
The contribution of 150 thousand euros is used to improve the educational system and the development of renewable energy technologies.
The Land Development Fund is engaged in solving social problems, contributes to the provision of housing to citizens in need.
The policy regarding the terms of investments has also changed. Until this year, the minimum period in which the owner has no right to sell real estate was 3 years. Now it has been extended to 5 years. This solution will allow to balance the time of the object’s transition from the primary to the secondary market.
The program has abolished the item of investment into bonds provided by the state. Purchase of this type of securities in the amount of 500 thousand euros was not in demand from foreign investors in order to obtain a passport of Cyprus.