Cyprus Citizenship Program 2020.
Cyprus is an island state in the Middle East, located in the eastern Mediterranean. The country is one of the countries of the European Union and, together with Malta, is the state that can grant citizenship for investing money in the development of the country's economy. This procedure is possible from mid-August 2020.
Criticism from the European Union led to the adoption of measures to change the program. However, the new conditions have become more favorable for the participants.
Let's take a look at exactly what changes were made to the program and how this will affect investors.
What is the cost of citizenship in Cyprus after the changes.
Let's analyze the financial part of the program. For participants, Cypriot citizenship has risen in price and amounted to 200,000 euros. This is 50,000 euros more than in the previous program. The above figure is a non-returnable investment. In percentage terms, investor spending increased by only 1/4 percent. Most likely, such a rise in price will not change the number of interested parties. For comparison, let's take the cost of a non-returnable investment under the Malta program, they amount to 600,000 euros.
The rest of the requirements of the program remained unchanged. As before, there are 4 investment options with the right to choose. The price of a single option is € 2 million. These include:
Purchase of residential real estate. This is the most common option.
Investments in commercial real estate. The option of opening your own office or renting out is possible.
Starting your own business, or becoming a shareholder of an existing organization. At the same time, it is worth considering the requirement of the program: the creation of not 5 as before, but 9 jobs;
And the last option. Investment in an alternative investment fund.
It is possible to combine the above options. But in any case, the participant is obliged to purchase and leave in life-time housing, the cost of which will be at least 500 thousand euros.
According to the program, if the investor opts for the first option, then this money (500,000 euros) is the total cost. If the choice is made in favor of the remaining three options, the participant's costs will amount to 2.5 million euros: 2 million euros will go to the main investment and 500 thousand euros for the purchase of a home.
The requirements that oblige the purchase of residential real estate provide a guarantee that the country will be able to contact the program participant. Many exhibitors buy villas worth more than € 2 million and use it for recreation. Thus, communication with the state is being established.
The subtleties of real estate acquisition.
Very often, together with the main investor, his parents get into the project. They will also need to purchase real estate for 500 thousand euros and more. A joint acquisition of 1 million euros is also possible. The purchase of residential properties is not limited in quantity. However, objects must be preserved in their own use throughout life.
Consider the option of buying a secondary home. Before the changes, the amount invested was 2.5 million euros. The new conditions stipulate a price equal to 2 million euros. However, previously, this object should not be used in the program for obtaining citizenship of Cyprus.
The project participants are rich people. Most often they buy a villa by the sea for all family members.
Documents that must be provided in case of participation in the Cyprus Citizenship by Investment project:
- Planning approval;
- A document confirming the completion of construction. If the construction has not yet been completed, 5% of the property value must be blocked by a bank guarantee;
- If the object has been seized, it is necessary to provide a document confirming its removal.
Research Promotion Foundation.
The highest priority areas in which investments come:
- health care system;
- tax system;
- electronic payment system;
- single area for payments in euros.
- In addition, the money is spent on improving knowledge banks.
The rest goes to the Land Development Corporation.
The changes will not affect the list of documents that must be submitted.
Innovations for family members of the main participant.
In the old version, the program provided for the participation of only two family members, namely their parents. However, now, you can add the parents of your wife or husband to the list, it all depends on who exactly is the main participant in the program. Such conditions were envisaged, since the question of joining parents on both sides very often sounded. So the program has become even more convenient and comfortable for investors.
The law specifies that children who have reached the age of majority and married will not be able to take part in the project. Such a limitation was also in the outdated version, it just was not given such attention.
The entire list of documents for children and parents can be submitted at the same time as the depositor's applications.
Previously, the process took place in 2 stages. At the beginning, the applications of the participant, his children and spouse were considered. And only then they accepted the documents of the parents. But before that, the statements in stage 1 had to be approved. It took a very long time. Now the process is happening twice as fast - again we see the convenience for the program participants.
The changes also affected political persons, the restrictions became less stringent. Their participation is possible after 1 year after their political activity ended. Previously, this period was equal to 5 years.
Thus, the number of participants will increase. Investors will be more interested in the program, and the country will have more investment. This is why demand is expected to rise.
Tighter control.
Under the onslaught of checks from the European Union, the Government of Cyprus was obliged to amend the existing program of obtaining Cypriot citizenship by investment. The positive aspect of all these changes is the raising of the project's reputation. As you know, checks are carried out at Due Diligence.
Some changes did not affect the attention of the participants, since they relate specifically to the verification program, and some made the conditions for passage more comfortable and faster. Thus, the country's government was able to find a balance between new introductions for process transparency and comfort.
Agents of this program conduct due diligence on clients even before all documents are submitted to reduce the risk of rejection. Also, the program for each participant is selected individually.
Today, this method of obtaining citizenship is the fastest. And even when it is received, investors do not have to reside in the country on a permanent basis or for any period of time, in addition, there are no exams to test language proficiency.
Every year the program will tighten the conditions for obtaining citizenship in the European Union. Therefore, hurry up to get a backup option and submit the entire list of documents now.
Questions that customers often have.
Pros of obtaining citizenship in Cyprus?
The most important advantages of obtaining citizenship in Cyprus are the possibility of free travel, permanent residence in Europe and the development of your own business.
As a Cypriot citizen, you will not have to worry about visa renewals. Since after a positive response to your applications, you will be able to visit 170 countries.
Taking into account the fact that Cyprus is a member of the European Union, having received citizenship, you will have the opportunity to live in absolutely any European country. Thus, you will have access to prestigious educational institutions, to high-level medicine, you will be able to use the services of European banks. In addition, the country has a loyal taxation system for doing business.
Who can participate in the Cyprus Citizenship by Investment Program?
The country provides a list of conditions for a program participant that must be met. An obstacle can be a negative response from those countries, visiting which for Cyprus is visa-free. In addition, the participant must not be denied the citizenship of any other country that is part of the European Union.
The citizenship program provides for the issuance of passports to family members of the main applicant: spouse, mother, father and children under 28 years of age. Children under the age of majority must be in full-time full-time education, and also be financially dependent. And for parents it is necessary to buy real estate in Cyprus, its value should be equal to 500 thousand euros or more.
A list of options for attachments that the program provides?
The program participant must invest 200 thousand euros in the state fund and purchase a residential property for life-long ownership for 500 thousand euros. In addition, there are 4 options, in one of which, he must invest 2 million euros: real estate for housing or rent, business creation or an alternative fund. The listed positions can be combined.
Practice shows that the most frequently used option is buying a home. It takes less money, and the participant is able to include the purchase of his own home in the total amount. If you add up all the investments, this function will cost the investor 2.2 million euros. While others incur costs equal to € 2.7 million.
The cost of applying for a Cyprus passport?
The main criteria by which the cost of a passport is determined are the selected option and the number of family members. Therefore, the cost is calculated for each participant in the program on an individual basis. However, the costs are not limited to investments.
Is a return on investment possible?
This program provides for two options: it is possible to return some part of the investment, but not. The funds that go to the funds for the development of innovations, namely 200 thousand euros, cannot be returned. This condition became effective in 2019.However, the program does not lose demand because of this. This figure is much less than the amount provided by the Malta program. The housing that the participant must purchase in the amount of 500 thousand euros is also a non-returnable investment. Because the home must remain in the applicant's ownership for life.
However, there are also exceptions. If an investor has purchased a villa, after 5 years he has every right to sell it and purchase a home for 500 thousand euros. Also, you will be able to return the funds that you have invested in objects and business. The total refund amount can be equal to 2 million euros.
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