Tag: Cyprus
Reduction in Cyprus Investment for Citizenship
The Cyprus Cabinet has approved amendments to its already popular citizenship by investment (CBI) program, making it more attractive than ever.
Importantly, the key advantages of the program, including speed of processing, no residency requirement, three year exit window, and inclusion of dependents up to age 28 have been retained. The Cyprus citizenship by investment program was introduced in March 2014, and has proven very successful, injecting over €2billion into the economy. The changes not only improve the competitiveness of the program but according to Minister of Finance, Harris Georgiades, ensure its longevity as well.
The most significant change is the reduction of the required investment to €2M, from €2.5M. This remains a pure investment, there is no donation element. Another advantage is the inclusion of the main investors parents, provided that they acquire a permanent residence property with a value of €500,000. It is possible for this value to be pooled into the main investment, enabling a more premium property to be purchased.
The ‘collective scheme’ concept, which required the simultaneous deposition of five applications, has been abolished. All applications will now be submitted individually, thus there is no waiting time for the formation of a group. Real estate was always by far the preferred qualifying investment option, this trend is sure to continue following the abolishment of both the bank deposit and pure bond investment schemes.
In order establish further genuine ties between the country and investor, applicants will be required to obtain Cyprus Permanent Residency (PR) status. This PR application can be submitted simultaneously with the citizenship application. It has a processing time of just two months and thus does not impact the overall speed. The investment made to fulfil the citizenship criteria also fulfils the financial criteria of the residency program, so there will be no additional cost to the investor.
Cyprus Permanent Residency Programme
The Cypriot government has recently announced some positive changes to the fast-track permanent residence (PR) programme in Cyprus. It is now possible to gain Permanent Residency (PR) in just 2 months through the purchase of a property for a minimum investment of €300,000.
One key change is the inclusion of parents (for both investor and spouse) effectively allowing three generations of each family to qualify.
The PR previously could not be extended beyond the age of 25 for dependent children. The new changes mean children of the applicant over 25, who were originally dependent, retain the PR, irrespective of whether they marry, become financially independent or stop studying at a higher education institution.
Previously a spouse who was not investing could only apply as dependent. Now. the spouse of the applicant can choose to have his or her own independent permit without appearing as dependent. And without having to satisfy additional financial criteria.
Previous conditions remain in place as follows:
• Purchase of a property worth minimum €300,000 (ex VAT)
• Deposition of €30,000 for 3 years in a Cyprus bank
• Demonstrate income of a minimum of €30,000 per applicant. Plus €5,000 for every dependent person.
• Property must be new and not resale
It is important to note that Cyprus is expected to join the EU Schengen zone treaty in summer 2016. Therefore, Cyprus PR will then allow visa-free travel in the countries within the Schengen zone.
Applicants looking to gain citizenship through investment in Cyprus can do so by investing €2.5 million in real estate. This will lead to a European passport within 2-3 months.
Citizenship through Real Estate Investment
With turmoil in equity markets and plunging commodity prices the attraction of real estate as an investment category remains as strong as it ever ws.
Many countries in Europe saw real estate prices crash from their highs in 2008. But now with economies well on the way to recovery prices are starting to rise but are still below their peak in countries such as Spain, Portugal and Cyprus.
To add to the attraction of real estate investment these countries are offering residency in return for a minimum investment. In Spain and Portugal the limit is €500,000, Greece €250,000 and Cyprus €300,000.
The rules for each programme differ. That includes family qualification, fees and timescales. One of the key differences is the time it takes to gain citizenship, and whether this is possible at all.
Cyprus is the ultimate programme for gaining citizenship and an EU second passport quickly. However the investment needs to be in excess of €2.5 million.But this does lead to a passport within 2-3 months and then the freedom to live, work, study and travel anywhere within Europe, including the UK.
The alternative in Cyprus is the residency programme at €300,000 and applying for citizenship at some future time. But Cyprus is not part of the EU Schengen zone so does not offer the freedom of movement that other countries such as Spain and Portugal offer through their residency schemes.
Greece is the cheapest residency programme with a required investment of just €250,000 into real estate. Property taxes are higher than Portugal and Spain and these must be factored. Greece is a member of the Schengen zone and citizenship can be applied for after 7 years of residency.
Spain and Portugal offer residency through investing €500,000 in real estate. Both countries are members of the Schengen zone allowing freedom of movement for anyone with residency. The key difference between the programmes is the route to citizenship. With Spain it requires 10 years residency before applying for citizenship. In Portugal it can be applied for after 6 years, without the requirement to reside in the country.
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