13 September 2016, the Cyprus government approved a revised citizenship-by-investment scheme designed to further encourage investments in the island’s economy by non-Cypriot entrepreneurs and investors.
The revised scheme abolishes the provision for collective investment of €12 million. This is to be replaced by an individual investment of €2 million and the purchase of a residence worth at least €500,000 plus VAT.
An applicant’s parents are now entitled to apply for citizenship through the same application, provided the parents have also purchased a permanent residence in Cyprus of at least €500,000 plus VAT.
The investments attached to the application must remain for a minimum of three years, noting however that in order for the Cyprus citizenship to remain valid the permanent residence of at least €500,000 plus VAT must be held indefinitely.
The new scheme also terminates the provisions for the granting of citizenship to those with fixed bank deposits worth €5 million, to persons whose deposits have been impaired due to the measures implemented after the 15 March 2013 and those who purchased bonds worth €2.5 million.
Minister of Finance Harris noted that the revision of the scheme aims to encourage real investments that would benefit the economy. The government, he said, wants to attract investors who will chose Cyprus as their basis of residence and economic activity. Investments should be kept for three years and companies in which investments are made should employ at least five Cypriot citizens.