Immigration consultant's notes. Once again about the investment program of Cyprus.

As early as February 2019, the Government of Cyprus published new rules for participation in the Cyprus Investment Program.

So, for example, from February 26, investors who previously applied for citizenship in any other EU member state (for example, Malta) and were refused, from that moment can no longer become participants in the Cyprus program. This rule also applies to family members of the applicant.

From May 15, 2019, other changes entered into force, including:

• Investors must make a charitable contribution of EUR 75,000 to the Cyprus Research Assistance Foundation. Alternatively, you can invest this amount in a certified innovative or social enterprise.
• Investors must make a charitable contribution of EUR 75,000 to the Cyprus Land Development Corporation, which will finance affordable housing schemes for Cyprus citizens.
• Investors are required to maintain their investment for at least 5 years from the date of naturalization (until May 15 - 3 years).
• The applicant must have a valid Schengen visa.
• In the event that the acquired residential property has already been used by another investor to obtain Cyprus citizenship under the Investment Program, the required investment amount will increase from EUR 2 million to EUR 2.5 million.

Any investment in real estate must be accompanied by the following documents:

• Building permit.
• For finished objects: certificate of completion.
• For incomplete objects (under construction): at least 5% of the total value of the object must be blocked by a bank guarantee; the amount will be transferred to sellers only after completion of construction.
• In cases where real estate is purchased with a mortgage, it will be necessary to obtain a special permission from the bank.

The opportunity to invest in government bonds was canceled, but the opportunity to invest in the Cyprus shipping industry was given.

In January 2020, representatives of our company visited Cyprus. During negotiations with the immigration authorities, it was once again confirmed that the 3-year rule (investment retention period) does not change for objects acquired before May 15, 2019. In other words, the law has no retroactive effect.

The reason this question was raised is that a number of investors who became property owners before May 15, 2019 expressed concerns that after the entry into force of the new law, the 5-year rule will become generally accepted. The authorities assured that such changes are not foreseen and the concern of investors is unfounded.