Cyprus is tightening the requirements for foreigners wishing to obtain citizenship of the republic in exchange for investment. This was announced on August 12 by Henley & Partners, a London-based company that provides citizenship-for-investment services in a number of countries around the world, including Cyprus.
The minimum investment in the Cypriot economy will remain at the same level – € 2 million, but the mandatory additional contribution to one of the four government-approved charitable foundations will be increased from € 150,000 to € 200,000.
The updated Cyprus immigration legislation, which was at the disposal of the company a few weeks before the official publication by the government, also prescribes the need to prove the source of the capital to all “politically exposed persons” wishing to obtain Cypriot citizenship. These include, inter alia, high-ranking politicians, members of the courts and officers of the armed forces.
In addition, under the new rules, all applicants will be required to provide local authorities with a certificate of no criminal record issued by the country of residence at least six months before the submission of documents (instead of three months earlier). Finally, to open their own business on the island, foreign investors will need to employ not five, but nine citizens of Cyprus.
More than a dozen countries of the European Union practice the so-called “golden passport” programs, but Cyprus, despite its high cost, remains one of the most popular destinations for investments in exchange for citizenship. Rich Russians are also quite actively investing in its infrastructure, receiving, along with a Cypriot passport, the right to visa-free entry to more than 170 countries of the world. According to rough estimates of market players and Eurostat data, up to a quarter of applications for a passport approved by the island’s authorities in recent years have been made by citizens of the Russian Federation.