You are allowed to obtain Cypriot citizenship either under the naturalization scheme of investors in Cyprus by exception or under the naturalization scheme based on years of residence. Under the latter scheme, an application can be submitted by foreign nationals who have completed seven years of legal residence in the republic prior to the date of application. Under the first scheme, foreign nationals who are going to invest in Cyprus (please see criteria below) and who would like to obtain Cypriot citizenship must hold a residency permit in Cyprus for six months. This provision also applies for the adult members of the investor’s family. If not, an application for a residency permit can be submitted simultaneously with the application for the naturalization, while the procedure for the acquisition of the Cypriot citizenship will be completed when the six-month period is completed. It is therefore an advantage that you are already Cyprus residence permit holders since the citizenship procedure will be processed more quickly. In order to be allowed to submit an application under the citizenship by investment scheme, you will need to fulfil one of the following criteria: first, an investment in real estate, land development and infrastructure projects of at least 2 million euros. Investment in land under development is included in this criterion, provided that an investment plan for the development of the purchased land will be included in the application. The second criterion is investment in financial assets of Cypriot companies or organizations of at least two million euros. These companies or organizations should have proven physical presence in Cyprus, with significant activity and turnover and employ at least five Cypriot or citizens of European Union member-states. The invested funds shall be channelled toward the financing of the investment objectives of these companies exclusively in Cyprus, based on a specific investment plan. The employees of the companies need to have legally and continuously resided in Cyprus during the five years preceding the application submission date. The third criterion is investment in alternative investment funds (AIFs) or financial assets of Cypriot companies/organizations of at least 2 million euros. AIFs, whose investments should be made exclusively in the Republic of Cyprus, should be established in the Republic of Cyprus and licensed and supervised by the Cyprus Securities and Exchange Commission (CySec). Investments should be kept for at least three years. It is noted that the purchase by an AIF of units of other AIFs is not considered eligible. The purchase of financial assets of Cypriot companies or organizations (bonds, bills and securities) should be issued with the approval of the CySec, by companies that have proven physical presence and substantial economic activity in the Republic of Cyprus. Criterion four is a combination of the above criteria. This combination may also include investment in government bonds of up to 500,000 euros, issued by the Public Debt Management Office of the Ministry of Finance. These bonds must be retained for a three-year period. Investments in government bonds through the secondary market are not considered eligible. In all criteria, you must possess a permanent privately owned residence in Cyprus of at least 500,000 euros (plus VAT). If you have invested in housing unit/units as per criterion one, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least 500,000 euros (plus VAT). In this case, you must retain possession of this residence for life. If you own a privately owned residence in Cyprus, you are allowed to include it in your investment scheme, provided that you bought it during the three years preceding the date of the application. In case that the value of your privately owned residence in Cyprus exceeds the amount of 500,000 euros, part of the additional amount can be used for supplementing the total amount of the investment made on the basis of the financial criteria above.
