I invested in the Cypriot real estate market two years ago and obtained my Cyprus passport. I was planning to liquidate the investment this year, but then I heard about the program’s new rules of extending the property holding period to five years. Does this apply to investors who submitted their applications before the change?
Answers
Your investment was based on the rules at the time of the investment. Hence, the new rules are not applicable for you. The new rules are applicable for the investments carried out after the dates specified within the new rules.
The new rules imply that the investment needs to be maintained for five years. However, this only applies for new applicants, i.e., investors who applied from May 2019 onward. All previous investors are subject to the terms and conditions applicable at the time when they applied and got approved. Hence, it would be a three-year holding period for you.
The compulsory holding period has increased from three to five years. However, as the application date is the legal criterion and you submitted your application when the law imposed a three-year holding period, you are allowed to liquidate the investment after the three-year holding period.
The new regulations apply to applications made after the change of the regulations. Therefore in your case, you may liquidate your assets within the three-year time limit.
Changes apply for new applications only.
If your investment was bought before the new scheme entered into force, then in order to be able to liquidate the investment you need to wait three years from the day of you being granted the citizenship. The extension to five years only applies with the new scheme.