Cyprus was long a popular destination for those seeking citizenship through investment. The program, launched in 2013, attracted numerous investors due to its favorable conditions and quick processing times for obtaining a passport. However, as of November 1, 2020, this program was officially closed. In this article, we will explore the reasons for the program’s closure, its former conditions, and possible alternatives for those interested in investing in Cyprus.
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Reasons for the Program’s Closure
The citizenship by investment program in Cyprus was closed primarily due to allegations of corruption and lack of transparency. In October 2020, investigations uncovered numerous violations where individuals with questionable backgrounds were granted citizenship. This led to criticism from the European Union and the subsequent decision by the Cypriot government to terminate the program.
Conditions of the Former Program
Before its closure, the citizenship by investment program in Cyprus offered one of the fastest routes to obtaining an EU passport. The main conditions included:
- Minimum Investment Amount: Investors were required to invest at least €2,150,000 in real estate, business, or government bonds.
- Processing Time: The process of obtaining citizenship took between 6 to 8 months.
- Additional Requirements: In addition to the main investment, applicants had to make a charitable donation of €200,000 and demonstrate ownership of property worth at least €500,000, which had to be retained for at least 5 years.
Benefits of Cypriot Citizenship
Cypriot citizenship offered significant advantages, including the ability to live, work, and study in any European Union country, as well as visa-free access to over 170 countries. Additionally, Cyprus provided attractive tax conditions, making it particularly appealing to entrepreneurs and investors.
Alternatives After the Program’s Closure
Following the closure of the citizenship by investment program, many investors began exploring alternative options:
- Residency by Investment: The residency by investment program remains active. It requires an investment in real estate of at least €300,000 and offers the opportunity to obtain permanent residency, though not citizenship.
- Other Countries: Investors might consider citizenship by investment programs in other countries, such as Caribbean nations, which offer similar conditions.
The citizenship by investment program in Cyprus, which ended in 2020, left a significant legacy and sparked much discussion. Despite its termination, Cyprus continues to attract investors due to its economic opportunities and high quality of life. Those interested in obtaining citizenship through investment may explore alternative options available in other countries.
