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New criteria for Cypriot citizenship
On 19 March 2014, the Cypriot Council of Ministers announced the revised criteria and conditions for the nationalisation by exception of non-Cypriot entrepreneurs investing in Cyprus. Taxand Cyprus provides an overview of these revisions to ensure potential investors are prepared.
According to the revisions, a foreign investor is eligible for Cypriot citizenship by exception if they meet at least 1 of the following criteria:
- Investment in Cypriot government bonds
- Investment in financial assets of Cypriot companies or organisations
- Investment in Cypriot real estate, land development or infrastructure projects
- Purchase, creation or participation in Cypriot companies
- Deposits in Cypriot banks
- Major collective investments
In addition to these criteria, it is essential that the applicant has a clean criminal record as well as a permanent, private residence in Cyprus with a purchase price of at least €500,000 + VAT.
Foreign investors looking to apply for Cypriot citizenship should be aware of the recent updates, not only to make sure they meet the criteria but also to ensure they are fully aware of the tax implications these new conditions may have – both on a corporate and personal level.