Changes and new guidelines to the Cyprus Investment Programme (CIP)

July 18, 2018

As part of its efforts for further improvement of the Cyprus Investment Programme (CIP), the Council of Ministers decided on the 21st of May 2018 the establishment of the Committee for Supervisions and Control as well as of the Registry of Service Providers for the CIP. According to the new resolutions, from the 1st of August 2018 and onwards, only registered Service Providers shall be able to submit applications for naturalization of foreign investors.

The newly introduced amendments of the improved CIP briefly consist of the following:

1.    As from the 1st of August 2018 and onwards, the Ministry of Interior shall accept applications for naturalization of foreign investors according to the provisions of the CIP only from registered Service Providers.

2.    A Due Diligence Report by an internationally accepted database ensured through a subscription (e.g. World Check, LexisNexis Diligence) must be submitted for each applicant, with date no later than thirty (30) days from the date of its submission.

3.    A Self-Declaration, duly completed and signed, must be submitted by the applicant/investor for the purposes of the CIP, confirming his/her knowledge about the CIP and its provisions.

4.    A Self-Declaration, duly completed and signed, must be submitted by the Service Provider for the purposes of the CIP, confirming its knowledge, professionalism and compliance with the CIP and its provisions, as well as with any related laws and regulations.

5.    As per the Decision of the Council of Ministers on 21/05/2018, the expected period for the examination of any application submitted in accordance with the provisions of the CIP is six (6) months.

6.    The Council of Ministers limited the investments in Cyprus by foreign investors to 700 per annum.

7.    The requirement that investors must retain their investment(s) for a minimum period of three (3) years as from the date of naturalization has not changed. However, if the investment involves the purchase of property/properties under construction for which the town-planning and building permits had not been ensured, the mandatory three (3) year period commences on the date that the town-planning permit is issued. This applies for the applications submitted on 15/06/2018 and onwards.

For any further enquiries, please contact George Economides at george.economides@economideslegal.com