Cyprus is the sunniest and beautiful Mediterranean country, which is renowned for several attractive reasons. High standard of living, low rate of pollution, quality education and medical facilities and high ranking for the key business and leisure indicators have helped this country to rank on 5th position among best destinations for relocation. In fact, Cyprus is the only European country, which is capable of standing with well-developed territories like London, Madrid and Monaco. Moreover, the favorable tax regime, for new residents have made it a captivating option for high-net-worth individuals seeking a second home.
Though the Republic of Cyprus has been a member of European Union since 2004, economic residency program or Cyprus citizenship by investment was introduced on 19th March 2014. The primary aim of launching economic residency program is to facilitate applicants across the world to obtain European nationality without making any discrimination by race and current nationality.
How buying a real estate in Cyprus will allocate Cypriot nationality?
Initially, candidates willing to avail this opportunity of buying real estate assets to obtain nationality were instructed to spend EUR 2.5 million to purchase a residential real estate property in a government approved project. Later, in September 2016, the State Government has introduced few changes to this option. After these amendments, this amount is reduced to EUR 2 million with a possibility to add parents of the main applicant in the same application after making an additional investment of EUR 500,000 + VAT.
What kind of real estate, applicants should purchase?
Two investment options are available for second citizenship applicants. They may either buy a residential real estate or spend EUR 2.5 million to purchase property in residential, commercial and tourism sector. However, this option excludes empty land plots. In case of buying private residential property, real estate must be retained for three years. After three years, owners can resell the investment units.
It’s not mandatory to spend all money to purchase a single unit. More than one unit can be bought, provided that their total value is equivalent to the recommended amount. Applicants can also invest the same amount in commercial, infrastructure project and land plot with a development plan.
What are the benefits of acquitting a real estate in Cyprus?
- Purchasing a real estate with a worth of €2,000,000 will make candidates eligible for the economic citizenship. After completing the prerequisites and application process, applicants will receive Cypriot passport within six months.
- Buying a property in Cyprus is highly rewarding due to its high quality, state-of-the-art infrastructure and a wide choice of property units. Overseas investors are allowed to select properties across the country.
- Asset prices are still affordable and reasonable, which will further facilitate buyers to avail this option.
- The amount invested by applicants will belong to owner forever and they can recover this amount after completing three years. This feature has played a significant role to make Cypriot program a unique program.
Endnote: Cyprus citizenship by investment has gained popularity in a short period due to its diversity and flexibility of the investment options.