Seomypassion

The Cyprus Investment Programme (CIP) allows high-net worth individuals to obtain European citizenship in a short period of time. This is one of the fastest and simplest investment-based investor visa programmes in Europe.

The east Mediterranean island’s government broke the law on countless Cyprus Pr Residency occasions when granting passports to foreigners under its now discredited “cash-for-passport” scheme, an official inquiry has found.
1. European Union citizenship

Citizenship of Cyprus gives you access to the entire European Union, enabling you to travel freely and work or expand your business anywhere in the continent. It also offers world-class healthcare and tax benefits, including no inheritance or withholding taxes on interest earned by foreign residents. Additionally, the program allows you to maintain dual citizenship with your current nationality, allowing your family to remain with you.

Cyprus is vigilant in performing thorough checks of its applicants, making sure they have legally amassed their wealth and are of high moral standing. They must transfer the required investment sum from abroad, and have a clean criminal record. Furthermore, they must prove their annual income accrued from abroad is at least EUR200,000. They must also own a property in the country with a minimum value of EUR2 million or invest in a real estate project in Cyprus. Lastly, they must make a donation worth at least EUR100,000 to the Government Research and Development Fund and EUR100,000 to the Cyprus Land Development Corporation.

The EU Commission has warned against cash-for-citizenship schemes in the past, claiming they can be used by money launderers and allow for tax evasion. It has also criticized Cyprus for irrational promotion of its programme, including at exhibitions and on trolleys in airports.

Despite this, the government has no plans to replace its investor-citizenship programme, and it is continuing to process pending applications. It has been criticized for the apparent ease with which it has granted passports to wealthy individuals, and there is concern that the country's reputation as an international financial centre is being damaged. It has been accused of having a weak anti-money laundering regime and poor transparency.
2. Access to 168 countries

The Cyprus passport offers visa-free or visa on arrival access to 168 countries across the globe. It ranks eighth in the Global Passport Index, making it one of the strongest passports worldwide.

As a bonus, the Cyprus passport gives its holders the freedom to travel within the European Union without the need for a visa. This means that family members, including children and spouses, can join you when you are traveling to any EU country, giving you the flexibility to take a last-minute business trip or a spontaneous holiday.

Moreover, the Cyprus passport can be used to invest in real estate and other infrastructure projects in the country. It is a fast-track option that allows investors to obtain permanent residency in just two months, and the investment can be made through a legal entity or firm. This is beneficial for families or businesses with multiple shareholders, as it reduces the overall investment requirement.

In fact, investors can also buy properties through the Citizenship by Investment Scheme through a limited liability company that is not a resident of Cyprus. However, a company must own at least 100% shares worth EUR2m to qualify for the programme. This provides the added benefit of tax incentives.

Despite several revisions, the Cyprus citizenship-by-investment scheme has been criticized by some as being too loosely regulated. Moreover, the scheme has been accused of facilitating fugitives from justice and people with criminal records. The president of Cyprus, Nicos Anastasiades, who pushed for the legislation to be amended in 2015 and 2016, has denied that he or any of his family members may have gained benefits from the programme. However, he has said that the government will now tighten the criteria to ensure that only those of good moral standing are granted a passport through this programme.
3. Visa-free travel

As a member of the European Union, Cyprus enjoys visa-free access to all other member states. This means you can travel to 150 countries without the need for a visa. Citizens of Cyprus also benefit from tax advantages, including low corporate fees and free healthcare, education and property ownership for themselves and their family members.

The country’s citizenship-by-investment programme is renowned for being one of the best in Europe. However, the scheme has been criticised over allegations of corruption and money laundering. In 2021, a report by the EU’s Committee of Independent Inquiry found that a significant number (53 percent) of passports issued between 2007 and 2020 went to people who did not qualify. In particular, the scheme benefited those involved in illegal business activities, such as organised crime and money-laundering, the report added.

In an attempt to address these concerns, the government introduced a number of reforms. The new rules made it more difficult for criminals to gain a Cypriot passport. They also placed stricter conditions on investment.

A new law will require a person to purchase a real estate worth at least €2 million, or invest in a company or organisation based in Cyprus with physical presence and substantial activity. In addition, a person will need to have a residence permit in Cyprus for at least 6 months before applying for a passport. For this reason, many applicants choose to buy properties through a limited liability company rather than as individuals. The benefits of doing so include lower corporate taxes and the ability to sell their shares in the company when they decide to retire or move on. This gives them a good opportunity to recoup their initial investment.
4. Security

The Cypriot passport allows holders to live, work and study anywhere in the European Union. In addition, they are eligible for free public healthcare and receive a European Health Insurance Card. Citizenship can also be passed on to their children and grandchildren.

The scheme is not for everyone. Cyprus’ government-appointed committee recently concluded that more than one-third of the citizenships issued through the programme were unlawful. The head of the commission, Nicolatos, handed over the final 780-page report to the island’s attorney general. Of these, 8% didn’t meet the primary condition of investing around EUR2.5 million into the local economy and 12% failed to fulfil the requirement that they own a permanent residence in Cyprus.

An investigation into the scheme revealed that it had been used by criminals to launder funds, hide assets and change identities. It also revealed that some lawyers, accountants, banks and property developers had failed to live up to their legal obligations under the scheme.

Last year, the EU warned that cash-for-passports schemes could be abused by money-launderers and terrorists. The east Mediterranean island closed its passport-for-investment programme in late 2020 after EU concerns were raised. It is believed to have earned 9 billion euros through the scheme, which was popular with Russians, Ukrainians and Chinese.

In 2021, an investigation into the Cyprus investment-citizenship programme found that 53 percent of the 6,779 citizenships granted between 2007 and 2020 — the vast majority to Russians — were unlawful. The inquiry was sparked by an Al Jazeera documentary showing reporters posing as “fixers” for a criminal client seeking a Cyprus passport to invest in an English football club and help him launder his proceeds and hide his identity – all without living in Cyprus.
5. Tax benefits

Purchasing Cyprus citizenship through investment is tax-efficient, as the country does not impose capital gains or inheritance taxes. This is one of the many benefits of investing in real estate through the Cyprus passport scheme, which allows applicants to invest for life and pass on citizenship to their children.

However, the Cyprus passport scheme has come under scrutiny by EU representatives over its potential to be abused by money launderers. In a recent exposé, undercover operatives from Al Jazeera posed as representatives of an invented Chinese businessman to try and get him a Cyprus passport, highlighting the scheme's weaknesses and its potential to be misused by criminal individuals and organisations.

The country has responded by tightening the criteria to include more strict background checks on CBI applicants. These include extensive checks to ensure that investors have legally amassed their wealth, and that they are of high moral standing. They also have to demonstrate that they are not involved with any legal entities or companies that have been restricted in the EU, and must be on no INTERPOL wanted lists.

The government also requires a minimum combined investment of EUR2 million in the country's economy. This can be in a variety of forms, including alternative investments and financial assets (such as bonds) of Cypriot companies or organisations.

The program has been highly successful at bringing in large amounts of money to the island, helping the nation recover from its debt crisis. The programme is also among the fastest and most affordable methods of gaining European citizenship, as it takes only 6 months to process applications and grants citizenship to investors, their spouses and children up to the age of 28.