Citizenship Planning Services
In response to the increased demand for providing services to foreign HNWI and UHNWI, L Papaphilippou & Co LLC has formed a dedicated Immigration and Citizenship team in the firm, comprised of experienced and specialized lawyers in foreign direct investments, immigration, financing and real estate transactions, securing first class services and results on the Cyprus Investment Program and other Investor related Permanent Residence Programs of Cyprus.
Our team offers investor focused solutions, offering expertise in global investor immigration, relocation, second citizenship, and strategic consulting. There is no one-size-fits-all strategy or pre-packaged solution. Instead, we work diligently and thoroughly to build the best possible solutions to meet our clients’ long-term goals.
Carefully considering the needs of the clients to create an investment solution that is both viable and tailor-made. These include second passport needs, tax optimisation, visa-free traveling, personal and family estate and wealth planning, benefits of an additional residence, wealth accumulation, domicile benefits and exit taxes.
We provide residency and citizenship solutions that offer financial protection and mobility that enhance our clients' global business activities and quality of life.
Cyprus Investment Program
One of the main objectives of the economic policy of the Republic of Cyprus is to further encourage foreign direct investment and to attract high net worth individuals to settle and conduct their business in Cyprus. Key factors that make Cyprus an attractive destination for investment, is the highly specialized human capital, the reliable legislative and regulatory framework, the stable tax system and the safety and stability conditions prevailing in the country.
The Government of Cyprus has established and revised the "Cyprus Investment Programme” on the basis of subsection (2) of section 111A of the Civil Registry Laws of 2002-2019, with specific incentives, terms and conditions and control procedures by which foreign entrepreneurs who fulfil the financial criterion A.1 and one of the financial criteria A.2-A.5, may acquire the Cypriot citizenship.
Who can Apply
On the basis of the Programme, a non-Cypriot citizen may apply for the acquisition of the Cypriot citizenship through naturalization by exception, if he/she fulfils the financial criterion A.1 and one of the financial criteria A.2-A.5, either:
- personally or through a company/ companies in which he/she participates as a shareholder – in proportion to his/her holding percentage, or
- through investments done by his/her spouse or jointly with the spouse, or
- even as a high-ranking senior manager of a company/companies that fulfils the financial criterion A.1 and one of the financial criteria A.2-A.5, provided that he/she receives such a remuneration that generates for the Republic of Cyprus tax revenues of at least €100,000 over a three year period and provided that this tax has already been paid or prepaid.
Financial Criteria (A.1-A-5)
A.1. The applicant must proceed with a donation of:-
- €75.000 to the Research and Innovation Foundation. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75.000, this additional amount can be used for purposes of supplementing the total amount of the investment on the basis of the criteria A.2-A.5.
This obligation can be waived if the applicant:
- invested this amount in a certified innovative enterprise or a certified social enterprise, or;
- where the applicant has made an investment under the criterion A.3, amounting to at least 20% of the investment cost of the prerequisite amount (i.e €400,000) to a company operating in the primary sector of the economy or in the secondary sector of the economy (excluding construction), or in the fields of research and development, education, health and renewable energy recourses.
- €75.000 to the Cyprus Land Development Corporation for the financing of housing schemes for affordable housing, but also for the materialisation of other housing schemes/measures. It is noted that if the applicant wishes to donate an amount higher than the minimum of €75.000, this additional amount can be used for purposes of supplementing the total amount of the investment on the basis of the criteria A.2-A.5.
The applicant must proceed additionally with any of the following investments in Cyprus:-
- A.2. Investment in real estate, land development and infrastructure projects of at least €2m. Investment in land development is included in this criterion, or;
- A.3. Purchase or Establishment or Participation in a Cypriot Company or Business of at least €2m. Moreover, investments in the shipping sector are eligible on the basis of measurable criteria under this criterion, or;
- A.4. Investment in Alternative Investment Funds (AIF) or Registered Alternative Investment Funds (RAIF) or financial assets of Cypriot companies/organisations that are licenced by the Cyprus Securities and Exchange Commission of at least €2m. It is eligible for AIFs or RAIFs to invest in the secondary stock-market values of the Cyprus Stock Exchange an amount that does not exceed €200.000, or;
- A.5. A combination of the above investments provided that the total investment is at least €2m.
- The applicant must have a clean criminal record and his/her name must not be included in the list of persons whose assets have been frozen as a result of sanctions within the boundaries of the European Union.
- The applicant whose application for citizenship in any other member-state of the European Union had been rejected, is not eligible to apply for the acquisition of the Cypriot citizenship through the Cyprus Investment Programme.
- The applicant must hold a valid Schengen visa. Third-Country nationals that do not require an entry visa for travelling in European Union member-states, as well as citizens of European Union Member States are excluded from this obligation.
- The applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000 (plus VAT). Additionally, it is noted that if the applicant has invested in housing unit/units on the basis of the above mention criterion A.2, the purchase of another permanent residence in Cyprus will not be required, if at least one of these housing units is worth at least €500,000 (plus VAT), provided that the applicant retains the possession of the residence for life. However, if the applicant has invested in housing units that have already being used for the purpose of acquiring the Cypriot citizenship via the Programme, the above provision will be in force provided that the total amount of the investments, including the privately-owned residence, is at least €2.5m.
- The applicant prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus for 6 months. If the applicant does not already hold a residence permit, he/she may apply simultaneously with the application for naturalization.
- The applicant should have made the necessary investments during the three years preceding the date of the application and must retain the said investments for a period of at least five years as from the date of the naturalization. The applicant may replace the investment during the said five-year period, provided that he/she has obtained beforehand an approval by the Ministry of Finance.
- In case where, following a periodic inspection, it has been established that a Criterion, Term or Condition of the Programme has been breached, the granted naturalization may be revoked.
- The spouse or partner of the investor can obtain the Cypriot nationality simultaneously with the applicant.
- The minor children of the investor have the right to acquire the citizenship according to the provisions of section 110 (3) of the Civil Registry Law after the naturalization of the applicant.
- The adult children of the investor can acquire Cypriot nationality provided that they qualify under the below categories
- Students up to the age of 28
- Children with a severe mental or physical disability
- The parents of an applicant can also qualify for the Cypriot nationality, with an additional