Generating over €2 billion in the space of two years, foreign investment in return for Cypriot citizenship has become a lucrative money spinner for Cyprus. Managing Director of Henley & Partners Cyprus Ltd, Yiannos Trisokkas, explains to the Cyprus Weekly why
Investment for citizenship
In a recent survey, global immigration experts ranked Cyprus in the world’s top ten among citizenship by investment programmes for high-net worth individuals. According to a 2014 real estate report, Cyprus also ranked fifth in terms of best relocation destinations in the world, the only other European country along with Switzerland to garner a place in the top five, ahead of London, Madrid and Monaco.
Cyprus’ geographic location, stable political situation, favourable tax environment and highly educated multilingual workforce are just a few of the advantages that attract foreign investors to the island as both a home and workbase.
The fact that an actual continued physical presence in Cyprus to gain and keep citizenship is not required is another factor in Cyprus’ favour.
“Most of the Henley & Partners clients are not looking to immigrate necessarily,” Yiannos Trisokkas, Managing Director of Henley & Partners Cyprus Ltd, told the Cyprus Weekly.
“Mobility, safety and security, education, tax benefits and lifestyle are often primary motivators for clients acquiring the Cyprus citizenship”.
The Cypriot government’s latest reforms to its immigration policy and legal framework have further opened the way for third country nationals and their dependants to apply for Cypriot citizenship swiftly and almost red-tape free.
Although the government does not disclose the numbers of applications received or those that have been approved or denied citizenship, Henley & Partners, just one of the major players in the programme, says it has brought in over $4 billion in foreign direct investment since it began operating and has seen a two fold rise in the number of applications received this year over 2014.
According to Trisokkas, most investment is ploughed into property, mainly in Ayia Napa, Limassol and Nicosia.
“We have seen a more than 100% increase of applications for Cyprus in 2015 compared to 2014. Each year, hundreds of wealthy individuals, families and their advisors rely on our expertise and experience in this area,” Trisokkas said.
A global market
With visa-free travel to 157 countries and good transport links to the rest of Europe, Asia and Africa, holding a Cypriot passport allows investors to take advantage of easy access to international markets in which they can promote or grow their businesses further.
“As globalisation has expanded, residence and citizenship by investment have become topics of significant interest among the increasing number of internationally mobile entrepreneurs and investors.”
Ranked 17th out of 111 countries in a quality of life index, investors interested in making Cyprus their new home are often attracted by the good-quality healthcare and public and private education from pre-school to university education that Cyprus has to offer, as well as a low crime rate.
According to Trisokkas, most interest comes from the Far East as well as from the Middle East and North Africa region, followed by an emerging interest from Africa and North America.
“Henley & Partners has offices in 23 countries and is probably the only international company that source investors from countries that we in Cyprus might have never considered attracting investments from,” he added.
The citizenship programme requires a significant financial investment, attainable by high net worth individuals, who must pass strict vetting scrutiny. Trisokkas believes from experience that interested candidates are talented and open-minded global citizens, something which can only benefit Cyprus’ image as a business centre.
“Henley & Partners has a 100% success record in Cyprus as our company does a very strict due diligence already before we onboard clients. As an IMC member (Investment Migration Council Member) we have the strictest policies for compliance checks in place”, he noted.
“Mobility, safety and security, education, tax benefits and lifestyle are often primary motivators for clients acquir- ing the Cyprus citizenship”
90-day application
The average time frame for processing an application is just 90 days, which is impressive by Cyprus’ red tape standards.
“It’s important that the government continues seeing the importance and continues working efficiently on applications. As demand is increasing – and we have experience with several other jurisdictions in a similar situation – it is important the Cyprus government goes the extra mile and acts proactive against any delays,” Trisokkas said.
A more friendly and efficient approach towards the applications for travelling visas to Cyprus by non-European potential investors will be very beneficial and “will really help all the service providers to invite and welcome these potential investors in Cyprus without delays and without having uncomfortable situations,” Trisokkas explained.
In the long term, Cyprus doesn’t just benefit from a one-off investment, as many of these newly created Cypriot citizens go on to hire the services of various sectors in Cyprus, from legal to education, accounting to health.
“They often rent out, use property management services, set up trusts etc – and even buy further real estate for diversification of their international investments. Once our clients are granted their citizenship, the majority of them have an appetite for further investments in real estate, tourism and generally the service industry,” Trisokkas said.
Summary of the citizenship programme
1. Clean criminal record:the applicants must have clean criminal records.
2. Residence in the Republic of Cyprus: the applicant must hold a permanent privately owned residence in Cyprus, the purchase price of which must be at least €500,000 (plus VAT).
3. Qualifying investment options:
• €2.5m real-estate investment.
• €5m deposit in Cyprus bank*
• €2.5m local business activities option*.
• €2.5m government bonds option*.
*Additional investment of €0.5m in a residence is required.
4. Main characteristics:
• Investing, not donating your wealth
• Approved within 90 days after application
• No residency requirement
• Flexible
• Basic documentation
• Easy process
• Very high approval rate
