New Regulation for Cyprus Golden Visa Program: What Has Changed?

Important news regarding the Cyprus Investment Program! As of May 2nd, 2023, new regulations for the Cyprus Golden Visa program have come into effect. These changes represent an effort by the Cyprus government to strengthen the program's integrity and increase transparency, while still offering a valuable opportunity for foreign investors and their families to obtain permanent residence in Cyprus.

10 years of the program

The Cyprus Golden Visa program, officially known as the Cyprus Investment Program, was first introduced in 2013 to attract foreign investment to the country. Under the program, non-EU citizens who invest in Cyprus can obtain permanent residence in the country, along with the right to travel freely within the European Union.

What’s new?

One of the key changes to the program is the introduction of stricter due diligence procedures for all applicants. These measures are designed to ensure that all applicants are thoroughly vetted before they are granted permanent residence. The Cyprus government has partnered with international due diligence firms to implement these measures, which will include background checks on applicants and their family members, as well as enhanced financial due diligence.

Cyprus has recently announced the implementation of new regulations pertaining to individuals of foreign nationality seeking permanent residency through the means of investment, commonly referred to as the "golden visa" program. The revised immigration regulations are scheduled to take effect on May 2, 2023.

These modifications primarily focus on the eligibility criteria for dependents as well as the criteria for renewal. While the investment requirements remain unchanged, adjustments have been made in terms of which family members are considered as dependents. Notably, parents, parents of the spouse, and adult children will no longer be considered as dependents under the revised regulations. Parents will now need to independently meet the qualifying investment criteria in order to obtain residency.

Another significant change concerns the minimum income requirement. Previously, the principal applicant was required to have a minimum annual income of EUR 30,000, with an additional EUR 5,000 per dependent. However, these income thresholds have been raised to EUR 50,000 for the principal applicant, EUR 15,000 for the spouse, and EUR 10,000 for each dependent child.

Furthermore, during the renewal process, applicants will now be required to provide evidence of their sustained investment and income levels. It is mandatory for applicants to demonstrate that their income meets or exceeds the minimum requirement based on their family size on an annual basis. Additionally, they must show that they have not divested from their original minimum investment asset of EUR 300,000. Failure to provide such evidence will result in the cancellation of the applicant's immigration permit as well as that of their family members, as stated by the official statement from the Cypriot Ministry.

While the investment threshold of €300,000 remains unchanged, it is now mandatory for the entire amount to be paid in full prior to commencing the application process, regardless of the delivery status of the real estate project. Furthermore, the funds must be directly deposited from the main applicant's account, or in the case of dependents, from their spouse's account if included in the application. There is an option

Golden Visa for individuals - the less expensive option

The Cyprus Golden Visa program now offers two options for potential applicants: a fast-track version requiring a minimum investment of €300,000 and a slower-paced alternative with a minimum investment of €150,000. It is important to emphasize that these investment amounts must be transferred to a bank account in Cyprus under the applicant's name. Citizen Lane’s services enable the remote opening of a bank account for this purpose.

Additionally, if applicants wish to purchase a property at a higher price, they have the option to obtain a mortgage to mitigate the immediate impact on their cash flow. However, it is crucial to note that the minimum investment amount, whether it is 150k or 300k, must be brought into the country in the form of cash through a bank transfer.

The Cyprus Golden Visa program has proven to be a popular option for foreign investors seeking permanent residence in Europe. Since its introduction in 2013, the program has attracted over 4,000 investors and generated more than €8 billion in foreign investment for Cyprus.

Sustainable & transparent

The new regulations are aimed at ensuring the long-term sustainability of the program, while also maintaining its attractiveness to foreign investors. By introducing stricter due diligence procedures and raising the investment threshold, the Cyprus government is sending a clear message that it is committed to maintaining the highest standards of transparency and integrity.

It is important to note that these changes will not affect those who have already obtained permanent residence under the Cyprus Golden Visa program. However, they will apply to all new applicants as of May 2nd, 2023.

The new regulations for the Cyprus Golden Visa program represent a significant step forward for the program. By introducing stricter due diligence procedures and higher investment requirements, the Cyprus government is taking important steps to strengthen the program's integrity and ensure its long-term viability. The program continues to offer a valuable opportunity for foreign investors seeking permanent residence in Cyprus.

Citizen Lane offers professional assistance during your application and relocation. We are here to make the process effortless for you and provide you with all the necessary information. Contact us today and let our experts guide you.