Before its suspension in 2020, the Cyprus Citizenship by Investment Program, officially known as the Cyprus Investment Programme (CIP), underwent multiple significant reforms by the Cyprus government aimed at enhancing its competitiveness, reliability, and transparency. These updates refined the requirements for obtaining a Cyprus passport through investment, adjusted investment thresholds, and improved application procedures, positioning the program as a preferred option for global investors seeking European Union citizenship.
The legal basis for granting Cyprus citizenship to foreign investors is established under subsection (2) of section 111A of the Civil Registry Laws (2002-2013), which empowers the Council of Ministers to set specific eligibility criteria for citizenship by investment.
Timeline of Major Amendments to the Cyprus Investment Programme
2020 – Suspension of the Program
The Cyprus Citizenship by Investment Program was officially suspended on November 1, 2020, following a decision by the Council of Ministers. Since then, no new applications have been accepted. Investors interested in Cyprus may consider alternative pathways such as the Cyprus residency by investment program, which remains active for those seeking investor visas or permanent residency.
2019 – Mandatory Donation and Extended Investment Holding Period
Effective May 15, 2019, applicants were required to make a mandatory donation of €150,000 to designated governmental bodies. Additionally, applicants must hold a valid Schengen visa prior to application and maintain their investments for at least five years, an increase from the previous three-year requirement. These changes aligned the program more closely with EU standards and enhanced its transparency.
2018 – Registry of Service Providers and Regulatory Improvements
In 2018, the Cyprus government established the Committee for Supervision and Control, comprising representatives from the Ministries of Finance, Interior, and Invest Cyprus. This committee regulates citizenship service providers, requiring their registration in an official Registry to submit applications under the Cyprus Investment Programme.
The program was formally renamed the Cyprus Investment Programme, accompanied by a strict code of conduct regulating marketing and promotional activities. Service providers are prohibited from using images of the Cyprus passport, official symbols of Cyprus or the EU, and from referring to the program with unofficial terms such as “sale of passports,” “Cyprus golden passport,” or “Cyprus golden visa.” Applications must include comprehensive due diligence reports from reputable international databases.
2016 – Removal of Group Investment Requirement and Investment Adjustments
Significant reforms in 2016 allowed individual investors to apply independently without group investment requirements. The minimum investment was set at €2 million for residential properties or €2.5 million if commercial properties were involved. Bank deposits were no longer accepted as qualifying investments.
Applicants were required to hold Cyprus permanent residency for at least six months before citizenship approval, with residency and citizenship applications submitted concurrently. The program expanded acceptable investments to include Alternative Investment Funds (AIFs) and financial assets of Cypriot companies licensed by CySEC.
2014 – Increased Investment Threshold for Group Investors
In March 2014, the minimum investment for group participants was raised to €2.5 million each, resulting in a total group investment of €12.5 million. This change reflected increased demand and ensured the program’s sustainability.
2013 – Introduction of Group Investment Option
The first major amendment in May 2013 introduced the possibility of collective investments. Investors could qualify by investing €5 million in real estate, businesses, or bank deposits. The group investment option allowed five investors to reduce their individual investment to €2 million each, totaling €10 million, making the program more accessible to international investors.