There is some confusion on the new measures that the Government has decided for foreign people (non - E.U. members) to get a residence permit and even a Cypriot (E.U.) nationality through the use of real estate. Residents of third countries (i.e. countries which are non E.U. members, such as Russians, Ukrainians, Iranians etc) who have shown interest in acquiring property in Cyprus have now an added bonus.

1. Immigration Permits – Which is equivalent to a permanent residency permit, can be sought by those people from third countries, who buy a residence in Cyprus of a value not less than €300.000. Such persons are exempted from time consuming procedure, which applies to nationals of third countries and who now require consular visas, renewal of permit of stay, permit for re-entry etc. It is made clear however that such permits will be given by the Minister of the Interior provided the applicant has no criminal record and has an insured annual income of an appropriate amount (around €30.000/couple/p.a.) and which is generated from abroad and not from employment or self employment in Cyprus – Decision taken by the Government on 18.2.2009. This category of residents do not have the right to seek a Cypriot passport
   

2. Getting a Cypriot Passport/Nationality – This proposal is still pending approval and adoption, but the general proposal suggests the following:

1. The applicant must have a direct investment in real estate in Cyprus of not less than €2.0 mil. In value and in addition

2. The applicant must have a Cypriot registered Co with a total annual turnover of not less than €100 mil. (during the year previously of the application) OR

3. The applicant to have a Cypriot Co operating in financial investments or other sectors of the economy, employing at least 10 Cypriots/E.U. nationals as local staff OR

4. He can prove that he has introduced new technology in vital sectors of the Cypriot economy or research centers OR

5. To have a personal 5 year deposit in Cyprus Banks amounting to at least €20 mil.

Notwithstanding the above the Government may examine individual cases based on other criteria on an at-hoc basis provided:

1. He owns a business which has a turnover of €85.5 mil. p.a. OR

2. Invests in any sector of Cyprus economy amounting to not less than €25.5 mil. OR

3. He has fixed deposits in Cyprus Banks for 5 years of €17.86 mil.

These financial measures have the target to attract wealthy individuals and business and it is a measure to help the Cyprus economy during this difficult period of recession. As such it is not necessarily adopted that they will last for ever. This sort of measures (passports for cash) have been adopted by numerous countries, the more well known being that of Canada, who provided Canadian passports for $500.000 deposit/ business set ups by applicants.

As we have said before, this Government will never cease to amaze us, being a “communist” Government. Despite this theoretical label, the Government does all sorts of non-communist activities, including our President’s visit at Qatar, in order to attract investments to Cyprus – Well done we say and keep such innovating ideas coming.

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