At the very beginning of the year, at one of the meetings of the European Commission, the Cypriot authorities were issued a warning regarding the program of obtaining citizenship in exchange for investment, in particular in real estate. The European Commission believes that the measures for the selection of applicants for obtaining a passport are not tough enough, and therefore there is a great risk of criminals and groups that are involved in money laundering entering the European Union, they can evade taxes, and stimulate corruption. In February, the country's parliament promptly developed and adopted some provisions for changing the program. Most of the innovations entered into force on May 15 this year.
But in the very near future, new adjustments will be made to the citizenship by investment program in Cyprus. As it became known, the government of the country will toughen the selection conditions for those investors who are ready to invest over 2 million euros in the purchase of real estate.
First and foremost, prominent politicians, as well as sanctioned citizens, will not be able to exercise the right to obtain a Cyprus passport in exchange for investment. Amendments have already been adopted regarding stricter criteria for screening candidates. They supplemented the condition of no criminal record that had been in force for many years.
A number of experts working in the Cyprus property market or related areas have already appreciated this innovation on a positive side. They believe that in this way, every trustworthy investor, as well as citizens of the country, can be sure that the authorities are not going to discredit the program itself, reduce the privilege of owning the country's passport and will take care of their future citizens and their peace of mind.
The second innovation that will be introduced into the program concerns a non-returnable investment that the investor must make. The donation amount is 150,000 euros and now it has to be made only after receiving approval for the application for citizenship. Previously, a non-refundable payment had to be made even before the application was satisfied. It is still possible to avoid these payments if the applicant invests a similar amount in social programs or business innovation.
