New property means newly constructed, i.e. first sale irrespective of being used in the program or not. The cost of investment is expected to be increased by 150,000 euros for donation to two local social schemes.
What is the cost of participating in Cyprus’ CBI program through real estate investment under the new rule?
I learned that under changes to Cyprus’ CBI program, the cost of investment through the real estate purchase route has been changed. However, some are saying that the price remains the same if an investor buys a new property. Which is true? What requirements should a “new” property meet? Does it mean it should be newly constructed within a certain period of time, or does it mean that it has to be used for the purpose of CBI applications for the first time?
The latest changes in the Cyprus investment program, which shall become fully effective on the 15th of May 2019, the total amount of investment in residential property increases for 500,000 euros in case of investing in property from resale which was already used for a previous citizenship application by another applicant. On the other hand, it remains the same amount of investment in case of new properties (minimum 2 million). So the extra 500,000 is avoidable in case of investment in new properties but is unavoidable is newly introduced donations with minimum amount of 150,000. Also, as the investor now should maintain the investment for a period of five years from the date of naturalization (instead of three years) obtaining high rent return now is a must.
The applicant must have donated at least 75,000 euros to the Cyprus Land Development Corporation for the financing of housing schemes for affordable housing, but also for the materialization of other housing schemes/measures. The applicant must have donated at least 75,000 to the Research and Innovation Foundation. It is noted if the applicant wishes to donate an amount higher than the minimum of 75,000. Furthermore, the aforementioned obligation is lifted if the applicant has invested at least 75,000 in a certified innovative enterprise (i.e., an enterprise that had acquired the relevant certificate by the Ministry of Finance) or a certified social enterprise. In addition, the obligation is lifted if the applicant has made an investment under the criterion A.3 (purchase or establishment or participation in Cypriot companies or businesses) of a total amount equal to the 20 percent of the required investment amount (i.e., 400,000) of the abovementioned criterion A.3 in a company whose operations fall within the primary sector of the economy, or the secondary sector of the economy (excluding constructions), or in the sectors of research and development, education, health and renewable energy sources. Having said the above, the cost varies from 2,150,000 or more, depending on the investment policy of the applicant.