Cyprus Citizenship by Investment increase by €150,000

Prabhu Balakrishnan Avatar
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Cyprus citizenship by investment to become more expensive as the the government has approved of new changes to the citizenship by investment scheme


The new CIP changes expected to come into effect on May 15, 2019


Price increase

Applicants have to donate €150,000 to Cyprus development, along with the €2 million euro minimum investment requirement.


  • €75,000 to research and innovation
  • €75,000 to Cyprus land development agency


2.  Schengen Visa


Another very important change is those who apply for citizenship by investment, they must hold a Schengen visa


3. Investment period increased to 5 years

Properties purchased cannot be resold for five years (increased from 3 years). Investments are locked for five years.


4. No Government bond option

This option will be removed under the new changes


5. Investment funds

Those who buy investment funds for €2.5 million must also buy a private residential home for €500,000 (+ 5% VAT). Investment funds are exempt from VAT


The above are the most notable changes.


Property taxes + VAT


Foreigners applying for citizenship scheme in Cyprus must also be aware of potential VAT implications.


Please note VAT applicable on property may be expensive and inflate the price for you above €2 million euros. For example if you buy a property for €2 million investment (€1.5m for real estate + €500,000 residential home), 19% VAT applies on €1.5m property, plus 5% reduced VAT applies on €500,000 property (less than 200 sq,m).


VAT for commercial properties levied at 19%


This will bring the total approx €2.35 million euros considering 0.2% stamp duty (capped at €20,000).