Why are the World's Richest Families Heading to Cyprus?

Europe has long established itself as the most sought after region in the world, in terms of high net worth immigration and citizenship acquisition, accounting for over half of the total number of global citizenship applications, with the Caribbean in second place, followed by North America, in third. There are many reasons for this, especially its proximity to developing regions, generational heritage and cultural links to longstanding cities such as London.

Three years ago, Cyprus, a member of the European Union, took the bold move to amend it's Citizenship program in 2013 and captured the imagination of Ultra High Net Worth’s (UHNW’s) and realized that traditional immigration was simply not a viable option for such categories of people. Most UHNW’s & international businessmen/women travel constantly and are unable to meet the typical six months a year, landing time, for periods of upto 4-7 years, that most EU countries stipulate, in order to acquire citizenship.

Cyprus, thanks to its favorable tax regime, with at least 320 days of sunshine a year, identified a gap in the market. It introduced an expedited timeframe to Citizenship (6 Months), without the need for physical landing time and avoidance of a language test, in return for a sizeable investment to the country, starting from €2M euro. It went even further, in allowing UHNW’s to make this sizeable investment via trust structures, the owners business, or on behalf of the investor, making it feasible to bring the required liquidity into the country.

Thanks to this innovative move, Cyprus was recently ranked the 5th best relocation destination in the world by the international lifestyle review (source; prepared by Knight Frank, a leading independent, global real estate consultancy firm). Considerations on key business and leisure indicators, Cyprus was the only European country alongside Switzerland to make it into the top five – placing it ahead of London, Madrid, and Monaco.

Since it’s amendment, the Citizenship By Investment program has generated over €4 Billion to the Cypriot economy and now has the countries stability firmly in its grip, after the unfortunate period, faced several years ago, with the banking crisis. Cyprus in the past four years has seen a remarkable turnaround in its economy, to which the leadership of the Government, must be praised for its decisive decision-making.

Cyprus is now attracting, not only the minimum investment amounts but also significant sums of money, via UHNW’s, realizing Cyprus’s huge potential for growth. Major new marina developments coming from Egyptian developers to the building of Europe’s largest Casino Resort with the Hard Rock brand and the near completion of the tallest residential tower in the Mediterranean region. These are exciting times for Cyprus, which is evidently revealed in an excellent article written in The Times Newspaper of London recently.

The article highlighted several of these major economy boosting projects, along with the significant finds in the gas exploration of its south coast, that will have Cyprus self-sufficient on gas for next 200 years. You may message me for a PDF copy of the article.

So what are the conditions for obtaining Cypriot, EU Citizenship?

The Cypriot Citizenship policy and legal framework enable’s Non-EU applicants to obtain Cypriot citizenship on an expedited six-month basis.:

1.     There is no requirement to make a donation to the local government, in contrast to many other citizenship programs worldwide.

2.     Cyprus does not require applicants to live on the island prior, during or after the application process, unlike all other EU countries with citizenship programs that impose some form of residency requirements.

3.     The application process takes 6 months, with approval granted within 1-2 months, being by far the fastest route to EU Citizenship. Investment is secured after the client approval.

4.     Simple and straightforward application process with no requirements to disclose the source of wealth or funds, no medical testing, and no language requirements.

5.     Approved by the EU (being one of only two CBI programs in Europe with official EU approval, the other being Malta).

6.   Main applicant, spouse & children up to the age of 27 can be included, as well as the main applicant's parents for an additional investment of €500,000

And what are the main advantages of Cypriot Citizenship?

• Freely travel, reside, study and work within the 28 countries of the EU, as well as Switzerland, Norway, Iceland, and Liechtenstein. (There is still time to secure residency in the UK before Brexit is executed in 24 months time.)
• Children of EU nationals have the right to lower tuition fees within the EU.
• Establishment and free movement of services - individual citizens and their companies can offer services within the EU Member States without any obstacles.
• Free Movement of Capital -Transfer funds between the EU Member States, purchase of property in any preferred EU Member State, and invest in any type of activities.
• Free Movement of Goods - All goods produced in the EU Member States can be freely transferred between the Member States. No requirement to physically reside in Cyprus
• Guaranteed & underwritten yields on purchased property investments to ensure your investment is protected.

A word of caution, however....

The majority of investors are selecting the €2 million euro residential property investment category (higher amounts are needed for purchasing of land or commercial developments). Which has led to some, less discerning property developers inflating their property prices, in order for investors to meet the required threshold and has caused a number of buyers being mis-sold and left with an investment that will be hard to sell for a reasonable return, after the three years legal holding period.

It is, therefore, essential that the potential investor approaches an independent and well-experienced tax advisory, consultancy or legal outfit within the country. Such an outfit will grant you access to some excellent property investments including foreclosures, private developments, and plots that can avoid you paying VAT. This is a sizeable investment into a country, that many investors have little knowledge of and the smart, well-versed buyers are taking agnostic advice in the direction of highly credible, longstanding, liquid developers with a strong track record.

We have been advocating such a strategy for our clients, for several years, who visit and prepare an investment analysis with our team, as we value our long-term relationships and continual enhancement of our customer's prosperity.

We also recognize there maybe those reading this article, that may have some interest or know of a colleague that may value from the benefits of the Cypriot program yet, are unable to secure the liquidity of the full €2 Million, which is why we have engineered some financial structures and financing that can ease the burden. Appointments can be set to discuss this.

It's an interesting economic development for Cyprus and she is seeing one of the biggest revivals in her countries history and if a number of the world's richest, Non-EU Citizens are investing millions of their assets into the country, then there must be some truth in the buzz that is now flying around this Mediterranean country. 

Gareth Brookes is the founder of  Brookes & Partners and is a Global Speaker & thought leader at international Immigration & Citizenship forums and advises nationals across the globe on tax residency & Citizenship investment strategies

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