Cyprus’ efficient handling of the COVID-19 crisis means its already popular citizenship-by-investment program is well-placed to attract precious foreign capital into its economy.
As investors consider their options, the minimal economic impact of the coronavirus pandemic makes Cyprus doubly attractive to foreign investors.
Firstly, the Cyprus CIP can help high net worth investors secure a second passport with all its benefits and privileges.
Secondly, the robust economy will help Cyprus avoid drastic measures like deficit financing, tax increases, or new restrictive tax policies.
This means investing in Cyprus makes strong financial sense, independent of the advantages offered by the popular investment immigration program.
Cyprus’ decision to introduce an economic citizenship program in 2011 was prompted primarily by the damage wrought by the 2008 economic crisis. Facing a total collapse of its financial system, Cyprus setup its CIP to attract precious foreign investments directly into vital areas like real estate and the corporate sector.
Now, the same could be true as the country emerges from the pandemic.
Cyprus CIP: What Sets it Apart?
The Cypriot program is not cheap.
Countries in the Caribbean region offer second passports for minimum investments of $100,000 to $200,000. The Cypriot program comes with a hefty price tag of a €2 million investment and additional non-refundable contributions of €150,000.
Investments can be made in real estate or companies or businesses in Cyprus. The latter can be allocated by either direct equity purchase or through Alternate Investment Funds.
Cyprus is also not the first European country to offer a fast-track route to citizenship. Ireland operated a program between 1988 and 1998 with a minimum investment requirement of €1 million.
The Irish program was fairly popular with around 150 investors acquiring Irish citizenship before the program was shut down and replaced by a permanent residence-by-investment program.
The Cypriot program is unique given it was the first time that high net worth investors could qualify for EU citizenship through investment.
There’s no doubt Cyprus is an attractive place to live with its Mediterranean climate, panoramic vistas covering majestic mountains and pristine beaches, a stable political system and investor-friendly tax policies.
But what truly sets Cyprus apart is its proximity to the European continent and that the holder of a Cypriot passport enjoys full access to the European Union.