{"id":55511,"date":"2019-02-20T12:51:58","date_gmt":"2019-02-20T17:51:58","guid":{"rendered":"https:\/\/www.investmentimmigration.com\/?p=55511"},"modified":"2019-02-20T12:52:53","modified_gmt":"2019-02-20T17:52:53","slug":"cyprus-to-fund-affordable-housing-subsidies-with-citizenship-program-investment-hike","status":"publish","type":"post","link":"https:\/\/www.investmentimmigration.com\/cyprus-to-fund-affordable-housing-subsidies-with-citizenship-program-investment-hike\/","title":{"rendered":"Cyprus to Fund Affordable Housing Subsidies With Citizenship Program Investment Hike"},"content":{"rendered":"\n

Cyprus plans to hike the minimum investment requirement under its Citizenship by Investment<\/a> program.<\/p>\n\n\n\n

It says it will use the extra annual revenue of an estimated \u20ac35 million to subsidize rents for vulnerable households and fund an affordable housing program.  <\/p>\n\n\n\n

The Real Estate Tradeoff<\/h3>\n\n\n\n

Virtually all investment immigration programs offer real estate as an eligible asset class for investors to qualify for fast-track permanent residence or citizenship.<\/p>\n\n\n\n

Investors prefer real estate because it is low-risk compared to equity or other investments and offers greater scope for capital appreciation compared to asset classes like government or corporate bonds. <\/p>\n\n\n\n

Further, investing in real estate frees the investor from having to separately buy a home in the foreign country.<\/p>\n\n\n\n

For countries, such programs result in assured foreign investment into high-impact and high-visibility sectors like construction, real estate, and infrastructure, giving a boost to the economy as a whole. <\/p>\n\n\n\n

Yet, an unavoidable tradeoff is costlier real estate, with prices often rising far beyond affordability for local residents.<\/p>\n\n\n\n

Cyprus\u2019 Innovative Solution\u00a0<\/h3>\n\n\n\n

Cyprus plans a \u20ac50,000 increase to the existing \u20ac2 million investment requirement under its economic citizenship program. <\/p>\n\n\n\n

With an annual cap of 700 visas, Cyprus plans to generate \u20ac35 million and divert it into rent subsidies for poorer sections of its population.<\/p>\n\n\n\n

The government plans to increase rent subsidy for eligible vulnerable households by 10 per cent without disrupting its fiscal balance sheet.<\/p>\n\n\n\n

The economic citizenship program is considered the primary factor contributing to the 50 per cent surge in property rentals in the country. <\/p>\n\n\n\n

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Current Cyprus Investment Requirements<\/strong><\/p>\n\n\n\n
\nPurchase of financial assets issued by Cypriot companies\n<\/td>\n\u20ac2 million<\/strong>\n<\/td><\/tr>
\nInvestment in real estate, land development, or infrastructure projects\n<\/td>\n\u20ac2 million<\/strong>\n<\/td><\/tr>
\nPurchase, creation, or participation in Cypriot businesses or companies\n<\/td>\n\u20ac2 million<\/strong>\n<\/td><\/tr>
\nCombination of the three investment options (may include purchase of special government bonds worth \u20ac500,000)\n<\/td>\n\u20ac2 million<\/strong>\n<\/td><\/tr><\/tbody><\/table>\n\n\n\n
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While the second-passport program does not permit investors to qualify by leasing property, the Cypriot permanent residence by investment program does allow investors to rent a home and qualify for PR.<\/p>\n\n\n\n

Rising demand for luxury properties draws resources and funds from other projects and developments including affordable housing schemes. <\/p>\n\n\n\n

All this leads to a situation where ordinary citizens find themselves unable to buy or rent properties.<\/p>\n\n\n\n

The government\u2019s attempt to link its investment immigration program to social welfare comes at a time when the EU is speaking out against all golden visa and economic citizenship programs offered by member nations. <\/p>\n\n\n\n

The OECD has placed numerous investment immigration programs, including the Cypriot one, on its blacklist. Transparency International continues to highlight money laundering risks involved in such programs. <\/p>\n\n\n\n

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Read More<\/strong><\/p>\n\n\n\n