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How do I find an “eligible bank” for the required fixed deposit for the Cypriot Citizenship by Investment application?

There are branches of Russian banks in Cyprus that would be easy for me to use since I am applying from Russia. Do I have to use a Cypriot bank? How can I make sure the bank is eligible?

Answers

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    Maria Diamanti

    Cyprus Law Firm
    Answered on

    Following the amendment of the Citizenship by Investment Scheme on the 13th of September 2016, bank deposits are no longer an eligible investment. A prospective citizenship applicant must proceed with an investment of at least €2 million in the either of the following eligible economic criteria: (1) an investment in real estate, land development and infrastructure projects (residential or commercial or development in the tourism sector). (2) Investment in Cypriot companies or organizations established and operating in Cyprus. These companies or organizations must have physical presence in Cyprus, with significant activity and turnover and employ at least 5 Cypriot or EU citizens. (3) Investment in Alternative Investment Funds or financial assets of Cypriot companies/organizations that are licensed by the Cyprus Securities and Exchange Commission. The investment made in such organizations must be directed exclusively in Cyprus. (4) A combination of the aforementioned criteria provided that the total investment will be least €2 million, which can also include investment in government bonds of up to €500.000. It is further noted that the prospective applicant must possess a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000 (plus VAT if applicable). Additionally, it is noted that, if the applicant has invested in housing unit/units on the basis of the first criterion, the purchase of another permanent residence in Cyprus will not be required if at least one of these housing units is worth at least €500,000 (plus VAT if applicable), provided that the applicant retains the possession of the residence for life.

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    Marianna Pavlides

    Cyprus Law Firm
    Answered on

    Unfortunately, depositing in a Cyprus banks is no longer considered to be an eligible investment for the Cyprus Citizenship by Investment group.

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    Georgina Papapolydorou

    Cyprus Law Firm
    Answered on

    Please note that fixed deposit to Cypriot Banks is not an eligible investment criterion for Cyprus Citizenship Scheme by Investment since September 2016. However, the Ministry of Finance in Cyprus outlined an extensive list of eligible banks for applicants who are interested to apply for Cyprus Citizenship scheme by Investment.

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    Yiannis Fanides

    Cyprus Law Firm
    Answered on

    Firstly, allow me to point out that the option to transfer €5.000.000 at any Cyprus Bank Institution to make a 3-year fix deposit in order to apply for a Cyprus Passport is no longer available based on the Cyprus Passport Investment Regulations. Nevertheless, in Cyprus, you can choose any Bank of your choice; since you are applying from Russia, you can even use the RCB bank or any bank that maintains a branch herein Cyprus and is under the Central Bank of Cyprus.

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    Savvas Poyiadjis

    Cyprus Certified Public Accountant
    Answered on

    Based on the latest criteria, the bank deposit route to citizenship has been eliminated. The options now are investing in real estate, investing in Alternative Investment Funds regulated in Cyprus and investing within Cyprus and, finally, investing in Cyprus companies or businesses.

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