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How can I purchase Cyprus government bonds compliant with the investment requirements of my Cypriot Citizenship-by-Investment application?

I would like to consider putting the majority of my money in bonds to avoid the risk of economy fluctuations and ensure the money is kept safe. How do I best go about this process?

Answers

• Yiannis Fanides

  Cyprus Law Firm

  Answered on February 8, 2018

  An investor can purchase government bonds given that we first open an account in the stock market and check the availability of such bonds. The maximum investment amount on government bonds which will be taken into consideration for the acquisition of a Cyprus Passport by Investment can be up to 500,000 euros. The total investment amount under the Government Bonds category has to be 2,500,000 euros plus VAT (if any). At least 500,000 euros plus VAT (if any) must be invested on a residential property and the balance of 2,000,000 euros can be 500,000 euros on government bonds and 1,500,000 euros on commercial and/or residential properties and/or companies shares.

• Demetris Demetriades

  Cyprus Law Firm

  Answered on February 8, 2018

  One of the criteria of eligibility for Cyprus Citizenship provides for a combination of investments, provided that the total investment will amount up to at least 2 million euros. Within this criterion (combination of investments) the applicant may purchase special government bonds of the Republic of Cyprus, up to 500,000 euros, on the condition that the investor will retain these bonds for a three-year period. The annual coupon paid for the latest series of issuance is 0.75% and applications can be submitted only by natural persons at the Cyprus Stock Exchange.

• Savvas Poyiadjis

  Cyprus Certified Public Accountant

  Answered on February 7, 2018

  The applicability of investment in Cyprus government bonds only applies if one applicant makes his/her 2 million euros investment under a combination of eligible investment criteria (i.e. real estate, investments in Cyprus businesses or investment funds etc.). Even so, the cap for government bonds is fixed at 500,000 euros. The type of bonds allowable is a monthly type of special issue bonds, issued directly by the Cyprus Ministry of Finance for natural persons. They are not traded and not subject to custody.

• Marianna Pavlides

  Cyprus Law Firm

  Answered on February 7, 2018

  Please note that acquisition of Cyprus government bonds will be considered as an eligible investment for the Cyprus Citizenship by Investment scheme up to the amount of 500k and as part of the combined investment option.