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What is the best method for purchasing government bonds for the purposes of the Cypriot Citizenship by Investment?

My wife and I prefer to invest in government bonds for the Cyprus Citizenship by Investment program. We plan on making the purchase in the next six months and want to make sure that we are in compliance with the program’s requirements. How can we best make this purchase or are there approved brokers we should select from?

Answers

• Yiannis Fanides

  Cyprus Law Firm

  Answered on March 14, 2018

  An investor can purchase government bonds for the maximum investment amount of 500,000 euros. In order to apply for a Cyprus Passport under this category, the minimum investment amount has to be 2,500,000 euros plus VAT (if any). Therefore, the other 2,000,000 euros has to be invested in shares of properties and/or companies; please note that it is mandatory to purchase a residential property of a minimum value 500,000 euros. In order to invest in government bonds, we have to check the availability of the government bonds the time you wish to proceed with such a purchase. Given that there are government bonds available, we will proceed with registering an account in your name in the stock market whereas you will transfer the amount of 500,000 euros and proceed with the purchase.

• Lazaros Omirou

  Cyprus Law Firm

  Answered on March 9, 2018

  An investor can purchase government bonds of up to 500,000 euros, issued by the Ministry of Finance and be eligible to apply for Cyprus citizenship, provided that he will invest additionally the amount of 1.500,000 euros (plus VAT) in real estate, land development and infrastructure projects and/or in financial assets of Cypriot companies or organisations and/or in Alternative Investment Funds (AIFs) or financial assets of Cypriot companies/ organisations. Under this scheme, the investor must also buy a permanent privately-owned residence in Cyprus of at least 500,000 euros ( plus VAT). So the total investment amount must be 2.500,000 euros (plus VAT). Please bear in mind that the government bonds must be retained for a 3-year period and investments in government bonds through the secondary market are not considered eligible. Applications for the purchase of the special government bonds can be submitted only by natural persons either in person or by mail to Cyprus Stock Exchange or through an authorised representative. The annual coupon paid for the fourth series (April) 2018 of issuance is 0,75%.

• Marianna Pavlides

  Cyprus Law Firm

  Answered on March 8, 2018

  Currently, as per the terms of the Cyprus Citizenship by Investment, investing on governmental bonds is considered eligible investment only if it part of a combination of investments and the maximum amount of governmental bonds should not exceed the 500.000 euros.

• Maria Kannava

  Cyprus Law Firm

  Answered on March 8, 2018

  Thank you for your email. The best method for purchasing government bonds for the purposes of the Cypriot Citizenship by Investment is through an approved broker.

• Savvas Poyiadjis

  Cyprus Certified Public Accountant

  Answered on March 8, 2018

  The applicability of investment in Cyprus government bonds only applies if one applicant makes his/her EUR2m 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 EUR500.000. The type of bonds eligible for CBI are a special issue bonds type of bonds, issued on a monthly basis directly by the Cyprus Ministry of Finance and only applicable for natural persons. They are not traded and not subject to custody hence not bought via brokers. The relevant forms and applications are available in the Ministry of Finance website and we can assist in the process locally as an account need to also be opened in the Cyprus Stock Exchange which is the administrator.