Everything You Need to Know About the Cyprus Investment Programme
(Post-2020 Changes)
In recent years, Cyprus has positioned itself as a strategic hub for international investors, particularly through its various immigration and investment schemes. Among them, the Cyprus Investment Programme (CIP) had attracted significant attention and participation from high-net-worth individuals around the globe. However, the programme has undergone substantial reform since its suspension in 2020, following heightened scrutiny and EU concerns over transparency and security.
In this comprehensive guide, we explore everything a prospective investor needs to know about the Cyprus Investment Programme post-2020. We clarify the current options available for residency and citizenship, review the legal and financial frameworks, and explain how the landscape has evolved in response to both EU regulation and domestic reform.
Background: The Rise and Fall of the Original Cyprus Investment Programme
Launched in 2013, the Cyprus Investment Programme was designed to attract foreign capital and stimulate economic recovery following the financial crisis. By investing a minimum of €2 million in real estate, businesses, or government bonds, individuals could secure Cypriot (and by extension EU) citizenship.
While the scheme brought over €8 billion into the Cypriot economy, it was also met with criticism over its vetting procedures and perceived misuse by politically exposed persons. A 2020 Al Jazeera investigation catalysed public backlash, prompting the Cypriot government to suspend the scheme in November 2020 and launch an internal review.
Post-2020 Landscape: No More “Golden Passports”
Cyprus no longer offers a direct path to citizenship by investment. This is a key distinction post-2020. While the original CIP has been terminated, the government has pivoted towards promoting residency-based investment schemes, with greater emphasis on transparency, physical presence, and long-term economic contribution.
As of 2025, investors can pursue two main routes:
- Permanent Residency via Investment (PRP)
- Naturalisation through Long-Term Residency
Let us examine both in detail.
1. Permanent Residency via Investment (PRP)
The Cyprus Permanent Residency Programme is now the primary channel through which investors can gain residency rights in Cyprus. It does not lead to immediate citizenship but offers long-term security, travel flexibility within the EU (via visa facilitation agreements), and access to the Cypriot lifestyle and business environment.
Minimum Investment Requirements
To qualify for PRP, an individual must:
- Invest at least €300,000 (excluding VAT) in new residential real estate;
- Alternatively, invest the same amount in commercial real estate, shares of Cypriot companies, or units in a local investment fund.
Additional Criteria
- The applicant must prove an annual income of at least €50,000 (plus €15,000 for a spouse and €10,000 per child);
- Funds must originate from outside Cyprus;
- Clean criminal record is essential;
- Medical insurance covering the applicant and family members.
Benefits of PRP:
- Fast-track approval (typically within 2–4 months);
- No requirement for permanent physical presence (though short annual visits are encouraged);
- Valid for life and extends to dependants (spouse, children under 25);
- Right to live and do business in Cyprus.
2. Naturalisation through Long-Term Residency
Citizenship remains a possibility, but not through immediate investment. Instead, individuals holding permanent residency (or legally residing in Cyprus) may apply for naturalisation under the Aliens and Immigration Law, Cap.105, typically after 7 years of continuous residence.
Key Requirements:
- Legal residency in Cyprus for at least 7 years (5 years if married to a Cypriot citizen);
- Demonstration of genuine ties to the country (language, integration, tax residency);
- Clean criminal record and proof of good character;
- Knowledge of the Greek language and Cypriot culture may be required at interview stage.
This approach aligns with EU expectations around naturalisation and ensures that citizenship is granted only to those who have demonstrably integrated into Cypriot society.
Comparisons: Pre-2020 CIP vs Post-2020 Framework
| Feature | Pre-2020 CIP | Post-2020 PRP & Naturalisation |
|---|---|---|
| Immediate Citizenship | Yes | No |
| Investment Amount | €2 million+ | €300,000+ |
| Real Estate Focus | Strong | Still relevant but diversified |
| Time to Citizenship | 6 months | 7 years (naturalisation) |
| EU Scrutiny | High | Reduced |
| Transparency | Lacking | Strengthened |
| Physical Presence | Not required | Preferred/Required |
Residency Benefits for Investors
Even without citizenship, Cyprus permanent residency brings significant lifestyle and business advantages:
Economic Opportunities:
- Access to EU markets and trade benefits;
- Favourable corporate tax rate (12.5%);
- Strong banking and professional services sector;
- Hub for shipping, forex, fintech, and international commerce.
Quality of Life:
- Safe, family-friendly environment;
- Excellent healthcare and education (English-speaking schools);
- Mediterranean climate and lifestyle;
- High standard of living at lower cost compared to other EU states.
Other Incentives for Foreign Investors
Although the golden passport scheme has ended, Cyprus continues to promote foreign investment via:
Startup Visa Programme:
Allows third-country entrepreneurs to establish and operate innovative businesses in Cyprus. Key features:
- Minimum capital: €50,000;
- Work and residency permits for founders and staff;
- Supportive regulatory environment for innovation, especially in tech and fintech sectors.
Non-Domicile Tax Regime:
High-net-worth individuals who become Cyprus tax residents but retain foreign domicile status enjoy:
- No tax on dividends or interest income;
- 60-day tax residency rule (with conditions);
- Access to Cyprus’ double tax treaties with over 60 countries.
Legal and Regulatory Reforms
In the aftermath of the CIP’s termination, the Cypriot government introduced significant reforms:
- Enhanced Due Diligence: All applicants undergo stringent background checks;
- Transparency: Increased disclosure requirements and audit mechanisms;
- EU Compliance: Aligning policies with European Commission recommendations;
- Digitalisation: Simplified application procedures through digital platforms.
Risks and Considerations
Investors should remain mindful of the following:
- Residency is not automatic citizenship;
- Real estate investments should be assessed for ROI, especially in fluctuating markets like Limassol and Larnaca;
- Ongoing compliance with tax and residency laws is essential to maintain status;
- Use of licensed legal advisors and real estate agents is highly recommended.
Conclusion
While the Cyprus Investment Programme in its original form has come to an end, the island continues to offer a robust and transparent route for foreign investors seeking residency and, in time, citizenship. The post-2020 reforms represent a shift from transactional to relational immigration policy—prioritising long-term integration, transparency, and sustainable economic contribution.
Cyprus remains a highly attractive destination for individuals and families looking to combine lifestyle with strategic investment. Whether through real estate, startups, or professional relocation, the new framework ensures that only committed and compliant investors benefit—building a better, more credible future for all stakeholders.
For up-to-date legal advice or assistance with residency applications, consult a registered immigration lawyer or licensed financial advisor in Cyprus.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Always consult with a qualified professional before making investment or immigration decisions in Cyprus.