The Republic of Cyprus has updated its Naturalization by Exception Programme, with the revised rules applying from May 15, 2019. The changes were intend to strengthen the programme while directing a greater portion of investment toward innovation, housing and the wider Cypriot economy.

The principal investment requirement has remained €2 million, but applicants are also required to make a total contribution of €150,000: €75,000 to the Research and Innovation Foundation and €75,000 to the Cyprus Land Development Corporation. The qualifying investment is generally required to be maintained for five years.

The programme continue to permit investment through several routes, including real estate, Cypriot companies and businesses, and Cyprus-based alternative investment funds. This provided investors with alternatives to a purely residential property strategy and, importantly, created the possibility of directing capital into productive economic activity.

Applicants are also required to provide a valid Schengen visa as part of the application documentation, together with enhanced due-diligence materials and other supporting documentation.

For investors, the changes represents a significant increase in the level of commitment required to obtain Cypriot citizenship. At the same time, the programme continues to offer an important combination of European citizenship, investment opportunity and international mobility.

The Cyprus programme should therefore be viewed not simply as a property-investment scheme, but as a mechanism through which substantial foreign capital could be introduced into the Cypriot economy.

For prospective applicants, the revised requirements make early planning increasingly important, particularly given the additional financial commitments and enhanced documentation.

Today, the Cypriot passport provides access without a prior visa to approximately 173 destinations, according to the 2019 Henley Passport Index.