The Cypriot government will suspend its current citizenship-by-investment scheme on 1 November, after a number of reports by newswire Al Jazeera which found problems with the nation’s current programme.
The government said on 13 October that it had approved a proposal suspending the scheme following an emergency meeting.
In a statement posted on Twitter, the office of Cypriot president Nicos Anastasiades said the proposal was put forward in response to “weaknesses” that could be “exploited”.
The scheme grants citizenship and guarantees visa-free travel throughout the EU for those who invest a minimum of €2m (£1.8m, $2.4m).
Criminals
In August, International Adviser reported on an investigation by Al Jazeera, which showed that, between 2017 and 2019, the island approved over 1,400 golden visa applications for people from more than 70 countries.
Some of those who received a Cypriot passport through the country’s investment scheme were convicted fraudsters, money launderers and political figures that had been accused of corruption.
Those involved denied any wrongdoing, but the Cyprus government will now “fully examine its policy to encourage investment” after a full investigation, having already banned cash payments back in 2014.
Panic
Astons, the alternative residency and citizenship acquisition firm, said that the news has caused panic among “legitimate investors” currently applying for the scheme, as many rush to complete their investment ahead of the end of the month.
Arthur Sarkisian, managing director of Astons, said: “There’s no denying that residency and citizenship investment has brought a great deal of positivity, not just for Cyprus, but globally.
“We’ve seen first-hand the positive economic results that investment from foreign nationals can bring and the benefit this has for domestic citizens of the nations they invest within.
“Unfortunately, as is often the case in life, a select few have chosen to operate outside of the law for their own personal gain, tarnishing the reputation of the wider sector as a result.
“This has caused an immediate and understandable panic amongst those currently applying for Cypriot citizenship through investment, who now fear they may miss out through no fault of their own having abided by the letter of the law throughout the process.”
History
Since it was launched in 2007, the citizenship by investment scheme in Cyprus has generated some €7bn for the country, with the nation granting a passport for an investment of €2.5m.
Cyprus is one of the few European countries that grants citizenship via investment rather than residency, providing a quicker route to an EU passport for investors which has made it a popular choice for many.
In May 2019, Cyprus introduced stricter rules for those looking to apply for citizenship under its golden visa programme.
Anyone who was under investigation, wanted, convicted or under international sanctions was banned from the scheme.
