I am a Russian entrepreneur and moved my company from Russia to Cyprus four years ago to take advantage of the low corporate tax rate. I now wish to apply for a second citizenship in Cyprus. How can I ensure that investing in my own company in Cyprus can satisfy the requirement for investing in a Cypriot business? Are there any special requirements for an applicant investing in their own company?
Answers
Based on the Cyprus Passport Investment Scheme Regulations, an investor can apply for a Cyprus Passport if he invests in Cyprus Company shares plus in a residential property (minimum value at least €500,000). The Cyprus Company Shares can be considered as an investment for CY-Passport purposes given the Cyprus Company is registered for at least 3 years and has at least 5 employees (registered in Social Insurance). Transferring an amount of money from abroad towards your own company can be used for applying for a Cyprus Passport only if you proceed with further investments in Cyprus through this company (we have to prove this amount of money has been transferred to a third party/i.e. as per the Business Plan Report that needs to be submitted along with the Passport Application).
It is absolutely fine to utilise an investment in your own company to apply for citizenship by investment. The conditions are as follows: (1) employ at least 5 Cyprus or EU nationals who have been Cyprus tax residents in the last 5 years; (2) invest €2 million in the share capital (equity) of the Cyprus company; (3) purchase a real estate unit of at least €500,000 + VAT, if applicable, (4) prepare a business plan and demonstrate substance and realistic operations within Cyprus. The Ministry would seek to see actual operations and presence in Cyprus for such investments, i.e. not purely holding structures.
It is possible to invest in your Cyprus Company and have that be considered an eligible investment for Cyprus Citizenship. The requirement will be €2 million capital, at least 5 Cypriot and/or European employees and a business plan confirming the further investment of the capital within Cyprus economy for the next 3 years. The appropriate Ministries will check on this progress periodically.
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