Historical Cyprus Investment Programme Property Case Study

Mr. J, an Asian businessman, invested in Cyprus real estate and applied under the then-existing Cyprus Investment Programme. The facts and deadlines below describe that closed historical programme and must not be used as present eligibility or timing guidance.

Investment Options

Mr. J had identified two investment options of different values. The first option was to buy three luxury villas under construction for €2,000,000 plus VAT. The second option involved acquiring a sea-front plot in Paphos for €6,500,000 to construct eight custom-made villas for holiday and short-term rentals.

Mr. J contacted us to assist with his property acquisition in Cyprus, transferring the purchase money, and filing the necessary application under the Cyprus Investment Program for him and his family to obtain a Cypriot passport.

Urgent Deadline

The matter was urgent as Mr. J contacted us only 25 days before changes to the Cyprus Investment Program, which introduced a government grant of €150,000. To save this amount, we needed to complete due diligence on the properties, banking due diligence, and transfer the money to Cyprus before the deadline.

To provide Mr. J with flexibility and meet the minimum investment required for his citizenship application, we drafted a framework agreement with the seller. This agreement allowed Mr. J to buy the three villas while maintaining an option to purchase the seafront plot in exchange for the villas and the difference in money. Additionally, Mr. J received an option for the seller to rent the sea-front properties at a specific price, with the tenancy terminable annually by Mr. J.

We concluded the due diligence, signed and lodged the purchase agreements for the three luxury villas with the Land Registry, and completed banking due diligence, bringing the €2,000,000 plus VAT to Cyprus within 15 days. We filed the citizenship application just before the deadline, allowing Mr. J to avoid the €150,000 donation.

Conclusion and Success

Soon after, Mr. J decided to exercise his option to purchase the sea-front project with an associate under a jointly owned company. We incorporated their company, drafted a shareholders’ agreement, assisted in exercising the option, concluded the necessary cancellation and purchase agreements, and are monitoring the licensing and construction of the project.

Under the former programme, Mr. J and his spouse received Cyprus passports approximately 11 months later. This historical outcome is not available to a buyer today and is not evidence that a current property purchase or residence application leads to citizenship.