€ 3.3 bln from passport scheme

The investment-for-passports scheme has raised EUR 3.3 bln for state coffers in the past three years, according to Interior Minister Socrates Hasikos, with a further EUR 700 mln earned from residency permits provided to owners of properties worth EUR 300,000.

“This last incentive alone has been of great benefit to the economy,” Hasikos stated, adding that of the EUR 3.3 bln earned by the state, 1.75 bln was invested in property, 464 mln local companies, 654 mln were in the form of deposits and 410 mln sold in the retail bonds programme.

The Ministry of Finance has revised the scheme whereby eligible for naturalisation are individuals who have invested at least EUR 2 mln in the economy (down from 2.5 mln before) or have contributed at least EUR 100,000 in income tax in the three years preceding an application.

During an event held in Nicosia, Hasikos and the Cyprus Investment Promotion Agency (CIPA) provided strict guidelines to stakeholders regarding the way in which they promote the government’s scheme for naturalisation of nonCypriot investors by exception, which is an incentive to attract foreign investment.

In an event held on Tuesday, CIPA in cooperation with the Ministries of Finance and Interior presented the scheme’s provisions, as well as the best practices that should be followed by representatives of companies promoting the scheme to foreign investors.

Addressing the event on behalf of the government, Hasikos looked back on the conditions that led to the scheme being adopted, concluding: “The government’s goal is definitely not to sell off citizenships. I am saddened to note that many private businesses, in their effort to advertise the scheme, are presenting it as a means of selling Cypriot passports. The aggressive promotional methods and misleading and unsophisticated advertisements bring about the opposite results. Not only do they tarnish the image of the scheme, but most of all, they create multiple problems in the government’s effort to defend the scheme to the European Union.”

On his part, CIPA Chairman Christodoulos Angastiniotis highlighted the need to adopt incentives that facilitate and boost investment and business activity. Such incentives include the schemes for naturalisation and the provision of immigration permits to foreign investors.

He stressed how i mportant these schemes are as incentives to attract investments of substance, which do not merely constitute an inflow of capital but also help to boost business and investment activity, and create new jobs.

“Within this context, it is imperative that there is effective coordination among us in terms of how these schemes are presented and promoted. If a common line of promotion is adopted by all stakeholders and professionals in the field, this will enhance our reliability and prestige as a country in all transactions and will significantly boost our potential to attract even more investments of substance”.

The naturalisation scheme was presented by Christina Kaoulla, Administrative Officer of the Ministry of Interior, who analysed the provisions and benefits of the incentive. Senior Officer at the Finance Ministry Kyriakos Kakouris presented the scheme’s financial criteria, while CIPA Director General Natasa Pilides presented the best practices for promoting it.

During her presentation, Pilides referred to damaging practices employed by isolated companies to promote the scheme for advertising reasons, often providing misleading information and promoting inappropriate ways of acquiring Cypriot citizenship, showing a lack of transparency.

CIPA’s Director General went on to analyse various suitable ways of promoting the scheme, stressing the need for advertising campaigns to be properly planned and prepared within this context, and to promote the broader competitive advantages of the Cyprus economy.

During the event, attendees had the chance to make inquiries regarding the naturalisation scheme and the appropriate ways of promoting it, with the ultimate aim of all parties being fully coordinated regarding the scheme’s operation and promotion.