Law Regulating Companies Providing Administrative Services and Related Matters N196(I)/20212 # Newsletter 08/20

The Law Regulating Companies Providing Administrative Services and Related Matters N196(I)/20212 was amended so that the preparation and management of the application for a residence permit or naturalization under the current Cyprus Investment Program falls under the definition of an administrative service for the purposes of the law. 

The amendment is included under Article 4 ‘Administrative Services’, paragraph (c) of subparagraph (1) of the Amending Law 114 (I)/2020.

Cyprus Citizenship: Parliament adopted changes to the programme # Newsletter 08/20

The Parliament of Cyprus adopted new rules for the citizenship programme for investment. The amendments are aimed at improving the screening of applicants and changing requirements in line with the interests of the country.

The Parliament discussed changes to the citizenship program for investments on Friday, July 31. As a result of the voting, 2 draft laws and the updated rules of the program were adopted. The texts of laws and regulations have not been published yet, but some changes are known.

Proposed amendments

  • The investor and his or her family members (spouse, children, parents) will be able to participate in the program simultaneously. Earlier, the investor and his spouse applied. The rest of the family members joined the application after the investor’s approval.
  • Parents of the investor’s spouse will be able to participate in the program. Previously, only the parents of the investor were allowed to join the application.
  • The amount of gratuitous contributions will increase from €150,000 to €200,000.
  • It will not be possible to participate in the program for politically exposed persons who held public office for 12 months prior to submitting an application. Previously, the term was 5 years.
  • The number of employees, whose employment is provided by the applicant when investing in business, will increase from 5 to 9 people.

The new rules of the program, which the government submitted to the parliament for consideration provided for :

  • tightening Due Diligence and screening of applicants in accordance with EU anti-money laundering legislation;
  • simplifying the procedure for cancelling the citizenship of investors who are found to have violated the rules of the program.

The variety of investment options and minimum amounts were to be left unchanged.

There was also a restriction on the issuance of passports to investors – up to 700 per year.

The new rules of the Cyprus Citizenship for Investment Programme will improve the reputation of the country’s passports. For investors, this means greater opportunities, and increased trust from business partners.

Submission to the Department of Registrar of Companies and Official Receiver of the 2020 Annual Report # Newsletter 08/20

Following the Department’s Announcement, dated 23rd March 2020, concerning the “Measures to assist companies affected by the restrictive measures imposed to limit the spread of the Coronavirus”, and in particular with regards to the measure of the submission of the 2020 Annual Report, the Department has announced that the Annual Report with date of preparation from 01st January 2020 until 31st December 2020 can be submitted to the Department until 28th January 2021, without imposing the fee of €20 for overdue submission.

Payment of Special Levy for the year 2020 # Newsletter 08/20

The Department of Registrar of Companies and Official Receiver announced that the Special Levy for the year 2020 will remain €350 until the 31st December 2020 without the imposition of additional charges.