Frequently asked questions about Cyprus citizenship by AIF
1. Will the principal applicant be required to attend an interview in Cyprus?
There are no interviews under this program.
2. Are PEPs (Politically exposed person) allowed to apply for this program?
Usually Government workers are not allowed to apply until they have stopped working for the Government for 12 months. However, their spouses and children can still apply.
3. Do I have to fly to Cyprus to apply for Cyprus citizenship?
Yes, you will need to travel to Cyprus twice, once to give your biometrics and once to pick up your passport when it is issued. However this is several months into the process, you don’t have to leave your country until then.
4. How many days per year do I have to be physically present in Cyprus to maintain permanent residency status?
As a citizen, there is no residency requirement
5. Who may be included in the application?
The principal applicant, spouse, and all children under age 18 are included in the application.
- The spouse must be legally married to the principal applicant.
- Children above age 18 may be considered as dependents if they are financially dependent on the principal applicant, and are either students under age 28, or severely disabled and unable to financially support themselves.
- Parents of the principal applicant may be included as dependents if they buy a permanent, privately owned residence in Cyprus worth at least €500,000 (plus VAT).
6. When will my spouse and children get their citizenship?
The Government usually takes approximately 6 to 8 months to examine and approve an application. The principal applicant’s and spouse’s citizenship and passports are issued at that time (in 6 to 8 months), while the minor children’s citizenship and passports will be issued 1 to 3 months later and it is another 6 to 8 months for adult dependents’.
7. What is covered in the payment of €875,000?
The payment of €875,000 includes:
- Personal residence (minimum) €500,000
- FINANCED AIF UNITS €150,000 includes all Government, due diligence, legal fees and VAT on the personal property purchase of €95,000
- Donation to the Research Promotion Foundation €100,000
- Donation to the Cyprus Land Development Corp. €100,000
- Application and Service Fee €25,000
8. Are there any extra costs?
Odin Land charges a small fee and will prepare everything for the client.
Extra costs include travel expenses and additional charges applied for the applicant’s parents if applicable (€500,000 property purchase + VAT, plus €40,000 legal fee).
9. Who pays for the furniture?
The furniture is included in the total payment of 875.000 euros.
10. Can I buy any property in Cyprus?
In this program, you cannot .Because the lender needs to rent the property and they greatly believe in this development which has good quality construction and well-located in a high rental demand area. However, you can choose your villa on this development.
11. Where is the property?
The property is in Souni White Hills complex, a 9 minute drive from Limassol city.
12. For how many years must the investments be maintained?
The investment in AIF must be held for a 5 year term.
The property is purchased on a long-term, permanent basis. The lender will rent out the property on the applicant’s behalf for 10 years, and rental income will be used to finance the AIF investment.
13. Why do I have to give my house to the lender?
Normally to qualify for Cyprus citizenship application you have to invest approx. 2.5000.000 euros in total. With the AIF financing program, you only have to pay 875.000 euro, and in return your house is assigned to the lender who will rent it out and that will pay for the loan.
14. When and how will I get my property back?
After approx. 10 years (or until the lender receives €260,000 of net income, whichever comes first) you will get back your house in excellent condition contractually.
20% of the gross rental income from the villa will be used towards maintenance, taxes, renovations and management fees. Over the 10 years period the villa will receive approx. €30,000 in renovation and maintenance.
15. After 10 years can I sell my house?
Yes, you can sell your house after 10 years as long as you immediately purchase a replacement property of equal or greater value than 500.000 euros in Cyprus. You must always maintain a property of at least €500.000.
16. What happens if the lender cannot rent out my house?
There is no liability contractually for the investor. Technically for 10 years the lender will rent out the house and use the rental income to partly repay the loan. If he can’t rent out your house, it is at his own loss, you get your property back after 10 years.
17. What about if the lender does not repay the loan?
Again, you are not liable for the loan contractually. Any loan is of the lender’s sole liability, at no additional cost and no recourse to the applicant.
18. Is this program legal?
Yes, it is approved by one of the top law firms in Cyprus who have already done several cases.
19. Who conducts the due diligence?
The due diligence involves not only authorized government organizations, but also international companies specialized in providing these services. Initially an international bank (located in the European Union) and a lawyer will conduct due diligence checks on applicants and give pre-approval. After that the application will be sent to a third party which is a neutral entity for further checks.
