With an announcement on 28/04/2021, the CBC warns the public of the multiple risks involved in transactions with cryptocurrencies/ virtual currencies, as they are considered to be of high risk.

The CBC states that Cryptocurrencies / virtual currencies are a digital representation of value that is not issued or guaranteed by either a central bank or a public authority, are not necessarily attached to a legally established currency, and does not possess a legal status of currency or money.

The CBC by repeating previous announcements of the European Banking Authority, the European Securities and Markets Authority, and the European Insurance and Occupational Pension Authority, notes that purchasers of crypto assets are exposed to a number of risks including:

• Extreme price volatility
• Absence of legal protection due to lack of regulation
• Lack of exit options from such transactions
• Lack of price transparency
• Operational disruptions exhibited in some virtual currency exchange platforms
• Incomplete information made available to consumers wishing to buy virtual currencies.

It is also mentioned that, due to the lack of a relevant regulatory framework in the EU, consumers who buy and/or hold cryptocurrencies do not benefit from the guarantees and safeguards associated with regulated financial services.

Amendments in Permanent Residence (Regulation 6(2)) application procedure

On 24/03/2021 a new amendment of the criteria for the permanent residence under Regulation 6(2) (fast track – examined within the period of 2 months) of the immigration and migration Regulations have passed.

Investment criteria

The applicant shall invest at least €300.000 as follows:

• Investment in residential house/apartment: the applicant shall purchase from a land development company, a new house/apartment of at least €300.000 (plus VAT), or
• Investment in properties (other than residential house/apartment): the applicant shall purchase commercial property such as (office, shop, hotel or other similar property) unit or combination of units of total amount of €300.000. In this situation, resales are allowed.

Documents related to the investment:

1. Title deed or contract of sale
2. Proof of payment of at least €200.000+VAT, to the bank account of the seller in Cyprus.
3. Proof that funds are from abroad

Notes:

• The applicant is allowed to purchase the property on his/her name or on his/her spouse name or on the name of the company he/she and/or his/her spouse are the sole beneficiaries
• It is possible to purchase up to 2 properties of total amount of 300.000+VAT, from 2 developers.

• Investment in the share capital of a Cyprus Company with activities and personnel in Cyprus: the applicant shall invest at least €300.000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus, is active and has a proven physical presence in Cyprus and employs at least five (5) people.

Documents related to the investment:

1. Share purchase agreement, or
2. Incorporation certificate and shareholders certificate
3. Business profile of the company that includes business goals etc.
4. Swift of payment to Cyprus bank
5. Proof of employment of 5 persons from the Social Insurance department

• Investment in shares of Cyprus Investment Organization of Collective Investments (AIF, AIFLNP, RAIF): the applicant shall invest at least €300.000 in shares of a Cyprus Investment Organization of Collective Investments.

Documents related to the investment:

1. Securities or other confirmation for the units purchased
2. Swift of payment to Cyprus bank
3. Confirmation from the CySec for the establishment of the Fund
4. Memorandum of the Fund or the Investment Plan.

Financial criteria:

1. The applicant must, in addition to the investment, be able to prove that he/she has at his/her disposal an insured annual income of at least €30,000. The annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent (of the investor and/or spouse). This income may come from salaries, pensions, dividends on shares, deposits, rents, etc. coming from abroad, if the applicant chooses to invest in new residential properties. In calculating the total income, the income of the applicant’s spouse can also be taken into account.

• In cases where the applicant chooses to invest in resale properties, the share capital of a Cyprus Company or in shares of Cyprus Investment Organization of Collective Investments, the total income or part of it may also come from sources coming from activities within the Republic.

Note: It is understood that any alienation of the holder of the Immigration Permit from the investment he/she has made without its immediate replacement with another of the same or greater value, which must meet the relevant conditions, will entail the activation of the procedure cancellation of the said permit.

Qualified applicants

Qualified applicants shall provide:

1. Clean criminal record (applicant and any adult dependent persons, applying along with the applicant) from their country of residence.
2. The applicant and his/her spouse shall sign an official statement stating that they are not willing to work in Cyprus.
3. The applicant and his/her spouse are allowed to be shareholders in other Cypriot companies and receive dividends. They are also allowed to be directors provided that, they do not get salary, from such companies.
4. The applicant shall prove residence in Cyprus, within one year from approval of application and shall not stay abroad for more than 2 years.

Dependent persons

1. The applicant can apply for himself/herself, his/her spouse and minor children (under 18 years old).
2. Non married children 18-25 with proof that they are students abroad and financially dependent on their parents, parents shall show additional annual €5000 income, for each dependent child. The permit will be valid even after they turn 26 (not applicable to the child’s family members)
3. Parents of the applicant and spouse with proof of an additional annual income of €8000 for each (not applicable to the spouse of the parent and/or their other children).
4. The permit can also be issued for adult children who are not financially dependent, on a higher value investment which is increased by €300.000 for each one. In such event, each adult child must be able to prove that he/she has on his/her disposal an insured annual income of at least €30,000. The annual income increases by €5,000 for each dependent family member.

This article is to provide a general guide to the subject. If you want to learn more about it please contact us directly.