Cyprus Parliament voted to tighten the issuance of "golden passports"

Cyprus Parliament voted to tighten the issuance of "golden passports"

From January 31, 2020, investors will find it harder to obtain the “golden passports” of Cyprus. The law tightening the provision of such documents was supported by 29 deputies, 17 parliamentarians opposed

Ayia Napa, Cyprus (Photo: Petros Karadjias / AP)

Cyprus Parliament voted for the bill, toughening the issuance of so-called gold passports to investors, the Cyprus Times reported. So called passports and residence permits, issued in exchange for investment in the economy.

29 deputies voted for the law, against - 17. It will come into force on January 31, 2020, until that time, the Cyprus authorities must work out the rules for granting Cypriot citizenship. Voting was preceded by lengthy discussions, during which opponents of the bill indicated that it would impede investment.

According to them, there are sectors of the economy of Cyprus, which require additional investments, such as agriculture and research, but the authorities are limited only to the construction of luxury housing in the country, for example, towers in the city of Limassol. Supporters of the law indicated that it was intended to "protect the integrity of Cyprus."

In the European Union, three countries - Bulgaria, Cyprus and Malta - issue golden passports to foreigners. To obtain such a document in Malta, it is necessary to contribute € 650 thousand to the national investment fund and another € 150 thousand to the economy, and it is necessary to purchase or rent real estate. The Bulgarian “gold passport” will cost € 1 million, Cyprus’s - from € 2 million, you also need to buy real estate.

In January, the European Commission prepared a report in which it pointed out the risks of providing "gold passports" that may contribute to money laundering, corruption and tax evasion. The European Commission also pointed out the risks to the security of the European Union, because thanks to such programs, organized criminal groups can get there. The report emphasized that Cyprus, Malta and Bulgaria do not provide complete information about the identity of investors who are granted citizenship.