In a decisive move to close the final loophole of Cyprus’ disgraced Citizenship-by-Investment (CBI) programme, the House of Representatives voted late on 4 December to repeal the legal provision that had allowed the Council of Ministers to confer Cypriot nationality on foreign investors and their families. The amendment permanently removes Cabinet discretion to award citizenship – whether for investment, honorary reasons or ‘special contribution’ – and places the naturalisation process fully under the Aliens & Immigration Law and ordinary residence rules.
Background: Between 2007 and its abrupt cancellation in November 2020, the CBI scheme granted 7,329 passports (3,522 to investors and 3,807 to dependants), injecting an estimated €8 billion into real-estate and construction. However, an Al Jazeera undercover investigation revealed extensive due-diligence failures and political interference, prompting EU infringement proceedings and a series of probes by the Auditor-General and an independent inquiry. Although the programme was halted, Cabinet continued to possess the constitutional power to grant citizenship in “exceptional” cases – a power Brussels considered incompatible with EU law on investor citizenship.
![Cyprus Parliament strips Cabinet of power to grant ‘golden passports’]()
Key provisions: • Cabinet authority to naturalise investors, spouses or children is revoked; any future economic-citizenship initiative would require a fresh primary-law act passed by parliament. • Honorary citizenship (e.g., for cultural or sporting merit) will now require a specific statute or individual parliamentary decision. • The repeal strengthens ongoing efforts to end EU infringement proceedings and restore Cyprus’ passport visa-waiver standing with third countries.
Business impact: Multinational companies that previously used CBI passports to facilitate Schengen-area mobility for executives can no longer rely on fast-track nationality. They must revert to standard residence or work-permit routes such as the “Cyprus Digital Nomad Visa” or the High-Skilled Employment Permit. Real-estate developers, already facing a slowdown since 2021, will need to pivot toward long-term rental and commercial projects rather than quick-sale luxury apartments. Compliance teams should update relocation guidance and residency-planning tools to reflect the end of discretionary naturalisation.
Looking ahead: The government is expected to table a new, points-based Investor Residence Permit (IRP) in early 2026 that emphasises job creation and technology transfer rather than pure capital inflows. Firms with assignee populations in Cyprus should monitor consultation drafts and engage with the Migration Department’s upcoming public hearings to ensure corporate-mobility needs are reflected.
Background: Between 2007 and its abrupt cancellation in November 2020, the CBI scheme granted 7,329 passports (3,522 to investors and 3,807 to dependants), injecting an estimated €8 billion into real-estate and construction. However, an Al Jazeera undercover investigation revealed extensive due-diligence failures and political interference, prompting EU infringement proceedings and a series of probes by the Auditor-General and an independent inquiry. Although the programme was halted, Cabinet continued to possess the constitutional power to grant citizenship in “exceptional” cases – a power Brussels considered incompatible with EU law on investor citizenship.
Key provisions: • Cabinet authority to naturalise investors, spouses or children is revoked; any future economic-citizenship initiative would require a fresh primary-law act passed by parliament. • Honorary citizenship (e.g., for cultural or sporting merit) will now require a specific statute or individual parliamentary decision. • The repeal strengthens ongoing efforts to end EU infringement proceedings and restore Cyprus’ passport visa-waiver standing with third countries.
Business impact: Multinational companies that previously used CBI passports to facilitate Schengen-area mobility for executives can no longer rely on fast-track nationality. They must revert to standard residence or work-permit routes such as the “Cyprus Digital Nomad Visa” or the High-Skilled Employment Permit. Real-estate developers, already facing a slowdown since 2021, will need to pivot toward long-term rental and commercial projects rather than quick-sale luxury apartments. Compliance teams should update relocation guidance and residency-planning tools to reflect the end of discretionary naturalisation.
Looking ahead: The government is expected to table a new, points-based Investor Residence Permit (IRP) in early 2026 that emphasises job creation and technology transfer rather than pure capital inflows. Firms with assignee populations in Cyprus should monitor consultation drafts and engage with the Migration Department’s upcoming public hearings to ensure corporate-mobility needs are reflected.
