Five years after halting its scandal-ridden Citizenship-by-Investment programme, Cyprus has now eliminated the last legal back door for investor naturalisation. In a 4 December vote publicised on 5 December, lawmakers repealed the clause that let the Council of Ministers confer Cypriot nationality on foreign investors or for “special contribution” reasons. All naturalisations will henceforth proceed only under the Aliens & Immigration Law’s ordinary residence-based track.
Between 2007 and the programme’s suspension in 2020, Cyprus granted 7,329 passports to investors and dependants, injecting roughly €8 billion into construction and real estate but attracting EU infringement proceedings after an Al Jazeera sting exposed lax due diligence. Although new passports had ceased, Cabinet retained discretionary power for honorary or exceptional cases—an authority Brussels deemed incompatible with EU efforts to curb investor citizenship.
![Cyprus abolishes final loophole of ‘golden passport’ scheme, ending Cabinet discretion]()
The new amendment also tightens honorary naturalisations: athletes, artists or philanthropists will need either a bespoke statute or a case-by-case parliamentary vote. Existing CBI passports remain valid but are subject to ongoing audits; those found to have obtained citizenship fraudulently face revocation and EU-wide Schengen alerts.
For private-wealth advisers and relocation firms, the change closes Cyprus’ fast-track passport channel. High-net-worth clients must now pursue the standard seven-year residency route or explore alternatives such as the Digital Nomad Visa or the soon-to-launch EU Blue Card. Real-estate developers, who once relied on CBI demand, are expected to pivot toward long-term rental and co-living projects aimed at tech expatriates instead of one-off luxury sales.
Politically, the move could ease EU legal pressure ahead of Cyprus’ 2026 Council Presidency and improve the island’s standing in Schengen accession talks. But it also underscores a shift toward stricter, transparency-focused mobility policies that multinational companies will need to monitor.
Between 2007 and the programme’s suspension in 2020, Cyprus granted 7,329 passports to investors and dependants, injecting roughly €8 billion into construction and real estate but attracting EU infringement proceedings after an Al Jazeera sting exposed lax due diligence. Although new passports had ceased, Cabinet retained discretionary power for honorary or exceptional cases—an authority Brussels deemed incompatible with EU efforts to curb investor citizenship.
The new amendment also tightens honorary naturalisations: athletes, artists or philanthropists will need either a bespoke statute or a case-by-case parliamentary vote. Existing CBI passports remain valid but are subject to ongoing audits; those found to have obtained citizenship fraudulently face revocation and EU-wide Schengen alerts.
For private-wealth advisers and relocation firms, the change closes Cyprus’ fast-track passport channel. High-net-worth clients must now pursue the standard seven-year residency route or explore alternatives such as the Digital Nomad Visa or the soon-to-launch EU Blue Card. Real-estate developers, who once relied on CBI demand, are expected to pivot toward long-term rental and co-living projects aimed at tech expatriates instead of one-off luxury sales.
Politically, the move could ease EU legal pressure ahead of Cyprus’ 2026 Council Presidency and improve the island’s standing in Schengen accession talks. But it also underscores a shift toward stricter, transparency-focused mobility policies that multinational companies will need to monitor.
