Cyprus is moving to permanently dismantle the legal framework of its controversial “Citizenship by Investment” program, also known as the “Golden Passport” scheme, in a bid to close infringement proceedings launched by the European Union and avoid potential sanctions.
Closing the Door on a Controversial Past
The Cypriot Interior Ministry has submitted a new bill to parliament that will effectively remove the legal provisions that once allowed the government to grant citizenship to foreign investors. Although the “Golden Passport” scheme was officially terminated in November 2020 following a major scandal, the European Commission has demanded these legislative changes to ensure the program cannot be revived in the future.
The amendment, drafted in full consultation with the European Commission, is a final step required by Brussels to formally conclude its infringement case against Cyprus. The goal is to eliminate any legal basis for a state-sponsored citizenship-for-investment scheme.
New Rules on Citizenship Deprivation
In addition to abolishing the investment scheme, the new legislation introduces updated and more transparent procedures for the revocation of Cypriot citizenship.
Key new provisions include:
- A 60-day deadline for individuals to appeal a decision to strip them of their citizenship.
- A new requirement for the Minister of the Interior to publish a notice in the Official Gazette whenever a person’s citizenship is revoked.
This public notification is designed to alert banks, government agencies, and other organizations, thereby preventing the misuse of now-invalid Cypriot passports or ID cards. Authorities state the measure will significantly enhance transparency in citizenship-related matters.
The bill has already been approved by the Cabinet and the Data Protection Commissioner and is now before the House of Representatives for final approval.
Source: Cyprus Property News