Cyprus Officially Ends Golden Passport Power: What This Means for Investors and Citizens

The Cyprus House of Representatives has passed crucial legislative changes that formally end the government’s authority to grant citizenship through the once-controversial Golden Passport scheme. This move effectively closes the chapter on the Cyprus Investment Programme (CIP), which had been under intense scrutiny and criticism for years.

Although the Golden Passport programme was officially terminated in November 2020 following a high-profile Al Jazeera investigation, the government still retained the legal authority to grant citizenship to investors and their families. The recent vote removes this cabinet power entirely.

Key Changes to Citizenship Rules

• The new legislation eliminates the cabinet’s ability to grant citizenship to investors and entrepreneurs, preventing any future revival of citizenship-by-investment schemes.
• A 60-day appeal period is now established for cases handled by the Independent Committee for the Examination of Citizenship Deprivation.
• An official publication mandate requires names of individuals stripped of citizenship to be listed in the Official Gazette.

These reforms were largely introduced to address the European Union’s infringement procedure initiated in 2020, aiming to ensure Cyprus aligns with EU standards and protects its reputation.

Updated Honorary Citizenship Guidelines

The amendments also refine honorary citizenship rules. Among the notable adjustments, citizenship can now be granted to:

• Descendants of Greek soldiers who died during the 1974 conflict.
• Individuals recognized by the Deputy Ministry of Culture for their exceptional contributions to Cyprus’ cultural life.

Political Responses & Discussions

The parliamentary debate was intense and revealed deep divisions. Aristos Damianou, chair of the Interior Committee from AKEL, criticized the changes, warning they represent Cyprus “shooting itself in the foot” under EU pressure, while highlighting the reputational damage caused by the 7,329 citizenships granted via CIP, some to non-resident investors.

Conversely, DISY MP Nikos Sykas attributed failures of the programme to “bad practices” during previous AKEL governance. Independent MP Alexandra Attalidou described the scheme as having “rotten foundations” and warned about political profiteering damaging the country’s image.

Other MPs raised concerns about the balance between economic benefits and executive powers, with some defending the scheme’s role in supporting jobs during Cyprus’ financial crisis, despite potential citizenship revocations for around 100 applicants.

Legacy of the Golden Passport Scheme

In 2021, a comprehensive report led by former Supreme Court judge Myron Nikolatos uncovered that over half of the 3,000 citizenships issued from 2007 to August 2020 were unlawful, fueling calls for transparency and stricter controls.

For those interested in exploring property options outside the CIP context, Cyprus still offers numerous opportunities across diverse categories, including Cheap Houses and Villas for Sale Cyprus and Plots of Land for Sale. These options demonstrate the ongoing vitality of the Cypriot real estate market beyond its past citizenship schemes.

Cyprus is moving forward with a clearer framework, eager to rebuild trust and enhance transparency. Investors and homebuyers looking for legitimate property investment opportunities can continue to explore the thriving market, knowing that structural reforms underpin the island’s approach to citizenship and real estate.