The Cypriot parliament has enacted legislation to permanently dismantle its contentious citizenship-by-investment scheme, drawing a definitive legal line under a program that long drew scrutiny from European institutions and ignited domestic political strife. The new law not only abolishes the Cyprus Investment Program (CIP) but also establishes a formal mechanism to scrutinize past naturalizations, potentially revoking citizenship from individuals deemed ineligible.
The program, which offered Cypriot—and thereby European Union—passports to affluent investors and their families, had been a source of protracted friction with Brussels. The European Commission initiated infringement proceedings against Cyprus in 2020, arguing that the scheme undermined the integrity of EU citizenship. Domestically, the initiative became synonymous with scandal, following allegations of lax due diligence and political exploitation, severely tarnishing the nation’s international standing.
The recently passed statute provides a two-pronged resolution. Firstly, it formally strips the government of any authority to reactivate the investor pathway to citizenship. Secondly, it creates an independent committee tasked with re-examining previous grants. Individuals facing revocation will be notified and granted a 60-day window to appeal, with final decisions published in the Official Gazette. According to figures cited in parliamentary debate, the scheme naturalized approximately 7,329 individuals, of whom 3,522 were primary investors.
Political reactions during the legislative debate underscored the profound divisions the program fostered. AKEL MP Aristos Damianou contended, “The program may have boosted the economy a bit, but the damage to democracy was irreparable.” Independent MP Alexandra Attalidou echoed this sentiment, stating the initiative was “shaky from the start” and structurally vulnerable to political manipulation. Conversely, some lawmakers from the DISY party emphasized the program's erstwhile economic contributions, highlighting the complex legacy of a policy that fueled construction and banking sectors even as it invited corruption risks.
In a separate but concurrent move, the legislation modernizes protocols for granting honorary citizenship. This provision creates a dedicated avenue to honor children of Greek nationals who lost their lives during the 1974 conflict, as well as artists and cultural figures who have made exceptional contributions to the island. Recommendations for such honors will be channeled through the Deputy Ministry of Culture, instituting a more transparent and merit-based process distinct from the commercialized investment scheme.
The law’s passage signifies Cyprus’s concerted effort to close a contentious chapter and settle its legal disputes with the European Commission. However, the political reckoning is far from complete. Debates persist regarding full accountability for alleged past abuses and a thorough assessment of the program’s net effect, weighing transient economic gains against profound reputational harm. Furthermore, the review of thousands of prior naturalizations promises to be a complex and potentially litigious undertaking, ensuring that the echoes of the golden passport era will resonate for years to come.