During the coronavirus pandemic, wealthy citizens of theRussian Federation became much more actively interested in the possibility ofacquiring passports of other states. As The Forbes reports with reference tothe international analytical company Knight Frank, now the "goldenpassports" have fallen in price.
On July 31, theParliament of the Republic of Cyprus will vote to toughen the law on grantingcitizenship in exchange for investment.
THE NUMBER OF REFERENCES FROM RUSSIANS INCREASED BY 20%
“We see an unprecedented boom in Russian interest inprograms that allow them to obtain a residence permit abroad,” said MarinaShalaeva, head of the department of foreign real estate and private investmentsat Knight Frank.
Knight Frank says about an increase in the number ofrequests by about 20% in March-May 2020 compared to the same period in 2019.Analysts of UFG Wealth Management recorded a comparable surge in interest.
Mainly wealthy Russians are attracted by the passports ofPortugal, the Caribbean, Cyprus and Malta. Interest in Cyprus has grown againstthe background of discounts of up to 30% on real estate, said Ms Shalaeva.
According to Knight Frank's forecast, the growth in demandfor "golden passports" will continue in the fall, when countriesbegin to open borders for foreigners, and potential clients will have theopportunity to view investment objects on the spot.
Part of the demand for a second passport by experts is explainedby the free time that appeared during the quarantine and new priorities.
“During the quarantine, many clients focused on personalassets and family matters, including migration issues,” said Nikolay Vargasov,head of the legal department of UFG.
TheCyprus program – tightening is done
On July 27, the Committee on Internal Affairs of theParliament of the Republic of Cyprus completed its study of amendments to thelaw on the granting of citizenship in exchange for investment. They weredeveloped by the Ministry of Internal Affairs after criticism of the country'sleadership due to the fact that the scheme of "golden passports" hasa high risk of money laundering.
- We have made the Cyprus investment program extremelyreliable based on very strict and strict criteria. Some have mocked our programin the past. New regulations exclude such a possibility, Interior MinisterNikos Nuris said on June 10, when the government approved a tightening of theprogram.
The head of the Parliamentary Committee on Internal Affairs,Eleni Mavru, explained that the new criteria will apply to applicants applyingfor Cypriot passports after June 19, 2020.
Green Party MP Yorgos Perdikis expressed dissatisfactionthat the committee rejected an amendment aimed at increasing transparency -they will not publish the names of persons who have been granted citizenship.
Another proposal, also rejected by the majority of MPs,would lead to the fact that foreign investors would contribute 100,000 euros tothe fund for depositors who suffered during the "haircut" of depositsin the spring of 2013.