The European Commission officially notified the Republic of Cyprus of the termination of the infringement procedure related to the program granting citizenship to foreign investors. The decision was made after the island’s authorities fully closed the program and introduced amendments to national legislation.
This refers to the so-called Cyprus Investment Program, which allowed foreign investors to obtain the country’s citizenship in exchange for large investments in the economy. At one time the program attracted billions of euros into the real estate and infrastructure sectors, but it also drew serious criticism from European institutions.
Why Brussels launched the investigation
European authorities considered that granting citizenship for investment contradicts EU legislation and may create risks for security and transparency of financial flows. In this regard, the European Commission initiated an infringement procedure against Cyprus.
In 2020, the government of the country decided to immediately close the “golden passport” program. After that, the authorities began implementing a series of measures to bring legislation into compliance with European norms. The state’s legal bodies state that from the very beginning they actively participated in resolving the issue and cooperated with European institutions.
Investigations and revocation of citizenship
As part of the review initiated on the recommendation of the European Commission, a so-called “quasi-judicial” review of all decisions related to the granting of citizenship was carried out. By order of the Attorney General of Cyprus in September 2020, a special investigative committee was established under the leadership of judge Myron Nicolatos.
The work of this committee, as well as the conclusions of another review group — the Kalogirou committee — made it possible to identify a number of violations in the passport issuance process. Based on these investigations, the government decided to revoke the citizenship of certain individuals who had obtained Cypriot passports under the program.
Negotiations with the EU and changes in the law
To resolve the situation, representatives of the Cypriot authorities held several meetings with European officials. In 2021 and 2023, the Attorney General and his deputy met with the then European Commissioner for Justice Didier Reynders to discuss the steps taken by Cyprus to correct the situation.
An additional meeting took place in June 2025 in Brussels with the new Commissioner for Justice Michael McGrath. At it, the Cypriot side presented updated measures and legislative changes.
At the request of the European Commission, Cyprus also introduced amendments to national legislation. The draft law was prepared with the participation of the state legal service and the Ministry of the Interior of Cyprus in cooperation with European experts. After approval by the government, the document was promptly adopted by the House of Representatives of Cyprus.
What this decision means for Cyprus
The country’s legal service emphasized that the decision of the European Commission to close the infringement procedure is an important and positive step for Cyprus. This means that Brussels recognized the measures taken as sufficient to eliminate the problems related to the investment citizenship program.
Experts note that the story of the “golden passports” became one of the most high-profile political and economic scandals on the island in recent years. At the same time, the closure of the case opens a new stage for Cyprus, which is now focusing on more transparent investment mechanisms and strengthened control over migration and financial processes.