The European Commission has formally terminated the infringement procedure it opened in 2020 against Cyprus over the now-abolished Cyprus Investment Programme (CIP), the island’s controversial ‘golden passport’ scheme. In a notice delivered to Nicosia on 11 March 2026, Brussels confirmed that the legal breaches identified—principally the granting of EU citizenship without a genuine link to the country—have been fully remedied. Cyprus scrapped the CIP in November 2020 after an Al Jazeera sting exposed systemic due-diligence failures. Since then, 222 passports have been revoked and enabling legislation amended to prevent the sale of citizenship in future. Ending the case removes the threat of referral to the Court of Justice of the EU and potential fines. It also burnishes Cyprus’ credibility as it seeks full Schengen membership in 2026. Lawyers say the decision should unblock EU structural funds that had been informally frozen and reassure multinational companies relocating staff that Cyprus is aligned with EU anti-money-laundering standards. Practically, foreign investors eyeing residency rather than citizenship must now rely on the Permanent Residence (Regulation 6(2)) route or the recently-extended Startup Visa, both of which impose stricter source-of-funds and physical-presence tests. Immigration advisers expect processing times to shorten as legal uncertainty lifts, but warn that enhanced vetting introduced in 2025 remains firmly in place. For global mobility managers, the key takeaway is that Cyprus remains open to talent and capital—but on EU-compliant terms. Companies should update relocation policies to reference the new framework and communicate that ‘fast-track passports’ are no longer available. The case also serves as a reminder that citizenship-by-investment programmes across Europe face growing scrutiny; Malta’s scheme remains under investigation and several Caribbean programmes have tightened rules to avoid EU sanctions.
Source: In-Cyprus
