Cyprus is a premier destination for investors seeking permanent residency within the European Union. Through the Cyprus Residency by Investment program, qualified investors and their families can obtain permanent residency relatively easily and efficiently. This program offers a pathway to residing in one of Europe’s most strategically positioned nations and provides access to numerous financial and lifestyle benefits. Cyprus continues solidifying its appeal as an investment haven, offering a stable economic environment, a favourable tax regime, and an exceptional quality of life. Our legal expertise is here to guide you through the intricacies of this process, ensuring that your investment is secure and aligned with your long-term goals.
What is the Cyprus Permanent Residence Program?
The Cyprus Permanent Residency through Investment program is a government-backed initiative allowing non-EU nationals to obtain permanent residency in Cyprus by qualifying for the country. This program provides a fast-track route to residency, enabling investors and their families to live in Cyprus with minimal restrictions while offering a pathway to citizenship under certain conditions.
Why Choose Cyprus Residency?
Cyprus offers a unique blend of advantages that make it an ideal destination for investors:
Strategic Location: Situated at the crossroads of Europe, Asia, and Africa, Cyprus is a hub for international business and trade. The island’s location provides easy access to major markets in the EU, Middle East, and North Africa.
Favourable Tax Regime: Cyprus boasts one of the most attractive tax systems in Europe, with low corporate tax rates, an extensive network of double tax treaties, and exemptions on dividend income, capital gains, and inheritance tax.
High Quality of Life: With a warm Mediterranean climate, beautiful landscapes, excellent healthcare, and a high standard of living, Cyprus offers an enviable lifestyle for residents.
Stable Political and Economic Environment: Cyprus is known for its stable political system and robust economy, making it a safe and secure place to invest and live.
Access to EU Benefits: As an EU member state, Cyprus provides its residents with access to the broader European market, educational institutions, and healthcare systems.
Pathway to Cyprus Citizenship: Permanent residents can eventually apply for Cyprus citizenship, gaining access to the full benefits of being an EU citizen.
Cyprus Permanent Residency by Investment: Key Benefits
The Cyprus Residency by Investment program is designed to offer a range of benefits to investors and their families, ensuring both security and convenience through Cyprus permanent residence:
Fast-Track Residency: The program allows for the acquisition of permanent residency within only 2 months, making it one of the fastest residency programs in Europe.
Inclusion of Family Members: The main applicant can include their spouse and minor children (under 18) in the residency application. Dependent children aged 18-25 who are unmarried and in full-time education can also be included.
No Requirement for Continuous Stay: Unlike many other residency programs, Cyprus does not require continuous physical presence. However, residents must visit Cyprus at least once every two years to maintain their status.
Access to Healthcare: Permanent residents can access Cyprus’s General Healthcare System (GESY), which provides comprehensive medical services.
Educational Opportunities: Cyprus is home to several prestigious universities and international schools offering high-quality education in English.
Pathway to Citizenship: After residing in Cyprus for a total of eight years within a ten-year period, permanent residents are eligible to apply for Cypriot citizenship.
Visa-Free Travel Potential: While Cyprus is not yet part of the Schengen Area, the country has applied for membership. Once Cyprus joins, permanent residents could potentially enjoy visa-free travel across the Schengen zone.
Investment Options for Cyprus Permanent Residence Permit
In 2024, the Cyprus Permanent Residence Program requires applicants to make a minimum investment of €300,000 in one of several approved categories.
Here are the investment options:
Residential Property:
New Property Purchase: The most popular option among investors is purchasing a brand-new house or apartment with a minimum value of €300,000 plus VAT. If the total value meets the required threshold, investors can buy one or two properties, even from different developers.
Off-Plan Properties: Investments in off-plan properties are also eligible, providing flexibility in terms of the type and location of the property. The purchase contract must be deposited with the Land Registry, and proof of payment of at least €300,000 is required.
Commercial Property:
Investment in commercial properties: Investors may invest in commercial real estate such as offices, retail spaces, or hotels. This option allows for diversification and the potential for income generation through leasing.
Resale Properties: Unlike residential investments, commercial investments can include resale or previously owned properties, offering more flexibility in property selection.
Establish or Invest in a Cyprus-Based Company: Investors can either establish a new company in Cyprus or purchase shares in an existing one. The company must have a physical presence in Cyprus, employ at least five people, and operate within the Republic.
Active Business Involvement: This option is ideal for entrepreneurs and business owners who wish to manage their investments actively. While salaried employment is not permitted, investors can serve as unsalaried directors, guiding the company’s strategic direction.
Collective Investment Schemes:
Investment in AIF, AIFLNP, or RAIF: Investors can purchase units in Alternative Investment Funds (AIF), Alternative Investment Funds with Limited Number of Persons (AIFLNP), or Registered Alternative Investment Funds (RAIF). These funds are regulated by the Cyprus Securities and Exchange Commission (CySEC) and provide opportunities for diversified investments across various sectors.
Income and Financial Requirements
In addition to the investment, applicants must demonstrate a secured annual income of at least €50,000 to support themselves and their dependents:
Minimum Income Requirement:
The primary applicant must have an annual income of at least €50,000. This amount increases by €15,000 for a spouse and €10,000 for each dependent child.
Source of Income:
For Residential Property Investors: The entire income must be generated from sources outside of Cyprus, ensuring that the applicant is financially independent of local employment.
For Other Investment Options: Income can be sourced from within Cyprus, provided it is taxed locally. This offers flexibility for those with business interests in the country.
Types of Acceptable Income:
Acceptable income sources include salaries, dividends, rental income, pensions, and interest from fixed deposits. The income must be clearly documented and supported by tax returns or auditor confirmation from the applicant’s country of tax residence.
Required Documents
Applicants must provide comprehensive documents verifying their eligibility to successfully apply for permanent residency in Cyprus through investment.
General required documents:
Personal Identification:
Passports: Valid copies of passports for all applicants and their family members.
Curriculum Vitae: Updated CVs for each applicant.
Family Documents:
Marriage Certificate: The official marriage certificate, with a certified English translation and the APOSTILLE stamp, or authenticated by the Ministry of Foreign Affairs and the Cyprus Embassy.
Children’s Birth Certificates: Official birth certificates of dependent children, translated into English and certified as above.
Criminal Record:
Criminal Record Certificate: A certificate from the applicant’s country of residence, with an official English translation and the necessary certifications.
Non-Employment Declaration
Statement of Non-Employment: A formal declaration from the applicant and spouse affirming that they will not engage in paid work in Cyprus.
Proof of Income:
Tax Statements: Original tax statements or auditor confirmations from the applicant’s country of tax residence, supported by a sworn affidavit, verifying the necessary income levels. This income can include salaries, pensions, dividends, fixed deposits, and rental income. The income of the spouse, if applicable, may also be included.
Investment Funds Documentation:
Proof of Transfer: Documentation proving that the investment funds were transferred from abroad to Cyprus, such as bank transfer receipts.
Health Insurance:
Insurance Certificates: Valid health insurance coverage for the applicant, spouse, and underage children if not already covered by the General Health System (GESY).
Representative Authorization:
Authorization Document: A signed and certified authorization form if a representative is handling the application on behalf of the applicant.
Additional Documents for Dependents Aged 18-25:
University Enrollment Confirmation: Proof of enrollment in a university, along with other required documents as specified on the Ministry of Interior’s website.
Investment-Related Documentation
Depending on the investment option chosen, applicants must also provide specific documents:
Residential or Commercial Property Investment:
Sale Contract: The contract for purchasing the property, with proof of payment amounting to at least €300,000.
Payment Proof: Documentation showing that the required amount has been paid.
Investment in a Cyprus Company:
Share Purchase Agreement: Agreement detailing the purchase of shares in a Cyprus-based company.
Company Certificates: Certificates of incorporation and shareholder details.
Business Profile: Overview of the company’s operations.
Social Insurance Records: Evidence that the company employs at least five staff members.
Investment in Cyprus Investment Funds (AIF, AIFLNP, RAIF):
Proof of Units: Documentation showing proof of purchased units in the investment fund.
CySEC Confirmation: A confirmation letter from the Cyprus Securities and Exchange Commission regarding the fund.
Investment Memorandum: The fund’s memorandum or investment plan outlining its strategy.
Application Process and Timeline
The application process for obtaining permanent residence in Cyprus is designed to be efficient and straightforward:
Preparation of Documentation: Gather all necessary documentation, including proof of investment, income verification, personal identification, and legal documents such as marriage and birth certificates. These documents must be officially translated into English and, where applicable, certified with an apostille or by the Ministry of Foreign Affairs and the Cyprus Embassy.
Property Evaluation and Purchase: If choosing the real estate option, applicants must visit Cyprus to evaluate properties and make a purchase. A thorough due diligence process is essential to ensure that the property meets all legal and financial requirements.
Submission of Application: Submit the completed application and all supporting documents to the Cyprus Immigration Department. The application must also include a signed statement from the applicant and their spouse confirming that they will not engage in paid employment in Cyprus.
Application Review and Approval: The application is typically reviewed within only 2 months. Upon approval, the applicant and their family members must visit Cyprus to provide biometric data for the issuance of the residency permit.
Issuance of Residency Permit: Once biometric data is collected, the residency permit is issued, granting the applicant and their family the right to reside in Cyprus permanently.
Cost
The application fee is €500, with an additional fee of €70 for each accompanying family member.
Pathway to Cypriot Citizenship
One of the most significant advantages of obtaining Cyprus permanent residency is the potential pathway to Cypriot citizenship:
Residency Requirement: Permanent residents can apply for citizenship after residing in Cyprus for eight years within a ten-year period, including a continuous stay during the final year before applying.
Continuous Stay Calculation: The eight-year residency requirement translates to 2,555 days (7 years of 365 days each) of presence in Cyprus. Short absences totalling up to 90 days per year are permitted.
Citizenship Benefits: Cypriot citizenship grants full EU citizenship, including the right to live, work, and study in any EU member state and visa-free travel to over 170 countries.
Additional Considerations and Legal Obligations
While the Cyprus Residency by Investment program offers numerous benefits, applicants need to be aware of their legal obligations associated with holding a permanent residence permit:
No Right to Employment: Permanent residents are not permitted to engage in paid employment in Cyprus, with the exception of serving as an unsalaried director in a company they have invested in.
Dividend Rights: Investors can receive dividends from their investments in Cyprus companies, offering a source of income while complying with the no-employment requirement.
Funds Transfer from Abroad: All funds used for the investment must be transferred from abroad into Cyprus. This ensures compliance with local and international regulations regarding money laundering and financial transparency.
Legal and Tax Compliance: Investors must adhere to Cyprus’s legal and tax regulations, including filing annual tax returns if they have taxable income in Cyprus.
Conclusion
Cyprus’s Residency by Investment program offers a fast, secure, and flexible route to permanent residency in one of Europe’s most attractive destinations. With its strategic location, favourable tax regime, high quality of life, and stable political environment, Cyprus is an ideal choice for investors and their families.
As legal professionals with extensive experience in immigration and investment, we are here to guide you through every step of the process. From selecting the right investment to preparing your application and ensuring compliance with all legal requirements, we provide a comprehensive service tailored to your needs.
Contact us today to explore your options and start your journey towards securing permanent residency in Cyprus. With our expertise and support, you can fully leverage the opportunities that Cyprus has to offer.