Cyprus’ New Permanent Residency Regulations Explained

Overview

As of May 2, 2023, Cyprus enacted significant changes to its permanent residency policies, introducing revisions that have created a more rigorous framework for individuals seeking permanent residency in Cyprus and directly impacting third-party nationals.

The Regulatory Framework

Under the purview of Regulation 6(2) of the Aliens and Immigration Regulations, Cyprus has offered an attractive option for investors from non-European Union (EU) and non-European Economic Area (EEA) countries to acquire permanent residency, including the opportunity to extend this privilege to eligible dependents. Historically, the Cyprus Permanent Residence Card has been issued with a ten-year validity, extendable for an additional decade upon expiration.

Crucial Amendments

Diving into the noteworthy amendments introduced on May 2, 2023, here’s what investors need to know:

Investors pursuing permanent residency through real estate investment must now commit a minimum of EUR 300,000 upfront, excluding value-added taxes. This eliminates the previous practice of submitting applications with partial payments.

Applicants residing outside their country of citizenship are now obliged to furnish police clearance certificates from both their country of citizenship and their current country of residence.

The scope of dependents eligible for permits has narrowed. The main permit now covers the spouse and minor children under the age of 18, and parents and parents-in-law no longer fall within the scope of eligibility. Adult children are treated differently rather than excluded outright: unmarried children aged 18 to 25 who are in full-time tertiary education abroad and financially dependent on the applicant may obtain their own separate permit, while an adult child who is not financially dependent can be included only where the applicant makes a multiplied investment of EUR 300,000 for each such child.

Applicants must further demonstrate an annual income of at least EUR 50,000 derived from sources outside Cyprus. Those sponsoring dependents must meet additional financial criteria, with EUR 15,000 allocated for a spouse and EUR 10,000 for each dependent child.

Annual Obligation

Permanent residents under Regulation 6(2) have ongoing compliance obligations, but these are narrower than the original policy suggested and should not be read as a blanket annual resubmission of everything. On an annual basis, the holder must evidence that they continue to:

• Maintain their initial investment or have replaced it with another qualifying investment.
• Remain registered under Cyprus' national health scheme or hold valid private health insurance.

The requirement to re-prove the minimum annual income every year has since been abolished, and the clean criminal-record certificate is now required every three years rather than annually. The Migration Department may nevertheless request evidence it needs to confirm continued compliance.

Analyzing the Impact

For individuals embarking on the journey to secure permanent residency through investment, these new regulations introduce a more stringent set of eligibility prerequisites. However, for employers, it is important to note that these developments do not have a direct bearing on their day-to-day operations.

In conclusion, the Cyprus permanent residency landscape is evolving. With the right guidance and compliance, individuals can navigate these changes and continue to pursue their aspiration of establishing Cyprus as their permanent residence.

What we offer

Philippou Law Firm helps you simplify your path to Cyprus residency or citizenship. Our dedicated team understands the ins and outs of immigration law, and we're committed to making the process as smooth as possible for you. With our expertise and guidance, you can confidently pursue your goal of becoming a resident or citizen of Cyprus.

Read our full guide to the Cyprus Immigration Permit. However, if you’re still unsure of the legalities pertaining to the new regulations please feel free to contact us and let an immigration lawyer help you make your future in Cyprus a reality, ensuring you meet all the necessary requirements without unnecessary complication.