Overview
As of May 2, 2023, Cyprus enacted significant changes to its permanent residency policies, introducing revisions that have introduced 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 significantly. Presently, only minor children under the age of 18 and spouses of investor applicants qualify for dependent permits. Adult children, parents, and in-laws no longer fall within the scope of eligibility.
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
In addition to these changes, permanent residents under Regulation 6(2) now bear the responsibility of annual compliance. They must provide evidence to the immigration authorities on an annual basis that they continue to:
• Maintain their initial investment or have replaced it with another qualifying investment.
• Satisfy the minimum annual income requirement.
• Remain registered under Cyprus’ national health scheme or hold valid private health insurance.
• Uphold a clean criminal record in both their home country and their country of residence (if applicable).
Failure to adhere to this annual submission requirement will result in the revocation of permanent residency status, a development enacted on May 2, 2023.
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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
Polycarpos Philippou & Associates helps you simply 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.
For the full Guide on the Cyprus Immigration Permit, click here. 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.