Cyprus Residency Program –amendments allow third-country nationals to invest in different sectors
The Civil Registry and Migration Department of the Cyprus Ministry of Interior has announced the amendments of the Cyprus Permanent Residency Program, effective from the 24th of March 2021, as the Republic’s main purpose is to encourage and promote foreign investments in areas other than real estate.
Based on the Regulation 6(2) of the Aliens and Immigration Regulations (the “fast-track” procedure), the Immigration Permit allows non-EU nationals to permanently reside in Cyprus. The criteria described below should be duly followed by any interested party.
NEW INVESTMENT CRITERIA
The applicant is obliged to invest at least €300,000 in one of the following investment categories:
A. Investment in a house/apartment: Purchase of a house or apartment by a land development company, which should relate to a first sale of at least €300,000 (plus VAT).
B. Investment in real estate (excluding houses/apartments): Purchase of other types of real estate, such as offices, shops, hotels or similar developments, or a combination thereof with a total value of €300,000. Resales are acceptable.
C. Investment in the share capital of a Cyprus Company with activities and staff in Cyprus: An investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.
D. Investment in units of a Cyprus Collective Investment Organization (type AIF, AIFLNP, RAIF): An investment worth €300,000 in units of a Cyprus Collective Investment Organisation.
If the permit holder decides to withdraw his/her investment an immediate replacement with another investment that would qualify under the aforementioned criteria and of the same or greater value should be applied.
APPLICANT'S ANNUAL INCOME
Additionally, the applicant should be able to prove that he/she holds an insured annual income of at least €30,000. The annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent of the Applicant or his/her spouse.
In the event that the Applicant makes an investment under criteria A (see above), it is important that the Applicant can prove that his income derives from abroad. The said income may come from salaries or wages, pensions, dividends, fixed deposits, or rents (etc). Upon calculating applicant’s total income, the income of the applicant’s spouse can also be taken into consideration.
In cases where the applicant qualifies under one of the other options, his total income or part of it may also be derived from sources coming from activities within the Republic.
The Applicant and his/her spouse should submit a clean criminal record from their country of residence or from the Republic in case they reside in Cyprus and generally must not pose in any way a threat to public order or public security.
The Applicant and his/her spouse must certify that they do not intend to work in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest under this program.
In cases where the applicant’s investment is not in a Cyprus legal entity, the applicant and/or his spouse may be shareholders in Legal Entities incorporated in Cyprus and the dividend income in such legal entities may not be considered as an obstacle for the purposes of obtaining the Immigration Permit. They may also hold the position of Director without remuneration in such companies.
ADULTS AND MINOR DEPENDANTS
The Immigration Permit is issued to the Applicant. This includes the Applicant’s dependants who are the spouse and their minor children up to the age of 18 years.
However, the main Applicant can make an investment of a higher value in order for his adult children to obtain an Immigration Permit (Permanent Residence) even though they are not financially dependent on the main Applicant.
The market value of the investment of €300,000 needs to be multiplied according to the number of adult children, which will rely on such investment for the purpose of obtaining an Immigration Permit.
Where the investment relates to Real Estate (see criteria A or B above), a receipt of payment of at least 66% of the market value of the properties should be submitted together with the application. Furthermore, each adult child must be able to prove a secure annual income of at least €30,000, which will be increased by €5,000 for each dependent person.
The above said investment can be made jointly in the name of the Applicant and the adult child or exclusively in the name of the Applicant.
EXAMINATION OF THE APPLICATION
The application will be managed by the Civil Registry and Migration Department and shall be forwarded for examination and decision to the Minister of Interior, provided that all the criteria and requirements are met. It is estimated that the examination period of the application from the date of submission of a completed application will be approximately two (2) months.
Residency Permit holders must visit Cyprus at least once every two (2) years in order to maintain their permit.
With experience in Investment Programs in various EU countries and permits including employment and visas, we are dedicated to planning your immigration applications in the most efficient way. We undertake the whole procedure until your immigration application is finished, to make sure everything is processed efficiently. Please do not hesitate to contact us to find out more about making your application.