Permanent Residency in Cyprus in 2024
In May 2023, the Cyprus Department of Civil Registry and Migration amended the legislation governing the issuance of immigration permits for third country investors (Accelerated Permanent Residence Permit Procedure 6.2) for permanent residence permit applications in Cyprus.
The new rules came into effect on May 2, 2023.
It is important to note that sale and purchase agreements submitted to the Land Department between January 1 and April 28, 2023 will be considered based on the preceding criteria.L
Legal framework
Immigration permits will be granted to third-country investors where the investment meets the requirements of current legislation. In order to do so, the applicant must meet one of the investment criteria as well as a number of qualitative criteria, which we will break down below.
The funds used for the investment must be transferred to Cyprus from abroad from the applicant's bank account. Funds may also be transferred from the bank account of a spouse, provided that the latter is included in the application as a dependent.
The amount of the investment must be transferred from the applicant's bank account directly to the seller's account with one of the financial institutions in Cyprus. The funds to be used for the investment can also be transferred to Cyprus from the bank account of a company in which the applicant and spouse are the sole shareholders, provided that the shareholders are included in the application. The same applies to the amount of the investment to be paid into the seller's account with a Cypriot financial institution.
Investment categories
The applicant must invest a minimum of €300,000 in one of the following categories:
Residential house or apartment. The purchase of a residential house or apartment must be made directly from the developer and the value of the property must be at least 300 000 euros (plus VAT).
Other real estate. Purchase of other types of real estate such as offices, stores, hotels, or a combination of such properties with a total value of 300 000 euros. Purchases of this type of real estate may be the result of resale, i.e. secondary properties.
Shares in a Cypriot company with business activities and personnel in Cyprus. An investment of 300 000 euros or more in the share capital of a new company registered in the Republic or an increase of 300 000 euros or more in the share capital of an existing company registered in Cyprus, based and operating in the Republic with a proven physical presence in Cyprus and at least five employees.
Shares in alternative investment funds of the Republic of Cyprus. Investments of 300 000 euros or more in the shares of alternative investment funds of the Republic of Cyprus, the resources of which must be located in Cyprus. Types of investment funds falling under the criterion include AIF (Alternative Investment Fund), AIFLNP (Restricted Alternative Investment Fund), RAIF (Registered Alternative Investment Fund).
If an immigration permit holder is alienated from a transaction in which his or her funds were invested, there must be an immediate substitution of the transaction for another with the same minimum investment. Failure to make such a substitution will result in the revocation of the immigration permit.
In addition to investing in one of the investment options described above, the investor must prove a personal stable income of at least 50 thousand euros per year. To this income is added 15 thousand euros per spouse, and 10 thousand euros for each of the dependent minor children. Previously, the applicant's annual income criterion was 30 thousands euros plus 5 000 euros per spouse and 5 000 euros for each minor child. The funds must come from abroad and may include income from salaries, pensions, dividends, interest on bank deposits, rental income and other income.
In the case of investments in a residential house or apartment, all income must be supported by a tax return from the applicant's country of tax residence or official certificates from an independent certified public accountant. The income of a spouse may be included in the calculation of total income. If the investment was made in a category other than that of a residential house or apartment, the income, in whole or in part, may come from sources within the Republic.
Qualitative criteria
The applicant (and spouse) must provide a certificate of no criminal record from the country of origin and the country of residence (in case they are two different countries), and must not pose a threat to public order or public security in Cyprus.
The applicant and dependent family members must provide a health insurance contract that covers inpatient and outpatient care.
The applicant (and spouse) must confirm that they do not intend to be employed in Cyprus. The exception would be employment as directors in the company in which the investment was made.
In cases where the investment does not concern the share capital of a company, the applicant (and spouse) may be shareholders in companies registered in Cyprus. Dividend income will not be an obstacle to obtaining immigration authorization.
In cases of investments in categories other than the purchase of a residential house or apartment, the applicant must provide proof of residence in Cyprus. This may be evidenced by a certificate of ownership, a contract of sale (with proof of payment) or a rental agreement.
If the investment was made in a residential house or apartment, but the number of bedrooms in the investment property is insufficient for the dependent family members, the applicant must indicate another residential property that will serve as a place of residence for these persons. This must be supported by the documents listed above.
Legal Details
Investment in a residential house/apartment or other real property
The applicant must provide a certificate of ownership or a contract of sale in his/her name. The document must be officially registered with the Cyprus Land Department. The total market value must be at least 300 000 euros (plus VAT, if applicable) and the official receipts of payment must be for at least 300 thousand euros (excluding VAT), regardless of the expected date of delivery of the property.
Note that proof must be provided that the investment funds came from abroad and are not the result of domestic financing (transfers, card payment receipts from abroad, bank certificate). The investment amount must be paid to the seller's account in a financial institution in Cyprus.
We emphasize that the purchase of real estate will also be accepted if it is made in the name of a legal entity. In such a case, the applicant (and spouse) must be the sole shareholders or ultimate beneficiaries and the legal entity must be legally established in the territory of the Republic or in another EU Member State or European Economic Area.
In case of investment through the purchase of a residential building or apartment, the applicant may purchase up to two residential properties with the required total market value. The purchase must be of primary residential properties from a developer. The exceptions are purchases made before May 7, 2013 and purchase contracts for secondary properties registered with the Land Department before May 7, 2013. In case of purchase of several properties, the purchase may be made from different developers.
Investment in shares of a Cyprus company with business activities and personnel in Cyprus
The total amount of investment must be at least 300 000 euros. It is necessary to ensure the physical presence of the company in Cyprus and the employment of at least five employees. The following documents must be provided:
Shareholders' Certificate and Certificate of Incorporation from the Registrar of Companies
Business profile of the company, including activities and others
Proof of payment
Employee documents issued by the Cyprus Social Insurance Office
Dependents
An immigration permit is issued to the applicant and covers the spouse and their children under the age of 18 as dependents. A separate immigration permit may be issued to each spouse if a separate application has been made and the appropriate fee paid. In this case, the spouse is not required to meet the criteria of current law. If the investor's immigration authorization is revoked for any reason, the spouse's immigration authorization will also be revoked.
Unmarried children between the ages of 18 and 25 who, at the time of application, can demonstrate that they are students at an institution of higher education abroad and are financially dependent on the applicant, are eligible to apply separately for immigration authorization with the appropriate fee. In this case, the parents or any parent must show an additional annual income of €10,000 for each dependent child.
If the children wish to study in a higher education institution in Cyprus, they will have to apply through their institution for a temporary residence permit in the Republic as students. Upon completion of their studies, they will be able to apply for an immigration permit, regardless of their age and provided that the parents show an additional annual income of €10,000 per child.
Parents, mother-in-law and mother-in-law are no longer considered dependent family members.
Increased investment capital to include adult children
Immigration authorization can also be granted to the applicant's financially independent adult children. For this purpose, the market value of an investment of €300,000 must be multiplied by the number of adult children using the same investment for the purpose of obtaining immigration authorization. For example, if the applicant has one adult child, the investment must be made for a value of €600,000. For two adult children, the value of the investment will reach 900 thousand euros and so on.
If, in this case, the investment concerns a residential house/apartment or other real estate, the proof of payment, at the time of application, must be at least 66% of the market value of the property. Moreover, each adult child must show a guaranteed annual income of at least 50 thousand euros, plus 15 thousand for the spouse and 10 thousand euros for each minor dependent child. The investment can be made jointly in the name of the applicant and the adult child, or in the name of the applicant only.
Application and review procedure
Applications and accompanying documents must be submitted in person or through an authorized representative to the Civil Registry and Migration Department, after making an appointment. A fee of €500 is payable at the time of application, as well as a fee of €70 for each person included in the application for a migration permit. Applications will be processed according to a simplified procedure. If all criteria are met and there are no comments regarding the applicant's criminal history, the application will be submitted to the Minister of Interior for consideration and decision. The expected processing time from the date of application is approximately two months.
Monitoring compliance with the criteria
From the date of immigration authorization, the applicant is required to provide the Civil Registry and the Immigration Department with proof of investment ownership on an annual basis, as well as proof of a health insurance policy if they are not a GHS beneficiary. The confirmation of the level of income required for the applicant and his/her family on an annual basis has been abolished. In addition, the applicant and adult family members must provide a certificate of no criminal record from their country of origin and country of residence on an annual basis. Failure to meet the criteria will result in the revocation of the immigration authorization of the holder and his/her family members.
Duration of the immigration authorization
The immigration authorization is indefinite for the holder and adult dependents. However, the residence permit card itself has an expiration date of 10 years from the date of issuance and must be replaced upon expiration. Immigration authorization issued to minor dependents is valid until they reach the age of 18. The immigration permit will be revoked if the holder and his dependents obtain permanent residence status abroad or in case of absence from Cyprus for two years.
