Updated: 6 days ago
Very recently the Minister of Interior of the Republic of Cyprus, via a decision taken on March 2021, has revised the Aliens and Migration regulations and local framework relating to the Investors Immigration Permit (Permanent Residence) to attract foreign investors and corporations. In combination with the framework relating to the Residence and Employment permit of companies of Foreign Interest (please refer to https://www.flexi-news.com/residence-and-employment-permit-cyprus/ for an in-depth review) it is evident that the Republic of Cyprus is fast becoming an attractive international business hub suited for “fit and proper” investors and corporations alike.
Main Investment Criteria
One of the main revisions is the introduction of alternative investments routes and not only real estate investment as it was before.
We have summarised the investment criteria as follows:
1. Investment in a house or apartment by purchasing new property directly from a local land development company of a value of at least €300,000.00 (plus VAT). The funds must be derived from sources outside the Republic of Cyprus
2. Investments in real estate (excluding houses or apartments) by purchasing immovable property either new or 2nd hand such as offices, shops, hotels or a combination of the above with a value of at least €300,000.00. The funds can derive from sources inside or outside of the Republic of Cyprus
3. Investment of at least €300,000.00 in the equity (share capital) of local company that has its headquarters and operates in the Republic of Cyprus with real physical presence and employs at minimum 5 personnel. The funds can derive from sources inside or outside of the Republic of Cyprus
4. Investments of at least €300,000.00 in securities in Cyprus Collective Investment Funds such as AIFs, AIFLNPs & RAIFs. The funds can derive from sources inside or outside of the Republic of Cyprus
Additional Investment Criteria
1. An important change that has occurred with the recent amendments to the Cyprus Investment Program is the abolition of the previous criterion for the existence of a term deposit. The previous scheme required a term deposit of €30.000 for three years in a Cyprus bank account. This term has now been removed, shortening the time it takes to prepare an application, as in fact the bank account opening delayed the process by a few weeks.
2. Provide evidence of a secured annual income of at least €30,000.00. This requirement increases by €5,000.00 for each dependant family member (Spouse and Children). For each dependent parent of the applicant and/or spouse parent increases by €8,000.00.
The examination of an application for Permanent Residency under Regulation 6 (2) may take approximately 2 months from the date of submission.
1. The applicant must provide an original clean criminal record from their country of origin or if the applicant resides in a different jurisdiction than country of origin, then the applicant must provide a clean criminal record from country of residence.
2. The applicant must not be regarded as a danger to the public security of the Republic of Cyprus
Important General Notes
1. Children between the ages 18 and 25 can apply for residency provided they are unmarried & financially dependent on the investor (different rules apply for adult university students)
2. In case of alienation or disposal of the whole or part of the investment if not replaced immediately with an equal or higher qualified investment the mechanism for the cancellation of the residency shall be triggered
3. In case the applicant or dependents remain outside the Republic of Cyprus the mechanism for the cancellation of the residency shall be triggered
4. The permanent residency is kept by the children for life even if they exceed the age of 25 or do not continue to fulfil the above (unmarried, financially dependent, students).
5. It is important to note that with the new regime it is no longer possible to combine investment categories. While in the past, the combination between residential and commercial real estate was permitted as long as the total investment amount was € 300.000, now, the investor has to choose one of the categories and invest the minimum amount required in a single category.
This article and its publication are intended to provide a brief introduction and act as a general guide of the subject of Cyprus Permanent Residency. This is provided for information purposes only and cannot be utilized as a substitute for professional advice. This document does not represent a legal opinion and each natural person seeking to apply for a Cyprus Permanent Residency should seek independent advice based on the particulars of its case. No responsibility is accepted by the author or the publishers for any loss suffered from acting or refraining from acting based on the contents of this publication.
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