Permanent residence Regulation 6(2)
Criteria for granting an Immigration Permit within the scope of the expedited procedure to applicants who are third country nationals and invest in Cyprus
March 24, 2021
- Legal Framework:
- In pursuance of the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of Interior, having notified the Council of Ministers, has decided to issue an Immigration Permit to third country applicants, in cases where the following conditions are satisfied.
- The applicant must fulfil one of the investment criteria of Paragraph 2.1. as well as the qualitative criteria as Paragraph 3 below. It is understood that the funds that will be used for the investment must be proven to derive from abroad.
- Investment / Financial Criteria:
2.1 The applicant should proceed with an investment of minimum €300.000 in one of the below investment categories:
- Investment in house or apartment: The Applicant must have made an investment of at least €300.000- plus VAT for the purchase of a brand new house or apartment from a Developer.
- Investment in Immovable Properties (excluding houses/apartment): The Applicant must have made an investment of at least €300.000- by purchasing a combination of other types of Immovable Properties such as offices, shops, hotels or similar tourist accommodation, which may also be resale properties.
- Investment in share capital of a Cypriot Company with activities and staff in Cyprus: The applicant must have invested at least €300.000 in the share capital of a Cyprus Company legally established and operating in the Republic of Cyprus, which has proven physical presence in Cyprus and employ at least 5 (Five) persons.
- Investment in shares of a Cypriot Undertaking for Collective Investments (such as AIF, AIFLNP, RAIF): The Applicant should have bought units of at least €300.000 from Alternative Investment Funds (AIF) or Registered Alternative Investment Funds (RAIF) or Alternative Investment Funds with limited Number of Persons (AIFLNP) established in the Republic of Cyprus, licensed/registered, and supervised by the Cyprus Securities and Exchange Commission (CySec)
It is noted that the alienation from the investemnt without an immediate replacement with another property, as it is described in par.2.3, of the same or/and higher value and in accordance with the conditions of this procedure, (i.e. sold for the first time by a development company), will result to the cancellation of the Immigration Permit pursuant to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations.
2.2. The applicant should prove that he/she has at his/her disposal a secure annual income of at least €30.000. This annual income should increase by €5.000 for every dependent person of his/her family (spouse and children) and by €8.000 for every dependent parent or parent-in-law. This income should derive from abroad, and may include salaries from employment, pensions, dividends from shares, fixed deposits, rents a.s.o. for cases where the applicant invests under criterion 2.1(A). For the calculation of the total amount of the annual income, the spouse’s income may be also taken into consideration.
For investments under criteria 2.1.(B) – 2.1.(D), the applicant’s total income or part of it may also derive from sources coming from activities within the Republic.
- Qualitative Criteria:
- The applicant and his/her spouse must submit a confirmation of a clean criminal record from their country of residence or from Cyprus, in case they are residents of the Republic, and generally they should not be considered as a threat in any way to the public order or public security in Cyprus.
- The applicant and his/her spouse shall confirm that they do not intend to undertake any sort of employment in Cyprus with the exception Directors in a company in which they have chosen to invest under this Policy.
- For investments under criteria 2.1(A). 2.1(B) and 3.1(D) is noted that the applicant and/or his/her spouse may be a shareholder(s) in a Company registered in Cyprus, and the income from the dividends of such a company in Cyprus are not deemed to be an impediment for the purpose of obtaining an Immigration Permit. In such cases, they may also hold the position of Director in such companies without payment.
- For investments under criteria 2.1.(B) – 2.1.(D), the applicant must prove their residency in Cyprus, by providing title deed of property, sale agreement or rental agreement.
- Legal Requirements
- Investment in house/apartment in other Immovable Properties (excluding houses/apartment)
The applicant should submit, together with the application, title deeds or a sale contract in his/her name and/or his/her spouse, which has been officially filed at the Department of Lands and Surveys, of a real estate, of total market value of at least €300.000 (plus V.A.T. if applicable) and official payment receipts of at least €200.000 (excluding V.A.T.), irrespective of the delivery date of the real estate.
The abovementioned amounts must be proven to have been transferred to Cyprus from abroad and they do not derive from domestic loan (swifts. Receipts of payment by foreign card, bank certificate) which should be linked to the corresponding investments. It should be stressed that the full payment of the real estate value shall be settled in an account in a financial institution in Cyprus.
It is noted that the real estate purchase may be accepted even when made in the name of a legal person, provided that the applicant and/or his/her spouse are the sole shareholders or the ultimate beneficial owners of it, and that this legal person is legally established in the Republic or other member state of the European Union or European Economic Area.
For the purpose of implementing paragraph 2, in relation to the purchase of a house/apartment it is specified that:
- The applicant may purchase up to two housing units (apartments or houses) provided that the total market value satisfies the conditions in paragraph 4.1. In the case of a couple, these restrictions apply for the couple and not for each of the persons involved.
- The said purchase must be in relation to units sold for the first time by a development company, unless the purchase of the units took place before 7/05/2013. It should be stressed that sale contracts in relation to a re-sale of dwellings that have been officially filed at the Lands and Surveys Department prior to 07/05/2013 (the date of filing the sale contracts is to be confirmed by the Department of Lands and Surveys), shall be accepted for the purpose of implementing this policy.
It is noted that the units may be purchased from different Developer.
- Investment in share capital of a Cypriot Company with activities and staff in Cyprus
The applicant must have invested at least €300.000 in the share capital of a Cyprus Company legally established and operating in the Republic of Cyprus, which has proven physical presence in Cyprus and employ at least 5 (Five) persons. The following documents must be submitted:
- Share Purchase Agreement
- Shareholder Certificate and Certificate of Incorporation from the Department of registrar of Companies and Official Receiver.
- Business Profile of the company that included business goals.
- Payment Receipt (eg bank transfer).
- Evidence for the employment of staff from Social Insurance Department.
- Investment in shares of a Cypriot Undertaking for Collective Investments (such as AIF, AIFLNP, RAIF
The Applicant should have bought units of at least €300.000- in investment shares and the following documents must be submitted:
- Titles or other confirmation for the units purchased.
- Payment receipt (eg bank transfer).
- Confirmation from CySEC for the Fund establishment.
- Memorandum of the Fund or the Investment Plan.
- Dependent Persons:
- The Immigration Permit issued to an applicant covers his/her spouse and children under the age of 18.
Two separate Immigration Permits may be granted to each spouse, if desired, provided that a separate application is submitted and the relevant fee is paid, without being required for the other spouse to satisfy the above investment criteria.
It is noted that in the event the Immigration Permit granted to the investor is canceled for any reason, then the Permit of the spouse will also be cancelled, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations
- Unmarried children aged between 18 and 25, who prove that they are students in an institution of tertiary education abroad with at least six months of remaining study period from the date of the submission of the application and, furthermore, that they are financially dependent on the applicant, may submit a separate application to obtain an Immigration Permit with the payment of the relevant fee. In such a case, the father or mother and/or both parents together must present an additional annual income of €5.000 for every such dependent child. It is noted that every such dependent child, shall submit with his/her application, all the documentation defined in the relevant list.
If children study in an institution of tertiary education in the Republic, they have to submit through the institution an application for acquisition of a temporary residence permit in the Republic as students, according to the provisions of the relevant legislation (EU Directive). After the completion of their studies in the Republic, these children regardless of their age, will be able to submit their own application to obtain an Immigration Permit, as it is described above,
with the condition that their parents present only an additional annual income of €5.000 for every such child.
The said permit is still valid even if the holders have exceeded the age of 25 years old and even if they do not remain unmarried and/or students and/or financially dependent on their parents. It is noted that their future spouses or underage children cannot be included as dependent persons on this permit. It is noted that in the event the Immigration Permit granted to the investor is canceled for any reason, then the Permit of the spouse will also be cancelled, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations
- An Immigration Permit may also be granted to the parents and parents-in-law of the applicant/holder of an Immigration Permit with the submission of a separate application and the payment of the separate relevant fee, with the condition that the applicant/holder of an Immigration Permit presents only an additional annual income of €8.000 for every such dependent parent. It is understood that their spouse and minor children will not be able to be included as dependents in this Permit.
- Investment of a Higher Value for the Inclusion of Children who are not financially dependent:
An Immigration Permit may also be granted to children of the applicant over the age of 18, who are not financially dependent on the applicant, provided a higher value investment, under the provision of Paragraph 2, as follow:
The market value of the € 300.000 investment should be multiplied by the number of adult children, who will submit an application with the same investment for the purpose of obtaining an Immigration Permit. For example, in case the applicant has an adult child he should make an investment worth € 600.000, if he has two adult children the value of the investment should amount to € 900,00-.
In case the investment concerns the real estate market, 2.1(A) and 2.1(B) together with the application a proof of payment of at least 66% of the market value must be submitted.
It is understood that, in such a case, each adult child will be able to prove that he has at his disposal an insured annual income of at least €30.000, which will increase by €5.000 for each dependent, as provided in Paragraph 2.2. In addition, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.
- Procedure for the Submission and Examination of an Application:
Applications accompanied with the required documents must be submitted directly to the Civil Registry and Migration Department (CRMD), personally or through an authorized representative (relevant telephone numbers are 22308676 και 22308633). A fee of €500 is payable with the submission of the application.
Applications that are submitted through authorized representatives must be accompanied by an authorization letter from the applicant stating the particulars, full address and contact number of the representative.
The application shall be processed by the CRMD and be submitted to the Minister of Interior, through the Permanent Secretary of the Ministry of Interior.
- Time schedule for issuing an Immigration Permit:
It should be stressed that, provided the criteria of this policy are satisfied and there are no reasons with regard to either the criminal record of the applicant or to public order and public security issues, the application shall be examined by the Minister of Interior in a positive manner and an Immigration Permit shall be issued.
It is estimated that the procedure described in this policy statement for the examination of the application shall not exceed two (2) months from the date of the submission of a complete application.
- Further Information
The holder of an Immigration Permit is obliged to acquire residence in Cyprus within one (1) year from the date of the issuance of Immigration Permit Certificate. At the same time, the holder of such a permit, as well as his/her dependent persons who are included in his/her permit are obliged not to be absent from the Republic for more than two (2) years. Otherwise, the Immigration Permit is automatically cancelled pursuant to the provisions of Regulation 6(3), or/and may be cancelled pursuant to the provisions of Regulation 6(4).
This policy enters into force on 24/03/2021.