On 27/04/2023, the Cyprus’ Council of Ministers revised the criteria for obtaining a permanent residence permit in Cyprus based on the Regulation 6(2) of the Alien and Immigration Regulations investment scheme for residents of third countries.
The revised criteria for the granting of permanent residence permit to third country nationals came into force on 2/5/2023.
The funds which shall be used for the investment must originate from abroad, from a bank account of the same applicant/investor or/and his/her spouse if he/she will be included as a dependent in his application. The amount of the investment shall be paid from the bank account of the applicant to the bank account of the seller in a financial institution in Cyprus.
- The applicant must make an investment of at least €300.000 in one of the following:
- 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 Cyprus Company’s share capital, with business activities and personnel in the Republic:Investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, based and operating in the Republic of Cyprus and having a proven physical presence in Cyprus and employing at least five (5) people.
- Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF):Investment worth €300,000 in units of Cyprus Investment Organization Collective Investments.
- Annual income confirmation of the applicant of at least €50.000. This income should derive from abroad, and may include salaries from employment, pensions, dividends from shares, fixed deposits, rents. The level of the annual income required is increased by €15.000 for the spouse and €10.000 for any dependent child (i.e. under the age of 25) of the applicant and his/her spouse. For the calculation of the total amount of the annual income, the spouse’s income may be also taken into consideration on top of the €50.000. The applicant’s income should solely derive from abroad and proof of income is necessary in the form of tax declarations from the country where the applicant is a tax resident.
In case where the applicant invests in options (B), (C) or (D) above, then the total income or part of it may originate from sources either abroad or within the Republic of Cyprus as well, provided he is being taxed in Cyprus.
In relation to the investment in a house/apartment or other properties it is noted that the purchase of a property shall be acceptable for the purposes of the said scheme, even if it is made from a legal entity where the applicant or/and his/her spouse are the sole shareholders or ultimate beneficial owners and such legal entity is situated legally in the Republic of Cyprus or in any other member state of the European Union or the European Economic Area.
- The applicant and his dependents (spouse and adult kids up to the age of 25) have to provide a clear criminal record certificate from their country of residence and country of origin which can be up to 6 months old.
- The applicant and the dependent members of his family must present a Certificate of Health Insurance for medical care covering inpatient and outpatient care.
- The applicant and his/her spouse shall confirm that they do not indent to be employed in the Republic of Cyprus except their occupation as Directors in the company in which they have chosen to invest in relation to the said scheme.
- In case the investment does not relate with the investment in the share capital of a company, the applicant and his/her spouse may be shareholders in companies registered in Cyprus and the income from the dividends from such companies shall not be considered as an obstacle for the purposes of attaining their permit. Further, they may hold the position of the Director without payment, in such companies.
- In case where the applicant decides to make an investment as prescribed in (B), (C) or (D) above, he/she must submit evidence in relation to his/her place of residence and of the members of his/her family within Cyprus (e.g., title deed, sale and purchase agreement, rental agreement).
IMPORTANT: In case where the applicant decides to invest in a house/apartment, but the number of the bedrooms do not satisfy the needs of his dependent family members, the applicant should indicate another property or properties which shall constitute the place of residence of these and submit the relevant evidence.
- 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, 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 € 900,000-.
Continued obligations following the granting of the permanent residency permit
Following the granting of the permit, the applicant is required to submit to the Civil Registry and Migration Department, on an annual basis from the date of obtaining the permit, evidence that:
- he maintains the investment,
- he maintains the required income that covers him and his family and
- he and his family members are holders of a Health Insurance Certificate, in case they do not continue to be beneficiaries of the GHS.
- He and his family members to provide clear criminal record certificates duly translated and certified from their country of origin, as well as from their country of residence every year
In case the applicant fails to provide the above, then he/she and his/her dependents’ residence permits shall be cancelled.