Permanent residence in Cyprus for investments

The program allows you to obtain the status in 2-3 months with a minimum investment of 300,000€ in real estate, stocks or funds. Allows family members to be included in the application.

Citizenship is available after 5-8 years of residence.

The Cyprus Permanent Residency through Investment Program is a legal scheme that allows citizens of non-EU countries to obtain the right to reside in the country. At the same time, the received status does not require an extension, the document is valid indefinitely.

The legal basis of the program is set out in Regulations 5 and 6(2) of the Aliens and Immigration Act, and is also regulated by the Aliens and Immigration Act of 1959 (Cap. 105), as subsequently amended. The regulatory framework defines the categories of applicants, the requirements for investments and the procedure for obtaining the status.

After the scandal with the “golden passports” (Cyprus Investment Program), the program of which was closed in 2020, the Cypriot authorities focused on the development of the permanent residency program through investments. It is known as the “Cyprus Golden Visa”.

The Government of Cyprus is currently considering lowering the minimum threshold for financial injections from €300,000 to €250,000.

Advantages of permanent residence in Cyprus

  • Indefinite status without renewal obligations. The resident’s card is valid for life (subject to the preservation of the initial investment).
  • Exemption from taxes on international income.
  • Access to European education and medicine.
  • An accelerated path to EU citizenship. After 5 years of residency, investors have the right to apply for a passport.
  • Flexible conditions for family applicants. The program includes spouses, children under the age of 25 (subject to education) and financially dependent adult children with disabilities.
  • The possibility of combining investments with profitable real estate.
  • No mandatory accommodation requirements.
  • Favorable location of the country for doing business

Investment options for obtaining permanent residence

The Cyprus Permanent Residence Permit for Investment program is one of the most attractive in Europe. The minimum threshold is €300,000, which can be invested in one of the following assets.

Real estate investments

The most popular way to obtain permanent residence in Cyprus, which is chosen by about 90% of applicants. The option involves the purchase of objects worth at least €300,000 excluding VAT. The requirements for the objects are as follows:

  • Residential real estate. It is purchased exclusively on the primary market directly from the developer. You can buy one object or several (to achieve the required amount).
  • Commercial real estate. It includes office premises, shops, hotels or similar facilities. It can be purchased on both the primary and secondary markets.
  • Combined investments. The program allows you to combine different types of real estate.

The status of readiness of the property for registration of permanent residence does not matter. Objects can be purchased at the construction stage. It is important to note that real estate purchased with preferential VAT cannot be rented out.

Investments in shares of Cypriot companies

The second option is to invest in the equity of Cypriot companies. This method is suitable for investors interested in developing their own business in Cyprus. The minimum amount is also €300,000. The investor can choose one of 2 approaches:

  • Creation of a new company with an authorized capital of at least €300,000;
  • Increase of the share capital of the existing company in Cyprus to €300,000.

The company in which the funds are invested must be based and operate in the country, have a confirmed physical presence on the island, and provide a place of work for at least 5 employees.

Investments in securities

This method is suitable for investors who prefer financial instruments to real estate or business. The minimum amount is €300,000. An investor can invest in:

  • Cyprus investment funds. It provides for the purchase of shares of the Cyprus Collective Investment Organization (in the form of AIF, AIFLNP, RAIF);
  • Other securities. Bonds, promissory notes and other securities issued with the approval of the Cyprus Securities and Exchange Commission.

Minimum investment volume and preservation conditions

The minimum investment amount for participation in the program is fixed at €300,000. Regardless of the chosen option – real estate, stocks or funds. For applicants who submitted documents after May 2, 2023, it is mandatory to save investments for 5 years. A three-year period is valid for participants who have completed their residency before this date.

Every year, investors provide the Department of Registration and Migration Service of the Republic of Cyprus with confirmation of the preservation of investments. These can be extracts from the land registry for real estate, audit reports of companies for stocks, or certificates of funds. From 2023, proof of income is additionally required (at least €50,000 for the main applicant, €15,000 for the spouse and €10,000 for each child).

The sale of an asset before the expiration of the retention period entails the cancellation of residency for the whole family, unless replaced with an equivalent or more expensive object within 60 days. After 5 years, investors have the right to sell assets without loss of residency, provided they have alternative housing (rent or purchase) and proof of income.

Additional expenses and taxes

The Cyprus permanent residence program for investments requires not only a minimum investment of €300,000, but is also accompanied by a number of additional costs and taxes. This should be taken into account by investors when starting the process. The costs vary depending on the chosen investment option and the composition of the applicant’s family.

Mandatory administrative fees that are charged to each applicant include:

  • Administrative fee. €500 for the main application + an additional €500 for each child over the age of 18.
  • Registration fee: €70 for each person included in the application (for issuing a certificate of registration of a foreigner, if one is missing)
  • The fee for the permanent residence card. €70 for each applicant.

If the option to purchase real estate is chosen, the investor must pay:

  • VAT on residential real estate (standard rate of 19%);
  • VAT on commercial real estate (fixed rate of 19%);
  • Stamp duty on the contract of sale.
It is important to note that if VAT was paid when buying the property, then a 50% discount on property registration fees applies.

When choosing an investment in the creation of a company or the purchase of shares / bonds, the main costs include:

  • The minimum level of the investment threshold.
  • Legal services (about 1% of the investment amount).
  • Administrative fees are identical to those for real estate investments.

Tax consequences of obtaining permanent residence

The acquisition of permanent residence does not automatically make the investor a tax resident of Cyprus. This requires meeting one of 2 conditions: staying on the island for more than 183 days in a calendar year, or 60 days if additional conditions are met (permanent housing, business, or employment). Starting in 2023, certain categories of residents will be exempt from taxation on foreign dividends, interest and royalties for 17 years.

The annual filing of a tax return is mandatory for a total income of over €19,500. Residents are required to declare global assets, but only transactions conducted through Cypriot accounts are taxed.

Automatic exchange of tax information according to the CRS standard with 102 countries has been in effect since 2024.

Requirements for the applicant and family members

The program provides for the participation of persons who have reached the age of majority (18 years old) and have no criminal history. Confirmation of the absence of criminal records requires the provision of certificates from all states of permanent residence for the last 10 years.

A prerequisite is the availability of housing on the island. It can be a property worth from €300,000 or a long-term lease agreement (minimum 12 months). There is an additional requirement for renters. An annual renewal of the contract is required, with payment recorded through the bank.

Spouses are included automatically upon presentation of an apostille-certified marriage certificate. Adult children under the age of 25 participate in the program subject to 2 conditions: full-time education and financial dependence on the main applicant. Persons with disabilities join without age restrictions, but require an international medical certificate.

Financial requirements increase in proportion to the number of dependents:

  • Basic income: €50,000;
  • Spouse: +€15,000;
  • Each child: +€10,000.

The sources of income can be dividends, royalties, rent or salary outside Cyprus.

Dual citizenship

The Republic of Cyprus officially recognizes dual citizenship on the basis of Article 8 of Annex D to the 1960 Treaty Establishing the Republic of Cyprus and the 1967 Citizenship Act. Investors retain their original citizenship upon obtaining a Cypriot passport. This is confirmed by the practice of issuing ID cards to residents without requiring them to renounce their previous identity card.

The main conditions for the transition from permanent residence to citizenship are:

  • Confirmation of saving investments at the level of €300,000+.
  • No tax debts or criminal records.
  • Visit Cyprus at least once every 24 months.
  • Level B1 in Greek.
  • Availability of housing (own or rented) and medical insurance with €30,000 coverage.

The procedure for obtaining permanent residence

The process of obtaining permanent residence through investments involves going through several standard stages:

  1. Preliminary verification of trustworthiness. Analysis of the origin of the investor’s funds and compliance with the program criteria.
  2. Formation of a package of documents. Collection of dossiers, translation and apostille of papers. Remote filing requires a notarized power of attorney for a lawyer.
  3. Fulfillment of the investment condition. After the approval of the preliminary application, the investor transfers funds in accordance with the selected scheme.
  4. Submitting an application to the migration authorities. The documents are sent to the Civil Registry and Migration Department (CRMD) in person or through a representative.
  5. Consideration of the application. CRMD checks the data for 2-4 months. The decision is made within 60 days in the absence of additional requests.
  6. Obtaining a resident’s card. After approval, the investor and the family are required to visit Cyprus within a year to submit biometrics. ID cards are produced in 10-15 business days.
  7. Annual confirmation of the status. Permanent residence holders provide CRMD with a package of documents in accordance with the approved list.
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Application processing time

The examination of documents at the Department of Registration and Migration Service takes 2-3 months, subject to the provision of a complete set of documents. With investments over €500,000, a priority mode with a personal CRMD supervisor is available. In 2024, almost half of such applications were approved in 33 days.

If the review period is exceeded by 90+ days, the applicant has the right to request an official response via the M251 form.

Required documents

The basic package for all categories of applicants includes:

    A passport with a validity period of at least 6 months (with certified copies of all completed pages).

  • Certificate of absence of criminal record for the last 10 years.
  • Marriage certificate with apostille (if applicable).
  • Proof of financial viability (bank statements).
  • For real estate investments, a purchase and sale agreement with registration with the Land Department, a receipt for payment of stamp duty, and an insurance policy for the property.
  • When buying shares of companies, an extract from the register of shareholders, an audit report for the last quarter, and employment contracts of 5 Cyprus-based employees are provided.
  • Investment funds: AIF/RAIF share ownership certificate, CySEC management company license, asset diversification report.

All documents are provided with a notarized translation into Greek or English.

Failure and return on investment

In 2024, almost a quarter of refusals are related to insufficient confirmation of the origin of funds. The Cyprus Migration Service checks the three-year transaction history through the CRS system, identifying inconsistencies. In addition, common reasons for refusal are:

  • The presence of outstanding criminal records;
  • Errors in filling out MIP1 forms;
  • Non-compliance of the object with the program requirements.

Applicants have the right to challenge the refusal through the Administrative Court of Cyprus within 75 days. A successful appeal will require a legal justification, additional documents and payment of a state fee (€1,200). After eliminating the reasons for the refusal, investors have the right to resubmit the documents after 6 months.

If the application is cancelled, the investor can refund the funds through:

  • Termination of the purchase and sale agreement (penalty 10-15% of the amount).
  • Sale of fund shares (commission 2-5% for less than 3 years of ownership).
  • Exit from equity (12.5% income tax).

Recent changes in the program

On May 2, 2023, the Council of Ministers of Cyprus approved a package of amendments to Regulation 6(2) of the Regulation on Foreigners and Immigration. The main innovations include:

  • Increase the minimum annual income from €30,000 to €50,000 for the main applicant, €15,000 for the spouse and €10,000 for each child.
  • Exclusion of parents from the list of dependents. Only a spouse and children under the age of 25 can be included in the application.
  • Introduction of annual monitoring. Investors are required to confirm the preservation of investments and compliance with income criteria through the Department of Registration and Migration Service. Violation of the conditions leads to the cancellation of the status.

An amendment to the Anti-Money Laundering Act (AML Law, Cap. 161) has been in effect since July 2024. Regulatory authorities are required to conduct more in-depth screening for applicants from high-risk countries.

The government is currently considering lowering the minimum investment threshold to €250,000. In parallel, it is planned to introduce a quota (no more than 700 approved applications annually). For investors investing over €500,000, a priority regime is proposed with a reduction in verification time to 33 days.

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