Practical notes for investors and families, what works in practice and what to avoid.
At a glance
Route: Category 6(2) (fast-track PR by investment)
Minimum investment: €300,000 (plus VAT where applicable)
Qualifying options:
• New (first-sale) residential property from a developer; resales do not qualify for the residential option.
• Commercial real estate (offices, shops, hotels – resale permitted).
• Share capital in a Cyprus company with physical presence and ≥5 staff in Cyprus.
• Units in Cyprus investment funds (AIF / AIFLNP / RAIF).
Income requirement (from abroad): €50,000 (main applicant) + €15,000 (spouse) + €10,000 (per minor child).
– Processing: fast-track; typically concluded within around 6 months.
– Ongoing: annual confirmations (maintenance of investment, income, insurance) and clean criminal record certificates every 3 years for adults.
Who can be included
Spouse and minor children.
Unmarried, financially dependent students under 25.
Not eligible: parents / parents-in-law are not included under the current rules.
How the residential property option works
- Choose a new, first-sale unit sold by a developer (house or apartment). Resales do not qualify for the residential route.
- Pay at least €300,000 from funds originating abroad (documented transfers).
- File the sale agreement at the Land Registry. In parallel, prepare the PR file (clean criminal record, proof of income, insurance, etc.).
- Submit the Category 6(2) application and have biometrics taken.
- After approval, comply with the annual confirmations and keep the investment in place (or replace with equal/higher value if needed).
The pitfalls (and how to avoid them)
Buying a resale apartment/house for the residential route. Fix: Ensure that you are buying new property from a property developer.
Paying from the wrong account or with locally sourced funds. Fix: Ensure the €300,000 (excluding VAT) for the investment is traceably remitted from an account abroad. Keep bank transfer slips and statements.
Assuming a bank loan covers the qualifying threshold. Fix: The qualifying investment must be met by your foreign-sourced funds. Any financing should be structured so that the qualifying capital is clearly your own incoming foreign funds.
Missing the “first-sale” point on purchases. Fix: Confirm in writing that the unit is first sale from the developer and that planning/building permits are in order.
Weak or poorly organised income evidence. Fix: Present clean, consistent documentation: payslips or dividend vouchers, audited accounts, tax returns, and bank statements showing sufficient secure annual income.
Expired / non-Apostilled police certificates. Fix: Check validity windows early. Obtain apostille/legalisation where required and keep names consistent with passports.
Forgetting annual obligations after approval. Fix: Diary the annual confirmation month and the 3-year criminal-record refresh for all adults. Keep insurance continuous (GESY or private with adequate cover).
Treating adult children as dependants. Fix: Only unmarried, full-time students under 25 who are financially dependent qualify. Plan separate routes for older or married children.
VAT misconceptions on residential purchases. Fix: The reduced 5% VAT rate has conditions (principal residence usage and size thresholds). If it is not your main home or are uncertain about the VAT requirements, budget 19% VAT.
Skipping due diligence on the developer or project. Fix: Run checks on building and planning permits, encumbrances, stage payments, and delivery schedules.
Naming/identity mismatches across documents. Fix: Passport names, marriage and birth certificates, bank records and contracts must align. Correct or explain discrepancies early on.
Not depositing the contract of sale with the Land Registry. Fix: File at the Land Registry promptly to protect your rights and support the PR file.
Not planning for a replacement investment. Fix: If you intend to sell or restructure, replace with an eligible asset of equal or higher value before you terminate the existing one.
Documents checklist (core set)
– Valid passports for all applicants; recent passport photos.
– Clean criminal records (apostilled/legalized) for adults.
– Proof of foreign-sourced income with bank statements.
– Health insurance evidence (or GESY enrolment).
– Sale Agreement (filed at the Land Registry) / or company/fund subscription documents.
– Proof of funds from abroad and payment receipts.
– Civil status documents (marriage/birth certificates), translated/legalised.
– For students (ages 18–24): university confirmation of full-time enrolment and financial dependence.
Timing
– Property selection & KYC: 1–3 weeks.
– Due diligence and purchase of the property: 3–6 weeks.
– Examination: typically, up to 6 months under the fast-track route.
(Timelines depend on document readiness and authority workload.)
After approval — staying compliant
– Keep insurance in force, maintain the investment, and renew criminal records every 3 years for adults.
– Notify material changes (address, family composition, investment replacement).
– Keep a tidy file: contracts, transfers, tax/VAT documents, and annual confirmations.
Our services (how we help)
• Up-front feasibility review: assessment of family profile, income sources, and most suitable investment route.
• Property/legal due diligence: planning & building permits, developer checks, VAT analysis, and contract review.
• Banking & funds flow: coordination of account opening and a clean audit trail of foreign-sourced capital.
• Complete PR file preparation: clean criminal records, apostilles, certified translations, insurance, submission strategy.
• Land Registry & formalities: Sale Agreement filing, acquisition permit where applicable, and follow-up.
• Post-approval compliance: annual confirmations, 3-year criminal record refreshes, and assistance with investment replacements.
