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The amendments to the provisions of the Permanent Residence Scheme that came into force in 2021 aimed to encourage and attract non-EU nationals who seek to obtain permanent residence in Cyprus for them and their family by making an investment. As a result of the revised Regulations that came into effect on March 24, 2021, non-EU citizens are entitled to apply for a Permanent Residence Permit in Cyprus with the fast-track procedure by investing not only in the real estate field, but also in the business sector.
2. Investment Options
By revising the regulations for granting an immigration permit and expanding the financial criteria, the Cypriot authorities have provided non-EU citizens with the opportunity to stay in Cyprus as permanent residents not only by investing in residential properties, but also by investing in commercial real estate or in the share capital of a Cyprus Company or in units of a Cyprus Collective Investment Organization.
Moreover, with the revised scheme, non-EU nationals who apply for a permanent residence permit are no longer obliged to deposit the minimum amount of €30.000 in a fixed term deposit bank account.
Thus, with the newly improved Regulation, a permanent residence permit can be obtained if the applicant invests in one of the following categories:
A. Investment in Residential Property
The investor must purchase a new house or apartment in Cyprus for at least €300.000 (plus VAT). Before applying for the Permanent Residence Permit the applicant must pay the minimum amount of €200.000 (excluding VAT) and provide relevant proof of payment. The payment of the property value should be made to a financial institution account in Cyprus.
B. Investment in Commercial Properties
The applicant must invest the minimum amount of €300.000 (plus VAT) in new or resale commercial real estate such as shops, offices and hotels or a combination of the above.
C. Investment in the share capital of a Cyprus Company
The applicant must invest the minimum amount of €300.000 in the share capital of a company which is registered, based and operates in the Republic of Cyprus. This company must have proven physical presence in the Republic and must employ at least 5 people.
D. Investment in units of a Cyprus Collective Investment Organization
The investment in units of a Cyprus Collective Investment Organization (type AIF, AIFLNP, RAIF) must be at least €300.000.
3. Annual Income
The applicant is required to provide proof of a secured annual income of at least €30.000 and €5.000 for every dependent family member (spouse/children) and €8.000 for every dependent parent and parent-in-law. The said income may derive from salaries, rents, pensions, dividend distribution etc.
In calculating the above mentioned required annual income of €30.000, the annual income of the applicant’s spouse can also be considered.
If the applicant applies under Categories B, C or D above, their annual income may derive from activities within the Republic of Cyprus, but if they invest under Category A above, the applicant must provide evidence that their annual income derives from abroad.
- The applicant and their spouse are required to provide a clean criminal record from their country of residence or from Cyprus (if they are residents of Cyprus).
- The applicant and their spouse must confirm with a declaration that they have no intention to work in the Republic of Cyprus or to receive any salary in Cyprus. However, they may hold the position of Director in the company in which the applicant invests but without receiving any salary.
- If the applicant applies under Categories B, C or D above, he/she and the spouse are required to provide proof of residence in Cyprus (rental agreement, title deeds etc.).
- If the investment concerns any of the above Categories, except for Category C, the applicant and/or their spouse may be shareholders of a company registered in the Republic and the dividend income derived from such a company will not be considered as a problem when filing their application.
- If the applicant applies under Category A, their application should be accompanied by the title deeds or the sales agreement in their name or their spouse’s name of a real estate property of minimum value of €300.000, which has been previously submitted to the Land Registry. The real estate purchase can also be made in the name of a legal entity, on the condition that the applicant and/or their spouse are its only shareholders or ultimate beneficial owners and that this legal entity is legally established in Cyprus or any other member state of the EU or the EEA.
- If the applicant applies under Category A, he/she may purchase up to two housing units (apartments or houses). The properties must be sold for the first time unless they have been purchased prior to 07/05/2013.
5. Supporting Documentation
- If the applicant applies under Category C above, their application must be accompanied by:
(a) Share purchase agreement.
(b) Shareholders Certificate by the Registrar of Companies.
(c) Certificate of Incorporation by the Registrar of Companies.
(d) Business profile of the company (business objectives etc).
(e) Proof from the Social Insurance Services regarding the personnel employed by the company.
- If the applicant applies under Category D, their application must be accompanied by:
(a) Titles or other evidence of the purchased units.
(b) Confirmation by the CySEC of the setup of the Fund.
(c) Memorandum of the Fund or Investment Fund.
6. Family members
The Immigration Permit covers the applicant, their spouse and their underage children.
However, children of the applicant who are over the age of 18 but under the age of 25 and unmarried, may apply for an Immigration Permit with a separate application and the payment of a separate application fee, given that they are students in an institution of tertiary education abroad and they are financially dependent on the main applicant at the time of the submission of the main application. The permanent residence permit of these children remains valid, even when they are over the age of 25 and they do not remain unmarried and financially dependent on the main applicant.
Children of the applicant who are over the age of 18 and wish to study in an institution of tertiary education in Cyprus must apply as students through that institution for a temporary residence permit in the Republic of Cyprus. As soon as they complete their studies in the above-mentioned institution, they may submit their own application for a Permanent Residence Permit, and their parents must provide proof of a secured annual income of at least €5.000 for every such child.
Adult children of the applicant who are not financially dependent on their parents may submit a separate application for an Immigration Permit as well, however the investment amount of €300.000 should be multiplied by the number of the non-financially dependent children (e.g. for one adult non-financially-dependent child, the applicant must invest the amount of €600.000 in one of the above Categories, for two adult non-financially-dependent children the applicant must invest the amount of €900.000).
Parents and parents in law of the applicant may apply with a separate application and with the payment of the relevant fee.
If, for any reason, the Immigration Permit of the investor gets cancelled, the Immigration Permits of the dependent family members also get cancelled.
7. Conditions after obtaining the Permanent Residence Permit
- Holders of the permanent residence are required to visit Cyprus at least once every two years, otherwise their permit gets cancelled.
- If any alienation of the holder of the Permanent Residence Permit from the investment of any of the above Categories occurs and the holder does not proceed with immediate replacement with a new investment of the same or greater value, their Permit gets automatically cancelled.
8. Our Services
Danos & Associates offers the following services related to applying for and obtaining Permanent Residency with the fast-track process through the above-described process:
- Provide advice on the requirements and the procedure for obtaining the Permanent Residence Permit.
- Assist in collecting all the documentation necessary for applying for the Residency Permit.
- Provide legal advice and assistance with the preparation and drafting of agreements in relation to the required investments in Cyprus.
- Assist in completing the application form and preparing other relevant paperwork.
- Submit the application with all the attached required documentation to the Ministry of Interior.
- Manage the process of liaising with the authorities during the application processing period and until the Permanent Residence Permit is granted.