New Rules for Obtaining Cyprus Permanent Residency

Cyprus Permanent Residency Under New Rules

Changes to the criteria for obtaining permanent residency by third-country investors have been published on the official website of the Republic of Cyprus Ministry of the Interior.

The new rules came into effect on March 24, 2020.

Important! One of the key amendments is the removal of the requirement to open a bank account in Cyprus and deposit €30,000 for three years.

Additional investment program options:

• Investment in residential real estate on the primary market from €300,000 excluding VAT, with the option to purchase two properties from different developers.
• Investment in commercial real estate (office spaces, shops, etc.) from €300,000, with the possibility of combining various properties.
• Investment of €300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates within the country, has a confirmed physical presence in Cyprus and employs at least five people.
• Purchase of shares in a Cyprus Collective Investment Organization — an investment fund (AIF, AIFLNP, RAIF type).

Advantages of Cyprus Investment Funds

Investing in alternative investment funds in Cyprus is not only an option under the immigration program but also an opportunity to receive dividends.

Key competitive advantages of Cyprus investment funds for foreign investors include:

• A flat tax rate on taxable income of 12.5%.
• No tax on dividend income in certain cases as provided by law (e.g., disposal of shares, meeting specific requirements, etc.).
• No tax on income earned by non-residents of Cyprus.
• There is no tax on income from securities transactions.
• No government control over foreign companies.
• Avoidance of double taxation under numerous agreements between Cyprus and other countries.
• Legal operations of funds in compliance with international standards.

Before obtaining citizenship, it is necessary to apply for a Cyprus residence permit for Russian citizens.

Cyprus Permanent Residency: Program Updates and Changes for Russians

Cyprus Permanent Residency is a popular program because, in exchange for investment, the applicant receives many privileges: the opportunity to apply for European citizenship, access to quality healthcare and education, investment in liquid assets, and more. The popularity of the Cyprus Permanent Residency program has grown among Russians after similar programs in Malta, Latvia, and Lithuania were closed. A month ago, Grenada’s investment program was shut down, leading to an increase in demand for Cyprus Permanent Residency once again. If you are planning to obtain a new migration status through investment, you should be aware of the new requirements introduced by the Cypriot authorities. On May 2, 2023, amendments to the rules for issuing immigration permits to third-country investors will come into force. The decision was approved by the Council of Ministers of the Republic of Cyprus on April 21, 2023. Let’s review the updated conditions.

Main Requirement

The key condition for obtaining Cyprus Permanent Residency remains unchanged — an investment of at least €300,000 in the island nation’s budget. Available entry methods include:

• Purchase one or two real estate properties on the primary or secondary market.
• Acquisition of shares in Cypriot companies for the same amount.
• Purchase of shares in investment funds.

Investments are refundable; after obtaining citizenship, the applicant may sell them. Important! Funds for the investment must come from abroad. It is not allowed to take a loan from a local bank and use that money to complete the transaction.

Income Requirement

This section has been updated. Previously, the minimum annual income for the applicant was €30,000 + €5,000 for a spouse and €5,000 for each child. Now, the minimum annual income for the applicant starts at €50,000 + €15,000 for a spouse and €10,000 for each child under 18.

Family Members of the Applicant

Children of the investor aged 18-25 can also apply for permanent residency if they are university students outside Cyprus. If the child is over 18 and studying at a university in Cyprus, they must apply for a student visa. Permanent residency status is available to financially dependent adult children. The applicant must prove an annual income of at least €10,000 for each dependent child. The validity of the permanent residency card can be extended for children who turn 25, provided they are unmarried and financially dependent on their parents.

Status Confirmation

A new additional requirement for permanent residency holders. Starting May 2, 2023, an annual submission to the immigration department is required to confirm the following:

• Full ownership of shares, a fund stake, or real estate acquired for participation in the permanent residency investment program.
• You are receiving the necessary income for yourself, your spouse, and your children.
• Validity of the health insurance certificate.
• An updated criminal record from the country of origin and residence.

If the submitted documents contain false information, are not provided as part of the annual control, or the applicant does not meet any of the requirements, their immigration status and that of their family members will be revoked.

Duration of Status

The duration of permanent residency status obtained through investment is indefinite, but the card confirming the status must be renewed every 10 years. Minor family members who obtained permanent residency with the primary applicant lose their status upon reaching the age of 18.

What Issues Do Investors Solve with Cyprus Permanent Residency?

Obtaining Cyprus Permanent Residency through investment is a popular service among relocants. However, it's not just the accessible investment threshold that makes it so popular. The permanent residency status offers several privileges:

• A backup location. The alternative status allows the applicant to travel to and from Cyprus at any time.
• Quality education. With permanent residency, you can attend any European university or study in Cyprus on par with citizens.
• Obtaining European documents. The migration status allows opening accounts in European banks, transferring and receiving large sums freely, and conducting international business.
• The program offers favorable conditions. The invested funds can be returned over time, as they are not non-refundable investments. After 5 years of residence in Cyprus, the applicant can obtain Cypriot citizenship, sell the investment, and move to another country.
• The main stages of obtaining the status can be completed remotely. It is allowed to purchase property and submit documents online. After receiving an approval decision, the applicant must travel to Cyprus to submit biometric data.

Is it possible to obtain Cyprus permanent residency quickly? If you entrust the process to professionals from the GARANT.in migration agency. Obtaining the new status is a complex, multi-step process that goes beyond simply purchasing property. We offer a full range of services designed to help clients achieve their goals quickly.