What is Required for Obtaining Cyprus Residency

The GARANT IN Consulting Center aims to provide its clients and readers with useful and up-to-date information on migration issues. We have prepared current questions related to obtaining residency in Cyprus and asked Olga, our expert on investment real estate in Cyprus, to answer them.

Cyprus is one of the European countries most welcoming to foreign nationals. Obtaining residency here is within reach for almost anyone with the necessary capital and no legal infractions.

There are 5 ways to obtain residency:

• Category A: To obtain residency under this category, you need to open a representative office of an international company in Cyprus.
• Category B: If you have capital of at least €173,000, creating your business project on the island is sufficient. This will serve as the basis for granting a permit after a mandatory interview.
• Category C: The state will grant you residency upon employment. However, before doing so, the employer will check if you are competing with a local for the job.
• Category D: The Pink Slip is issued to non-residents who have purchased or rented property in the state and commit to not engaging in economic activities there. Additionally, you must confirm an annual income from abroad of at least €15,000 and undergo an interview.
• Category F: Residency is granted for purchasing property worth over €300,000.

How can you obtain a Cyprus Residency?

Residency, known as the Pink Slip, has several types:

• Contract work in a Cypriot company.
• Conducting business in Cyprus.
• Residency for financially independent individuals.
• Studying at a Cypriot university.
• Residency in Cyprus through purchasing real estate.

You can apply for the Pink Slip if you prove Cypriot ancestry or if you are a refugee moving to Cyprus for political or religious reasons.

Another method is family reunification. In this case, one of the spouses must be a Cypriot citizen. The other spouse can then apply for residency.

Can you obtain a Cyprus Residency through investment?

The Cyprus Citizenship by Investment program has been suspended for almost 2 years, since November 1, 2020, due to a major scandal. Cyprus began offering citizenship by investment in 2007. Individuals who invested at least $2 million in Cyprus became holders of "golden passports," which granted numerous advantages, including unrestricted travel within the EU, residency in the European Union, and other benefits. During the program's existence, the authorities attracted over $7 billion to the treasury.

The European Commission's investigation revealed that over half of the passports were issued in violation of current laws—documents and applicant forms were not properly checked. It was also found that the republic issued passports to individuals with legal issues or who were evading criminal responsibility. Approximately 7,000 passports were issued during the program's existence, and 53% of them were illegal.

In the summer of 2020, Cyprus tightened requirements for investors seeking citizenship by investment, checking for involvement in legal violations and money laundering. By November 2020, the program was permanently closed.

How to Obtain Cyprus Residency Through Real Estate Investment?

You need to purchase property worth at least €300,000.

Is it advantageous to obtain residency through real estate purchase (Cyprus)?

Since 2015, the value of Cypriot real estate has steadily increased. Since 2015, its liquidity has grown by 35%. The continuous construction of luxury apartments is underway. A pleasant bonus is the cancellation of property tax. If you view purchasing real estate not only as obtaining residency but also as an investment, it is a successful deal.

Do you need to reside in Cyprus permanently, or is it sufficient to be present for a certain number of days?

You are required to stay on the island at least once every 2 years.

How does the procedure for obtaining residency through real estate purchase work?

You must purchase new real estate only from a developer:

• The client purchases the chosen property for no less than €300,000. For this amount, you can buy a good apartment or even a house. Importantly, the primary source of income must be outside the country.
• Confirm income of €30,000 for the applicant, €5,000 for the spouse and children each, and €8,000 for each parent.
• Provide a certificate of no criminal record.
• Open a deposit account in any Cypriot bank with at least €30,000.
• Submit all documents confirming the purchase of real estate along with the application to the immigration office. These are then translated into Greek and officially certified.

What income can you expect from investing in Cypriot real estate?

If you plan to rent out the apartments, you can expect an annual return of 6%-8% on the rental value. If you plan to sell the property a few years after purchase, its value will increase (depending on conditions, location, and property quality) by 25%-35%.

Is a personal presence in Cyprus required for signing documents?

It is not necessary. Documents can be signed by our representative. You visit Cyprus at your convenience.

How realistic is it to obtain permanent residency and citizenship in Cyprus later?

If you plan to obtain Cyprus permanent residency through the Pink Slip, be prepared for it to take up to 10 years with minimal financial investment:

• After the first application for residency, you must wait at least 5 years before applying for permanent residency. It does not need to be renewed. The fact that you own property worth at least €300,000 is already an important condition.
• After another 2 years, provided you live continuously in the country, you can apply for citizenship. If you regularly travel outside Cyprus and spend 1-2 months outside the republic, the citizenship process may be extended by another 1-3 years.

What documents does the client receive upon purchasing the property?

A sale and purchase agreement is issued in the buyer's name and registered with the land registry. The procedure must remain unchanged even if the property is still under construction.

Can you earn rental income from real estate while staying in another country?

Yes, you can post rental ads yourself through service websites or use our assistance.

If you have any further questions about obtaining residency or permanent residency in Cyprus, citizenship, or visa issues, feel free to come for a consultation. We will answer all your questions in detail, provide advice, and assist in resolving any situation.

Our portfolio of investment real estate in Cyprus includes offers starting from €300,000.

• Sunset Gardens, Limassol: Completion of the project in Q4 2023. Price from €300,000. Property yield — 7%.
• The Icon, Limassol: Project completed in February 2022. Price from €829,000.

Conditions for Obtaining Cyprus Residency by Investment

In the summer of 2022, the Cyprus government revised the conditions for obtaining residency for foreign nationals. The main requirements are financial reliability and lawfulness. Investors must demonstrate their ability to support themselves and their families while living in the country. To obtain residency in Cyprus, the investment must meet one of the approved categories. The GARANT IN team has thoroughly examined all the issues related to the project’s conditions.

Acquisition of Commercial Real Estate

This category includes shops, hotels, offices, and warehouse spaces. To apply for residency, a candidate can purchase one or two properties for a total of at least €300,000. There are no special requirements—the property can be either new or secondary market.

Purchased real estate can be rented out. If the property is bought by a legal entity, its founders can only be the applicant and their spouse.

Residency through Investment in Local Business

To support local business development, the Cyprus government offers residency for investments. An investment of at least €300,000 is required. According to the program, the business project must meet several conditions:

• The company must be registered in Cyprus.
• The company must have an office.
• The company must employ at least 5 staff members.

Purchase of Shares in an Investment Fund

Investing in shares of investment funds requires at least €300,000. The residency program in Cyprus can only include shares from collective investment funds. These include:

• Alternative investment funds with an unlimited number of participants.
• Alternative investment funds with up to 75 investors.
• Registered alternative investment funds.

To obtain residency, the candidate must present a real address of residence. Even if the applicant buys a non-residential property or shares in a company, they must have a residence in Cyprus—whether purchased or rented. Attach proof of residence to the residency documents—sale and purchase agreements, proof of ownership, or long-term rental agreements. Residency is permitted in any city in Cyprus: Paphos, Larnaca, Limassol—property choice is at the candidate's discretion: apartment, cottage, house, or apartment.

Advantages of Cyprus Residency Compared to Other Countries

Like every country offering residency by investment, Cyprus has its privileges for living:

Cyprus residency/permanent residency allows you to conduct business and study in local universities legally.

Cyprus is located in an excellent climate zone.

After 5 years of residence, you are allowed to apply for citizenship through naturalization. During the last year before applying for citizenship, you cannot leave the country. To obtain the new status, you need to pass a language and history exam and undergo an interview.

Cypriot citizenship allows you to visit over 170 countries worldwide — study, work, and relocate to any EU country.

Investing in Cypriot real estate is profitable. By obtaining residency through investment, you can earn income from renting out properties. The return ranges from 4% to 6.5% per year, depending on the property and its location.

After obtaining citizenship, the investor can recover the investments.

If you are interested in the topic of obtaining residency or want to move to Cyprus for permanent residency, seek qualified assistance from the specialists of the licensed GARANT IN agency. We will help you select the most profitable and fastest option to obtain the desired status, find a high-yielding property for investment, and assist with the preparation and submission of documentation. We provide realistic timelines for obtaining the coveted status and make every effort to solve the tasks efficiently.

What to Do If You Are Denied Cyprus Residency/Permanent Residency? Main Reasons for Denial

There are several reasons for the denial of residency, which apply to most EU countries:

• Attempting to obtain the permit fraudulently;
• Having a criminal record in the country of residence;
• Providing false information in the submitted documents;
• Failing to pay required fees on time;
• Forging documents (e.g., admission letters, employment contracts, etc.);
• Entering into a fake partnership (marriage, guardianship, adoption);
• Failing to submit documents within the required timeframe, etc.

The above factors are fundamental in Cyprus’ migration policy. However, in practice, refusal to grant a residence permit or permanent residence may also be caused by other related reasons:

Marriage to a citizen of the island does not cancel the need to meet the deadlines for submitting documents. Marriage is not a guarantee of legal residence on the island. For example, if your previous stay was justified by a Pink Slip, after marriage, you must still apply for its extension. Otherwise, future applications may be denied due to illegal stay on the island.

An employment contract only allows you to reside in the country until the contract’s expiration date. Be sure to monitor the dates stated in the documents. Failure to comply with them is also a violation of the law.

Adopting an adult non-resident by Cypriot citizens is not a reason for granting permanent residency. If the adoption process is prolonged and the child reaches adulthood by the time it’s finalized, they will receive citizenship on general grounds (i.e., after seven years of legal residence on the island). During this time, the Pink Slip must remain valid.

In practice, there are many cases of lawful refusals for a permit. Therefore, it’s always better to seek the help of specialists whose qualifications and experience will protect you from irreversible mistakes, help reduce time spent, and assist with applying for residency or permanent residency after a refusal. Remember, even a small fine for a minor violation can negatively impact the migration service’s decision.

Is There a Chance to Obtain Residency After a Refusal?

What should you do if, after a long wait, you receive a letter of refusal? It all depends on the reason for this outcome. Often, a negative verdict is due to errors in the dossier when submitting documents. This problem is easily solved by correcting the errors and resubmitting the application. However, sometimes situations arise that require legal assistance. Specialists at GARANT.in can help you obtain residency in Cyprus for Russians after a refusal, either through a competent appeal or by obtaining European residency through the affiliation program.