Cyprus permanent residency is a legal status that can be given to all qualifying citizens even if they do not come from an EU member state.

The word permanent is not misleading and when this status is achieved, it is valid for a lifetime provided that all necessary documents are submitted.

How to get Cyprus Permanent Residency

To obtain the permanent residency, the applicant must meet at least one of the following conditions:

• Live in Cyprus for at least 5 years with a valid temporary residence permit
• Invest within the country a minimum of €300,000.
• Your spouse is Cypriot
• Being employed in Cyprus or owning a company registered with the migration department.

By taking the investment option, the process can be completed in just two months on some occasions and usually no longer than 3 months provided all the necessary paperwork is submitted. This program covers not only the investor but also all parts of his immediate family. There is an extra cost of €500 for all applicants plus €70 for each person for registration. For example, a family of 4 would have to pay an extra fee of €2280 irrespective if the children are minors or adults.

This process is straightforward and in just 2 to 3 months you can get the permanent residence permit. Even better, after 8 years the resident can apply for Cypriot citizenship.

 

Permanent residency categories

• Category 2 By investment: Investors who purchase a brand-new property in Cyprus worth at least €300,000 and have a substantial income from abroad.
• Category F: Investment in real estate. This requires a minimum investment of €100,000 (plus VAT) plus an annual income from abroad of at least€9568 for one applicant plus €4613 for each dependent person. The applicant must have sufficient income to be able to cover all living expenses while residing in the country
• Category C: Investors who work for their own company. A capital of at least €260,000 has to be brought to the country and used for company activities within the country of Cyprus.
• Category E: Any person who has been offered a permanent employment.

 

More Types of Permanent Residency:

Residency by marriage

One of the spouses is Cypriot. That should cover it, all minor children of this couple (even from a previous marriage) are entitled to residency permit.

After 5 years of continuous stay

Non-EU citizens who have legally lived and continue to live in Cyprus for a period of 5 years while during this period they were holding a Cyprus temporary residence card, can apply for a permanent residence permit.

EU citizens and their families (provided they are also EU citizens), can apply for permanent residency after living in Cyprus for 5 years.

 

How to qualify for Cyprus residency using the fast-track procedure

Residential investment: The purchase of a house or apartment has to have a minimum value of €300,000 plus VAT.

Commercial investment: These types of properties include hotels, shops, offices and other commercial buildings with a minimum worth of €300,000. No need to be brand new in this case. A resale is acceptable in this case.

The investor can purchase the property in the name of his company provided he is the absolute owner/beneficiary of this company. It is worth mentioning that there is no mention of the delivery date of this property and the application for residency criteria can be met as long as the investor can prove that he has paid the money (even if the house is still under construction). This can be achieved by registering the sales agreement at the Land Registry of the total amount of the purchase (minimum €300,000 + VAT).

Another option is the purchase of shares and investment in the share capital of a company. This means that the investor will have to either register the company in Cyprus or headquarter his business within the republic (moving the base of the company).

It should be mentioned that if the investor wishes to sell his property for which he completed the eligibility criteria to receive the residency, then the property has to be replaced with another one of equal or higher value.

 

Minimum income of the investor

This comes down to €50,000 from abroad plus €15,000 for the spouse and €10,000 for each underage child. Example: A family of four would need a secured annual income of €85,000. A secure income can include but is not limited to, the following:

• Salaries of both spouses
• Pensions
• Dividends
• Fixed Deposits
• Rental income
• Other types of fixed income

If the investor has children who are between the ages of 18 and 25, are still unmarried, and are financially dependent on the investor, they can apply separately for a student immigration permit, provided they are studying abroad at a university on the date of the submission of the application.

For such cases, the parents must have an additional €10,000 for each child.

The applicants must provide a clean criminal record from their country of residence and not be regarded as a danger of any kind to the republic.

 

Slow-track permanent residency

For Category “F”, the applicant needs to provide the following:

Purchase of property

The rules here are not strict and the money does not necessarily have to come from abroad neither is the purchase of property a requirement strictly speaking. It is highly advised though to purchase any property in Cyprus for any amount. This will strengthen your application and chances of obtaining the residency permit.

The annual income for this category should come from abroad and be at least €9568 for one applicant plus €4613 for each dependent person.

A deposit in a bank account in Cyprus of around €15,000 to €20,000 is needed which can be used after the residency application is submitted. You can learn more about Opening a bank account in Cyprus

Only underaged children can be considered dependents and any permanent residency given to them will not be valid after they become adults.

Although applying with a rented property is not forbidden, it is highly unlikely that the application will be accepted by the Migration department.

There are some restrictions on the residency program such as:

The holders cannot work in Cyprus. They can though be shareholders in a Cypriot company that operates in either Cyprus or abroad and receive dividend from this company.

This permit is valid only for the Republic of Cyprus and cannot be used for traveling Visa-free in other countries like a Cypriot passport would (exceptions are Romania and Bulgaria).

The holder of the permit, must visit Cyprus at least every 2 years.

 

What are the annual obligations for the verification criteria?

The applicant must submit the following:

• The initial investment (annually)
• If the applicant and their family do not have GESY (NHS) coverage, they must provide private health insurance (annually).
• A clean criminal record from their country of residence and origin (every 3 years).

 

*There is no longer the need to annually provide proof of necessary income.

Required documents

• A copy of the passports of the applicant and his/her family (Spouse/children).
• The CV of the applicant
• Marriage certificate. Duly certified and officially translated.
• Children’s birth certificates. Duly certified and officially translated.
• Original Criminal Record Certificate (Issued from the country of residence and submitted with an official and certified translation)
• Proof of annual income documents from abroad.
• Title of ownership of the property bought in Cyprus (or sale contract).
• Bank swift for the payment of the property and receipt of this payment.
• For category F, a bank letter or statement showing the deposited balance of €15,000 to €20,000.

 

It is important to mention that all documents have to be translated into English and certified by the Ministry of Foreign Affairs (or Embassy) of the issuing country. This can be done by the Embassy of that country in Cyprus, or by having the APOSTILLE certification. You can read more about what an Apostille Certification is.

 

What are the benefits of obtaining a permanent residency in Cyprus?

The corporate tax rate is 12,5% which is still among the lowest in the European Union and a progressing personal income tax rate which is zero (0) for any amount below €19500 annual income.

Cyprus maintains an advantageous tax scheme with many conditions and programs that can be utilized to save money from taxes. With careful planning and the right structure, the effective tax rate can be reduced significantly, potentially to 0%.

 

The biggest advantage by far is the golden ticket to achieving a non-Dom status which means you could be exempt from paying taxes from money derived abroad.

You can read more about non-dom tax status

 

We hope to have covered all aspects of this topic but in case you have any questions, our experienced team of professionals will be delighted to assist you!