1. Legal Outline
In accordance to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of
Interior, having notified the Council of Ministers, has decided to issue a Residence Permit (“Permit”) to
applicants from third countries, in cases where the conditions listed below are satisfied.
To qualify for a Permit under the policy, the investor must satisfy:
(a) one of the investment criteria referred to in paragraph 2.1 below as well as
(b) the criteria referred to paragraph 3 below
(c) prove that the funds used for the investment have been transferred from abroad.
The below revised criteria is applicable as of 24/03/2021.
2. Investment criteria
2.1 The Investor must proceed with an investment of at least €300.000 in one of the following categories of
investments:
(Α) Investment in a house /apartment: purchase of a house or apartment from a property developing company, which must be a first sale of at least €300.000 (plus VAT).
(Β) Investment in assets (excluding houses/apartments): purchase of other form of assets such as offices, shops, hotels or similar type of developments or a combination of the above of total value €300.000. the said assets can also constitute resale properties.
(C) Investment in the share capital of a Cyprus company with business activities and staff in Cyprus: The investment must be for at least €300.000 in the share capital of a company registered in the Republic, which operates in the Republic and has a proven physical presence in Cyprus and employees at least five (5) people.
(D) Investment in Shares of the Cyprus Investment Organization of Collective Investments (Type AIF, AIFLNP, RAIF): Investment of at least €300.000 in shares of the Cyprus Investment Organization of Collective Investments. The disposal of the Investment without the immediate replacement of the investment with another investment of the same or larger value, which must also satisfy the criteria of this policy, will result in the initiation of proceedings for the cancellation of the permit which has been issued pursuant to regulation 6 of the Aliens and Immigration Regulations.
2.2 The Investor must, in addition to the investment made in accordance to paragraph 2.1 above, be in a position to prove that he/she has at his/her disposal a secured annual income of at least €30.000. The said annual income shall be increased by €5.000 for each dependent member of the family and by €8.000 for each dependent parent (either of the Investor or his/her spouse). The source of the income can be from salaries, pensions, dividend, fixed deposits, rents etc derived from abroad for the cases whereby the Investor elects to invest as per paragraph 2.1 (A). In the calculation of the total income of the Investor the income of the spouse can also be taken into account. In the cases where the Investor elects to invest as per paragraphs 2.1 (B), (C) or (D), the total income or part of the income can be derived from sources within the Republic.
3. Legal Elements
The above are applicable to investments in houses/apartments or real estate:
- Investor must show a title deed or contract of sale for the purchase of a property of at least
€300.000 (excluding VAT).
- The said title or contract of sale must be in the name of the Investor and/or his/her spouse and must be submitted at the Land Registry Department.
- must provide official receipts for the settlement of at least €200.000 of the purchase price (excluding VAT) regardless of when the property will be delivered.
- as at the time of submission of the application the Investor must provide evidence that the funds have been transferred from abroad and are not derived from a loan.
- The purchase price must be paid in the account of the Seller in a banking institution in Cyprus.
- The purchase can be made via a legal entity in which the Investor and/or his/her spouse are the sole or final UBO and which operates legally in the republic or another member state of the EU or the EU Economic Area.
- For the purposes of applying in accordance to paragraph 2, in relation to the purchase of a house/apartment it is clarified that:
(a) the Investor can buy up to two (2) residential units (houses or apartments) provided the total of the purchase price satisfies the provision of this paragraph. In the case of a couple, the above condition apply jointly to the couple.
(b) the purchase must relate to property purchased from a property developing company for the first time, unless the purchase was made before 07/05/2013. Contracts of Sale relating to resales of properties which have been filed at the Land Registry Department, before 07/05/2013 will be accepted for the purposes of this policy.
4. Other Criteria
4.1 The Investor and his/her spouse must submit a Clean Criminal records certificate from the country of residence or the republic (if they reside in the Republic) and in general must not pose in any manner a treat against public order or public safety.
4.2 The Investor and his/her spouse must confirm that they do not intent to engage in employment or activities in the Republic, with the exception of acting as directors in a company in which they will choose to invest in as per the provisions of this policy.
4.3 In the cases where the investment relates to investing in the share capital of a company, the investor and/or his/her spouse can be registered shareholders in companies in Cyprus and their income from dividends in such companies shall note act as an estopel with regards to the obtainment of the Permit. Further, they can act (without pay) as directors of the said companies.
4.4 In the cases where the Investor elects to invest in accordance to paragraphs 2.1 (B), (C) or (D), he/she must provide evidence with regards to his/her place of residence in the Republic (e.g. title deed of property, contract of sale, or tenancy agreement).
5. Dependents
5.1 The Permit is issued to the Investor. This includes the Investor 's dependents who are the spouse and their minor children up to the age of 18 years. If they wish, it is possible to issue two separate Permits one for the investor and one for the spouse without the requirement that the spouse to meet the criteria of the investor, provided that separate applications are submitted and the corresponding fees are paid. It is understood that in the event that the Permit granted to the investor is cancelled for any reason, it will result in the activation of the process for the cancellation of the Permit for the spouse, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
5.2 Unmarried children between the ages of 18 and 25, who are proven to be students in higher education abroad as at the time of the submission of the application and who are financially dependent on the Investor, can submit their own, separate application for a Permit with the payment of the corresponding fee. In such a case the father or mother and / or both parents together must present an additional annual income of € 5,000 for each such dependent child. If the children are students in Higher and Higher Education Institutions of the Republic, they must apply for a temporary residence permit in the Republic as students under the relevant legislation (EU Directive). After completing their studies in Cyprus, they will be able to submit their own application for a Permit, as mentioned above with the payment of the corresponding fee, regardless of their age, provided that the parents will present an additional annual income of € 5,000. The Permit will continue to be valid after reaching the age of 25 even if the child is still not single and/or a student and/or financially dependent on his or her parents. It is understood that the spouse (of the adult child) and their minor children will not be able to be added as dependents on the said permit. It is also understood that in the event that the Permit granted to the investor/parent is cancelled for any reason, it will result in the activation of the process for the cancellation of the Permit for the adult child, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
5.3 A Permit can also be granted to the Investor 's parents and his/her spouse’s parents, by submitting separate applications for each person and paying the corresponding fee, provided that the Investor will present an additional annual income of €8,000 for each dependent parent. It is understood that their spouse and minor children will not be able to be included as dependents in this permit. It is also understood that in the event that the Permit granted to the investor/child is cancelled for any reason, it will result the activation of the process for the cancellation of the Permit for these parents, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
6. HIGHER VALUE INVESTMENT FOR INCLUDING ADULT CHILDREN
A Permit may also be granted to an adult child who is not financially dependent on the investor, provided an investment of a higher value investment is made, based on the provisions of Paragraph 2, as set out below:
The market value of the investment of €300,000 must be multiplied by the number of adult children, who will apply based on the same investment for the purpose of obtaining the Permit. For example, in case the Investor has an adult child he should make an investment worth € 600,000, if he has two adult children the total value of the investment should be €900,000 etc. In case the investment will concern purchase of real estate, meaning where the Investor chooses to invest in accordance to the provisions of paragraphs 2.1 (a) and 2.1 (B) together with the application the investor must submit proof of payment of at least 66% of the market value must be submitted. It is understood that, in such a case, each adult child will be able to prove that he has at his disposal an insured annual income of at least €30,000, which will increase by € 5,000 for each dependent, as provided in Section 2.2. In addition, it is noted that the investment can be made jointly in the name of the Investor and the adult child or exclusively in the name of the Investor.
7. Timeframe
Provided all documents are provided and the application meets the criteria of the policy and there are no grounds of public interest of safety for which the Permit should not be granted then the applications will be examined within two (2) months from the date of the submission of the duly completed application.
8. Other Information
Persons who are granted a Permit must obtain a permanent residence in the Republic within one (1) year from the date of approval of the application, further, the investor and his/her family members, must not remain outside the Republic for a period of two (2) years. Otherwise the Permit ceases to be valid under Regulation 6 (3) and / or may be revoked under Regulation 6 (4).
