Permanent Residence in Cyprus through Investment

Permanent Residence in Cyprus through Investment

The Expedited Immigration Permit under Regulation 6(2) of the Aliens and Immigration Regulations

Introduction

The Republic of Cyprus offers third-country nationals one of the most attractive and straightforward routes to permanent residence within the European Union. Under Regulation 6(2) of the Aliens and Immigration Regulations, and pursuant to a policy decision of the Minister of Interior (currently in its 4th Revision, in force since 2 May 2023), qualifying investors may obtain an Immigration Permit through an expedited (fast-track) procedure administered by the Migration Department of the Ministry of Interior.

The permit granted under this scheme is permanent in nature: it does not expire and does not require renewal, provided the holder continues to satisfy the ongoing conditions described below. It extends to the investor's immediate family and does not require relocation to Cyprus — the holder need only visit the Republic once every two years to preserve the permit's validity.

This publication sets out the investment criteria, the financial and quality requirements, the position of family members, the application procedure, and the holder's ongoing obligations, as they stand under the current policy.

Why Cyprus?

• Permanence: the Immigration Permit is granted for life and is not subject to renewal, unlike the temporary “golden visa” permits of several other EU jurisdictions.
• Speed: applications under the expedited procedure are typically examined within a few months from submission of a complete file.
• No relocation requirement: physical residence in Cyprus is not required; a visit once every two years suffices.
• Family coverage: the spouse and children can be covered, on the terms described below.
• A pathway, not an obligation: holders who later choose to reside in Cyprus may, subject to the applicable statutory conditions, pursue Cypriot citizenship by naturalisation on the basis of years of lawful residence, and may separately benefit from Cyprus's favourable personal tax framework (including the non-domicile regime) if they become Cyprus tax residents. Immigration status and tax residency remain distinct legal questions.

It should be clarified that the permit does not, of itself, confer visa-free movement within the Schengen Area, as Cyprus is not yet a member of the Schengen zone; the position may change upon Cyprus's anticipated accession.

The Investment Criteria

The applicant must make an investment of at least €300,000 in one of the following categories:

• (A) Residential property: purchase of a house or apartment sold for the first time by a land development company (first sale), of a minimum value of €300,000 plus VAT. Up to two residential units may be combined to reach the threshold, provided they are purchased from the same developer. Resale residential property does not qualify under this category.
• (B) Other real estate: purchase of other types of immovable property, such as offices, shops, hotels or similar developments, or a combination thereof, of a total value of at least €300,000. Resale properties are acceptable under this category.
• (C) Share capital of a Cypriot company: investment of at least €300,000 in the share capital of a company registered and operating in the Republic, with a proven physical presence in Cyprus and employing at least five (5) persons.
• (D) Units of a Cypriot collective investment organisation: investment of at least €300,000 in units of a Cyprus-regulated collective investment vehicle of the type AIF, AIFLNP or RAIF.

In all cases, the funds used for the investment must be proven to have been transferred to Cyprus from abroad, out of a bank account in the name of the applicant and/or his or her spouse (provided the spouse is included in the application as a dependant). Where the investment concerns real estate, the full amount of at least €300,000 plus VAT must have been paid to the seller before submission of the application, irrespective of the property's delivery date, with the relevant payment receipts accompanying the application.

The applicant may substitute the investment during the life of the permit with another qualifying investment of equal or greater value, subject to the conditions of the policy.

Financial Criteria: Secured Annual Income

Beyond the capital investment, the applicant must demonstrate a secured annual income, according to the following thresholds:

The spouse's income may be taken into account in the calculation of the total available income. The source of the income depends on the investment category chosen: where the investment falls under Category (A), the income must derive from sources outside Cyprus; where the investment falls under Categories (B), (C) or (D), the income (or part of it) may also derive from sources within the Republic. Income may include salaries, pensions, dividends, rents, interest on deposits and similar receipts, and is evidenced through tax returns of the applicant's country of tax residence or through certificates issued by an independent certified accountant.

Quality Criteria

In addition to the financial thresholds, the applicant and the family members included in the application must satisfy the following:

• Clean criminal record: the applicant and all adult family members must produce a certificate of clean criminal record from their country of origin and from their country of residence (where different), and must not otherwise pose a threat to public order or public security in Cyprus.
• Health insurance: all applicants must hold a health insurance certificate covering inpatient and outpatient care, unless they are beneficiaries of the General Healthcare System (GeSY).
• No employment in Cyprus: the applicant and his/her spouse must confirm that they do not intend to undertake employment in the Republic. They may, however, hold shares in companies registered in Cyprus and receive dividend income from such companies, and may act as unpaid directors of such companies.
• Adequate accommodation: where the investment does not itself consist of residential property (Categories B, C and D), the applicant must provide evidence of accommodation in the Republic, such as a title deed, a contract of sale with proof of payment, or a rental agreement. Where the investment is a house or apartment, it must offer adequate space for the dependants who will reside with the applicant.

Family Members

The Immigration Permit may cover the following members of the investor's family:

• Spouse: the permit is issued to the spouse under the same application. If the main applicant's permit is cancelled, the spouse's permit is likewise revoked.
• Minor children: unmarried children under the age of 18 are included as dependants.
• Adult dependent children (18–25): unmarried children between 18 and 25 who are students in higher education abroad and financially dependent on the applicant may obtain their own permit through a separate application, subject to the additional income of €10,000 per child. Children studying in Cyprus must first obtain a temporary residence permit as students and may apply for the Immigration Permit upon completion of their studies. Importantly, a permit granted to such a child remains valid even after the child exceeds the age of 25, marries or ceases to be financially dependent — although the child's own future spouse and children cannot be added as dependants.

Under the current (post-May 2023) criteria, parents and parents-in-law of the applicant are no longer eligible for inclusion as dependants, and higher-value investment structures previously used to cover adult children as dependants have been discontinued. Each adult who wishes to secure a permit must, in principle, satisfy the criteria in his or her own right or fall within the dependant categories above.

The Application Procedure

1. Structuring and due diligence. The appropriate investment category is selected and the investment is implemented. For real estate acquisitions, this stage includes legal due diligence on the property, negotiation and execution of the contract of sale, deposit of the contract with the Department of Lands and Surveys for specific performance protection, and documented payment of at least €300,000 plus VAT from foreign-sourced funds.
2. Compilation of the file. The supporting documentation is assembled, including: the prescribed application form; valid passports of all applicants; curriculum vitae of the main applicant; marriage and birth certificates, duly certified and officially translated; evidence of the investment and of the transfer of the funds from abroad; evidence of the secured annual income; clean criminal record certificates; health insurance certificates; and the required declarations of the applicant and spouse regarding non-employment in the Republic.
3. The application is submitted to the Migration Department in Nicosia, in person or through an authorised representative (typically the applicant's lawyer), together with the applicable government fees.
4. Examination and approval. The application is examined under the expedited procedure and, provided the file is complete and the criteria are met, is submitted to the Minister of Interior for a decision. In practice, complete applications are usually determined within a few months, although processing times vary with the Department's workload.
5. Biometrics and issuance of the permit. Following approval, the applicant and family members must visit Cyprus for the capture of biometric data (photograph and fingerprints) in order for the residence card to be issued. The approval must be taken up within the time-frame indicated by the Department, failing which it may lapse.
6. Maintaining the permit. Thereafter, the holder must visit Cyprus at least once every two years and comply with the annual reporting obligations described below.

Ongoing Obligations after Approval

The grant of the Immigration Permit is not the end of the matter. From the date of obtaining the permit, the holder must provide the Migration Department, on an annual basis, with:

• evidence that the initial investment (or a permitted replacement investment of at least equal value) is maintained;
• evidence of the required annual income for the holder and his/her family members;
• a health insurance certificate for all family members, where they are not beneficiaries of GeSY; and
• for the holder and all adult family members, an updated certificate of clean criminal record from the country of origin and the country of residence.

Failure to provide the above will result in the cancellation of the Immigration Permit of the holder and of his or her family members, pursuant to Regulation 6 of the Aliens and Immigration Regulations. Likewise, the acquisition of permanent residence in another country, or absence from Cyprus for a period exceeding two years, may lead to cancellation.

How Anastasios Mylonas & Co LLC Can Assist

Our firm advises international clients at every stage of the process: selection and structuring of the qualifying investment; legal due diligence on Cypriot real estate, including title, encumbrance and planning searches; drafting, negotiation and deposit of contracts of sale; opening of banking relationships and documentation of the source and transfer of funds; preparation and submission of the application file to the Migration Department; and ongoing compliance with the annual obligations attached to the permit. Acting under a power of attorney, we are able to conduct substantially the entire process on the client's behalf, with the client's physical presence in Cyprus required only for the biometric capture stage.

For further information or to discuss your eligibility, please contact us.

Disclaimer

This publication is provided for general information purposes only and does not constitute legal advice. The criteria for the grant of Immigration Permits under Regulation 6(2) are set by policy decision of the Council of Ministers and the Minister of Interior and are subject to amendment without notice. Readers should obtain specific legal advice on the facts of their own case before acting. Anastasios Mylonas & Co LLC accepts no liability for any loss arising from reliance on the contents of this publication.