Cyprus Permanent Residency: Invest In Cyprus Permanent Residency Program

In order to obtain a Permanent Residence Permit (PRP) under Regulation 6(2) of the Aliens and Immigration Regulations (being an expedited application process that requires investment), the applicant must invest at least EUR 300,000 (plus VAT, where applicable) in one of the below asset categories, where the proceeds for the investment must be transferred to Cyprus from abroad:

(A) Investment in a house(s)/apartment(s): 

Purchase of a “first-time” residential property(ies) in Cyprus from a real estate developer.

The applicant may purchase up to 2 units (apartments and/or houses), provided the total acquisition cost is at least EUR 300,000 (plus VAT, if applicable). Where more than one property is acquired, purchasing from multiple developers is acceptable.

It is acceptable if the eligible property was purchased prior to the PRP application being submitted, with no timeline restrictions.  The property purchase must relate to residential property sold for the first time by a development company, unless the purchase occurred before 07 May 2013.   Sale contracts related to resale of residential property which have been submitted to the Department of Lands and Surveys before 07 May 2013 (the date of filing of the sale contract will be confirmed by the said Department), will be accepted for the purposes of the PRP application.

It should be noted that VAT on such residential properties is typically 5% or 19% (in very limited cases it is 0%).

(B) Investment in commercial real estate (excluding residential houses/apartments): 

Purchase of immovable property, other than the above-mentioned residential property, namely an office, shop, hotel unit, or combination. The property can be new (first time sale) or resale.  It should be note the investment can be made personally, or via a corporate vehicle.

It is acceptable if the eligible property was purchased prior to the PRP application being submitted, with no timeline restrictions.

It should be noted that VAT on such commercial properties is 19% (in very limited cases it is 0%).

(C) Investment in a Cyprus company’s share capital, with business activities and personnel in the Republic: 

Investment in the share capital of a company registered in Cyprus, based and operating in Cyprus, having a proven physical presence in Cyprus, and employing at least five persons.

Under this specific investment category it is possible for the applicant to be appointed a salaried director within the Cyprus company where the relevant investment was made.

(D) Investment in units of the Cyprus Investment Organisation of Collective Investments (forms of AIF, AIFLNP, and RAIF): 

Investment in units of a Cyprus Investment Organisation of Collective Investments.

In addition to the investment made under any of the above categories, the applicant must be able to evidence that he/she has at their disposal a secure annual income of at least EUR 50,000. This annual income increases by EUR 10,000 for each dependent child and EUR 15,000 for each spouse.

In cases where the applicant chooses to invest in Category (A) above, this income may include salaries or wages, pensions, dividends from shares, fixed deposits, rents, etc, provided the source of income is outside of Cyprus. In calculating the total income, the spouse’s income may also be considered.

In cases where the applicant chooses to invest under Categories (B), (C), or (D) above, his/her total income, or part of it, may also emanate from sources and/or activities within Cyprus.  In calculating the total income, the spouse’s income is not considered.

It should be noted that all applicants, irrespective of the investment made, are permitted to be shareholders of a Cyprus company, and receive dividends.  Furthermore, all applicants are permitted to be non-salaried directors of a Cyprus company, with the exception of applicants who invested under Category C above, who are permitted to also receive a formal salary from acting as a director in a Cyprus company.

Dependent persons

• The PRP issued covers the main applicant, spouse, and children up to 18 years old;
• Unmarried children of the PRP applicant between 18 and up to the age of (and including) 25 years old, financially dependent on the applicant, and registered as students in a higher education institution;
• Non-dependent adult children can also apply under the same application, but an additional EUR 300,000 investment must be made for each such non-dependant applicant. In cases where the applicant chooses to invest in categories (A) and (B) above, proof of payment of at least 66% of the acquisition cost of the real estate must be submitted upon application. In such cases, each adult child must be able to prove they have at their disposal a secured annual income of at least EUR 50,000. This amount will increase by EUR 10,000 for each dependent child and EUR 15,000 for a spouse. In addition, the investment can be made jointly in the names of the applicant and the adult child, where a further EUR 300,000 has been invested.

Restrictions

Holders of a PRP are not entitled to work in Cyprus. However, they are entitled to work as directors in a company in which they have chosen to invest as per their PRP application (see investment option C above). They can also be a shareholder in a Cyprus company and receive dividends as per our above comments.

A PRP holder, as well as their dependents, cannot be away from Cyprus for a period longer than two years, otherwise, the PRP is automatically cancelled. If, for any reason, the PRP granted to the investor is cancelled, this will result in the cancellation of the dependents’ permits as well.

HOW WE CAN ASSIST

Our team of highly experienced immigration lawyers and Cyprus property consultants can assist you with all aspects of preparing and filing a PRP application. This includes sourcing potentially suitable properties and investments and opening a Cyprus bank account.

For further information on obtaining permanent residency in Cyprus, please contact us by telephone +357 22 516 671 or by email at [email protected] or [email protected].