Amendment to the Cyprus Permanent Residency Permit Regulations Granted to Non-EU Nationals
Regulation 6(2) of the Aliens and Immigration Regulations of 1972 was introduced in February 2016 granting Non-EU nationals the right to permanently reside in Cyprus.
The Government of the Republic of Cyprus recently announced amendments to Regulation 6(2) of the Aliens and Immigration Regulations of 1972 which came into effect on March 24, 2021.
Although the amount of investment required remained unchanged i.e., EUR 300,000., the investment criteria are extended to other areas and not only related to real estate.
The investment criteria and main requirements to obtain a permanent residency permit in Cyprus are as per the amendments:
A. Purchase of living accommodation (first time sale), i.e., House or flat, in the Republic of Cyprus of EURO 300,000 excluding VAT from a developer (the applicant needs to submit together with the application the title deeds or a sale contract of a real estate, in his/her name and/or his/her spouse, which has been officially filed at the Department of Lands and Surveys, and official payment receipts of at least EURO 200,000 excluding V.A.T.).
B. Purchase of commercial real estate (could be a resale) like hotel, shop, office or similar developments which could be a combination with a total value of EURO 300,000 excluding VAT.
C. Investment (a minimum EURO 300,000) in the share capital of a Cyprus company with psychical presence in Cyprus and employing minimum five people.
D. Investments into units of Cyprus Collective Investments Schemes (AIF, AIFLNP, RAIF) – a min EURO 300,000.
The requirement to have a fixed deposit of EURO 30,000 held in a Bank in the Republic of Cyprus for a period of at least three years has been removed.
An annual secure income of at least EURO 30,000 per year (increased by EURO 5,000 for every dependent person and by EURO 8,000 for every dependent parent or parent-in-law) has remained the same.
In case of investment under criterion A, income/ capital must be derived from foreign sources outside the Republic of Cyprus. Investments under criteria B, C, D the applicant’s total income or part of it may also come from sources or activities within the Republic of Cyprus.
The Applicant cannot work in the Republic of Cyprus but is nevertheless allowed to maintain a Cypriot Company (to be a shareholder) and dividends received from his Cypriot company are allowed. In such a case the applicant can also be a director of his Cypriot Company but cannot receive a salary.
The Applicant investing under criteria B, C, or D should present evidence showing a place of residence in the Republic such as a title deed, a sales agreement or a rental agreement.
The application for permanent residency can also include; spouse, children under the age of 18, adult children under 25 years of age who are unmarried, students and financially dependent on the investor, parents of the applicant. To include an adult and financially independent child in the application, the applicant must invest an additional EUR300,000 of the minimum investment amount. In addition, adult children must confirm that they have sufficient income to live in Cyprus.
Needless to say a clean criminal record for the applicant and his/her dependents is a perquisite.
It can be stated with confidence that these recent amendments make Cyprus a very interesting proposition for those considering to obtain a permanent residency in the EU.
The applicant should always obtain legal guidance from a qualified lawyer on the applicable legislation, application procedure, the preparation, drafting, and/or reviewing application forms and the agreements.
For further information please contact us via email at email@example.com or via telephone +357 22262108.