Cyprus Revises Permanent Residency Permit Regulations Granted to Non-EU Nationals by Way of Investments
Once again, the Cyprus Government revised the criteria regarding the expedited process of granting an immigration permit to applicants who are nationals of third countries and invest in Cyprus. The revised criteria will come into force today on May 2, 2023.
The details of the previous amendments to Regulation 6(2) of the Aliens and Immigration Regulations of 1972, which came into on March 24, 2021 can be found in our article “Amendment to the Cyprus Permanent Residency Permit Regulations Granted to Non-EU Nationals” published on April 23, 2021 where we outlined the investment criteria and main requirements to obtain a permanent residency permit via Investment in Cyprus.
According to the new amendments, the investment criteria and main requirements to obtain a permanent residency permit via Investment in Cyprus are:
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 which should concern a first sale of at least €300,000 (plus VAT).
In cases where the applicant chooses to invest under category A, but the number of bedrooms of the investment property cannot satisfy the needs of his dependent family members, he should indicate another property or properties which he will constitute the place of residence of these persons (e.g. property title deed, sales document, rental document).
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. Initial investment in share capital of a new company worth €300,000 or investment (a minimum EURO 300,000) in the share capital of a Cyprus company with psychical presence in Cyprus and employing minimum of five people.
D. Investments into units of Cyprus Collective Investments Schemes (AIF, AIFLNP, RAIF) – a min EURO 300,000.
It must be noted that if the holder of the Immigration Permit changes/pulls out from the investment he has made without its immediate replacement with another of the same or greater value which must meet the conditions set out in the present procedure above, will result to the cancellation of the Immigration Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
An annual secure income increased to EURO 50,000 per year from EURO 30,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child of the applicant and/or his/her spouse.
This income can come from wages for work, pensions, stock dividends, interest on deposits, rents, etc., coming from abroad, which will only be proven through his tax return from the country in which he declares a tax resident, for the cases which the applicant chooses to under the investment criteria A. In calculating the total income, the income of the applicant’s wife may also be taken into account.
In the case of investment 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 provided that it is taxable in the Republic.
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.
CONTROL MECHANISM COMPLIANCE WITH THE CRITERIA AND MAINTENANCE OF THE INVESTMENT
The applicant is required to submit to the Department of Population and Immigration Records, on an annual basis from the date of obtaining the Immigration Permit, evidence that he maintains the investment, that he maintains the required income that has been determined for himself and his family and that he and his family members are holders of a health insurance certificate, in the event that they do not continue to be beneficiaries of GESY. In addition to the above, the applicant and his adult family members are required to provide an annual certificate of a clean criminal record from their country of origin, as well as from their country of residence.
It is understood that, in case the holder of the Immigration Permit fails to prove the above, it will entail the activation of the process of cancelling the Permit of the applicant and his/her family members based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
The applicant should always obtain legal guidance from a qualified lawyer on the applicable legislation, application procedure, and the preparation, drafting, and/or reviewing of application forms and agreements.
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