All owners of properties located on Cyprus can apply for a residence permit. It is a straightforward and simple procedure that takes about 2 months after submitting the required documents.
Cyprus is a very popular destination for property investments, aimed at entrepreneurial activities, justified by low taxes and it being a very attractive tourist destination. The corporate tax in Cyprus amounts to only 12.5%, while there is no inheritance tax; furthermore, there is an agreement in force between Cyprus and 57 countries concerning the avoidance of double taxation.
If you have purchased resort real estate on Cyprus just to enjoy vacations there in your free time, there is no need to apply for a residence permit. After purchasing real estate, you will be granted a visa, which allows you to stay in the country for up to 90 days every 6 months, i.e. 180 days per each calendar year.
However, if you are thinking of living in your Cypriot property, it is better to apply for a residence permit, the conditions for receiving a residence permit in Cyprus are better and simpler than in any other country in the EU.
Residence Permits in Cyprus – express procedure:
- The value of your real estate on Cyprus must be of at least €300 000 (excluding VAT).
- The property must be new and purchased from a developer. The accelerated procedure for receiving a residence permit does not apply for cases of secondary real estate purchases.
- Having paid at least €200 000 (excluding VAT) from the overall price of the real estate property.
- Prove that the real estate purchase was made using funds that were received from sources outside of Cyprus.
- Your annual income must be from €30 000 + €5 000 for your spouse and each dependent member of the family, as well as €8 000 for each parent of the applicant.
- Present a proof of funds from a Cypriot bank, showing that there is an amount of 30 000 euros.
- You and your spouse, as well as adult children need to present a criminal record showing the absence of previous convictions.
- You and your spouse, as well as adult children need to prepare a declaration that you do not intend to be employed in Cyprus.
- Spouse and minor children of the applicant automatically receive a residence permit, as well as adult children up to 25 years old, who are students.
- If you would like to receive a residence permit for your adult children and their families, the value of the real estate must exceed €600 000 for 1 child and €900 000 for two.
It takes a maximum of 2 months to receive a residence permit using the express procedure.
Residence Permits in Cyprus – regular procedure:
Let’s assume that you cannot apply for a residence permit using the express procedure. For example:
-You have purchased a property the value of which is lower than €300 000
-You have purchased secondary real estate
In such cases, you can apply for a residence permit using the regular procedure. Apart from the documents confirming the ownership of real estate property, you need to show your sources of funds outside of Cyprus and the availability of funds in a Cypriot bank. Required annual income must be in the amount of at least €10 000 for the main applicant and at least €5000 for each dependent family member. The amount of funds must be sufficient for a regular living of the applicant on Cyprus. Lawyers of Grekodom Development will inform you of the approximate figures for your case.
In this scenario, the time required to process your application is not set. In practice, it usually takes from 8 to 11 months.
Advantages of a Residence Permit in Cyprus:
- The Residence Permit on Cyprus is permanent and is valid for a lifetime
- There is no restrictions on the time you should stay on Cyprus. The only exception is that you must visit Cyprus no less than twice a year
- Valid for all family members
- Gives the right to apply for a Cypriot citizenship (if you reside in the country for 7 years)
- The ability to enjoy a vacation in some of the best resorts whenever you want
- Possibility to comfortably live in a safe country that has a wonderful climate, top quality healthcare and a good education system.
Temporary residence permit
Let’s say that you do not want to cannot receive the status of a permanent resident of Cyprus, however, you need to spend the majority of your time on Cyprus.
In this case, you can apply to receive the status of a temporary resident that is valid for one year - “Pink Slip”. Such an immigration status gives you the right of residing in the country up to 365 days per year.
Pink Slip can be renewed an unlimited number of times. In order to renew it, you need to submit the documents for the extension at least 1 month prior the expiration date of the current Pink Slip. Your application can be processed from 1 to 3 months, during which you have the right to reside in the country, without breaking the law. If for some reason you need to leave the country after the current Pink Slip expires, but prior to receiving the new one, in order for you to be able to re-enter Cyprus, you need to receive a single-entry visa again, or use the multiple-entry visa, if this is what you have.
The Pink Slip immigration status has two disadvantages, compared to the permanent residence permit:
- First of all, it has to be annually renewed (which is not a complicated procedure, if you hire a Cypriot lawyer for assistance).
- Secondly, you cannot leave Cyprus for longer than 3 months. If you leave the country and do not come back after three months, your Pink Slip is automatically cancelled and you will have to enter the country with a visa and then apply for the issuance of a new Pink Slip.
Documents required for the Pink Slip
In order to receive a temporary residence permit, you need to submit the following documents to the immigration authority:
- Certificate of a property ownership (sale and purchase agreement) or a lease agreement
- A bank statement from a Cypriot bank, showing the transaction and the current balance of your monetary funds. The transactions have to show that the source of your income is located abroad, while all the expenditures take place on Cyprus. Preferably, your current balance is at least €10000 per adult and €5000 per minor. This amount must be available at the time when the bank statement is issued. After that you can dispose of this amount at your discretion.
- Income statement
- A bank guarantee for one or more years, provided by the bank, upon freezing an amount of €550 on the bank account (per person)
- For school-age children – a certificate issued by the school, confirming that they study there.
- Birth certificates for the child/ren
- In case of divorce or the absence of one parent, consent of this parent regarding the residence of the child/ren on Cyprus (notarized)
- Health insurance