Cyprus is part of the EU and the British Commonwealth - the Eurozone, is a member of the World Trade Organization and the World Bank. The country offers a favorable tax policy, and its GDP annually increases. Cyprus boasts the developed infrastructure and a rich choice of entertainment. To this list of advantages should be added and such bonuses as a pleasant climate, access to the Mediterranean, an abundance of vineyards in the interior hilly areas of the island, beautiful nature, interesting sights and unusual architecture.
Why buy a property in Cyprus?
The program of economic citizenship is one of the main reasons why residents of other countries want to buy property in Cyprus. If you make investments in the economy of the country or real estate in the amount of two million euros, you can get citizenship. Please note that Cyprus is one of two countries where it is possible to acquire citizenship, while in other European countries it will be necessary to settle for only a residence permit.
Investors are also attracted by low taxes when registering real estate. When buying a new property, a 5% discount rate is levied at a rate of 5% instead of the current rate of 19%, this gives the buyer of new real estate the possibility of significant savings. In the case of buying a secondary real estate, VAT is not levied, only the transfer of ownership tax is paid, which ranges from 1.5% to 4%, depending on the value of the property. In Cyprus, there are no restrictions on the rental of real estate, which was purchased under the passport program. Thereby, property owners can receive income and partially return the invested investments.
Residence permits and citizenship through investments
Since 2009, the program of Golden Visa has been operating in Cyprus. It was created in order to support the economy of the country. During the first four years after the start of the program, the country managed to raise two billion euros. What does the program provide? According to it, the purchased property allows you to get a residence permit. Cypriot residence permit is granted not only to the owner of the property, but also by his family. To do this, you need to provide the original and a copy of the passport, 4 photos, an applicant’s CV, a certificate from a Cypriot bank on deposit of 30,000 euros for three years, medical insurance, marriage certificate and birth certificate, certificate of criminal record.
In addition, you will need to confirm ownership of the property and an annual income of at least 30,000 euros + 5,000 for spouse and each dependent family member, and 8,000 euros for each parent of the applicant. It should be noted that the applicant and his family members should attach a statement that they do not intend to work in Cyprus.
When buying a new property from 300 thousand euros you can count on the consideration of the issue within 2-3 months and almost 100% get a positive decision. You can also apply for residence permit and when buying cheaper real estate. But in this case, it will be necessary to wait for consideration of the documents for about 10 months, and there is no guarantee that the decision will be made in favor of the applicant, each case is individual. The residence permit in Cyprus has no time limit. There is no need to permanently stay in Cyprus (except for visiting the island every two years).
In addition, in Cyprus there is a status of a temporary residence permit.
Let suppose that you cannot get permanent resident status in Cyprus, but you need to stay in Cyprus for most of your time.
In this case, you can apply for a temporary resident status for one year – so-called "Pink Slip". This immigration status allows you to stay in the country up to 365 days a year.
The Pink Slip can be extended an unlimited number of times. For this, you need to apply for a renewal one month before the expiration of your current Pink Slip. Your application can be considered for 1-3 months, during which time you have the right to live in the country without violating the law. If for any reason you need to leave the country after the expiration of the current Pink Slip, but before receiving a new one, in order to enter Cyprus, you have to get a single-entry visa or use a multiple visa if you have one.
The immigration status of Pink Slip has two disadvantages compared to the status of a permanent residence permit:
• Firstly, it should be renewed annually (which, incidentally, is not a complicated procedure if you seek assistance of a Cypriot lawyer).
• Secondly, you cannot be absent from Cyprus for more than three months. If you leave the country and do not return within three months, your Pink Slip will automatically be canceled, and you will have to enter the country with visa and submit documents for the new Pink Slip.