The legislators have updated the list of requirements towards the acquisition of residence permit in Cyprus through investments. We will examine the criteria that need to be fulfilled by the applicants. We will also discuss where funds may be invested according to new rules and how the immigration permit may be acquired by you and your family.
Minimum investment is 300.000 €. The applicant shall invest towards one of the allowed investment categories.
1. Residential properties: residencies and apartments which shall be purchased directly from a constructor. The sale shall be the first and the price of the property shall be at least 300.000 € (plus VAT, if applicable).
2. Commercial properties in Cyprus: shops, offices, storages, hotel units and other properties with formally registered category. Unlike residencies and apartments, the number of former owners of commercial properties is not crucial, and you may purchase various properties with value of at least 300.000 €.
3. Share capital of a Cypriot company – the business shall be installed and have physical presence in Cyprus and must occupy at least five individuals on full-time basis.
4. Cypriot units of collective investments RAIF, AIF and AIFLNP): investment amount 300.000 €
It is important to be careful and invest only in checked properties, businesses and capitals. Hence, physical presence of a company in Cyprus does not guarantee that the registered seat is inside the Republic, and employees may actually not be officially occupied. It is worth paying attention on the formalities.
An investment in Cyprus does not guarantee the residence permit. The applicant and his family shall fulfill quality criteria, as well as validate the availability of living resources. A guaranteed yearly income of at least 30.000 euro is necessary. In case the applicant has dependent individuals, then there is an additional amount of 5.000 euro per each. In case spouses and parents are dependents, then it is also necessary to certify a yearly income of 8.000 euro per each.
Quality criteria – demands for the applicant and his family
1. The applicants and their spouses shall submit a blank criminal certificate from their country of origin
2. In addition, they shall certify that they do not intend to work within the Republic and they can only occupy positions such as CEO in the company where they invest.
3. In case investments in Cyprus are related with investments in the approved capital of a company registered in the Republic, then the applicants shall be shareholders of the company. Therefore, the revenues from dividends are not an obstacle in the residence permit acquisition procedure. Applicants are entitled to have managing positions in such companies, but only under the condition that their work is not paid.
4. The applicants are also obligated to provide information regarding their place of residence in the Cypriot Republic, and also verify it – for example, attach the sale, lease contract or ownership certificate to their application.
Special Features of property investments in Cyprus
In case the basis for residence permit acquisition is investment in residencies or commercial properties, then the application shall be accompanied by a sale contract or ownership title. The transaction shall be conducted by the applicants themselves or their spouses. The purchase and sale contract shall be necessarily submitted to the Cadaster Department.
Requirements for properties:
1. the cost shall be at least 300.000 euro including VAT, if this tax is applicable.
2. the applicant shall submit proofs of payment for the total amount of at least 200.000 euro without VAT, regardless of when the property was delivered.
3. it is also necessary to prove that capitals for investments originate from abroad – loan products in Cyprus cannot be used.
Specialists note that even certificates, titles and contracts which certify the purchase of a property from an organization where the applicants or their spouses are the final beneficiaries or the only shareholders, shall be attached to the documentation of the residence permit. A legal entity shall be established within the region of Cyprus, or any other state which is a member of the EU, or a member of European Economic area.
When it comes to investments in residential properties (Residence or apartment) , then the applicant shall purchase no more than two properties and their total value shall be at least 300.000 euro. The same applies for a married couple, since the spouses may purchase no more than 2 residencies. In this case, the purchase may relate to exclusively residencies and apartments sold towards the first buyer from constructors. Houses purchased before 05/07/2013 are excluded. In the latter case, the documents for purchase and sale transaction shall be submitted to the Cadaster the latest before the defined date. If all the conditions are met, then the documents are accepted.
Issuing the residence permit
The applicant receives immigration permit. The document also includes information for the dependent individuals – spouse and underaged children (under 18 years old).
At the same time, unmarried children of the applicant, aging between 18 and 25 years old, may also be financially dependent by the applicant but only if they are students in foreign universities and may provide documents certifying this fact. In this case, you may submit your application for immigration permit with the deposit of the relevant fee. The student’s parents in this case shall prove an additional yearly income of at least 5.000 euro per each dependent.
The residence permit application in Cypriot Republic is examined within two months. In extraordinary cases, this period may be extended.