The Cyprus Permanent Residence Permit which is granted to non-EU nationals investing in the Republic of Cyprus has been recently amended. The program has been revised in its current form on the 24th of March 2021. The amended Residence Permit scheme continues to apply to the applicant, the spouse, the applicant’s unmarried and financially dependent children up to the age of 25 provided that they undertake their bachelor or master’s degree studies, as well as to the applicant’s parents and parents-in law. While the minimum investment amount of €300,000 (plus VAT if applicable) remains unchanged, further investment options are now provided to applicants. Besides the option to invest in new residential properties, investors now have the option to invest in commercial properties, including offices, shops, hotels. The properties of this category could be either new or resale. Moreover, the applicant may choose to invest in the share capital of a Cyprus company having a physical presence and activities in Cyprus and employing at least five persons. Lastly, applicants may choose to invest in compartments of Cypriots UCITS (AIF, AIFLNP, RAIF).
The applicant must invest at least €300,000 (plus VAT if applicable) in one of the following investment categories:
• Investment in a house/apartment: Purchase of a house or apartment from a development company, which should concern a first sale of at least €300,000 (plus VAT).
• Investment in real estate (excluding houses/apartments): Purchase of other types of real estate such as offices, shops, hotels or related estate developments or a combination of these with a total value of €300,000. The purchase of interest can be the result of a resale.
• Investment in Cyprus Company’s share capital, with business activities and personnel in the Republic: Investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, based and operating in the Republic of Cyprus and having a proven physical presence in Cyprus and employing at least five (5) people.
• Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF): Investment worth €300,000 in units of Cyprus Investment Organization Collective Investments.
The applicant should, in addition to the investment criteria above, be able to prove that he has at his disposal a secure annual income of at least €30,000. This annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent (of the applicant and/or his spouse). This income should derive from abroad and may include salaries or wages, pensions, dividends from shares, fixed deposits, rents, etc. In cases where the applicant chooses to invest as 1(A) above. In calculating the total amount of income, the spouse’s income may also be taken into account. In cases where the applicant chooses to invest as 1(B), 1(C) or 1(D) above, his total income or part of it may also come from sources coming from activities within the Republic.
As for the Quality Criteria, the applicant and his spouse must submit a clean criminal record certificate from their country of residence or from the Republic in case they reside in Cyprus and generally they should not be considered as a threat in any way to public order or public security in Cyprus. Also, the applicant and his spouse shall confirm that they do not intend to undertake any sort of employment in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest under this policy. In cases where the investment does not concern the company’s share capital, the applicant and/or his spouse are allowed to be shareholders in companies registered in Cyprus and the income from the dividends derived from such companies may not be considered as an obstacle for the purposes of obtaining the Immigration Permit. In such companies, they may also hold the position of an unpaid Director. In cases where the applicant chooses to invest as Sections 1(B), 1(C) or 1(D) above, he should provide evidence regarding his accommodation in the Republic (e.g. title of ownership or contract of sale and proof of payment for the property or rental agreement).
DEPENDENT PERSONS The Immigration Permit is issued to the applicant and it covers as dependent persons his spouse and children under the age of 18. Two separate Immigration Permits may be granted to each spouse, if desired, provided that a separate application is submitted and the relevant fee is paid, without being required for the other spouse to satisfy the criteria of this programme. Furthermore, unmarried children between the ages of 18 and 25, who proved that they are students of tertiary education abroad on the date of the submission of the application and who are financially dependent on the applicant, can submit their own, separate application for an Immigration Permit with the payment of the relevant fee. In such a case the father or mother and/or both parents together must present an additional annual income of €5,000 for each such dependent child. If the children wish to study in any Institution of Tertiary Education in the Republic, they have to submit through the Institution an application for acquisition of a temporary residence permit in the Republic as students, according to the provisions of the relevant legislation (EU Directive). After completing their studies in the Republic, they will be able to submit their own application for an Immigration Permit, as mentioned above with the payment of the relevant fee, regardless of their age and with the condition that the parents will present an additional annual income of €5,000 for every such child. An Immigration Permit may also be granted to the applicant’s parents and parents-in-law, with the submission of separate applications for each person and the payment of the relevant fee with the condition that the applicant will present only an additional annual income of €8,000 for each dependent parent. It is noted that, if for any reason the Immigration Permit granted to the investor/child is cancelled, this will result to the cancellation of the parents’ Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
HIGHER VALUE INVESTMENT FOR INCLUDING ADULT CHILDREN An Immigration Permit may also be granted to children of the applicant over the age of 18, who are not financially dependent on the applicant, on a higher value investment, as set out below: The market value of the €300,000 investment should be multiplied by the number of adult children, who will invoke the same investment for the purpose of obtaining an Immigration Permit. For example, in case the applicant has one adult child he should make an investment worth €600,000, if he has two adult children the value of the investment should amount to €900,000 etc. In case the investment will concern the purchase of real estate, i.e., where the applicant chooses to invest as 1(A) and 1(B), a proof of payment of at least 66% of the market value of the real estate must be submitted upon application. In such a case, each adult child will be able to prove that they have at their disposal a secured annual income of at least €30,000, which will increase by €5,000 for each dependent person. In addition, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.
For further information on this topic, please contact Lysandrou, Florou L.L.C.
