Cyprus – Permanent Residency by Investment

Introduction

Cyprus, with its warm and stable climate and convenient geographical position, is considered an attractive place for both business and residence. The investment landscape in Cyprus is beneficial due to the island’s well-qualified labor force and reliable transport and telecommunications system.

Cyprus has a modern, free-market, service-based economy, where in conjunction with its effective and transparent regulatory and legal framework, it offers international investors and businesses the confidence to invest, grow, and prosper.

Requirements

To qualify for residence, applicants must fulfil both of the following requirements:

1. Choose one of the following options:

  • Purchase up to two new immovable residential properties of a total market value of at least EUR 300,000 plus VAT, with the option to purchase from two different developers.
  • Purchase up to two new or used immovable non-residential properties (offices, shops, hotels, or other developments) of a total market value of at least EUR 300,000 plus VAT.
  • Invest EUR 300,000 in the share capital of a physical company registered and operating in Cyprus, which employs at least five people.
  • Invest EUR, 300,000l in units of the Cyprus Investment Funds Association’s collective investments (AIF, AIFLNP, RAIF).

2. Provide supporting evidence of a secured annual income of at least EUR 50,000 deriving from abroad (an additional EUR 15,000 is required for each dependent spouse and EUR 10,000 for each minor child).

In addition, applicants must satisfy the following requirements:

  • Submit clear criminal record certificates from the country of origin and country of residence every three years (also applicable for all adult dependents).
  • Provide an official statement confirming non-employment (not applicable to applicants who are directors of a company they have invested in).

Procedures of the Cyprus Golden Visa

Applications for Cypriot residence must include completed application forms and should be accompanied by the appropriate fees and supporting documents.

Successful applicants must annually provide evidence of maintaining their investment and proof of health insurance if they no longer benefit from the General Healthcare System.

The income derived from abroad may include employment salaries, rent, pension, interests on deposits, and dividends from shares.

Buying Real Estate in Cyprus

The real estate market in Cyprus saw an increase in property demand from 2004 to 2008, leading developers to increase supply to meet the demand. However, due to the global financial recession, real estate demand declined, leaving many completed properties available in 2009. Without demand, prices dropped significantly. Since 2016, there has been a steady increase in demand and the number of transactions across the island. This rise has helped stabilize prices and begun to show annual increases.

The main component of a healthy real estate market in Cyprus has always been residential property, specifically within the luxury segment and second homes.

The property options in Cyprus that offer buyers the best value for their money include:

Seafront Properties

The areas with the highest demand provide lifestyle aspects (i.e., beaches) and infrastructure, such as Ayia Napa, Limassol, and Paphos.

Integrated and Planned Communities

These areas typically have a casino, a golf course, or a community at their core, offering properties that cater to all types of owners, including locals, new residents, second homeowners, and vacationers.

The price per m² for properties of this nature generally ranges between EUR 10,000 and EUR 20,000, depending on the location and building specifications. A good figure to keep in mind is around EUR 10,000, as there is room for appreciation.

Most foreign buyers acquire properties in the above-mentioned categories, rather than purchasing property in the capital city.

Main Benefits

The application procedure is highly efficient, with a high approval rate if all criteria are satisfied.

It is not necessary to reside in Cyprus, but a visit once every two years is required.

Dependents can be enrolled in high-quality private schools offering English language courses.

Residence applies to the main applicant’s spouse and children under 25 years.

The whole process can be arranged without being present in the country, except for biometric capturing.

Successful applicants are eligible to apply for Cypriot citizenship after five years of residence.

Application Process

Month 1

Initial due diligence checks completed.

Client agreement signed and retainer paid.

Application submitted to the government.

Biometrics captured at the migration office in Nicosia (depending on the client, the biometrics can be taken either before or during the application submission or after its approval).

Month 2

Application is approved

Applicant and family visit Cyprus within one year to obtain residence permit.

After Month 2

Cypriot residence permit granted.