New legal framework for Permanent Residency by investment in Cyprus

Cyprus Permanent Residency by Investment IBCCS TAX

The Cypriot government recently announced certain amendments to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, which became effective on the 24th of March 2021, in an effort to further attract foreign investment to the island and to aid economic recovery and further economic growth.

Investment criteria

The applicant must make an investment in one of the following investment categories:

  • Purchase of a house or apartment from a land development company, with a minimum of a €300.000 first sale (plus VAT).
  • Purchase of other types of real estate with a total value of €300.000, such as offices, stores, hotels, or similar developments, or a mixture of these.
  • Investment of €300.000 in the share capital of a Cyprus-registered company that is based and operates in Cyprus, has established a physical presence in Cyprus, and employs at least five people.
  • A €300.000 investment in Cyprus Collective Investment Organization such as AIF, AIFLNP, or RAIF.

Please note that if an investor sells the investment, he must immediately replace it with an equal or greater value investment, or the Minister may be forced to revoke the Residency permit.

The investor must also prove his guaranteed annual income of at least €30,000. The annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent. This income should derive from abroad, and may include salaries from employment, pensions, dividends from shares, fixed deposits, rents etc. For the calculation of the total amount of the annual income, the spouse’s income may be also taken into consideration.

Other criteria

The applicant and his/her spouse must submit a clean criminal record certificate from their country of residence. They must also state that they do not intend to work in the Republic, except as Managers in a Company in which they have chosen to invest.

In cases where the investment does not involve a Company’s share capital, the applicant and/or his spouse may be shareholders in Cyprus-registered company, and dividend income from such companies may not be considered as an obstacle for the purposes of obtaining an Immigration License.

Please note that all applicants for an immigration permit must apply for a permanent residence permit within a year of their application being approved.