In 2021 the Cyprus Government introduced the Permanent Residence Program to attract and increase foreign investment in the country. Cyprus offers a way to secure permanent residence for an investor and his dependants via the “Cyprus Permanent Residence Permit“.
The fast-track Permanent Residence Programme enables the granting of a permanent residence permit to foreigners who intend to invest in Cyprus, provided certain requirements are met.
(A) 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). At least €300,000 of the purchase price must be settled in full with funds from abroad with proof of payment required.
(B) 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.
(C) 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.
(D) 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 must prove that he has at his disposal a secured minimum annual income amounting to €50,000 (employment in Cyprus is not allowed).
The minimum annual income is increased by €15,000 for a spouse and €10,000 for each minor child.
The annual income should be earned from sources abroad and can include overseas employment income, rent, pensions, dividends etc.
The applicant must transfer €30,000 from abroad and deposit it in a Bank operating in Cyprus in a 3-year Fixed Deposit Account.
If the criteria and conditions as listed above are fulfilled, the application is examined by the Civil Registry and Migration Department and the Minister of Interior grants final approval usually within a 2 month period.
Category F: Persons who have fully and freely at their disposal a secure and regular annual income, which is high enough to provide a decent living in Cyprus without having to engage in any business, trade or profession in Cyprus.
Under section 5 of the Aliens and Immigration Regulations, non-EU nationals are entitled to a Cyprus permanent residence permit under Category F, without the strict requirement of a property purchase.
Category F enables third-country nationals who have fully and freely at their disposal a secure and regular annual income, which is high enough to provide a decent living in Cyprus without having to engage in any business, trade or profession in Cyprus, to apply and obtain a Cyprus Residence Permit for them and their spouse and/or their children (under the age of 18).
The main advantage of the Category F residence permit is that a purchase of a property is not required. It is sufficient to simply rent a property in Cyprus. Also, the required annual income requirement is much lower than the equivalent requirement of the fast-track process under Regulation 6 (2) as detailed above. However, processing of the application takes significantly longer than the processing of an application for the fast-track permanent residence permit.
The required yearly income starts from €9568 for one applicant plus €4613 for each dependent person. Also, the applicant must deposit in his/her bank account in Cyprus an amount of approximately €15,000 to €20,000. This amount is not pledged but merely a deposit and the the funds can be used after the application process is completed.
Applications are reviewed by the Immigration Control Board, and the Minister of the Interior will grant final approval. Examination and processing of applications takes around 12-18 months.
This category would be the most appropriate route for those wishing to retire in Cyprus and have savings or receive a pension or income from abroad or for UK nationals wanting to move to Cyprus after Brexit.
