To obtain permanent residence in Cyprus, non-EU citizens must invest at least €300,000 in real estate or securities and have at least €30,000 in a bank account.
Permanent residents are exempt from paying taxes on worldwide income, including dividends and capital gains. There is no inheritance tax in the country, and income and property taxes are modest.
An application for permanent residence in Cyprus will be reviewed within two months; you can obtain the status with your family. Until 2020 Cyprus also had a citizenship by investment program, but that has since been cancelled. Cyprus citizenship by descent is another option to obtain citizenship (requires Cypriot ancestors).
About Cyprus
Cyprus is a favorite immigration or “safe haven” destination for wealthy families, entrepreneurs, and investors. The island is already a member of the European Union, although it is not yet a member of the Schengen zone; an application for membership is still in the works.
Cyprus’ GDP has continually expanded by several percent every year over the last decade, making the country’s economy one of the fastest growing in Europe.
The country boasts a high standard of living, good medicine, and a good education system, which includes several British schools. Cyprus has one of the lowest crime rates in the European Union and is ranked fifth in the world in terms of safety.
Permanent residency in Cyprus is appealing to investors for a variety of reasons, including:
- No need to pay taxes on foreign income, investments, or inheritance, and low rates of property, income, and corporation taxes.
- A growing real estate market with consistent rental income.
- The option to conduct business in Cyprus with the convenience of forming a corporation.
- Access to good healthcare
- No need to be fluent in Turkish or Greek. English is sufficient for ordinary communication: 80% of the population speaks English.
- The processing time for permanent residence in the Cyprus residency by investment program is only two months.
- Applications can be done from anywhere.
- Investing in a residential property through the Cyprus Golden Visa will allow you to obtain permanent residence for your entire family, including the wife or husband, children under the age of 25, and the spouses’ parents, right away.
- There is no requirement to live in Cyprus permanently, just once to submit the biometric data. After that, visiting the island once every two years suffices.
- With this investment program, the investor retains permanent residency status for the rest of his life and passes the Cyprus permanent residence down to his offspring.
- Five years after obtaining permanent residence you can apply for Cyprus citizenship (passport allows visa free travel to 170+ countries, including the European Union and the United Kingdom).
The advantages make Cyprus one of the most appealing relocation locations in the European Union: the country is pleasant both to live in and to do business in.
Tax optimization in Cyprus
The Cyprus jurisdiction is one of the greatest areas to register an international business’s tax residency or to establish a new company. The country’s business tax rate is merely 12.5%.
After five years of residency in Cyprus, a permanent resident can apply for citizenship. Citizens can travel visa-free to over 170 countries, including the European Union and the United Kingdom.
The Advantages of Permanent Residence in Cyprus
The Cyprus permanent residence program has multiple benefits, for example:
- Tax reduction – Cyprus has no tax on global income or inheritance, and the rates of property and income taxes are minimal. The corporate tax rate is 12.5%, one of the lowest in Europe.
- Income from real estate investment – Cypriot real estate prices rise by 1—4% per year. The same yield is applied to residential property leases.
- Obtain Cypriot citizenship – Permanent residence is granted for life in this investment program and is inherited by offspring. After 5 years of permanent residency, the holder can apply for Cyprus citizenship and become a full-fledged European Union citizen.
- Possibility of owning a business – Unlike many other investment immigration programs, investors having permanent residence in Cyprus can buy shares in local enterprises, form their own corporations, or transfer operating companies to the island’s jurisdiction.
- High standard of living – Since 2001, Cyprus has been on the IMF’s list of developed economies. Cyprus is ranked 31st in the world by the Human Development Index.
Investment Options for the Cyprus Golden visa program
To be eligible for the Cyprus Permanent Residence by Investment program, candidates must purchase a first-time selling residential property or sets of properties worth at least €300,000 in Cyprus (plus VAT, if applicable).
The term “first-time sale” refers to new properties rather than resales. They must have been purchased from a real estate development firm.
Investors can apply for permanent residence in Cyprus under a streamlined category 6.2, known as Fast Track Permanent Residence, which takes only two months to complete. This status is granted for life and cannot be extended.
The investor selects one of four investment choices in order to get a permanent residence permit in Cyprus:
- Residential real estate.
- Commercial properties.
- Cypriot company shares.
- Cypriot investment fund shares.
All of these choices demand a €300,000 investment.
Investment of €300,000 or more is required to obtain a residence permit in Cyprus.
1 – Residential real estate
Purchasing property in Cyprus is one of the quickest and easiest ways to obtain residency in an EU country.
An investor can purchase one or two principal residences for a total of €300,000 including VAT. The regular VAT rate is 19%, but for a single property purchased for personal use, the rate is 5%.
New buildings should house real estate. If the applicant purchases two properties, the developers may differ. It is impossible to purchase real estate on the secondary market. The only exception is if the investor purchased the secondary property prior to May 7, 2013.
An investor can purchase real estate as an individual or through a company owned by the applicant or the applicant’s spouse. It is critical that the applicant or spouse owns the entire company.
Real estate must be owned until either permanent residence or citizenship is obtained. If an investor wishes to sell property, he is legally required to purchase another property at the same or greater price.
2- Commercial property
Instead of a residential home, an investor can purchase one or two commercial properties for €300,000 excluding VAT. Commercial real estate can be purchased in both the primary and secondary markets.
3 – Shares in Cypriot companies
Shares in Cyprus businesses that earn a profit on the island and employ five people.
4 – Cypriot Investment fund
Cypriot investment funds have shares starting at €300,000. Securities can only be purchased from AIF, AIFLNP, and RAIF collective investment funds.
Criteria for the Cyprus residence permit investment program
It is not enough to simply invest money to gain residency; the applicant must also demonstrate the legitimacy of the source of funds, generate enough money, and have a permanent registration address in Cyprus.
The investment requirements for obtaining a Permanent Resident Card are substantially lower:
- You must purchase at least €300,000 in real estate.
- You must deposit €30,000 into a Cyprus bank. The funds will be held for a period of three years.
- You must demonstrate that you have an annual income of at least €30,000 for yourself and an additional €5,000 for each dependent (spouse and children).
- You must have an additional €8,000 in income if you include your parents or your spouse’s parents.
- You must not have a criminal background.
- Cyprus permanent residence is not required, however residents must visit the island at least once every two years to maintain their status. Otherwise, the status could be revoked. But, the program’s terms forbid getting a residency visa in another nation.
The investor’s family will have permanent residence in Cyprus for the rest of their lives. Future sons and daughters-in-law, as well as grandchildren, do not inherit this status. They are need to apply for a temporary residence permit.
The Application Process
To apply for residency in Cyprus through the Golden Visa program, you must first enter the country with an entry visa and then submit your application to Cypriot immigration authorities. The following is a basic description of the application process:
- Enter Cyprus with an ordinary entrance visa, which can be obtained at the Cypriot Embassy in your country.
- Complete your investment and apply for permanent residence at the Civil Registry and Migration Service (CRMD). You can apply on your own or through a legal counsel. You must have all of the necessary documentation.
- Your application will be given to the Ministry of Interior in Cyprus.
- The processing time for applications is around two months.
- If your application is approved, you will receive a letter of approval.
- Within one year of your approval, you and your family members must enter Cyprus and go to the Civil Registry and Migration Department to submit your biometric information and collect your Permanent Residence Cards.
