Program for obtaining permanent residence in Cyprus
The attractiveness of Cyprus as a tourist center and a country to live in is largely due to its advantageous geographical position. The island is located at the crossroads of three continents: Europe, Asia and Africa, and is famous for its picturesque beaches. However, the pleasant tropical Mediterranean climate is not the only significant advantage of Cyprus. It is known that here the lowest crime statistics in the European Union, relatively inexpensive accommodation and a high-quality medical system, and there is no inheritance tax. The presence on the island of many higher education institutions and private English schools with a high level of education increase the attractiveness of the island for young people. Graduates of many universities successfully enter American, Canadian and European universities.
In 2004, Cyprus officially became a member of the European Union. The jurisdiction is characterized by a modern service-oriented economy, as well as an efficient and transparent legal system. All this creates favorable conditions for international investment, guaranteeing depositors reliability and high capital gains. As part of the government program to attract foreign funding and economic development, a simplified procedure for obtaining permanent residence was developed for investors who are not citizens of the European Union.
Terms of participation in the program and required documents
A candidate for obtaining permanent residence in Cyprus, along with the application must provide:
Contract for the purchase of local real estate worth at least 300,000 euros (excluding VAT) and proof of payment of at least 200,000 euros (excluding VAT). Acquisition of real estate in Cyprus is the main condition of the program. The contract of sale is submitted to the Department of Land Resources and Land Management of Cyprus. The property may be purchased in the name of a legal entity, provided that it is registered to the applicant or to the applicant and his/her spouse as the sole shareholders.
The candidate can buy the following properties:
- one or two residential properties (apartments/houses) or
- one residential property and one shop (at least 100 m2) or
- one residential property and one office (at least 250 m2).
Only primary market properties are eligible to participate in the program.
- Document of financial solvency, supported by evidence of income outside Cyprus of at least 30,000 euros per year (salary, rental income, pension, dividends, etc.) In addition, 5,000 euros is added to the required income of the candidate for each child, as well as 8,000 euros for each dependent parent.
- Written confirmation of the placement of a deposit in a Cypriot bank in the amount of at least 30,000 euros for a period of 3 years, after which the funds can be withdrawn from the account.
Permanent residence granted to the main applicant extends to his/her spouse, children under 18 years of age, as well as the parents of the main applicant and his/her spouse. The applicant's children aged 18-25 may also apply for permanent residence, provided they are studying, unmarried and financially dependent on the applicant.
- Certificate of non-conviction issued in the country of residence (also submitted by the spouse of the applicant and other dependent family members). The listed persons should also not be included in the list of persons whose property has been seized or confiscated in the EU countries.
- Statement of commitment that he (she) will not be employed in Cyprus (also submitted by the spouse of the applicant and other dependent family members).
- Medical insurance policy (issued for the main applicant and all dependent persons).
All documents must be translated and certified.
Procedure and terms of consideration of the application
Applications are reviewed by the Department of Civil Registry and Migration. The final decision is made by the Permanent Secretary of the Ministry of Internal Affairs 2 months after the submission of documents. In case of a positive response, the applicant and all members of his family are required to come to Cyprus within one year to obtain permanent residence. Biometric data is collected at the stage of submitting or processing an application, or immediately after its approval. To do this, the applicant and his family members need to come to the Migration Service in Nicosia.
Citizenship. An application for obtaining Cypriot citizenship by naturalization can be submitted no earlier than 7 years after obtaining permanent residence.
Taxation. Persons who actually reside in Cyprus for more than 183 days during a tax year are considered tax residents in Cyprus for the current tax year. Individuals who are tax residents of Cyprus under the Income Tax Law but are not domiciled in Cyprus are exempt from taxes on interest and dividend income and from the Special Defense Contribution.
The corporate income tax rate is 12.5%.
The main advantages of obtaining permanent residence in Cyprus:
- Extension of permanent residence to the whole family (applicant, spouse and children under 18)
- Possibility of remote registration of permanent residence (only one visit to Cyprus is required to collect biometric data)
- The possibility of obtaining permanent residence in 2 months
- No requirement for actual residence in Cyprus (you can only visit once every 2 years)
