Cyprus: FAQ's on Applying for a Cyprus Permanent Residency Permit by Investment (PRP)

Last Updated: 7 July 2016
Article by Charles Savva

The recent simplified amendments to the Cyprus Permanent Residency by Investment (PRP), have proven widely successful in attracting investment into Cyprus from foreign nationals.

The main reasons for this is Cyprus' geographical location, stable economy, favourable tax regime and robust legal system based on English common law, good education and proficiency of English language as the preferred business language. As well as high standard of living, low crime rate and reasonable property prices and 320 days of sunshine, making Cyprus a preferred PRP jurisdiction.

Here below are frequently asked questions (FAQ's), pertaining to the Cyprus Permanent Residency Permit, intended to give clarity to those considering the Cyprus PRP. 

(1) Is the applicant of a PRP required to be present in Cyprus prior to the filing of a PRP application?

No, the PRP application can be processed in the applicant's absence and filed on his behalf by virtue of a power of attorney issued by the applicant in the name of a local lawyer for this purpose.

In the event that the client has provided an agent with a Power of Attorney (including the right to sub-delegate his powers under such document), then S&A may receive a Power of Attorney from such Attorney.

(2) Once issued, is the PRP renewable?

No, the PRP is granted for the lifetime of the applicant, provided the conditions for its issue are satisfied.

(3) How can a PRP be revoked? Are there any conditions for maintaining a PRP?

The PRP may be revoked if any one of the following conditions is not met:

  1. The PRP holder and/or his dependents and/or his parents fail to visit Cyprus once every two years;
  2. The PRP holder and/or his dependents and/or his parents acquire permanent residency in another country;
  3. The residential property purchased for the purposes of the PRP application is sold and not replaced with another "first time" sale residential property with a minimum acquisition cost of €300,000.

(4) What type of immovable property qualifies for the purposes of a PRP application?

The properties eligible for a PRP application are required to have a purchase value of at least €300,000 (non-inclusive of VAT) and be a "first time" sale. The applicant may purchase the property through a company of which he and/or his spouse are the ultimate beneficial owners. Any one of the following property combinations is eligible:

  1. one apartment or house;
  2. two apartments or two houses or combination of each;
  3. one apartment/house and one commercial shop/warehouse of up to 100 square meters;
  4. one apartment/house and one office of up to 250 square meters.

Where the PRP applicant purchases two properties, for the purposes of the PRP application the said properties must be purchased from the same developer.

For the purposes of filing the PRP application, the PRP applicant is required to evidence purchase of the immovable property(ies) (irrespective of the date of delivery), and payment of at least €200,000 at the time the application is filed, with the remaining €100,000 to be paid afterwards. Payment of the full amount is required to be transmitted to a bank account held in Cyprus at a financial institution of the seller.

Property purchased previously by the investor may be used for the purpose of PRP application, if all criteria relating to such investment have been complied with.

Property may have been purchased through the CY/EU based company of the investor. In the event that the property has been purchased previously by an offshore company of the investor, which is solely owned by the investor and such property is transferred to the CY/EU Company of the investor then this may be accepted, if all other criteria have been complied with.

(5) Can the Ministry of Interior discover whether the immovable property(ies) purchased under the PRP application have been sold?

Yes, the Department of Migration conducts periodic checks through the local Land Registries to establish whether the PRP holders continue to own the relevant properties or whether the properties have been sold.

(6) Can a PRP holder travel freely within the EU without any additional visas from the country to be visited?

No, a visa from the EU country to be visited will still be required for a Cyprus PRP holder. The PRP however does allow the holder to avoid Visitor Visa requirements within the EU. EU member states apply their own regulations for allowing the entry of PRP holders.  However, by virtue of acquis communautaire, EU and EEA states are legally bound to respect the PRP issued by an EU member state and to enable the holder to enter the visiting EU or EEA country, legally.

(7) Who collects the interest earned on the 3-year fixed deposit of minimum €30,000, which is pledged for the purposes of acquiring a PRP?

Any interest earned is income of the deposit holder i.e. the PRP holder.

(8) Can a PRP holder work in Cyprus?

No, The PRP holder's annual income, which must be at least €30,000 plus an additional €5,000 for each dependent and €8,000 for each parent, must emanate from sources outside of Cyprus. At the application stage, the PRP applicant signs a statement confirming his intention to not be employed in Cyprus. The PRP holder's annual income may comprise of dividends of a foreign and/or Cyprus company or salaries from employment outside of Cyprus, or pensions, or rents from abroad or interest on fixed deposits, wherever they are situated.

(9) What are the certification requirements for documents filed in support of a PRP application?

All documents (including birth certificates, marriage certificates etc.) are required to be filed in original or as true translations of the original, duly translated into Greek or English. Documents filed as true translations of the original are required to be legalised in one of the following ways:

  • With the Apostille stamp under the Hague Convention;
  • At the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country or the diplomatic mission of the issuing country in the Republic of Cyprus.

(10) What are the supporting documents required to be submitted as proof of the PRP applicant's source of annual income?

The PRP applicant is required to provide any of the following documents/information as proof of their annual income (indicative list):

  • Confirmation of the applicant's annual income by the Inland Revenue Department of the applicant's country of origin;
  • Accountant's report;
  • Copies of rental agreements, in support of PRP applicant's rental income;
  • Salary statements from the PRP applicant's employer;
  • Dividend vouchers in support of PRP applicant's dividend income;
  • Any other appropriate supporting documentation;
  • Statements from foreign banks confirming receipt of interest income on deposits held in the PRP applicant's name;
  • Confirmation from the bank on interest received from funds deposited on the bank account.

As a general rule bank statements showing the source of any income are mandatory.

 (11) How long must the amount of €30,000 deposited in a Cyprus Bank remain in place? Can it be deposited in any other currency?

The Regulations provide that the amount of €30,000 is fixed for three years. It is also possible for the amount to be in a currency other than Euro; provided the total value of the deposit is the equivalent of €30,000 at all times during the three year lock-in period. The interest rate applied to the fixed deposit depends on the terms of offer of each eligible bank. The beneficiary of the interest accrued is the depositor/applicant.

(12) Can the PRP holder release the pledge on the €30,000 deposit, at the expiration of the three-year lock in period?

Yes, at the expiration of the three-year lock-in period, the PRP holder can freely transfer the €30,000. The PRP holder is required to maintain a bank account in Cyprus for the duration of the PRP, as proof of his ability to financially support himself and his dependents without being employed in Cyprus.

(13) What is the age limit for adult children of a PRP applicant to join in a PRP application as adult dependents?

The PRP issued covers the holder's spouse and children up to 18 years old, as well as the main applicants' parents. Adult children of the PRP applicant between 18 and 25 years old can join a PRP application provided they are students or undergraduates. (adult children between 18 and 25 years old who are not students or undergraduates cannot join their parents PRP application). Married children of PRP applicants between 18 and 25 years old, that fulfil the criteria can join their parents' application, however their families cannot. 

The said permit is still valid even if the holders have exceeded the age of 25 and even if they do not remain unmarried and/or students and/or financially dependent on their parents.  It is noted that their future spouses or underage children cannot be included as dependent persons on this permit.

Adult children of the PRP applicant who are not financially dependent on their PRP applicant parents can also join in a PRP application, provided the value of the residential property invested in is increased by €300,000 for each adult child added to the application.

For example, for an adult child of 30 years old who is financially independent to be added in a PRP application, the PRP applicant is required to purchase a residential property of €600,000 etc. In such an event a confirmation of payment for the 66% of the acquisition cost of the residential property must be submitted with the application (e.g. €400,000 for a property with an acquisition cost of €600.000). Additionally, the adult child, financially independent of the PRP applicant is required to demonstrate a secured income of at least €30,000 derived from sources outside of Cyprus and to maintain a three-year fixed deposit of €30,000.

(14) How soon can a PRP be issued from the day an application is submitted?

A PRP is issued within two months from the date the application is submitted.

(15) How can the PRP holder receive the permit once it is granted?

The PRP holder should visit Cyprus at any stage within one year from the date of issuance of the PRP to receive such a permit, (in order for the authorities to obtain his biometrics) and subsequently every two years thereafter.

 (16) How can S&A assist in obtaining a PRP?

S&A can assist with all aspects of the PRP application, including preparation and filing of the relevant application and supporting documentation, the opening of a bank account, and with an introduction to suitable real estate agents in Cyprus. The affiliate law firm of S&A, Dionysiou & Partners, can assist with the drafting of the agreement for acquiring immovable property and advise you on all legal matters relevant to the PRP application process.

(17) Can dependent adults between the ages of 18-25, who have finalized their studies or are not studying, join their parents' application?

No. The law strictly refers to students or undergraduates. An adult who is not a student cannot join his parents application, irrespective of whether he is or isn't dependant on them.

(18) How does a dependant (already) studying in Cyprus (or planning to study in Cyprus) join the PRP of his parents?

In the event that the child is a student in a higher educational institution of the Republic, he must submit an application for obtaining a temporary residence permit in the Republic as students under the relevant legislation (EU Directive).

After completing his studies in Cyprus he will be able to submit his application for obtaining a PRP, regardless of his age at that moment, with the sole requirement being hat the parents present an additional annual income of € 5,000.

In the event that the child plans to attend a higher educational institution of the Republic, after having obtained a PRP on his parents' application, said PRP shall be revoked and a temporary residence permit in the Republic shall be granted.

After completing his studies in Cyprus the PRP shall be re-issued to him, regardless of his age at that moment and with no further requirements to be fulfilled.

(19) What options does the applicant have in the event it is difficult/not possible to obtain a "recent" original birth and marriage certificate in his jurisdiction, or if only 1 original of these documents has been issued?

In this event the applicant can have a copy of the original document translated and duly legalized. This copy along with the original document shall be presented to the authorities who shall make a note that the original was presented to them. The original shall be returned to the client instantly.

We are a market leader in the Residency and Citizenship practice area in both Cyprus, Malta, and Canada. With over 15 years of experience in the sector and 100% success rate in processing citizenship and residency applications. As a leading immigration services specialist, we assist High Net Worth families from Europe, Asia, Africa and the Middle East, with their immigration needs.

For further information, or to discuss your personal circumstances in the strictest of confidence, contact Mr Charles Savva, Managing Partner, at csavva@cccyprus.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Charles Savva
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions