Cyprus has been long considered as an ideal location for permanent residency by non- EU nationals. The Permanent Residence by Investment Program offers individuals an effortless route into obtaining permanent residency on the island for themselves and their family members. In an attempt to increase foreign investment the Government of Cyprus has amended the Residency Program in order to offer further access for non- EU nationals interested to permanently reside in Cyprus.
The new amendments were announced on the 26th of March 2021 by the Cyprus Government.
The recent revision of regulation 6(2) is in line with the Cyprus Government's objective to stimulate and increase foreign investment in areas other than merely real estate.
The most significant amendments are as follows:
Property Investment Options
The minimum investment amount remains the same ?300,000 + VAT (if applicable), but new investment options are now available. The investors are now provided with the option to invest not only in new residential properties, but also in:
- new or resale offices;
- commercial properties.
Alternative Investment Options
Furthermore, the applicant is now provided with the option to invest in the share capital of a company with physical presence and activities in Cyprus which employs minimum five persons.
If the investment will be in residential properties, the applicant must be able to prove that a minimum amount of ? 200,000 + VAT (if applicable) is paid.
In all other investment options the total minimum amount of ?300,000 + VAT (if applicable), should be settled prior to the submission of the Residence Permit application.
Additionally, investors may now choose to invest in different sections of the Cyprus Undertakings for Collective Investment in Transferable Securities (UCITS), such as:
- Alternative Investment Funds (AIF);
- Alternative Investment Fund with Limited Number of Persons (AIFLNP);
- Registered Alternative Investment Funds (RAIF).
The investment funds must emerge from abroad and in order for the permit to be sustained should be maintained or replaced by another investment of the same or greater value.
- Additionally, to the initial investment the applicant must prove a secure annual income (including salaries from employment, pensions, dividends, fixed deposits, rentals) of at least ?30,000, increased by ?5,000 for every dependent person (spouse and children) and by ?8,000 for every dependent parent or parent-in-law;
- In the situation where the applicant would invest in new residential units, the annual income must derive from abroad, for all the other investing options the income can be generated from sources within Cyprus. It is important to mention that both the income of the applicant and the spouse can be taken into consideration;
- The applicant and/or the spouse can be shareholders in a Cypriot registered company and receive dividends or holding a position of Director in a company without receiving salary.
No Obligation For Fixed Deposit
The pledging of a deposit in a Cyprus bank account is no longer required, nevertheless the applicants should still confirm that they do not intend to undertake any sort of employment in Cyprus, apart from the position of the Director in the company that they might have chosen to invest in.
The Residency card is obtained approximately within 2,5 - 3 months
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.