Welcome

Why do investors choose Cyprus as their permanent residence?

Cyprus citizens enjoy the same rights as residents to live, work, and study in the nation. As a result, permanent residence by investment is a wonderful option for people who want to relocate to the European Union and live in a nation with pleasant climate and natural habitat.

If the holder of a residence permit card has lived in Cyprus for five years, he or she can apply for citizenship. A Cypriot passport allows you to travel freely in 173 countries across the world. After getting permanent status in Cyprus, an investor who purchases property can rent it out. Profitability of rental properties in Cyprus varies between 2 and 6.5 percent every year.

At the end of September 2020, the cost of housing in Cyprus had decreased by 1.2 percent. Simultaneously, construction activity remained at pre-crisis levels. The Cyprus Department of Lands and Research issued only 3% fewer building permits from January to November 2020 than it did in the same period in 2019.

Experts at Immigrant Invest advise deferring home or business property purchases until the second half of 2021. More homes are now available at a reasonable price for investors. The fact that you will be able to stay in the country permanently will be an added plus to the purchase.

1. LEGAL Framework

1.1 Pursuant to the provisions of Regulation 6(2) of the Immigration and Immigration Regulations, the Minister of the Interior decided, after informing the Council of Ministers, to issue an Immigration Permit to applicants for third-country nationals in cases of investments which meet the conditions of this policy.

1.2 The applicant must meet one of the investment criteria set out in Paragraph 2.1, as well as the quality criteria set out in Paragraph 3 below. It is understood that the money to be used for the investment should demonstrably come from abroad.

2. INVESTMENT/ECONOMIC CRITERIA

2.1 The applicant should make an investment of at least €300,000 in one of the following categories of investments:

A. Investment in a house/apartment: Purchase of a house or apartment by a land development company, which should relate to a first sale of at least €300,000 (plus VAT).

B. Investment in real estate (excluding houses/apartments): Purchase of other forms of real estate such as offices, shops, hotels or similar developments or a combination thereof with a total value of €300,000. Such properties may also relate to resales.

C. Investment in the share capital of a Cyprus Company with activities and staff in Cyprus: Investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.

It is understood that any alienation of the holder of the Immigration License from the investment he/she has made without its immediate replacement with another of the same or greater value, which must meet the conditions set out in this proceeding, will entail activation of the process of annulment of the Permit under the provisions of Regulation 6 of the Immigration and Immigration Regulations.

2.2 The applicant should, in addition to the investment under Section 2.1 above, be able to prove that he/she has at his/her disposal an insured annual income of at least €30,000. The annual income is increased by €5,000 for each dependent family member and €8,000 for each dependent parent (the same and/or spouse). This income may come from wages for work, pensions, share dividends, permanent deposits, rents, etc. from abroad in cases where the applicant chooses to invest as Paragraph 2.1. (A). The calculation of the total income may also consider the income of the applicant's wife.

In cases where the applicant chooses to invest as Paragraphs 2.1. (B), 2.1. (C), his or her total income or part of it may also be derived from sources from activities within the Republic.

3. Quality Criteria

3.1 The applicant and his wife must submit a white criminal record certificate from their country of residence or from the Republic if they reside in Cyprus and generally do not pose in any way a threat to public order or public security.

3.2 The applicant and his wife will certify that they do not intend to work in the Republic except for their employment as Directors in a Company in which they have chosen to invest under this policy.

3.3 In cases where the investment does not relate to the share capital of a Company, the applicant and/or his wife may be shareholders in Companies registered in Cyprus and the income from dividends in such companies may not be considered as an impediment for the purpose of obtaining the Immigration License. They may also hold the position of Director in such companies without pay.

3.4 In cases where the applicant chooses to invest as Paragraphs 2.1. (B), or 2.1. (C), he/she should present information on his/her place of residence in the Republic (e.g., title to property ownership, purchase document, rental document).

4. Legal Data

4.1 Investing in a house/apartment or other properties:

The applicant submits at his/her request a title of property or a purchase document in the name of his and/or his wife/her husband filed with the Department of Lands and Surveys for residence or other building with a market value of at least €300,000 (plus VAT if applicable) and official receipts for the payment of an amount of at least €200,000 (excluding VAT), regardless of the date of delivery of the property.

It is understood that at the time of submission of the application, evidence should be provided that the investment money has come from abroad and is not the product of internal borrowing (transfers, receipts of payment by card abroad, bank certificate) which should be linked to the corresponding investments. The balance of the value of the investment should be paid into the seller's account at a financial institution in Cyprus.

It should be noted that the purchase of immovable property will be accepted even when it is made by a legal person to whom the applicant and/or his wife/her husband are the sole shareholders or final beneficiaries and who is legally established in the Republic or in another Member State of the European Union or the European Economic Area.

For the purposes of applying Paragraph 2 in relation to the purchase of a house/apartment, it is specified that:

A. The applicant may purchase up to two (2) units of residence (apartments or dwellings) if the total market value complies with the provisions of Paragraph 4.1 above. In the case of a couple, the above condition applies in total to the couple.

B. This purchase must relate to dwellings sold by the development company to a first-time buyer unless the purchase of the dwellings took place before 07/05/2013. Purchase documents relating to resales of dwellings and deposited in the Land Registry before 07/05/2013 (the date of filing of the purchase documents will be confirmed by the Department of Lands and Surveys), will be accepted for the purposes of implementing this policy.

2.2 Investment in the share capital of a Cyprus Company with business activities and staff in Cyprus:

For the purposes of implementing this policy, the applicant shall require a total investment of €300,000, the physical presence of the company in the Republic and the employment of at least five (5) employees. In this case, the following documents should be presented:

Share purchase agreement
Shareholder Certificate and Certificate of Company Formation from the Registrar of Companies and Official Receiver
Business profile of the company including business objectives etc.
Proof of payment (e.g., bank transfer)
Evidence of the employment of employees from the Department of Social Insurance.

5. Dependent applicant

5.1 The Immigration License is issued to the applicant. This includes the dependents of the applicant who is the wife and their minor children up to the age of 18.

If they so wish, two separate Immigration Licenses may be issued to each of the parties of the couple without the obligation and the latter meets the above criteria, provided that a separate application is submitted, and the corresponding fee is paid.

Provided that if the Immigration License granted to the investor is cancelled for any reason, it will entail activation of the process of cancellation of the License for the other part of the couple, in accordance with the provisions of Regulation 6 of the Immigration and Immigration Regulations.

5.2 Unmarried children between the ages of 18 and 25, only when they are proven to be higher education students abroad at the date of application and who are financially dependent on the applicant, can submit their own separate application for an Immigration License upon submission of the appropriate fee. In such a case the father or mother and/or both parents together should present an additional annual income of €5,000 for each such dependent child.

If the children are students in Higher Education Institutions and Universities of the Republic, they must apply for a temporary residence permit in the Republic as students under the relevant legislation (EU Directive). Upon completion of their studies in Cyprus they will be able to apply for their own Immigration License, as mentioned above with the payment of the appropriate fee, regardless of their age, provided only that the parents will present an additional annual income of €5,000.

This License will continue to apply after the age of 25 even if the child is not still unmarried and/or a student and/or financially dependent on his/her parents. It is understood that the spouse and their minor children may not be included as dependent persons in this License. It is also understood that if the Immigration License granted to the investor/parent is cancelled for any reason, it will entail activation of the process of cancellation of the License for this child, based on the provisions of Regulation 6 of the Immigration and Immigration Regulations.

5.3 Immigration permission can also be granted to the parents of the applicant and his wife, by submitting separate applications for each person and paying the corresponding fee, provided only that the applicant will present an additional annual income of €8,000 for each dependent parent. It is understood that their spouse and minor children may not be included as dependent persons in this License. It is also understood that if the Immigration License granted to the investor/child is cancelled for any reason, it will entail activation of the process of cancellation of the License for these parents, based on the provisions of Regulation 6 of the Immigration and Immigration Regulations.

6. HIGHER VALUE INVESTMENT FOR INCLUDING ADULT CHILDREN

An immigration permit may also be granted to adult children of an applicant who is not financially dependent on the provision that a higher value investment is made, based on the provisions of Paragraph 2, as set out below:

The market value of the investment of €300,000 should be multiplied according to the number of adult children, who will rely on the same investment for the purpose of obtaining an Immigration License. For example, if the applicant has an adult child, he/she will have to make an investment worth €600,000, if he/she has two adult children the value of the investment should be €900,000 and so on.

In the event that the investment relates to the real estate market, i.e. where the applicant chooses to invest as Paragraphs 2.1. (A) and 2.1. (B), a certificate of payment of at least 66% of the market value of the properties should be submitted together with the application.

It is understood that, in such a case, each adult child will be able to prove that he/she has at his/her disposal an insured annual income of at least €30,000, which will be increased by €5,000 for each dependent person, as the provisions of Paragraph 2.2. In addition, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.

7. PROCEDURE FOR REVIEW AND EXAMINATION OF THE APPLICATION

Applications, together with the required accompanying documents, will be submitted to the Department of Population and Migration Records personally or through a representative. A fee of €500 is paid when the application is submitted.

In the case of an application by means of a representative, it should be accompanied by written authorization from the applicant indicating the full details of the representative and his/her address and contact numbers.

The application will be processed expedited by the CRMD (Civil Registry and Migration Department) and submitted to the Minister of the Interior, through the Director-General of the Ministry of the Interior (SERVICE).

Below are the addresses of each city’s immigration unit.

Nicosia

Agamemnonos 6, Engomi, 2411 Nicosia

Limassol

Franglinou Rousvelt 223, Zakaki, Building ¨D. Nikolaou, 2nd floor, 3046 Limassol

Larnaka

Piale Piasha 75, 6027 Larnaka

Paphos

Eleftheriou Venizelou & Kaningos 22, 2nd floor, 8021 Pafos

Famagusta

Eleftherias 83, Tatolos Bld, Derynia Plaza, 1st floor, 5380 Derynia

On approval, the lawyer will collect the PR cards.

Questions & Answers

Please reach us at info@brickcube.eu if you cannot find an answer to your question.

What type of investments qualify someone to apply for the PRP?

An investment of at least €300.000 must be made in one of the following categories by the applicant:

A minimum investment in a house/apartment of €300.000 + VAT from a land development business is required, and it must be the first purchase, thus it will be subject to VAT. Note that the applicant may purchase up to two (2) units (apartments or homes) that are being sold for the first time by land development businesses (not necessarily from the same developer).
Investment in other sorts of property (not houses/apartments) for a total of €300.000, such as offices, stores, hotels, or a mix of these. These are typically resale properties.
Investment of at least €300.000 in the share capital of a Cypriot company with activities and people in Cyprus. The company must show that it has a physical presence in Cyprus and that it employs at least 5 people.
Investment in shares/units of AIF, AIFLNP, RAIF of at least €300.000.

Should the property be brand new?

The property must be brand new for investment under (A), while it is not necessary for commercial properties to be brand new for investment under (B).

How do you tell the difference between a resale and a new property?

A resale is a property that was previously owned by someone else, whereas a brand-new property is acquired by the applicant for the first time. A new property will be subject to 19% VAT, whereas an old property would be VAT-free.

Is it possible for a corporation to purchase a property?

Yes, but the firm must be lawfully registered in the Republic of Cyprus or another European Union or European Economic Area Member State, and the applicant and/or his/her spouse must be the sole owners or final beneficiaries of the company.

Are trust deeds acceptable in their place?

Trust deeds are acceptable. The applicant could be the UBO of the company.

What is the difference between Category F and Regulation 6(2)?

The information in this fact sheet is covered under Regulation 6(2). The examination of Category F takes longer, and its key provisions are as follows:

The examination lasts around a year and a half.
You are not required to make a fixed deposit in this category.
Any type of property, whether new or for resale, is acceptable.
Children under the age of 18 lose their P.R. status when they turn 18, and they cannot reclaim it unless they buy a property and apply separately.

Is it possible to purchase the property from a third party?

If the investment is in a house or apartment (see A above), it must be purchased by a development company. It can be from a third party if the investment is in commercial property (see B above).

Are there any banking prerequisites for a PRP application?

The applicant must show that the investment money came from outside the country and are not the result of domestic borrowing (remittances, foreign card payment receipts, bank certificate).

The applicant must meet the receiving banking institution's KYC (Know Your Client) and AML (Anti Money Laundering) regulations (i.e the bank of the seller).

Which members of the family are eligible for PRP?

The main applicant
His/her spouse
Minor children under the age of 18
Adult children up to the age of 25 if documentation is presented showing they are not married, are enrolled in a postsecondary degree program, and are financially dependent on the applicant. Adult children must apply individually for PR in this category (they will not be included on the applicant's application)

Will all of my grown children become residents if I am married?

If they are higher education students studying abroad at the time of application and are financially dependent on the applicant (see 9(iv) above), they are eligible to apply.
If the children are students in the Republic's Higher Education Institutions, they must apply for a temporary residence permit as students under the applicable legislation (EU Directive). After completing their education in Cyprus, they will be eligible to apply for an Immigration Permit on their own. The PRP will stay valid when the child reaches the age of 25, even if the child is married, no longer a student, and/or financially self-dependent; however, the permit will not be extended to the spouse and children in this situation.

Is it necessary for me to renew my PRP?

There are no prerequisites for renewal.

Is it possible to get a PRP in a fast-track process?

It is expected that the application will be examined in two (2) months from the date of submission of the completed application, assuming that all preconditions and requirements are met.

Is it possible for me to work in Cyprus and receive a PRP?

No, except for their employment as directors in a company in which they have opted to invest, PRP applicants are not permitted to work in Cyprus (see 1C category).\

The applicant and/or his spouse may be shareholders in Cyprus-registered companies and receive dividends if the investment does not concern the company's share capital. They may also hold the unpaid post of director in such businesses.

Is it possible for me to go to Shengen nations without a visa?

No, you'll need to obtain a Schengen Visa. PRP holders can apply for a Schengen visa for a period of one year at any European Embassy in Nicosia. The application is easy and straightforward.

Is it necessary for me to live in Cyprus to preserve my PRP?

Yes, those who are granted an Immigration Permit through investment in categories 1(B), (C), or (D) above must seek permanent residency in the Republic within one (1) year of the date of the filed application's approval, whether by purchase or rent (in both cases the sale or rental agreement must be presented). Furthermore, the candidate and their family members shall not remain more than two (2) years outside the Republic.

Is it possible to travel to the United States with PRP?

No, PRP is not a passport and does not provide the same travel privileges; Cypriots wishing to visit the United States must obtain a visa. We recommend that you visit the Official US Department of State Visa Appointment Service for Cyprus for further information on how to apply.

Do I need to take any language or history exams?

No, such exams are not necessary.

Is it necessary to provide a deposit of €30,000?

Because there is no secured income of $30,000 currently, the applicant does not need to block funds at the bank.

Is it possible to purchase two properties?

The applicant can combine two apartments or two houses, or an apartment and a house, with the minimum value 300K euros and it must be the first sale.

Is it possible to rent my property?

The applicant cannot rent his or her home or apartment. Obviously, if it is commercial space or he/she has a second property, the applicant can rent it.

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