Residence-by-Investment Overview

Cyprus has the lowest crime levels in the EU, a relatively low cost of living, and no inheritance tax. It has high quality health care and offers access to leading medical centers.

Cyprus Permanent Residence Program

In line with the Cypriot government’s intention to increase foreign investment and to help its economic development, Regulation 6(2) of the Aliens and Immigration Regulations has recently been simplified by the Ministry of Interior in order to issue residence permits to applicants from non-European countries who intend to invest in the republic, provided that the following requirements are met:

The main requirement is one of the following investment options:

Purchase of new immovable property of a total market value of at least EUR 300,000 plus VAT. The applicant must submit the application form accompanied with a contract of sale and proof of payment of at least EUR 200,000 plus VAT. The contract of sale must have been submitted to the Cyprus Department of Land and Surveys. The property can also be bought by a company provided that the company is registered in the name of the applicant or the applicant and their spouse. They must also be sole shareholders.
Purchase of up to two new or used immovable non-residential properties (offices, shops, hotels, or other developments) of a total market value of at least EUR 300,000 plus VAT
Share capital of EUR 300,000 of a physical company registered and operating in Cyprus, which employs at least five people
Units of EUR 300,000 in the Cyprus Investment Funds Association’s collective investments (AIF, AIFLNP, RAIF)

The applicant must provide supporting evidence of a secured annual income of at least EUR 30,000 deriving from abroad. This income must increase by EUR 5,000 for the spouse and every additional child and EUR 8,000 for each dependent parent. The income may include, for example, salaries from employment, rents, pensions, and dividends from shares.

Procedures and time frame of the Cyprus Permanent Residence Program

A fee of EUR 500 is payable with the submission of the application and EUR 50 extra for biometric capturing. The application will then be examined by the Civil Registry and Migration Department and will be submitted to a permanent secretary of the Ministry of Interior, who will make a decision within two months. Once approval has been granted, the applicant and all the members of the family must visit Cyprus within one year to obtain the actual permit.

When in Cyprus, a visit is organized to the migration office in Nicosia in order to capture the biometric data for all members of the family applying. The biometric data can be submitted either with the submission of the application for residence, during the application process, or immediately after approval.

Benefits of Cypriot residence-by-investment

The application procedure is highly efficient, within two months
There is a high approval rate if all criteria are satisfied
It is not necessary to reside in Cyprus, but a visit once every two years is required
Dependents can be enrolled in high-quality private schools, offering English language courses
Residence applies to the whole family (applicant, spouse, and children under 18 years old)
Dependent children between 18–25 and parents of the applicant are also eligible
The whole process can be arranged without being present in the country. However, a visit is required for biometric capturing

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?

The applicant must proceed with an investment of min €300.000 in one of the following categories:

Investment in house/apartment of at least €300.000 plus VAT from a land development company and should be the first purchase, therefore it will bear VAT. Note that the the applicant may purchase up to two (2) units (apartments or houses), that are sold by land development companies (not necessarily from the same developer) for first time.
Investment in other types of properties (excluding houses/apartments): such as offices, stores, hotels or combination of such for a total of €300.000. These types of properties can be resales.
Investment in the share capital of a Cypriot Company with activities and personnel in Cyprus: of at least €300.000. The company must demonstrate actual physical presence in Cyprus and employment of at least 5 (five) people.
Investment in shares/units of AIF, AIFLNP, RAIF of at least €300.000.

Should the property be brand new?

For investment under (A) the property must be new, for investments under (B), concerning commercial properties no need to be brand new.

How to distinguish between a resale and a new property?

A resale is a property which was previously owned by another owner whereas in the case of a brand-new property the applicant is the first owner. A brand new property will bear VAT of 19% whereas an old property will be VAT exempt.

Can the purchase of property be made by a company?

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

Are trust deeds accepted instead?

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

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

Regulation 6(2) concerns the information given in this fact sheet. Category F takes longer to be examined and its main provisions are:

Examination period is approximately 1,5 year;
Under this category you do not have to make any fixed deposit;
Any property either new or for resale is admissible;
Children under 18 when they become 18 lose their P.R. status and they cannot get it later unless they purchase a property and apply separately themselves;
The parents of the applicant cannot secure permanent residency under this category;
The holder of PRP is not allowed to be a shareholder and/or director in a Cyprus company.

Can the property be bought from a third party?

If the investment is made in an apartment or house (under A above), it must be bought by a developing company. If the investment is made in commercial property (under B above), it can be from a third party.

Are there specific banking requirements to apply for a PRP?

The applicant must provide evidence, that the investment money has come from abroad and is not a product of domestic borrowing (remittances, foreign card payment receipts, bank certificate).
The applicant must satisfy the KYC (Know Your Client) and AML (Anti Money Laundering) requirements of the receiving banking institution (i.e the bank of the seller).

Which family members get PRP?

The main applicant;
His/her spouse;
Minor children up to the age of 18 years;
Adult children up to the age of 25 provided that evidence is shown that these children are not married and are students at tertiary level of education and that are financially dependent on the applicant. For this category, the adult children must apply separately for the PR (will not be included on the applicant’s application).
His/her parents and parents-in-law. For this category, separate applications need to be submitted.

If I am married with grown up children, will they all become resident?

Provided that they are higher education students abroad at the time of application and that are financially dependent on the applicant (see 9(iv) above)

If the children are students in Higher Education Institutions of the Republic, they must apply for a temporary residence permit in the Republic as students under the relevant legislation (EU Directive). After completing their studies in Cyprus, they will be able to submit their own application for an Immigration Permit. The aforementioned Permit will remain valid after reaching the age of 25 even if the child is married and/or no longer a student and/or financially independent from his or her parents, but in such case, the permit cannot be extended to the spouse and children.

Do I have to renew the PRP?

No, there are no renewal requirements.

Is there a fast-tract process in obtaining a PRP?

Provided that all preconditions and requirements are met, it is estimated that the examination period of the application from the date of submission of the completed application will be approximately two (2) months.

Can I work in Cyprus and be granted a PRP?

No. The applicants of PRP must not work in Cyprus, with an exception of their employment as directors in a Company in which they have chosen to invest in (see 1C category).

In cases where the investment does not concern the Company's share capital, the applicant and / or his spouse may be shareholders in Companies registered in Cyprus and receive dividends. They may also hold the position of director (but unpaid) in such companies.

Can I travel to Shengen countries without a visa?

No, you will need to have a Schengen Visa. PRP holders can apply for a 1-year Schengen visa to any European Embassy in Nicosia. The application is simple and quick.

Do I have to live in Cyprus to keep the PRP?

Yes, people who granted an Immigration Permit, through investment in categories 1(B), (C), or (D) above, must obtain permanent residence in the Republic within one (1) year from the date of approval of the submitted application, whether by purchase or by rent (in both cases the sale or rental agreement must be presented). In addition, the applicant and their family members mustn’t remain outside the Republic for a period of two (2) years.

Can I travel to USA with PRP?

No, PRP is not a passport and does not hold the same traveling rights; Cypriots who wish to travel to the United States require a visa. For information on how to apply, we refer you to the Official U.S. Department of State Visa Appointment Service for Cyprus.

Do I need to sit special language and history exams?

No, such exams are not required.

Do I need to deposit €30 000?

There is no secured income of 30.000 now, so the applicant does not have to block funds to the bank.

Can I buy two properties?

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

Can I rent my property?

The applicant can not rent his house or apartment, where he/she lives. If it's commercial space or if he/she has a second property obviously the applicant can rent it.

New conditions for obtaining permanent residency in Cyprus

Cyprus has revised the rules under which investors obtain permanent residency in the country. The new conditions allow you to invest not only in housing but also to buy objects for commercial use, invest in Cypriot businesses and investment funds. We tell you how to become a resident of Cyprus in 2021.

The changes are aimed at attracting more investment into the country’s budget. The government has expanded investor opportunities to make up for the loss of citizenship by an investment program cancelled in November 2020. The full text of the updated rules for obtaining permanent residency by the investment of March 24, 2021 – on the website of the Ministry of Interior of Cyprus.

How much and what to invest in under the new rules

The old rules from 2016 provided for only one investment option – the purchase of residential property for an amount of €300,000 or more. Under the new rules, three more options are added to the purchase of housing: the purchase of commercial real estate, a contribution to a local business or an investment fund.

Buying a home – a house or apartment in Cyprus. To become a resident, an investor buys up to 2 residential properties. The total amount of the transaction – from € 300,000. Of these, the investor pays € 200,000 at once, regardless of whether the object is commissioned or under construction.

The rules allow the purchase of only new housing, that is, the investor must be the first owner of the purchased house or apartment. But the government will accept the application, if the transaction for the purchase of secondary housing concluded before May 7, 2013.

Buying primary housing must be directly from the developer. If an investor buys two properties, the developer companies can be different.

Buying commercial real estate: office, store, hotel. You can buy one or more objects for a total amount of € 300,000. Objects can be purchased on both the primary and secondary real estate market.

Purchase of shares in local companies. The minimum investment amount is also €300,000. But there are requirements for companies in which investors can invest money. It must be a business which:

Is registered in Cyprus;
Has a physical presence on the island, such as an office;
Has employed at least 5 people.

Purchase of units in local investment funds in the amount of €300,000 and more. Units may only be purchased in collective investment funds:

alternative investment funds with an unlimited number of persons (AIF);
Alternative investment funds with a limited number of persons – up to 75 participants (AIFLNP);
Registered Alternative Investment Funds (RAIF).

It is mandatory to have a residence address in Cyprus in order to get a permanent residence permit. If an investor buys commercial real estate, shares or units of investment funds, he must still have a home on the island – owned or leased. The application for a permanent residence permit is required to be accompanied by a document of confirmation, such as a contract of sale, lease agreement or document of transfer of ownership.

Terms of participation of the investor's family

The new rules also determine the conditions under which the investor and his family members may apply for permanent residency. The conditions relate to the age of relatives, annual family income, employment opportunities for future residents and residence on the island.

To obtain a Permanent Residence Permit together with the investor can:

spouse;
children under 18 years;
Adult children under 25 years of age, if they are unmarried, are students and financially dependent on the investor;
The investor’s parents and spouse.

If the investor wants to include an adult and financially independent child in the application, he adds another €300,000 to the minimum investment amount. Adult children separately confirm that they have sufficient income to live in Cyprus.

The investor is getting a Permanent Residence permit with two sons, 27 and 31 years old. Both sons are earning on their own. In this case, the minimum investment amount on the application would be €900,000: €300,000 for the investor + €300,000 for the first son + €300,000 for the second son.

The minimum annual income of the investor must be at least €30,000. The amount increases if several financially dependent family members receive a permanent residence permit.

The investor receives a permanent residence permit together with his wife, two minor children and his parents. His annual income must be €61,000: €30,000 + (€5,000 x 3) + (€8,000 x 2).

Why do investors get permanent residence in Cyprus?

Residents of Cyprus have the right to live, do business and study in the country on the rights of local residents. Therefore, permanent residence by investment is suitable for those who would like to move to the European Union and live in a country with a warm climate and good environment.

The holder of the residence permit card can also apply for citizenship of Cyprus if he/she has lived in the country for 5 years. Cypriot passport gives freedom of movement in 173 countries of the world.

If an investor buys property in Cyprus, he has the right to rent it out after obtaining permanent residency. Profitability from the rental properties in Cyprus – from 2 to 6.5% per annum.

The cost of housing in Cyprus fell by 1.2% at the end of September 2020. At the same time the pace of construction held at pre-crisis levels. From January to November 2020, the Cyprus Department of Lands and Research issued only 3% fewer building permits than during the same period in 2019.

Immigrant Invest real estate experts recommend not putting off buying homes or commercial properties until the second half of 2021. Now investors have more properties available at an attractive price. And the permanent residence status will be a bonus to the purchase.