Pursuant to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, a third-country national (non-EU citizen) can apply for an Immigration Permit through investment, the so-called ‘fast-track’ Permanent Residency Permit, provided that certain investment and quality criteria are met. As the name suggests, the Permanent residency permit’s attractiveness lies in the fact that once granted, it is permanent and does not have to be renewed, unless cancelled.
Investment Criteria
In order to qualify for the Permanent Residence Permit, the Applicant must invest at least €300,000 in one of the following categories of investments from funds that derive from abroad*:
Category A
Investment in residential property- house/apartment directly from a real estate development company, which should relate to a first sale (not a re-sale) for the minimum amount of €300.000 plus VAT.
The property may be purchased through a Company registered in Cyprus, another EU Member State, or a state of the EEA and of which the Applicant and/or the spouse are the beneficial owners.
Category B
Investment in commercial property (excluding residential houses/apartments) such as offices, shops, hotels, or similar developments, or a combination thereof, of a total value of at least €300,000 which can be either the first-time sale or a re-sale.
Category C
Investment in the share capital of a Cypriot company (a company registered in the Republic of Cyprus) with activities and staff located in Cyprus. The investment in the company’s share capital must be of a minimum amount of €300.000 and the company must operate and be based in Cyprus with a proven physical presence in Cyprus, having hired at least five (5) employees.
A share purchase agreement along with confirmation of payment, Company certificates, a business profile with investment goals, as well as proof from social insurance for the employment of staff will need to be submitted for the processing of the application.
Category D
Investment in units of a Cyprus Collective Investment Organization (type AIF, AIFLNP, RAIF) of a minimum amount of €300.000.
The value of the Investment must be equal to at least €300,000 in units of a Cyprus Investment Fund.
A prospectus or investment plan will be required for submission purposes, along with a confirmation of payment for the purchase of the units and approval of CySEC for the establishment of the fund.
*The funds used for the investment must be proved to have been transferred from abroad, i.e. from the Applicant’s and/or his/her spouse’s bank account, provided the spouse is included in the application. The funds used for the investment can also be transferred to Cyprus from a company in which the Applicant and/or his/her spouse are the sole shareholders, provided the spouse in included in the application.
Disposable Annual Income
In addition to satisfying the investment criteria outlined above, the applying investor must be able to demonstrate that they have at their disposal an minimal annual income of at least €50,000, which increases by €15,000 for the spouse and by €10,000 for each minor child of the Applicant or of his/her spouse This annual income may derive from receiving a wage or salary, dividends from shares, fixed deposits, rents, etc.
In the case of investment under category A – income must strictly originate from overseas
In the case of investment under categories, B, C, and D – income or part of it may originate from related activities in Cyprus.
The annual income of the Applicant can be proved either through his/her tax return declaration from the country where he/she is a tax resident or through official certificates issued by an independent certified accountant.
Dependent Persons
1. The Immigration Permit issued to the Applicant also covers (if included in the application) his/her spouse and children under the age of 18.
2. Unmarried children between the ages of 18 and 25, who are students of tertiary education abroad on the date of the application and who are financially dependent on the Applicant, can submit their own, separate application for an Immigration Permit, in which case the Applicant must secure an additional annual income of €10,000 for each such dependent child.
If the children wish to study at any institution of tertiary education in Cyprus, they have to submit, through the institution, an application for acquisition of a temporary residence permit in Cyprus as students and on completion of their studies, they will be able to submit their own application for an Immigration Permit, as mentioned above, regardless of their age and with the condition that the Applicant will secure an additional annual income of €10,000 for every such child.
Required Documents
- The Applicant and his dependants must provide valid passports.
- The Applicant and his/her spouse must provide a clear criminal record certificate issued in their country of origin and in their country of residence, if different.
- The Applicant must provide proof that the funds used for the investment has been transferred to Cyprus from abroad.
- The Applicant must provide confirmation of annual income either in the form of his/her tax return declaration from the country where he/she is a tax resident or through official certificates issued by an independent certified accountant.
- The Applicant and his/her dependants must submit a medical insurance certificate covering inpatient and outpatient care.
- The Applicant and his spouse must submit a declaration stating that they do not intend to undertake any employment in Cyprus with the exception of their employment as directors in a company in which they have chosen to invest (i.e. under Category C).
- The Applicant must submit evidence of the investment made:
- in the case of Category A or B:
- original or certified true copy of the Title of Ownership or Contract of Sale and
- proof of payment of at least €300,000 + VAT
- in the case of Category C:
- Share Purchase Agreement with a minimum value of €300,000;
- Shareholders Certificate and Certificate of Incorporation issued by the Registrar of Companies;
- business profile of the company;
- confirmation by the Social Insurance Department that the company employs at least 5 people.
- in the case of Category D:
- titles or other proof of units purchases with a minimum value of €300,000;
- confirmation by CySEC on the setup of the fund;
- memorandum of the fund.
- in the case of Category A or B:
- Furthermore, the Applicant must submit:
- his/her CV;
- marriage certificate;
- children’s birth certificates.
Benefits of the Programme
- Immigration Permit offers a Non-EU national the right to permanently reside in Cyprus.
- Fast Track procedure: provided that investment and quality criteria are met and that all requested documentation is submitted, applications are examined by the Ministry of Interior within a period of two (2) months from the date of submission.
- Exemption from immigration entry procedures (e.g. Visitor’s Visa)
- Applicant’s eligible family member can also obtain it (married spouse, children under 18 years old and financially dependent children up to 25 years old)
- Children over the age of 18 who are not financially dependent can also obtain the permit with additional investment.
Conclusion:
Regulation 6(2) is welcomed by many, especially with the suspension of the Cyprus Investment Program and subsequent need for Cyprus to introduce a valuable, comparable alternative, as a means of boosting its economy through foreign investments. The Amended Permanent Residency Programme has added greater choice, almost allowing investors to carry out “investment shopping”, prior to investing the minimum amount of €300,000, in accordance with their needs and objectives. It has further added flexibility for Applicants under Investment Category B,C and D by allowing them to present income derived from sources within the Republic as part of the annual disposable income. The Programme aims to attract foreign investment not just into residential property, but into Cyprus Businesses, fostering innovation and the growth of the island’s economy.
How can we assist:
Our team of experienced advisors will guide you through the entire process and provide:
- Assistance with the property search;
- Assistance with the property transfer process at the Land Registry;
- Assistance with obtaining permission from the Council of Ministers for the acquisition of property in Cyprus (where applicable);
- Preparation and negotiation of the sale- purchase agreement for the property of choice;
- Carrying out due diligence on the property;
- Preparation and assistance with supporting documentation for the application for the Permanent Residency;
- Submission of the application with supporting documentation and following up for updates;
The information provided above by C. Pilyugin & Co LLC is intended for general information purposes only and should not be construed as professional or legal advice in any sense. It is advised that readers should refrain from acting only on the basis of the above information without first obtaining legal or professional advice on the subject.
Our professional team at C. Pilyugin and Co LLC will guide applicants through the whole process, starting from preparing the required applications and gathering documentation to satisfy the quality criteria to seeking out appropriate property for Applicants, based on their preferences and objectives for investment under the Cyprus Permanent Residence – Fast Track Immigration Permit (Regulation 6(2)).
Please send an email to [email protected] or fill out the form below to book a consultation with us.