The Government of Cyprus is focused on attracting foreign investment to further economic growth, announcing amended regulations for the rights of non-EU nationals to live in Cyprus.
Non-EU nationals who invest in Cyprus are granted permanent residency rights (immigration permits) for as long as the investment is held.
Immigration to Cyprus provides substantial advantages over immigration by investment to the United Arab Emirates.
The amended regulations provide non-EU nationals and their family members the right to live in Cyprus if they invest at least €300,000 in Cyprus and took effect on 2nd of May 2023.
For tax benefits of individuals moving to Cyprus, please read the information at the end of this article Investors may opt for one of the following investment choices:
- Investment in a house or apartment: The investor may purchase a new house or apartment as his or her own dwelling directly from developer companies worth at least €300,000 plus VAT; buying resale property does not qualify for permanent residency.
- Investment in other real estate: An investor may acquire commercial real estate such as hotels, shops, or offices, or any combinations of those, with a total value of not less than €300,000 plus VAT. Buying resale property under this category does qualify for permanent residency.
- Investment in company shares: Investors may acquire shares of Cyprus companies operating in Cyprus through their physical operative premises which employ at least 5 persons.
- Investment in investment funds: Investors may also invest in shares (units) of Cyprus investment funds, such as AIFs or RAIFs, which carry out their investments in Cyprus.
Investors are allowed to replace their investment at any time later, provided that the new investment falls under one of the above category and subject to the conditions following.
The invested funds must have entered Cyprus from abroad, from the personal account of the investor or his or her spouse, directly to the seller’s bank account in Cyprus.
Furthermore, investors aiming for permanent residence in Cyprus must prove that they have an available secure annual income from abroad (from outside of Cyprus) of at least €50,000.
The investors’ proven income from abroad is increased by €15,000 annually to cover the permanent residence permit of the dependent spouse of the investor, and by €10,000 annually to cover the permanent residence permit of the each dependent child of the investor.
Documents required to be submitted with the application for Cyprus permanent residence permits (immigration permits) based on investment
- Documents proving that the investment funds have been remitted from the investor’s (or spouse’s) bank account outside of Cyprus and that they have been directly credited to the seller’s bank account in Cyprus;
- Documents proving the settlement of the purchase with the seller;
- Documents proving the investors secure income from abroad, based on the criteria explained above;
- Clean criminal records on behalf of the investor and its spouse and children, if applicable, from both their countries of origin and their countries of residence, if the latter is different from the country of origin;
- Attestation that the applicants (investor and spouse and children, if applicable) that the do not intend to work in Cyprus;
HOWEVER: The applicants (investor and spouse and children, if applicable) are allowed to be employed as directors by the company in which the investor invested;
- If the investor invested in the options 1 or 2 at the top of this article, proof must be submitted that the contract of sale was filed with the Land Registry;
- In case that an investor opted to invest in above options B, C, or D, evidence must be submitted regarding the applicants’ place of residence in the Republic of Cyprus.
Additional information about Cyprus immigration / permanent residence permits
- In addition to the qualifying investment options listed above, investors are allowed to invest in other Cyprus companies and to receive dividends from Cyprus companies they have invested in.
- Investors are allowed to act as non-executive directors of companies mentioned under 8. above, however, without remuneration.
- Permanent residence permits (immigration permits) are issued to the applying investor and his or her dependent spouse and dependent children up to the age of 18, if applicable.
- Financially dependent and unmarried children who are students in higher education outside of Cyprus when applying to the immigration permit(s) are allowed to submit their own applications for immigration permits. In such cases, as mentioned above, their father or mother or both together must prove additional annual income of at least €10,000 for each such dependent child.
Such dependent children’s permanent residence permit will continue to be valid after they reached the age of 25, even in case they married meanwhile, and even if they ceased to their higher education studies or ceased to be financially dependent on their parents.
- Adult and financially non-dependent children may be granted a permanent residence permit as well, if the investor’s investment is multiplied by each such a child. Each such adult child must prove its own secure annual income of at least €50,000, and additional €15,000 for their spouse, if applicable, and at least €10,000 for each dependent child.
- Holders of immigration permits must register to the National Health scheme (‘GESY’) or an equivalent private health insurance.
- Applicants who received their immigration permit must prove on an annual basis that they continue holding their investment or its replacement.
- Applicants who received their immigration permit must prove on an annual basis that their adequate income from abroad continues.
- Applicants who received their immigration permit must prove on an annual basis that they are still under the cover of the National Health Scheme (‘GESY’) or an equivalent private health insurance.
- Applicants who received their immigration permit must submit on an annual basis a clean criminal record, from both their countries of origin and their countries of residence, if the latter is different from the country of origin.
- Permanent residence permits are issued with a validity of 10 years, however, the right of the investor and his or her spouse and dependent children is indefinite. The immigration permits issued for minor children of the investor will end when they reached the age of 18. They can then apply again for their permanent residence permit if they comply with the applicable criteria mentioned above.
Tax considerations for persons immigrating to Cyprus.
Individuals moving to Cyprus will benefit form the so-called Cyprus Non-Dom Tax Status, providing exemption from any taxation on income from global and local dividends and interest, for a period of 17 years.
Cyprus does not tax income from the disposal of securities in the widest sense, including company shares and fund shares.
Cyprus does not have any heritage tax.
Corporate tax in Cyprus is 12.5% on the taxable income.
Shanda Consult assisted many investors in their journey to become permanent residents of Cyprus and will be happy to assist and serve you as well.
Contact us now through the for below.