Permanent Residency In Cyprus

Cyprus has been a full member of the European Union since 2004. The island is located in the north eastern Mediterranean Sea, at the crossroads of Europe, Asia and Africa. The strategic location of the island has played an important role in its development as a financial centre.

With its warm and stable climate and geographical position Cyprus is considered an attractive place of residence. At least 320 days of sunshine a year classify the island as one of the sunniest European locations.

In addition to pleasant weather, the investment landscape in Cyprus is beneficial due to the island’s well-qualified labour force, attractive taxation and a reliable transport and telecommunications system. Cyprus ranks highly because of its favourable tax regime for new residents, particularly high net worth individuals.

Cyprus has a modern, free-market, service-based economy, with an effective and transparent regulatory and legal framework, giving international investors and business confidence to invest, grow and prosper.

Benefits and competitive advantages

  • The immigration permit gives a NON-EU national, the right to permanently reside in Cyprus with no renewal requirements
  • Exempts you from immigration entry procedures (i.e. Visitor’s Visa)
  • Your family can also obtain it (married spouse, children under 18 years old and financially dependent children up to 25 years old)
  • The parents of both spouses can also obtain Permanent Residence as dependents
  • Visa-Free Travel – Permanent residency in Cyprus lifts travelling restrictions and elaborate visa requirements across EU, facilitating access to the Schengen zone
  • Fast Track Application processing and final approval granted within 2-3 months.
  • For property acquisitions taking place prior to the 31st December 2016, the land registry transfer fees are reduced by 50% and totally abolished for those properties carrying VAT.
  • For property acquisitions taking place prior to 31st December 2016, no Capital Gains Tax is payable whenever this property is subsequently sold.
  • After obtaining permanent residency, the holder may elect to become Cyprus tax resident if:

a) Resides in Cyprus for an aggregate period exceeding 183 days in any one calendar year

                              OR

b) Resides in Cyprus for at least 60 days within the tax year.

c) Does not reside more than 183 days in aggregate in any other state within the tax year.

d) Is not a tax resident of any other state within the tax year.

e) Carries on a business in Cyprus or is employed in Cyprus or holds an office in a Cyprus tax resident company at any time during the tax year. It is noted that in case the business, employment or holding of an office under this condition is terminated during the tax year, the person shall not be considered a Cyprus tax resident for that particular tax year.

f) Maintains a permanent residence in Cyprus (either rented or owned).

A Cyprus tax resident is exempt from income tax on worldwide dividends and interest income. In addition to this, a Cyprus tax resident is exempt from any tax on gains on the disposal of shares or other securities.

    

Criteria for a successful application

  • A guarantee deposit of €30,000, transferred from overseas, has to be deposited in a Cyprus Bank. The deposit is released after a three year period
  • Annual income from abroad of not less than €30,000 has to be remitted from overseas to an account on the applicant’s name in a Cyprus Bank. It may be used by the applicant for his living expenses. This amount covers both the applicant and his/her spouse, but it increases by €5,000 for every dependent person of his/her family who is also granted a permanent residency in Cyprus
  • The applicant must purchase a new property, not resale property, in Cyprus for at least €300,000 (excluding VAT if applicable), and at least €200,000 (excluding VAT) should be paid before submitting the application.
  • All funds for the purchase of the property must be transferred from overseas
  • Contracts for the sale of the property must be deposited at the Land Registry Office
  • The applicant and his/her spouse must submit a confirmation of a clean criminal record from their country of origin
  • The applicant and his/her spouse shall confirm that they do not intend to be employed in Cyprus in any direct or indirect manner
  • The applicant and his family included in the Immigration Permit must visit Cyprus at least once within one year from the day of approval of the application and subsequently at least once every two years. There is no minimum time requirement therefore, the visit may last a single day

Cyprus Citizenship

The government of Cyprus is offering Cypriot citizenship (European citizenship) and passports to international investors who contribute to the country’s economic development.

Applicants consider an alternative citizenship and passport a powerful tool for international tax planning and as a safety net should the living conditions in their country of origin become undesirable.

The applicant and his family receive full citizenship and passports.

The Decision of the Council of Ministers dated 13th September 2016 provides for the grant of the Cyprus citizenship to the spouse or partner of the investor, to the parents of the investor, to the minor children under the age of eighteen and to the financially dependent adult children up to the age of 28 as well.

According to the provisions of the abovementioned decision:

  • The adult family members of the investor prior to their naturalization must hold a residence permit. The application for residency for the investor and his/her spouse or partner is submitted simultaneously with the application for naturalization
  • The application for the grant of Cypriot citizenship to the children of the investor that are under the age of 18 (eighteen) is submitted after the investor has acquired Cypriot citizenship and provided that the parent consents to the grant of citizenship. The application is filed at the Civil Registry and Migration Department
  • The right to apply for Cyprus Citizenship is also granted to the financially dependent adult children of the investor, such as students up to the age of 28 (twenty- eight) or to children with severe physical or mental disability that renders them unable to work. The application, filed at the Ministry of Labour, must be submitted after the investor had acquired the Cypriot citizenship

 

Benefits and Advantages of Cyprus Citizenship

  • No Donations – Unlike other citizenship by investment programs, the Cyprus option does not require any donations, i.e. non-refundable contributions to the government. Instead, the program is purely investment-based, which means you retain full ownership of the investment.

Free Movement – Freely travel, reside, study and work within all the EU countries, as well as Switzerland, Norway, Iceland and Liechtenstein.

The whole family can obtain Cyprus Citizenship i.e. the main applicant, his/her spouse, children under 18 years, and adult children (ages 18 to 28) who are students. All can travel, reside, study and work freely within the EU.

Parents may be included in the citizenship application provided they own a separate residence with a minimum purchase cost of €500,000.

  • Free Movement of Goods and Services – Individual citizens and their companies can provide goods and services within all EU countries without any obstacles
  • Free Movement of Capital – Cyprus passport holders can transfer funds between EU countries, purchase property in any EU member state, and invest in any type of business ventures
  • Attractive Tax System – Cyprus is an attractive financial centre due to its highly favourable tax system and strategic location at the crossroads of three continents – Europe, Africa and Asia
  • High Standard of Living

Cyprus presents a high standard of living due to its access to reputable private schools, trustworthy private medical facilities and having among the lowest crime rates within Europe.

  • Visa Free Travel – Cypriot passport holders do not require a visa to travel within EU and also to travel to over 160 non-EU countries
  • Dual– citizenship is permitted. Acquisition of Cyprus citizenship is not reported to other countries
  • An express procedure – 3 months to be approved
  • No history and language proficiency tests and no medical testing
  • No requirements to disclose the applicant’s source of wealth
  • Your citizenship does not expire, and can be passed on to future generations by decent

 

Criteria for a successful application

The Cyprus (EU) Citizenship appeals to qualified candidates including international business executives, investors, VIPs, and important persons – many of which are active worldwide- who meet the minimum application requirements.

The Citizenship by Investment program of Cyprus provides a method of obtaining citizenship for foreign nationals, with approvals issued in as little as 2 to 3 months.

To qualify for citizenship, the primary applicant may select one of the two investment options:

Option #1:  Residential Real Estate Investment

This option requires a minimum total investment amount of EUR 2 million in residential real estate.

The total investment amount must include a permanent personal residence valued at no less than EUR 500,000. The remaining investment amount of EUR 1.5 million must be made in residential real estate, to be held for a minimum of three years. If the personal residence is valued at EUR 2 million or more, then no additional investment is required.

Option #2: Other Investments

This option requires a minimum total investment of EUR 2.5 million.

Part of the investment must be a personal residence purchased for at least EUR 500,000.

The remaining investment amount of EUR 2 million can be made using any mix of the following, held for at least three years:

  • Eligible Real State, such as residential, commercial, infrastructure or developed land, or
  • Interest – bearing Cyprus Government Bonds (up to a maximum value of EUR 500,000), or
  • Alternative Investment Fund (AIF) or financial assets (shares) of a Cyprus entity licenced by the Cyprus Securities and Exchange Commission, or
  • Company formation or acquisition or participation where the applicant is a majority holder, with activities in Cyprus, and employing 5 Cypriots or EU nationals who have been residing in Cyprus for over years, or
  • A combination of any of the above

 

Global Consultants can advise you on every step of the way to ensure a successful application. Our services include:

  • Legal assistance on drafting and reviewing property purchase agreements
  • Assist you in locating and evaluating properties that match the applicant’s investment objectives
  • Advising you on your possibility of success before filing your application
  • Providing you with pre-immigration legal and tax advice
  • Guiding you with the preparation of supporting documentation
  • Preparing all applications and supporting documentation for submission
  • Corresponding and liaising with government authorities on your behalf during the application process until the application is approved
  • Advisory services in the areas of Cyprus company formation and Tax Law
  • Obtain pre-approval to ensure full compliance and documentation before filing the formal application and before making any investment
  • Finalising the investment and submitting completed application forms, including the fully executed contracts of sale, escrow agreements and supporting documents
  • After application approval, the applicant travels to Cyprus, takes an oath and provides his signature to finalise the process. The Cypriot Citizenship Certificate will be provided to the Applicant, and the EU passport will be issued within 3 hours
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