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The Cyprus Ministry of Interior has implemented significant amendments to the criteria for granting Permanent Residency under Regulation 6(2) of the Aliens and Immigration Regulations. These changes, approved by the Council of Ministers, aim to enhance compliance and address potential distortions. The revised provisions have been in effect since May 2, 2023 and there is an increasing number of applications by investors given the intention by the government to join Schengen Zone.

Transitional Provisions

The Civil Registry and Migration Department (CRMD) has announced that applicants who lodged Sale Agreements at the Department of Lands and Surveys between January 2, 2023, and April 28, 2023, may still submit their applications. These applications will be evaluated under the criteria applicable as of March 24, 2021.

Investment Options

A Permanent Residence Permit can be obtained through an investment in one of the following categories:

(A) Investment in a house/apartment:
Purchase of a first-sale house or apartment from a development company with a minimum value of €300,000 (plus VAT).

(B) Investment in real estate (excluding houses/apartments):
Purchase of other types of real estate, such as offices, shops, hotels, or related developments, or a combination thereof, with a total value of €300,000. These purchases may be resales.

(C) Investment in a Cyprus company with business activities and personnel in the Republic:
An initial investment of €300,000 in the share capital of a newly registered company in Cyprus or an increase of €300,000 in the share capital of an existing company registered in Cyprus, provided the company has a physical presence in Cyprus and employs at least five (5) people.

(D) Investment in units of a Cyprus Investment Organization of Collective Investments (AIF, AIFLNP, RAIF):
An investment of €300,000 in units of a Cyprus Investment Organization of Collective Investments, whose investments are held in Cyprus.

Annual Income Requirements

The applicant must demonstrate a secured annual income of at least €50,000. The required additional secured income is €15,000 for the spouse and €10,000 for each minor child.

• For investments under Categories B, C, or D, the applicant's annual income may be derived from activities within Cyprus.
• For investments under Category A, the applicant must provide evidence that their annual income originates from abroad.

The applicant’s income can be substantiated through tax return declarations from their tax residency country or official certificates from an independent Certified Accountant.

Key Amendments

• All adult applicants must provide a clean criminal record from both their country of origin and country of residence.
• Submission of a health insurance certificate covering inpatient and outpatient care is mandatory.
• If investing in a house or apartment, the property must have adequate space for all dependent family members. Otherwise, an alternative residence must be presented with supporting documents (title deeds, sales agreements, or rental agreements).

Eligible Family Members

The Immigration Permit covers the applicant, their spouse, and their children under 18 as dependents.

• If the main investor’s Permit is cancelled, the spouse’s Permit will also be revoked.
• Unmarried children between 18 and 25 who are students abroad and financially dependent on the applicant may apply separately for a Permit, with an additional required annual income of €10,000 per child.
• If studying in Cyprus, children must apply for a temporary residence permit as students. Upon completing their studies, they may apply for a Permanent Residency Permit with the payment of the relevant fee, regardless of age.
• The Permit remains valid even if the children surpass 25 years of age, marry, or become financially independent. However, their future spouses or underage children cannot be included as dependents under this Permit.

Higher Value Investments for Non-Dependent Adult Children

Adult children who are financially independent may still qualify for an Immigration Permit if a higher-value investment is made.

Further Conditions & Documentation

• The applicant and their spouse must submit a clean criminal record certificate from their country of origin and residence (if different).
• The applicant and their dependent family members must submit a health insurance policy certificate covering medical care.
• The applicant and spouse must confirm via declaration that they do not intend to work in Cyprus or receive any salary. However, they may hold the position of Director in the company in which they invest, provided they do not receive a salary.
• For investments under Categories B, C, or D, the applicant and spouse must provide proof of residence in Cyprus (e.g., rental agreement, title deeds).

Additional Information & Clarifications

• The applicant and their spouse may be shareholders in Cyprus-registered companies and still qualify for an immigration permit, provided they derive income from dividends rather than employment.
• If the investor’s Immigration Permit is cancelled, all dependent family members’ Permits will also be revoked.

Compliance and Annual Review Mechanism

To maintain Permanent Residency status, applicants must annually submit proof to the CRMD that:

• The investment is maintained.
• The applicant and their family members hold valid health insurance (unless covered under GESY).
• The applicant provides an annual certificate of a clean criminal record from their country of origin and residence.

Failure to comply with these requirements will result in the cancellation of the Permit under Regulation 6 of the Aliens and Immigration Regulations.

Our team would be delighted to answer any queries and assist in any way in connection with the above.