As from 2 May 2023, non-EU nationals interested in applying for an immigration permit linked to investments in Cyprus will be required to meet the new conditions as recently approved by the country’s Council of Ministers.
Eligibility will be subject to compliance with the new and stricter criteria, designed to help monitor the permit issuing procedure. Among other things, candidates who have received their permits will be required to submit annual evidence that their investment is maintained, that the declared annual income is accurate, and that permit holders have adequate private health insurance if they are not entitled to benefit from the country’s health care system. Other revised conditions relate to the method of transferring funds to Cyprus, and required minimum period of residence. In the event of non-compliance, the permits issued to the investor and members of his family may be revoked.
Below is an overview of the investment options and revised criteria.
The minimum investment of €300.000 can be made in one of four ways:
- Purchase of a first-sale residential property, i.e. house or apartment, for at least €300.000 (plus VAT)
- Purchase of first-sale or resale commercial property, i.e. offices, shops, hotels of with a total value of €300 000
- Investment in the share capital of an existing local company that is registered, based and operating in Cyprus, with a proven physical presence and at least five employees.
- Investment in units of a Cyprus Collective Investment Fund (AIF, AIFLNP, RAIF) whose investments are carried out in the Republic of Cyprus.
It is important to note that permit holders may replace their initial investment with different one, provided the minimum investment value is maintained at all times. Disposal of the investment will trigger a procedure for the cancellation of the permit. If a couple have two individual permits, it is understood that any cancellation will apply to both.
Revised financial criteria
- Transfer of investment value
The full amount of the investment must come from an overseas account in the name of the investor and/or the spouse, and be paid into the seller’s local account in a financial institution in Cyprus.
If the investment is made in real estate, the application must be supported by a title deed or purchase document, together with official receipts for payment of at least €300,000 (excluding VAT), regardless of the date of delivery of the property.
Applicants must be able to demonstrate an insured annual income of at least €50.000, plus €15.000 for the spouse and €10.000 for each minor child.
For candidates choosing to invest in residential property, income must come from abroad and be supported by relevant tax returns from the country where the investor is a tax resident. For candidates investing in other investment options, all or part of the minimum income may be derived from activities within Cyprus, that are taxed accordingly.
Revised personal criteria
- A clear criminal record is now required for the applicant and spouse from both the country of origin and the country of residence.
- Full health insurance certificates must be submitted for the applicant and all dependents.
- Both the applicant and spouse must certify that they will not seek employment in Cyprus, other than as directors in a company they have placed their investment in.
- If the investment is made in a residential property that cannot adequately accommodate the investor’s dependent family members, then details of additional accommodation must be submitted.
- Candidates who do not invest in a personal residence must submit details of their place of residence in Cyprus, for themselves and their dependents.
- Investors in real estate may – in addition – be shareholders in companies registered in Cyprus and receive dividends from them, or be directors without remuneration.
Application procedure and schedule
As per the revised criteria, the applications with all supporting documents and relevant fees (€500 plus €70 for each person included in the application) must be submitted to the Civil Registry and Migration Department (CRMD) personally or through a duly authorized representative. If all the revised criteria are met and there is no reason to reject the application, it will be forwarded to the Ministry of Interior for examination, which will take approximately two months.
Interested parties are advised to consult a reputable consultant to ensure that the information they receive is in accordance with the latest changes in every detail. For further information, feel free to contact us at email@example.com