Cyprus Permanent Residency by Investment: Requirements and Application Process

As of 2 May 2023, non-EU nationals looking to secure an immigration permit through investment in Cyprus will face new conditions, as recently ratified by the country’s Council of Ministers. These stricter criteria aim to enhance the oversight of the permit issuance process, ensuring that investments contribute positively to the Cypriot economy.

What Changed in the Cyprus Immigration Permit Rules in May 2023

The real estate and investment landscape in Cyprus has long attracted non-EU nationals seeking residency through investment. However, to ensure the integrity of this pathway, the government has introduced new compliance measures. These include mandatory annual proof of investment maintenance, accurate income declaration, and private health insurance for those not covered by the local healthcare system.

Four Investment Options, Minimum €300,000

Prospective investors now have four primary channels for their investment, each requiring a minimum outlay of €300,000 (plus VAT where applicable):

• Purchase of a new residential property, such as a house or apartment.
• Acquisition of commercial properties including offices, shops, or hotels.
• Investment in the share capital of a Cyprus-based company with a physical presence and at least five employees.
• Placement of funds in units of a Cyprus Collective Investment Fund (AIF, AIFLNP, RAIF), focusing on investments within the Republic of Cyprus.

It’s crucial that the investment is maintained throughout the permit’s validity, with any divestment potentially leading to permit cancellation.

Financial Requirements: Source of Funds and Minimum Annual Income

The pathway to securing a permit now entails stringent financial criteria:

• The investment funds must originate from an overseas account held by the investor or their spouse, transferred directly into a local Cypriot account of the seller.
• Real estate investments require evidence of payment for at least €300,000 (excluding VAT), backed by a title deed or purchase agreement.
• Applicants must demonstrate a guaranteed annual income of at least €50,000, with additional requirements for spouses and minor children.

Eligibility Requirements: Criminal Record, Health Insurance and Employment

The revised personal eligibility criteria include:

• A clean criminal record for the applicant and spouse from both their country of origin and residence.
• Comprehensive health insurance coverage for the applicant and dependents.
• An affirmation that the applicant and spouse will not seek employment in Cyprus, outside of director roles in their investment company.
• Adequate living arrangements must be proven, especially if the investment does not include a personal residence.

How to Apply and How Long It Takes

Applications must be submitted in person or via an authorized representative to the Civil Registry and Migration Department (CRMD), accompanied by all supporting documents and the relevant fees. Following a thorough review process, if all criteria are met, the application advances to the Ministry of Interior for final examination, typically concluded within two months.

Navigating the New Landscape

These updates mark a significant shift in Cyprus’ approach to investment-based immigration, underscoring the importance of thorough preparation and compliance. For potential investors, understanding and adapting to these changes is crucial. Consulting with experienced property professionals can provide invaluable guidance, ensuring that your investment not only meets the new criteria but also aligns with your long-term residency and financial goals in Cyprus.

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 info@velment.com