The Permanent Residence Scheme pursuant to Regulation 6(2) of the Aliens and Immigration Regulations (the “Regulations”), has been amended as of 24 March 2021. The permit granted pursuant to Regulation 6(2) of the Regulations, gives Non-EU nationals the right to permanently reside in Cyprus.

In order to qualify for a permanent residence pursuant to the Regulations, the Applicant must make an investment of at least EURO 300,000 in one of the following categories of investment:

(A) Investment in residential property:

Purchase of a house/apartment, which should be a new development, of at least EURO 300,000 plus VAT.

(B) Investment in commercial property:

Purchase of commercial type of properties, such as offices, shops, hotels with a total value of EURO 300,000. For this type of investment resales are acceptable.

(C) Investment in the share capital of a Cyprus Company which operates in Cyprus and has staff in Cyprus:

An investment of at least EURO 300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and which can evidence a physical presence in Cyprus with at least five (5) employees.

(D) Investment in units of a Cyprus Collective Investment Organization (type AIF, AIFLNP, RAIF):

An investment of at least EURO 300,000 in units of an AIF, AIFLNP or RAIF.

Further Criteria:

  1. The Applicant should be able to evidence that he has at his disposal a secure annual income of at least EURO 30,000. The annual income requirement is increased by EURO 5,000 for each dependent family member and EURO 8,000 for each dependent parent of the Applicant or his/her spouse.
    With respect to investing under (B), (C), or (D) above, the new amendments provide that the Applicant’s income may derive from activities within the Republic of Cyprus.
  2. The Applicant and his/her spouse must warrant that they do not intend to work in the Republic of Cyprus. with the exception, now, of their employment as Directors in a Company in which they have chosen to invest in.
  3. Under some circumstances Applicant and/or the Applicant’s spouse, where they have not invested in a Cyprus company, may be a shareholder in companies registered in Cyprus and the income from dividends in such companies shall not be considered as an impediment for the purpose of obtaining Permanent Residency, they may also be appointed as directors in such companies.
  4. Where the Applicant makes an investment under (B), (C), or (D) above, the Applicant should present information in relation to his place of residence in the Republic of Cyprus such as a title deed, sales agreement or rental agreement.

Provisions relating to Investment in Real Estate

  1. When investing in (A) or (B), at least EURO 200.000 plus VAT needs to be paid prior to submitting the application.
  2. The purchase or property can be made by a legal entity in which the Applicant and/or his/her spouse are the sole shareholders or Ultimate Beneficial Owners and such entity is legally established in the Republic off Cyprus or in another EU Member State or in the EEA.
  3. For investments in residential property under (A), the Applicant may purchase up to two (2) units of residential property, provided that the total market value meets the minimum requirement of EURO 300,000 plus VAT.

Can dependents of the Applicant included in the permit?

The permit is issued to the Applicant and it can include his/her spouse and dependent children up to the age of 18.

As before, a permanent residence permit can be granted to unmarried children of the Applicant between the ages of 18 and 25, only when it is proven that, at the date of the application, they are attending higher educational institutions abroad and provided they are financially dependent on the Applicant. Such dependent children shall submit their own separate applications for an Immigration Permit upon payment of the appropriate fee.

It is noted, however, that, if the children of the Applicant between the ages of 18-25 are enrolled as students in Higher Institutions of the Republic of Cyprus, they will have to apply for a Temporary Residence Permit in the Republic in their capacity as students under the relevant legislation (EU Directive). Following the completion of their studies, they will be entitled to apply for a Permanent Residence Permit, irrespective of their age with the only prerequisite that the main Applicant provides evidence of an additional annual income of EURO 5000 per annum. The Permit will continue to apply after the age of 25, even if the children marry by then, and they are no longer students or financially dependent on the Applicant.

It continues to be the case that the parents and parents-in-law of the main Applicant can apply on the basis of the main Applicant’s investment, with the prerequisite that the Applicant will present an additional annual income of EURO 8,000 for each dependent parent or parent-in-law.

Can adult children be included in the permit?

An important addition in the Regulations is that it is now possible for the Applicant to make an investment of a higher value in order for his adult children to obtain Permanent Residence even though they are not financially dependent on the Applicant.

The market value of the investment of EURO 300,000 needs to be multiplied according to the number of adult children, which will rely on such investment for the purpose of obtaining Permanent Residence.

In addition, each adult child must be able to prove a secure annual income of at least EURO 30,000, which will be increased by EURO 5,000 for each dependent person.

Such investment can be made jointly in the name of the Applicant and the adult child or exclusively in the name of the Applicant.

For further information or advice contact our team – info@papakyriacoulaw.com