Permanent Residency in Cyprus by Real Estate Investment

Cyprus is among the most much-in-demand investment immigration destinations globally today, and this is hardly surprising. It is a true paradise lost, and immigration to Cyprus is on the rise, as is the share of overseas buyers attracted by investment in Cyprus real estate and other assets. The main reason behind immigration to Cyprus being so high in demand is as follows: overseas investors may obtain Cyprus residency by investment in Cyprus real estate or any other assets without getting their Cypriot residence permit or visa in the state. The guide below comes useful for those considering pros and cons of Cyprus permanent residence and investment in Cyprus properties, including, inter alia, real estate investment in Cyprus. You will learn everything you should know about the permanent residency in Cyprus scheme, investing in Cyprus and obtaining a Cypriot residence permit. Inter alia, you’ll learn what exactly you shall do to make your dream of immigrating to and getting residence in Cyprus come true. Stay around until the end and consult the International Wealth industry experts if you still have any questions left as to the investment in and immigration to Cyprus. Your feedback and comments are sincerely welcome. 

Cyprus permanent residency opens the door to the European tax haven, with its remarkable tourist infrastructure. You’ll be able to make a first step to a second EU citizenship through naturalization. Happy-go-lucky and carefree, HNWIs from all around the world favor the island state with its expanding economy that is about to join the Schengen area. They strive to obtain a Cypriot residence permit to make their dream life a reality via investment in and immigration to Cyprus.  

Would you like to find your way into the local expat community and avoid bureaucratic scrutiny? It is perfectly possible to obtain Cyprus permanent residence, referred to as Permanent Residency Permit in the immigration regulatory legal acts of the Mediterranean republic, without wasting any time. The procedure is fast and easy if you make up your mind about investing in Cyprus real estate or commercial properties to obtain your Cypriot residence permit.  Now, let’s get to the meat.

Investing in Cyprus – investment type and amount necessary to get permanent residency in Cyprus

Investing in Cyprus is a key that opens many doors. The investment amount necessary to get permanent residency in Cyprus without obtaining a Cypriot residence permit first makes up at least EUR 300,000 (plus VAT). You will experience no particular restrictions on the part of the state when investing in Cyprus. Here are the assets such investors dreaming of immigration to Cyprus are welcome to acquire in the jurisdiction:

• A. Residential real estate investment in Cyprus. To get their permanent residency in Cyprus, a foreign investor shall buy real estate directly from the developer. Real estate investment is a popular option to get permanent residency in Cyprus. You are welcome to acquire a cottage, a villa, or an apartment as your real estate investment in the Cyprus economy. However, for an investor to obtain their Cypriot residence permit, your properties may only come from a primary real estate market in Cyprus. With this in mind, investing in Cyprus real estate will be an enjoyable experience for you. You should consider real estate investment in Cyprus if you plan to lease it out later on to secure a stable source of passive income.
• B. Commercial real estate investment in Cyprus. Potential international buyers having eyes for local commercial real estate and obtaining Cyprus permanent residence can choose from a variety of non-movable assets apart from residential properties like villas, residences, etc., for investing in Cyprus. Applicants considering immigration to Cyprus are welcome to think of investing in certain assets on either primary or secondary real estate market by purchasing warehouses, offices, hotels, boutiques, and any other commercial real estate as their investment in Cyprus. 
• C. Business investment in Cyprus. A foreigner about to obtain their permanent residency in Cyprus shall make an equity investment in a Cyprus-incorporated company that operates in the said jurisdiction and produces jobs for Cyprus citizens, where real estate investment in Cyprus is not a suitable option. Investing in the registered equity capital of a Cyprus company with a proven tangible presence in the country that employs at least five (5) citizens or residents of the said state is what you shall do. The option for investment in Cyprus described above is suitable for business immigration and will secure you a Cypriot residence permit.
• D. Investing in Cyprus funds.  Cyprus residency by investment is available to applicants investing in local collective investment vehicles. Below, you’ll find the list of structures you are free to invest in to get your Cypriot residence permit and make immigration to Cyprus a reality: 
  • investing in Alternative Investment Fund for Limited Number of Persons, a.k.a.  AIFLNP, in Cyprus
  • investing in Registered Alternative Investment Fund, a.k.a. RAIF, in Cyprus
  • investing in Alternative Investment Fund, a.k.a. AIF, in Cyprus.

If a Cyprus resident with Cyprus permanent residency by investment decides to exit without forthwith substituting their investment for any analogous assets of higher or at least identical value meeting the aforesaid demands, their Cyprus permanent residence will be cancelled.

Here’s what the applicant wishing to obtain Cyprus residency by investment shall do to get their Cyprus permanent residency, regardless of the Cyprus investment option they choose therefor, be it real estate investment in Cyprus or any business opportunities:

• prove the funds they will invest in the Cyprus economy to finance their Cypriot residence permit have been transferred from abroad
• evidence the income used to purchase real estate or make any alternative investment in Cyprus is legal.

Apart from investing in Cyprus as described above, the applicant shall document their twelve-month income upwards of EUR 30,000. The said figure shall be EUR 5,000 and EUR 8,000 higher per each candidate’s (or their spouse’s) adult child and dependent parent included in their Cyprus permanent residency application to secure a Cypriot residence permit for any of the above dependents with a view to immigration to Cyprus.

Any applicant for permanent residency in Cyprus shall prove they received any such foreign source income, including the ones below:

• salary or wages
• pension
• stock dividends
• interest on term deposits
• rent.

Income received by the applicant’s spouse thinking over immigration to Cyprus as well shall be taken into consideration when calculating the total income of the Cyprus permanent residency application submitter.

An applicant about to get their permanent residency in Cyprus by investing in any Cyprus assets that are neither owner-occupied real estate, nor commercial properties, businesses, or funds, may file their reports later on to confirm all or a part of their income come from sources in Cyprus.

For illustrative purposes, the investor about to obtain Cyprus permanent residence or their spouse may hold shares in any Cyprus-incorporated companies, where they got ownership of such shares by way of investment for Cyprus permanent residence purposes. Income from holding securities such as stocks or bonds may be included in general income records to comply with the requirements for obtaining permanent Cyprus residency by investment.

Requirements for investors applying for permanent residency in Cyprus

• Non-European citizenship. The investor shall prove they have citizenship of any country that is not an EU-member. The Cyprus residency by investment program was implemented to assist wealthy foreigners with moving to Cyprus from any non-EU state and obtaining Cyprus permanent residence by means of investing in the Cyprus economy.   
• Integrity. The investor applying for permanent residency in Cyprus shall submit (together with their spouse) a certificate of clean criminal record issued in their country of residence, citizenship, or by Cyprus police authorities (where the investor resides in Cyprus). Persons considered to pose a threat to Cyprus public order, security, or the state’s image are not allowed to apply for permanent residency in Cyprus.
• No extra burden for the Cyprus labor market. The investor applying for Cyprus permanent residence and their spouse willing to get a Cypriot residence permit shall confirm they do not intend to work in Cyprus, except for being directors of Cyprus companies receiving funds that are invested therein under the Cyprus residency by investment scheme.
• Proof of accommodation in Cyprus. If the applicant invests in any assets in the country, apart from residential real estate investment in Cyprus (be it commercial properties, business, or funds) to get their permanent residence in Cyprus, they shall provide any proof of accommodation in the country (e.g., a title document for local residential real estate, an SPA for an apartment or a villa, or a lease agreement).

Requirements for the investor’s relatives co-applying for permanent residence in Cyprus 

The investor is allowed to include their spouse, children, and parents into their application for Cyprus permanent residency. Where the Cyprus permanent residence granted to the investor is cancelled, a Cypriot residence permit of their spouse and any other relatives shall be revoked as well. Take a look at the terms you shall comply with to be on the safe side as far as your immigration to Cyprus is concerned.

Spouse and minor children

Successful applicants for Cyprus residency by investment may move to Cyprus together with the dependents, including their spouse and minor children under 18. Neither the spouse nor the children need to invest any funds themselves for immigration to Cyprus purposes.

Adult dependent children

Unmarried children aged 18-25 of the residence-seeker or their spouse shall prove that as of the filing date they study at any higher educational institutions abroad and depend on the investor financially. The father, the mother, or both parents together shall demonstrate auxiliary annual income of EUR 5,000 per each adult dependent child thinking of immigration to Cyprus together with their parent.

Even if the investor’s child has turned 25, is getting married, drops out, is no longer financially dependent on their parents, the Cypriot residence permit issued earlier remains valid. Future spouses or minor children of such a child have no right to apply for permanent residency in Cyprus (by virtue of being included into their parent’s application post factum).

If the applicant’s 18+ y.o.of-age child wishes to study in any Cyprus higher educational institutions, they shall apply for a Cypriot residence permit in their capacity of a student assisted by their educational establishment as provided for under the corresponding legislative provisions dealing with immigration to Cyprus (refer to the corresponding EU Directives).

Of-age children no longer dependent on the investor

The candidate’s children above 18 financially independent of the investor might get permanent residency in Cyprus, provided the person applying for a Cypriot residence permit makes a larger investment.

The basic investment amount of EUR 300,000 shall be multiplied by the number of adult independent children who apply for Cyprus permanent residency by virtue of the main applicant’s investment.

Where the applicant for a Cypriot residence permit has one adult independent child, such candidate shall invest at least EUR 600,000 to be entitled to Cyprus permanent residency and immigration to Cyprus. If the number of such of-age children makes two, the investment amount shall reach EUR 900,000, etc. Joint investments on behalf of the investor and their major children are possible, with investment on behalf of the investor themselves exclusively being the other available option.

Where either residential or commercial real estate is purchased to finance permanent residency in Cyprus for immigration purposes, at least 66% of the asset market value shall be paid as of the application date and the proof thereof shall be provided to the corresponding authority.

An adult independent child of the main applicant for Cyprus permanent residency shall document their twelve-month income upwards of EUR 30,000. Where the said child has any dependent relatives of their own thinking of immigration to Cyprus and these are included in the Cypriot residence permit application, the said amount shall be increased by EUR 5,000.

Parents of the main applicant for Cyprus permanent residency

Parents (mother and father) of the foreign individual applying for Cyprus permanent residence as well as their spouse’s parents (the investor’s mother- and father-in-law) thinking of immigration to Cyprus together with their child may be included in the request for permanent residence in Cyprus. The applicant shall document their auxiliary annual income of EUR 8,000 per each dependent parent. 

Documents necessary to obtain permanent residence in Cyprus: the investor, their parents, and children

To get permanent residency in Cyprus, both the investor and their relatives considering immigration to Cyprus shall submit various documents. Supporting documentation required for the investor applying for Cyprus permanent residence, their spouse, minor children, adult children, and parents is described below.

Investor applying for permanent residency in Cyprus, their spouse, and minor children

• Completed official forms, including MIP1 application form  (with electronic versions available on the Civil Registry and Migration Department’s website).
• Copy of the applicant’s and their dependents’ valid passports.
• Biography.
• Documented proof of the investor’s annual foreign income or Cyprus income (please refer to the info above when choosing the corresponding investment type) reaching at least EUR 30,000 (original document copies and affidavits or declarations).
• Documents certifying the investor has transferred their capital to be used for permanent residency in Cyprus investment purposes from overseas (via a bank transfer from a foreign financial institution to Cyprus).
• Certain financial options and requirements therefor:
  • (А) Real estate investment in Cyprus.  Title document for Cyprus real estate, sale and purchase contract for Cyprus real estate on the primary market with a minimum market value of EUR 300,000 (original or certified copy). Where the property title has not yet been received (in case of investment in any Cyprus real estate properties to be built under a co-funded construction agreement and not commissioned as of the permanent residency in Cyprus request date), the applicant shall submit their purchase commitment contract for the said Cyprus real estate to the local responsible body, with seals affixed by the Commissioner of Stamp Duties and the Department of Lands and Surveys. You will document the payment of at least EUR 200,000 (⅔ of the total amount) as the Cyprus real estate price.
  • (B) Commercial real estate investment in Cyprus. Title document for Cyprus real estate, sale and purchase contract for Cyprus real estate on the primary market with a minimum market value of EUR 300,000 (original or certified copy).  Where the property title has not yet been received, the individual applying for Cyprus permanent residency will submit their purchase commitment contract, with seals affixed by the Commissioner of Stamp Duties and the Department of Lands and Surveys. The investor shall document the payment of at least EUR 200,000.
  • (C) Equity financing for a Cyprus company operating in Cyprus, with staff employed therein:
    • Share Purchase Agreement for at least EUR 300,000
    • Certificate of Incorporation issued by the Cyprus Registrar of Companies
    • Document containing company profile information, inter alia, its short- and long-range business objectives, etc.
    • Certificate of personnel employed by the company issued by the Department of Social Insurance Services.                                                
• (D) Investment in shares of a Cyprus collective investment vehicle (AIF, AIFLNP, and RAIF):
  • Title documents or any other proof that the applicant for Cyprus residency by investment has purchased the said shares
  • Proof from the Cyprus Securities and Exchange Commission (CySEC) of the collective investment fund incorporation that the applicant for Cyprus residency by investment is about to invest in
  • Memorandum of the above collective investment fund.

• In case of any investment in Cyprus for Cypriot residence permit and immigration to Cyprus purposes different from purchasing Cyprus real estate, the investor shall submit their proof of accommodation in the country (e.g., a sale and purchase agreement for Cyprus residential real estate or a leasing arrangement therefor in either original or certified copy).
• Investor’s and their spouse’s written obligation not to engage in any business activities in Cyprus after they have received their Cyprus residency by investment, except for being a director in the company that the applicant invested in to get their Cypriot residence permit.
• Duly certified and officially translated original certificates of good conduct for the applicant, their spouse, and adult children issued in their citizenship state or previous country of residence.
• Officially translated and duly certified marriage certificate (original or certified copy).
• Duly certified and officially translated children’s birth certificates (original or certified copies).
• Signed and notarized PoA issued to the duly authorized representative of the person applying for Cyprus permanent residence (if any).

Investor’s adult children aged 18 to 25 and receiving college or university education

• Copy of the valid passport
• Copy of the parent’s or investor’s residence permit or proof of the parent’s application for Cyprus residency by investment
• Proof of the parent’s annual foreign income upwards of EUR 30,000 + EUR 5,000  (original document copies and an affidavit or a declaration)
• Written commitment not to work in Cyprus
• Original certificate of clean criminal record issued in their country of previous residence or citizenship
• Duly certified and officially translated birth certificate of the child/children born to the Cyprus permanent residence applicant (original or certified copy)
• Letter from a foreign higher educational establishment confirming the applicant’s child/children studies/study there
• Signed and notarized PoA issued to the duly authorized representative of the child/children born to the person applying for Cyprus permanent residence (if any).

Parents of the person applying for permanent residency in Cyprus or their spouse

• Copy of the valid passport
• Copy of the investor’s or their spouse’s residence permit or proof of the investor’s application for Cyprus residency by investment
• Proof of the investor’s or their spouse’s annual foreign income of upwards of EUR 30,000 + EUR 8,000  (original document copies and an affidavit or a declaration)
• Written commitment not to work in Cyprus
• Original certificate of good conduct issued in their country of previous residence or citizenship
• Duly certified and officially translated investor’s or their spouse’s birth certificate or any other official written document confirming the relationship between the investor and their or their spouse’s parent(s)
• Signed and notarized PoA issued to the duly authorized representative of the candidate’s or their spouse’s parent(s) (if any).

Procedure for obtaining permanent residence by investment in Cyprus and requirements you shall meet to maintain it

If you are adamant about immigration to Cyprus, you shall submit your application for Cyprus permanent residence together with the requested supporting documents to the Civil Registry and Migration Department (CRMD) either personally or via your duly authorized representative. The fee to be paid when applying for Cyprus permanent residency for immigration to Cyprus purposes makes EUR 500.

Any application for Cyprus residency by investment submitted via your duly authorized representative to make your immigration to Cyprus possible shall be accompanied by a PoA signed by the applicant. The said PoA shall contain information about such duly authorized representative and mention their full address and contact phones.

CRMD processes the above applications, which allow your immigration to Cyprus, on an expedited basis. Afterwards, they are transferred to the Cyprus Minister of Interior to be validated. The approval of immigration to Cyprus is granted where all the requirements and criteria are met and any reasons to deny the application are missing. It takes about two (2) months since the day the completed forms and supporting documents are duly submitted to the authorities for the latter to process the application for Cyprus residency by investment and decide on your immigration to Cyprus issue.

After the above application is granted, the investor applying for Cyprus residency by investment together with their relatives who received Cyprus permanent residence as co-applicants are not required to move to the host state. However, the investor or their relatives considering immigration to Cyprus may not be continuously absent from Cyprus for 2+ full calendar years. If the above provision is violated, Cypriot residence permit is revoked automatically, as is Cyprus permanent residency.

Why investing in Cyprus: permanent residence and its benefits for immigrant investors

Investing in Cyprus comes with a host of valuable benefits for foreign investors applying for Cyprus residency by investment and their dependent family members dreaming of immigration to Cyprus. The advantages you’ll enjoy when investing in the Cyprus economy for immigration purposes are numerous:

• Location: A strategic location between the Middle East, Europe, Asia, and Africa
• Business: A favorable taxation climate for both natural and legal persons investing in Cyprus, with effective logistics due to the country’s favorable position and the legislation being a major entrepreneurship driver
• Lifestyle: High living standards, safe neighborhoods, excellent English schools, a cutting-edge healthcare system, perfect weather, and rich ancient culture for overseas real estate buyers investing in Cyprus properties
• Recreation and cultural integration: Cyprus is among the most popular tourist destinations in the region. The country is famous for its warm hospitality, friendly locals, and a huge expat community
• Simple and fast relocation: In theory, you may receive an EU residence permit within 2 months in case of investment in and immigration to Cyprus. Foreign persons obtain Cyprus residency by investment for an unlimited time period, and they don’t have to spend months waiting for their residence permit to be extended. No requirements exist as to the investor’s physical presence or permanent stay in the jurisdiction m.a. in case of investing in the Cyprus economy.
• Second passport: Till November 2020, it was possible to obtain the country’s citizenship by real estate investment in the Cyprus economy. The local authorities, however, decided to put application submission on the back burner. Thankfully, with Cyprus permanent residency in the bag, you may apply for second citizenship through naturalization after you have lived in the host country for a minimum of 7 years (you will have to spend the most of each year in Cyprus for that matter).

Assistance from International Wealth with obtaining permanent residence in Cyprus and investing therein

Cyprus residency by investment is still available to overseas buyers purchasing real estate, certain other assets, or otherwise investing in the Cyprus economy. Investment is a fast and easy way to become a permanent resident in Cyprus. With unprecedented daily developments on the global investment market, however, Cyprus may experience certain legislative changes in the future as well.

The International Wealth readers and subscribers with a genuine interest in immigration to Cyprus and obtaining a permanent Cypriot residence permit via investment in the Cyprus economy shouldn’t hold back on investing in Cyprus. There is a sticking point, though – without expert assistance, even an experienced investor risks wasting their precious time and money when investing in Cyprus.

With their lengthy industry experience and invaluable knowledge, the International Wealth team is your priceless immigration asset. You are welcome to contact our experts if you need to choose a convenient immigration route, that would match your business, investment, and personal needs to a tee, and bring the strategy to life for successful investing in Cyprus. Needless to say, your information is always confidential with International Wealth. Our consultations and advice will prove useful if you only seek investment in and immigration to Cyprus.

Please notice that the information above is subject to change in case any amendments are introduced into the country’s legislation regulating immigration to and investment in Cyprus. Our highly experienced consultants are always here to answer any of your questions on the matter to make matters easier.