Residence & Citizenship

Cyprus

Cyprus Investment Programme

Permanent Residence Permit

  • Benefits
  • Financial / Other Obligations
  • Additional Criteria

Cyprus Investment Programme

The Cyprus Investment Programme allows non-EU individuals to acquire Cyprus citizenship and visa-free travel to over 150 countries.

Following the application, Cyprus citizenship will be granted within a maximum of six months after the application.

Further benefits of the Cyprus Investment Programme include:

  • Settlement in the EU.
  • No requirement to undertake a language test.
  • Members of the same family can apply –  the applicant’s spouse/partner and children can apply without having to meet any financial criteria and their application can be submitted along with the investor’s application, so that they will all be able to acquire Cypriot Citizenship simultaneously.
  • The applicant’s parents may also apply by investing only a further €500,000 in a separate private permanent residential property.
  • High-ranking senior managers of companies that meet the financial criteria may also apply (subject to specific terms and conditions).

In July 2017, the Cyprus Government voted for an amendment, establishing a new “60 day rule”. This new rule will apply to individuals who, in the relevant tax year:

  • reside in Cyprus for at least 60 days
  • operate/run a business in Cyprus and are employed in Cyprus and is a director of a company which is tax resident in Cyprus
    Individuals must also have a residential property which they own or rent
  • are not tax resident in another country
  • do not reside in any other single country for a period exceeding 183 days in aggregate.

This is in addition to the “183 day rule”. If the applicant physically resides in Cyprus for more than 183 days in one calendar year, they are considered Cyprus tax resident.

If the applicant satisfies either the current “183 day rule” or the new “60 day rule” and becomes tax resident in Cyprus (but not domiciled there), the following sources of income enjoy a ZERO rate of tax (even if the income has a Cyprus source and is remitted to Cyprus):

  • Interest
  • Dividends
  • Rental income (standard tax rate is 3% on 75% of the income).

In addition:

  • There are NO wealth and/or NO inheritance taxes in Cyprus.
    There is no language test.

To find out about living in Cyprus, please click here.

Cyprus Investment Programme

To qualify for the Cyprus Investment Programme:

Donation of at least €75,000 to the Research and Innovation Foundation
AND
Donation of at least €75,000 to the Cyprus Land Development Corporation
AND
fulfil one of the financial criteria below:

The minimum investment is €2.5million (€500,000 of which must be in a residential property – please see Additional Criteria).

Investments can be made in the following:

Investment in Alternative Investment Funds or Registered Alternative Investment Funds or in the Financial Assets of Cypriot Companies or Cypriot Organizations that are licensed by CySec
The applicant must purchase the financial assets of Cypriot companies or Cypriot organizations with a minimum value of €2 million.
OR
Purchase, Establishment or Participation in Cypriot Businesses or Companies
The applicant must make an investment of at least €2 million in the purchase, establishment or participation in businesses or companies that are based and operating in Cyprus. These businesses or companies must have a tangible presence in Cyprus and employ at least five Cypriot or EU citizens. Investments in the Shipping sector are eligible on the basis of the measurable criteria that will be determined jointly by the Ministry of Finance and Shipping Deputy Ministry.
OR
Investment in Real Estate, Land Development or Infrastructure Projects
The applicant must make an investment with a minimum value of €2 million in the purchase or construction of buildings or other land development projects.
If the investment is made ONLY in residential property and one property is worth at least €500,000 and is a permanent privately-owned residence in Cyprus, the Additional Criteria (A) does NOT need to be met.
OR
A Combination of the Above Criteria
The applicant must meet a combination of the above criteria, with the total investment amounting to at least €2 million.

The applicant must be in possession of a residence permit for a period of 6 months before obtaining the citizenship.

Cyprus Investment Programme

  • The applicant must own a permanent privately-owned residence in Cyprus, the purchase price of which must be at least €500,000 (plus VAT), which has to be maintained for life. However, this property can be rented out.
  • The minimum amount of time for which the investment must be maintained is 5 years from the date of naturalisation.
  • The applicant must hold a residence permit for a period of at least 6 months in Cyprus prior to his/her naturalisation as a Cypriot citizen.
  • The applicant and family members must have a clean criminal record from their country of origin and their country of residence (if different) and/or from the Cyprus Police.
  • The applicant’s name must not be included on the EU list of individuals whose property has been frozen (sanctions list).
  • The applicant must hold a valid Shengen Visa (third country nationals who do not require an entry visa for travelling in European Union member states are excluded from this obligation).
  • Benefits
  • Financial / Other Obligations
  • Additional Criteria

Permanent Residence Permit

A Permanent Residence Permit is very useful as a means to ease travel to EU countries and as a gateway through which to organise business activities in Europe.

Benefits of the programme include:

  • The procedure generally takes two months from the date of the application.
  • The applicant’s passport is stamped and a certificate provided that indicates that Cyprus is a permanent place of residence for that individual.
  • Simplified process for acquisition of a Schengen Visa for holders of a permanent residence permit.
  • Ability to organise business activities in the EU, from Cyprus.
  • If the applicant becomes tax resident in Cyprus (i.e. they satisfy either the “183 day rule” or the “60 day rule” in any one calendar year) he/she will be taxed on Cyprus income and income from foreign sources. However, foreign tax paid can be credited against the personal income tax liability in Cyprus.
  • There are NO wealth and/or NO inheritance taxes in Cyprus.
  • There is no language test.

To find out about living in Cyprus, please click here.

Permanent Residence Permit

A letter from a financial institution in Cyprus must be obtained to confirm that a fixed deposit of €30,000 has been transferred to Cyprus from abroad and is pledged to be retained in Cyprus for at least three years. There are no restrictions on how this money is used once this three year period has elapsed.

The applicant, and his/her spouse, must prove that they have at their disposal a secure annual income of at least €30,000. This annual income needs to increase by €5,000 for every additional dependant. The income can be from pensions, overseas employment, interest on fixed deposits or rental income from abroad.

The applicant must purchase one or two new real estate properties in Cyprus (re-sale property is not acceptable) with a total purchase cost of at least €300,000 (excluding VAT). At least €200,000 must be paid as the Sale Contract is signed and prior to the application for the Permanent Residence Permit. The properties can be one house, or one house and one office, or one house and one retail outlet.

Permanent Residence Permit

  • The applicant and his spouse must submit evidence that they have a clean criminal record from their country of residence.
  • The applicant and his/her spouse must confirm that they do not intend to be employed in Cyprus.
  • The applicant and the family members included in the Permanent Residence Permit must visit Cyprus within one year of the permit being granted and from then on at least once every two years (one day is regarded as a visit).

Capital gains tax is imposed at the rate of 20% on gains from the disposal of immovable property situated in Cyprus, including gains from the disposal of shares in companies which own immovable property, excluding shares listed on a recognised Stock Exchange. Capital gains tax is imposed even if the owner of the property is not a Cyprus tax resident.

Download Full List of Programmes – Benefits & Criteria (PDF)

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