Permanent Residency in Cyprus

A permanent residency permit can most commonly be obtained in one of two ways:

• by acquiring property in Cyprus (the fast-track or regular route mentioned below); or
• by applicants (and their family members) who have lawfully stayed in Cyprus for a continuous duration of more than five years.

The residency scheme continues to be in high demand, as third-country nationals want to utilize Cyprus as a hub for their business in Europe.

A. “Fast-track” permanent residency (also known as a Regulation 6 (2) application):

Cyprus is an established international financial centre with the most favourable tax regime in the European Union and with a large number of double tax treaties.   With at least 320 days of sunshine a year, Cyprus is also classified as the sunniest European location and is proving to be an attractive option for Non-EU individuals seeking Permanent Residency, allowing them to travel around Europe without the need for complicated visas.

In accordance with the Cyprus government’s goal of increasing foreign investment, the Ministry of Interior has simplified the procedure for giving Permanent Residency Permits to Non-EU nationals who seek to invest in Cyprus.

WHY SUBMIT AN APPLICATION FOR PERMANENT RESIDENCY (PR)?

• Regulation 6 (2) Permanent Residency Permit gives a Non-EU national the ability to remain in Cyprus permanently with no renewal obligations;
• Lifts travel restrictions and complicated visa requirements (i.e. Visitor’s Visa) across the EU, allowing easier entry to the Schengen zone;
• Once granted, the Permanent Residency Permit covers the entire family: the main applicant and spouse, their parents and dependents up to and including the age of 24 (who must be enrolled students and cannot be working towards a professional degree, such as a Ph.D., lawyer, chartered accountant, medical doctor, etc.);
• Fast-track application process – all applications are assessed by the Civil Registry and Migration Department, and the Ministry of Interior issues final permission within two months after filing;
• In the applicant’s absence, the application might be handled and filed by a lawyer on their behalf;
• If the Permanent Residency Permit holder is a Cyprus tax resident, he or she is exempt from tax on worldwide dividends and interest income for a period of 17 years. Furthermore, a Cyprus tax resident is exempt from paying tax on profits on the disposal of securities.

WHAT MAKES CYPRUS UNIQUE?

• Geographic position (Cyprus is located at the crossroads of three continents: Europe, Asia, and Africa);
• A stable economy under a presidential democracy of the Western kind;
• The Cyprus Exclusive Economic Zone has significant economic growth potential in the oil and gas exploration sectors;
• Low tax rates, as well as very advantageous international double tax treaties;
• There is no inheritance tax;
• The legal system is based on English common law;
• The English language is widely spoken and largely acknowledged as a business language;
• Professional services industry with a high level of maturity;
• Professionally trained labor force;
• Access to prominent private and public schools, as well as prestigious British institutions in Cyprus;
• Security: Cyprus has the lowest overall crime rate in the EU;
• Low living expenses;
• Immovable property at a reasonable price;
• Healthcare of the highest caliber: Cyprus has access to world-class medical facilities;
• Excellent telecommunication and air transport links;
• Cyprus has a rich history, including four UNESCO World Heritage Sites (in Paphos, Choirokoitia, and Troodos).

SIMPLE FAST-TRACK PROCESS:

• Purchase of a “first-time” selling residential property in Cyprus for a minimum of €300,000 (non-inclusive of VAT, being either 5 percent or 19 percent, if applicable). An initial payment of at least €200,000 is required; applicants’ presence at the time of purchase is not required but can be assisted by a legal representative;
• Permanent Residency applications and legal documentation must be prepared and submitted to the Civil Registry and Migration Department (this can be done on your behalf by our lawyers through a Power of Attorney).
• If the relevant investment conditions are met, you will get your Cyprus Permanent Residency Permit within two months of submitting your application.
• Successful applicants must visit Cyprus within one year of receiving the Permanent Residency Permit to receive their permit and have biometrics taken by the authorities (for issuance of the PR card), and then every two years thereafter.

OTHER FINANCIAL CRITERIA & TERMS FOR QUALIFYING:

1. Maintain a three-year fixed deposit account with a Cyprus bank for at least €30,000; monies must be deposited from sources outside Cyprus.
2. Show proof of a secured annual income of at least €30,000 earned abroad (raised by €5,000 for each dependent included in the application, and €8,000 for each parent of the primary applicant and/or spouse).

In addition to meeting the aforesaid financial requirements, the applicant, their spouse, parents, and dependents, if applicable, must meet all of the following conditions:

• Have a clean criminal record;
• Declare their desire not to work in Cyprus (although Permanent Residency Permit holders may own a Cyprus company and earn dividends from its profits);
• State that they have a secured annual income from abroad;
• Ensure that the applicant’s name is not on the list of those whose property has been ordered to be frozen by the EU;
• After receiving the Permanent Residency Permit, successful applicants must visit Cyprus within one year to receive their permit and have biometrics taken by the authorities (for issuance of the Permanent Residency card), and then once every two years thereafter.

WHO CAN PARTICIPATE IN THE PERMANENT RESIDENCY PERMIT APPLICATION:

1. The granted Permanent Residency Permit covers the holder’s spouse and children up to the age of 17;
2. The main applicants’ and/or spouse’s parents;
3. Adult children of the PRP applicant between the ages of 18 and up to (and including) 24 years old, can join a Permanent Residency Permit application (provided they are enrolled students);
4. Married children of Permanent Residency Permit applicants between the ages of 18 and up to (and including) 24 years old, who are students, can join their parents’ application.

WHEN CAN A PERMANENT RESIDENCY PERMIT BE REVOKED?

1. When the Permanent Residency Permit holder is granted a permanent residency permit in another country (other than the country of his/her nationality);
2. When the Permanent Residency Permit holder does not visit Cyprus for more than two years.

WHAT ARE THE DISBURSEMENTS FOR FILLING A PRP APPLICATION?

1. EUR 4,00 for the Official Declaration confirming the absence of intention to work in Cyprus, either directly or indirectly;
2. EUR 500,00 for submitting the PRP application;
3. The issuing of the Alien Registration Certificate costs EUR 70.

B. Permanent Residency on a “normal-track” basis (known as Category F application)

A third-country national may apply for permanent residency (“normal-track basis”) after renting out a home or purchasing a house/apartment of any value. The following are the bare minimums:

• A minimum annual secured annual income of about EUR 10,000 from sources outside of Cyprus (increasing by approximately EUR 5,000 per dependent);
• The applicant does not have a job in Cyprus;
• Income is acquired from legally permissible sources in other countries;
• Income is secured and provides long-term support for the applicant and their family (with supporting proof that the financial requirements of the family are sufficiently addressed);
• No criminal history;
• There is no sanction order against the applicant or any of his/her relatives.

The key advantage of this route is the reduced annual income need, as well as the option of renting a property before purchasing altogether. It should be emphasized that after the application is approved, the applicant is allowed to travel to and from Cyprus without limitation.

The biggest disadvantage of the aforementioned method of application is that it takes up to a year (officially – in fact, it may take much longer) to receive a decision from the Ministry of Interior.

C. Permit for Permanent Residency for Non-EU Citizens Residing in Cyprus

Citizens of third countries may apply for a Permanent Resident Permit after completing at least 5 years of continuous lawful presence in Cyprus and holding a Temporary Resident Permit for the full preceding time.

D. Permit for Permanent Residency for Non-EU Citizens and Family Members

Family members from outside the EU may also apply for a Permanent Residency Card.

For non-EU family members, the Permanent Residency Card is valid for 5 years and can be extended.

E. Permit for Permanent Residency for EU Citizens (“Yellow Slip”)

EU citizens entering the Republic of Cyprus to work, and staying for longer than three (3) months must register with the competent authorities in Cyprus.

Given the foregoing, the following are relevant:

The procedure begins with the completion of the MEU1 form (which is accessible in both Greek and English) by both the Employer and the Employee (if the EU national will be taking up employment). The following documentation must also be included with the application:

1. A valid passport or identification card (to be presented to the authorities);
2. Medical Insurance Certification in the Republic (this needs to cover inpatient and outpatient matters in the Republic of Cyprus and transportation fees);
3. Rental Agreement or Sale Contract;
4. A payment of around EUR 20;
5. The application must be filed to the Civil Registration and Migration Department before the 3-month time expires (a fine is applicable in case of late application);
6. It should be mentioned that each applicant must be present at the Immigration Department in order to submit biometrical fingerprints;
7. A copy of the employment contract (where applicable).

Members of a European national’s family have the right to work or engage in self-employment in the Republic of Cyprus. After two years from the date of issuance, this permission should be evaluated.

If nationals of EU Member States wish to pursue a profession that is regulated in Cyprus, such as a lawyer, medical doctor, accountant, engineer, electrician, and so on, by legislation determining the specific necessary qualifications and the procedure for acquiring the right to pursue the profession, such person should contact the competent body responsible for the relevant application of the specific profession in order to acquire the relevant permit, in the same way, that a Cypriot would.