The Council of Ministers has approved the Ministry of Interior’s proposal to revise the criteria for granting Permanent Residency Permits to investors under Regulation 6(2) of the Aliens and Immigration Regulations. The aim of the revision is to introduce control mechanisms to ensure that the applicant retains their investment for life and to address observed shortcomings. The revised criteria will come into effect from May 2, 2023.
Non-EU applicants can be granted Permanent Residency Permits if they meet one of the investment criteria listed below.
INVESTMENT CRITERIA
The applicant must invest at least €300,000 in one of the following investment categories.
1. Investment in a house/apartment
The applicant must purchase a newly constructed house or apartment from a land development company sold for the first time (no resale) with a minimum value of €300,000 (plus VAT).
To submit an application to the Civil Registry and Migration Department, the applicant must pay the minimum amount of €300,000 (excluding VAT) in advance to the land development company, regardless of the property delivery date. During the application submission, evidence must be provided that the investment funds have originated from abroad.
If the property where the investment will be made does not have enough bedrooms to accommodate all dependent family members of the applicant, the applicant must provide an alternative property or properties as a residence for those persons. The applicant must also provide relevant documentation to support this, such as the property title deed, sales agreement, or rental agreement.
2. Investment in Real Estate (excluding houses/apartments)
Purchase of other types of properties such as offices, shops, hotels, or similar developments, or a combination of these, with a total value of at least €300,000. These properties may also include resale properties.
3. Investment in the share capital of a Cypriot company with activities and personnel in Cyprus
Initial investment in the share capital of a new company worth €300,000 or an increase in the share capital of an existing company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has proven physical presence in Cyprus and employs at least five (5) individuals.
4. Invest in Units of Cyprus Investment Organisation of Collective Investments (forms of AIF, AIFLNP, RAIF)
Investment of €300,000 in units of a Cypriot Investment Fund, whose investments must be carried out in the Republic of Cyprus.
ANNUAL INCOME
In addition to the investment criteria mentioned above, the applicant must be able to demonstrate that they have personal secure annual income of at least €50,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child of the applicant and/or his/her spouse.
The annual income can only be proven through foreign sources such as employment salary, pensions, stock dividends, interest on deposits, rents, etc., and the main applicant’s tax return from their declared tax residency country.
In the cases where the applicant has invested either in 1) real estate (excluding houses/apartments), or 2) in the share capital of a Cyprus Company with activities and personnel in Cyprus, or 3) in units of a Cyprus Investment Organisation for Collective Investments (type AIF, AIFLNP, RAIF), the total annual income or part of this can also arise from sources originating from activities in the Republic of Cyprus, provided that the applicant is taxable in Cyprus.
OTHER REQUIREMENTS
1. All adult applicants shall provide a Clean Criminal Record from their country of origin and from their country of residence if it differs.
2. All family members shall provide Medical Insurance Certificate for medical treatment covering inpatient and outpatient care.
3. The applicant and their spouse shall certify that they do not intend to be employed in the Republic except for their employment as directors in a company in which they have chosen to invest under this policy.
PROVISIONS RELATING TO DEPENDENTS
One significant change that has been implemented is that the main applicant can now only list their spouse, minor children, and financially dependent, unmarried adult children up to the age of 25 who are university students as dependents. The permit will continue to be valid even after the age of 25, even if the child is no longer unmarried, a student, or financially dependent on their parents.
The applicant is no longer permitted to include their parents or parent-in-law as dependents for the purpose of obtaining Permanent Residence.
Permanent Residence can also be granted to adult children of the applicant who are not financially dependent, provided that a higher investment is made. The value of the investment of EUR 300,000 must be multiplied by the number of adult children who will use the same investment for the purpose of obtaining Permanent Residence.
ENSURING THAT THE CRITERIA ARE MET AND THE INVESTMENT IS MAINTAINED
After the applicant’s Permanent Residence application is approved by the CRMD, they must provide evidence on an annual basis that they have maintained the initial investment. They must also provide an updated clean criminal record from their country of origin and country of residence on a triennial basis. Additionally, they need to provide proof that the applicant and family members hold health insurance, in case they are not registered with GESY.Failure to provide this evidence may result in the cancellation of the permit for the applicant and their family members in accordance with Regulation 6 of the Aliens and Immigration Regulations.
This article is for general informational purposes only and should not be construed as legal advice.