New Amendments to the Provision of Regulation 6(2) of the Alien and Immigration Regulations for the Cyprus Permanent Residency Programme:
Cyprus has been considered as an attractive destination for investors, individuals and their families for many reasons, such as:
- a favourable tax framework with an expanded network of double tax treaties (currently 65);
- fast access to Europe;
- a two-month procedure for the Permanent Residency;
- having the ability to obtain a one-year Schengen visa in any European embassy in Nicosia;
- the possibility to enjoy British University education in Cyprus;
- the best medical facilities and high quality healthcare;
- no inheritance tax;
- rental income;
- the opportunity to obtain a passport exists for those who have been legally residing in the Republic of Cyprus for 7 years, provided that they fulfill the minimum residency requirements;
- a high quality of life – Cyprus is a renowned tourist destination with clear beaches and is one of the safest places to reside permanently. There is sunny weather and a mild climate all year round.
It is important to note that the permanent residency permit is not renewable because it is permanent and it lasts for life.
The Cypriot Government, in an endeavour to further attract foreign investment to the island and to help economic recovery and promote economic growth, recently published new amendments to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, which became effective on 24th March 2021, which allows a third country national to invest and reside in the Republic of Cyprus.
The new amendment of regulation 6(2) is in line with the Cyprus Government’s intention to induce and expand foreign investment in areas other than simply real estate.
Under the new criteria, there are now four (4) different investment categories, and these are as follows:
(A) Housing / apartment investment:
- Purchase of a house and/or apartment from a land development company, which should involve a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding houses / apartments):
- Purchase of other types of real estate such as offices, shops, hotels or similar developments or a combination of these with a total value of €300,000. These properties can also be resold.
(C) Investment in a share capital of a Cyprus Company with activities and staff in Cyprus:
- An investment worth €300,000 in a share capital of a company registered in the Republic of Cyprus, which is based and active in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.
D) Investment in shares of a Cyprus Investment Organisation Collective Investments (type AIF, AIFLNP, RAIF):
- Investment worth €300,000 in shares of Cyprus Investment Organisation Collective Investments.
Pledging an amount is no longer required
Another significant amendment is that the Applicant is no longer obliged to deposit €30.000 in a fixed deposit account, locked for three years This requirement has now been removed.
Moreover, the applicants should confirm that they do not intend to undertake any sort of employment in Cyprus, besides holding the position of Director in the company in which they have chosen to invest as per the current policy.
Applicants, furthermore, can be shareholders in a company registered in Cyprus and receive the dividends of such company, or hold the position of Director in such company without receiving a salary.
In cases where the applicant has chosen to invest in any other category besides the category of new residential properties, the applicant should provide relevant documentation as to the place of residence in Cyprus (e.g. sales agreement, rental agreement, or title deed).
The investment should be concluded before the submission of the application. The relevant documentation as to the settlement of the funds must be provided upon the submission of the application. In the case of investment in residential properties, the applicant needs to show that the minimum amount of EUR 200,000 (plus VAT if applicable) is paid to the developer, while in all other investment options the total minimum amount of EUR 300,000 (plus VAT if applicable) needs to be settled prior to the submission of the Residency Permit application.
The Cyprus Residency Permit (Fast Track) has always been a popular programme. Over the years, it has been improved to include three generations of the family. Applicants now have more options in terms of their investment, enabling third country investors to explore more business opportunities and combine these with their immigration options.
If you want to apply for Cypriot residency in 2021, you can rely on our law firm which will be at your service with tailored services. Our lawyers will explain the entire procedure and the documents to prepare in accordance with the type of permit sought.
If you have any questions about the procedure of obtaining a residence permit in Cyprus in 2021, our lawyers will answer them.