The Ministry of Interior’s proposal to revise the criteria for granting permanent residency under Regulation 6(2) of the Aliens and Immigration Regulation was approved by the Council of Ministers. The aim of the amendments is to establish stricter criteria for granting permanent residency, correct any distortions, and monitor compliance with these criteria. The changes to the Cyprus Permanent Residence Scheme under Regulation 6(2) apply from May 2, 2023, onwards.
The Civil Registry and Migration Department (CRMD) has announced that applicants who have lodged Sale Agreements at the Department of Lands and Surveys Offices between January 2, 2023, and April 28, 2023, will be able to submit their applications to the CRMD. However, the criteria for the Cyprus Permanent Residence Scheme according to Regulation 6(2) as of March 24, 2021, will apply.
Amendments to the Investment in a House/Apartment
It is required to pay a minimum amount of €300,000 (excluding VAT) in advance to the land development company or companies. It does not matter when the property will be delivered, but the applicant must submit documentation proving that this amount has been settled to the CRMD before submitting their application. The investment amount must be transferred from abroad from the bank account of the main applicant or their spouse, provided that the spouse is included as a dependent in the main applicant’s application. It is noted that the purchase of real estate will be accepted even when it is made by a legal entity in which the applicant and/or his wife are the exclusive shareholders or final beneficiaries and which is legally established in the Republic or in another member state of the European Union or of the European Economic Area.
Other Investment Options
Investment in real estate (excluding houses/apartments): Purchase of another form of real estate such as offices, shops, hotels or similar developments or a combination of these with a total value of €300,000. The properties in question may also be subject to resale.
Investment in share capital of a Cypriot Company with activities and staff in Cyprus: Initial investment in share capital of a new company worth €300,000 or increase of share capital worth €300,000 in an existing company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.
Investment in shares of a Cyprus Investment Organization for Collective Investments (type AIF, AIFLNP, RAIF): Investment worth €300,000 in shares of a Cyprus Investment Organization for Collective Investments whose investments should be carried out in the Republic of Cyprus.
Provided that, any alienation of the holder of the Immigration Permit from the investment he has made without immediately replacing it with another of the same or greater value, which should meet the conditions set in this procedure, will entail activation of the procedure cancellation of the License based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
The applicant should, in addition to the investment based on the investment options above, be able to prove that he has at his disposal a personal insured 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.
- All adult candidates are required to present a clear criminal record from both their country of origin and their current country of residence, if different.
- Provision of Health Insurance Certificate for medical treatment covering inpatient and outpatient care is also required.
- In the event that the applicant plans to invest in a house or apartment, and the number of bedrooms in the property is insufficient to accommodate dependent family members, the applicant must propose an alternative property or properties that will serve as their place of residence. Evidence such as property title deeds, sales agreements, or rental agreements must be provided to support this proposal.
A significant change to the regulations specifies that the primary applicant is now limited to including only their spouse, minor children, and unmarried adult children up to 25 years of age who are financially reliant on the primary applicant and enrolled as university students. However, the primary applicant is no longer permitted to include their parents or parents-in-law as dependents to be granted Permanent Residence.
Provision of Highest Value Investments to Including Adult Children
An Immigration Permit may also be granted to adult children of the applicant who are not financially dependent on the understanding that a higher value investment has been made.
Control Mechanism Compliance with The Criteria and Maintenance of The Investment
The applicant is required to submit to the CRMD, on an annual basis from the date of obtaining the Immigration Permit, evidence that he maintains the investment, that he maintains the required income that has been determined for himself and his family and that he and his family members are holders of a health insurance certificate, in the event that they do not continue to be beneficiaries of GESY. In addition to the above, the applicant and his adult family members are required to provide an annual certificate of a clean criminal record from their country of origin, as well as from their country of residence.
It is understood that, in case the holder of the Immigration Permit fails to prove the above, it will entail the activation of the process of cancelling the Permit of himself and his family members based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
This guide contains information for general guidance only and does not substitute professional advice, which must be sought before taking any actions.