Cyprus offers a permanent residency program for investors who meet specific financial, documentation, and compliance criteria. Applicants must make a qualifying investment of at least €300,000 (excluding VAT), demonstrate sufficient foreign income, and maintain ongoing obligations to retain the status.
Financial thresholds and investment options
- Minimum investment: €300,000 (plus applicable VAT).
- Eligible assets:
- New residential real estate from a developer.
- Commercial property such as offices, retail premises, or hotels.
- Shares in a Cyprus‑based company with a physical presence and at least five employees.
- Subscriptions to an approved Alternative Investment Fund (AIF), Registered AIF (RAIF) or UCITS operating in Cyprus.
The investment must be funded with money transferred from abroad and retained for as long as permanent residency is desired.
Foreign income requirement
Applicants must prove an annual income from sources outside Cyprus sufficient to support themselves and any dependents:
| Applicant | Required annual income |
|---|---|
| Main applicant | €50,000 |
| Spouse | Additional €15,000 |
| Each dependent child | Additional €10,000 |
Acceptable income sources include overseas employment earnings, dividends, rental income, pensions, and other recurring passive income.
Mandatory documentation and due‑diligence
Typical documents required (all foreign documents must be translated into Greek or English and legalised/apostilled):
- Valid passports for the applicant and all dependents.
- Completed application forms and government declarations.
- Proof of the qualifying investment (purchase agreement, share purchase agreement, or fund subscription documents).
- Evidence of fund transfer from abroad.
- Proof of foreign income and related financial statements.
- Source‑of‑funds documentation confirming lawful origin of the capital.
- Clean criminal‑record certificates from the country of residence or citizenship.
- Valid health‑insurance policy covering the applicant and family members.
- CV (if required), marriage certificate, birth certificates, passport‑size photos, and biometric data.
Cyprus conducts comprehensive due‑diligence, reviewing the origin of funds, banking history, business interests, tax compliance, sanctions lists, criminal background, and any politically exposed person (PEP) status.
Tax considerations
- Tax residency vs. permanent residency: Permanent residency grants the right to live in Cyprus indefinitely, but tax residency depends on meeting statutory rules (e.g., 183‑day rule or, in certain cases, a 60‑day rule).
- Non‑Dom regime: New tax residents may qualify for the Non‑Domicile status, which provides exemptions from the Special Defence Contribution on dividends, interest, and most rental income.
- VAT on property purchases:
- New residential property is generally subject to 19 % VAT.
- A reduced 5 % VAT may apply to the portion of a property used as the applicant’s primary residence, provided statutory conditions are satisfied.
- Commercial property follows the standard VAT rules applicable to the transaction.
Professional legal and tax advice is recommended before finalising any investment.
Ongoing annual compliance
To retain permanent residency, applicants must:
- Maintain the qualifying investment: The original €300,000+ investment must be kept for the duration of residency. If sold, it must be replaced with another qualifying investment of at least the same value.
- Demonstrate continued financial independence: Ongoing foreign income must be sufficient to support the applicant and dependents without reliance on salaried employment in Cyprus. Share ownership and dividend income from Cyprus companies are permitted, but salaried work is generally prohibited.
- Physical presence: Visit Cyprus at least once every two years; an absence exceeding two consecutive years may lead to revocation of the status.
- Notify authorities of family changes: Any changes in marital status, family composition, or other material circumstances must be reported promptly.
Adhering to these obligations ensures that Cyprus permanent residency remains valid and provides long‑term security for the investor and their family.
Source article: www.astons.com
