Residency
Immigration Permits for Investors – 4th Revision, May 2023
Legal framework: In pursuance of the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of Interior has decided to issue Permanent Residency Permits to applicants from third countries that satisfy the following criteria:
Main investment criteria for Immigration Permit to third country applicants:
- Invest at least €300,000+ VAT with proven transfer of funds to Cyprus from abroad.
- Purchase of a house or apartment (up to two units) from a development company, which must be a first sale worth at least €300,000+ VAT. The immigration permit can include an adult child not financially dependent on the applicant, and for each child, an investment of an additional €300,000+VAT applies.
- Investment of other types of real estate (including resales) such as offices, shops, hotels or related estate developments, or a combination thereof, with a total value of €300,000.
- Contract of Sale must be deposited at the Land Registry in any of the above criteria
- Investment worth €300,000 in a newly registered Cyprus company’s share capital, with business activities based and operated by a minimum of 5 employees.
- Investment worth €300,000 collectively in units belonging to Cyprus Organizations and activated in the Republic of Cyprus.
Additional requirements & criteria:
- Personal secure annual income that derives from abroad of at least €50,000 (including spouse’s income) + increase by €15,000 for his/her spouse + €10,000 for each dependent minor child. Depending on the type of the Cyprus investment, the income or part of it may also come from sources through activities within the Republic.
- All applicants need clean criminal record certificate from their country of origin and their country of residence.
- The applicant and his/her dependent family members must submit a health insurance policy certificate.
- Applicant’s employment in the Republic is prohibited, with the exception of their employment as Directors in a Company related to this policy.
- The applicant and his family included in the Immigration Permit must visit Cyprus at least once within 1 (one) year from the day of approval of the application and subsequently, at least once every 2 (two) years. There is no minimum time requirement therefore, the visit may last a single day.
- Permanent Residents can be eligible for Citizenship after 7 years.
- If all the policy criteria are met the examination and decision by the Minister of Interior is approximately at 2 months. The Duration of immigration permit is of unlimited validity, for the holder and his/her adult dependents (until the age of 18).
Benefits:
- The island offers high standard of living and Education as well as Mediterranean Climate
- The Republic of Cyprus has managed to facilitate exceptional diplomatic and economic associations with not only Europe, but also with jurisdictions such as Russia, China, India, North America and the Middle East.
- Large network of Double tax treaties.
Tax benefits of primary significance to applicants:
On the 9th of July 2015, the Cypriot House of Representatives voted on significant amendments to the tax laws further improving the long established comprehensive and transparent character of the Cypriot tax system. The amendments of primary focus to the reader are the following:
- For property acquisitions taking place prior to the 31/12/2016, the transfer fees payable at the Land Registry are reduced by 50% and totally abolished for those properties carrying VAT.
- For property acquisitions taking place prior to 31/12/2016, no Capital Gains Tax is payable whenever this property is subsequently sold.
- After obtaining citizenship or residency the holder may opt to become a Cyprus tax resident by residing in Cyprus for more than 183 days per annum. Albeit he may so elect, he will still remain exempted from the Special Defence Contribution tax on any dividends received from any corporate entity.
How can PURPLE International Real Estate assist you?
PURPLE has over the years assembled a team of professionals who may advise and guide you through the entire procedure for the successful acquisition of either Cyprus residency or citizenship. Our local knowledge, professional expertise and familiarization with local practices are at your disposal.
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