On 21.04.2023, the Council of Ministers decided for the amendment of the criteria for granting Immigration Permits through the fast–track option to third country national applicants who wish to invest in Cyprus pursuant to the provisions of the Regulation 6(2) of the Aliens and Immigration Regulations.
The decision for the amendment of the existing policy of the Ministry of Interior, which essentially aimed at the empowerment and strengthening of the real-estate market and boosting of the Cypriot economy in general, was taken because evidently, it was necessary for certain provisions to be reassessed. Although the investment amount remains unchanged (at least €300,000), stricter control and verification mechanisms have been introduced to ensure that the applicant retains the investment for life.
The scheme of obtaining permanent residence permit is also known as the “Golden Visa” Programme, since, an individual, who acquires a permanent residence permit through investment, is eventually entitled to apply for Cypriot citizenship after 7 years of being granted such permanent residence permit.
Economic criteria
The applicant must invest at least €300,000 in one of the following investment categories:
(A) Investment in a house/apartment:
Purchase of a house or apartment from a development company, which must be a first sale worth 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 related estate developments, or a combination thereof, with a total value of €300,000. These purchases may result from a resale.
(C) Investment in Cyprus Company’s share capital, with business activities and personnel in the Republic:
An initial investment worth €300,000 in the share capital of a newly registered company in the Republic of Cyprus or an increase in the share capital worth €300,000 of an existing company registered in the Republic of Cyprus, based and operating in the Republic of Cyprus and having a proven physical presence in Cyprus, and employing at least five (5) people.
(D) Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF):
Investment worth €300,000 in units of Cyprus Investment Organization Collective Investments, whose investments should be held in Cyprus.
It is noted that any alienation of the holder of the Immigration Permit from the investment he has made without its immediate replacement with another of the same or greater value which must meet the conditions set out in the present procedure, will result in the cancellation of the Immigration Permit.
Annual income and Applicant’s dependent persons
The permit automatically covers the applicant’s spouse and their underage children subject to financial conditions. The required annual income that the applicant must prove to earn has been raised to €50,000 (previously it was €30,000). Such annual income is increased by €15,000 for the spouse and by another €10,000 for each minor dependent child. In cases where the applicant chooses to invest in options (B), (C) or (D), his total income or part of it may also come from sources coming from activities within the Republic.
Quality Criteria
The applicant and the spouse must provide the following:
In cases where the investment does not concern the company's share capital, the applicant and/or the spouse are permitted to be shareholders in companies registered in Cyprus. The income from the dividends derived from such companies will not be considered as an obstacle for the purpose of obtaining the Permit. In such companies, they may also hold the position of an unpaid Director.
In cases where the applicant chooses to invest in options (B), (C) or (D), he/she should provide evidence of accommodation in Cyprus (e.g. title of ownership or contract of sale and proof of payment for the property or rental agreement).
In cases where the applicant chooses to invest in option (A), but the number of bedrooms of the investment property cannot satisfy the needs of the dependent members of his/her family, they should indicate another property or properties which will serve as the residence of these individuals (e.g. title of ownership or contract of sale and proof of payment for the property or rental agreement).
Monitoring Mechanism
From the date of obtaining the Immigration Permit, the applicant is obligated to provide the Civil Registry and Migration Department, annually, evidence of maintaining the investment, the required income for him/her and his/her family, and proof of holding a health insurance policy certificate if they no longer benefit from GESY. Furthermore, the applicant and his/her adult family members must annually provide a clean criminal record certificate from their country of origin and country of residence.
Failure of the Immigration Permit holder to prove the above will result in the cancellation of his/her and his/her family members' Immigration Permit.
Dependent Persons
The Immigration Permit is issued to the applicant and it covers his/her spouse and their children under the age of 18 as dependent persons.
Higher Investment for including Adult Children
In regards to children of the applicant above the age of 18, who are financially independent from the applicant, they may be granted such a permit only if the investment of the applicant is multiplied by the number of the said adult children. For instance, the required investment of €300,000 shall become €600,000 where the applicant has one financially independent adult child.
Parents and in-laws of the applicant are not considered as dependants of the applicant and therefore are not entitled to such a permit.
Quality criteria
For the purposes of submitting the application, all adult applicants shall provide a clean criminal record from both their country of origin and their country of residence if they differ. Pursuant to the amendment, such clean criminal records must be provided afresh to the authorities every 3 years after obtaining the immigration permit.
Another new criterion is that each family member must provide a health insurance certificate for medical treatment covering both inpatient and outpatient care.
Furthermore, the property used as the investment in question must have sufficient bedrooms so as to accommodate the needs of the family and must also be declared as the family’s “permanent residence”.
Required action after approval
An Immigration Permit shall cease to be valid if the interested person and his/her dependents fail to acquire residence in Cyprus within one year from the approval of the application, in case that they are residing outside Cyprus.
Our team of lawyers is fully equipped and ready to support and guide you in all matters related to obtaining immigration permits in Cyprus. For any queries, do not hesitate to contact us at info@pirilides.com.
