Complete guide to obtaining Cyprus permanent residence

Cyprus, like other European countries, has numerous programs for obtaining residence cards. There are the ways to get a temporary residence permit card:

Cyprus Golden Visa. This visa allows one to live legally on the island and barter on investments in the country’s economy.

Investors get permanent residency, and the full process takes about 3 months. This way can be more affordable if you have the financial opportunity and want to get permanent residence shortly.

Cyprus Startup Visa. This program is valid till May 31st, 2024, and allows a residence for the founder and team of startups with high growth potential. This program is powered by the Ministry of Research, Innovation and Digital Policy, so applicants should transfer or create a branch of their innovative business in Cyprus.

Innovativeness will be evaluated when applying several factors, and an important nuance is that the company should demonstrate 15% growth over the two years. And if the company is successful, applicants can apply for permanent residency.

The essential condition is that the applicant should have a monthly net income of at least €3,500 after deducting contributions and taxes. There is no direct way to transform this visa into permanent residence, but this visa can be used as an argument for naturalisation.

Long-term residence permit. This program allows students, refugees, asylum seekers, and similar categories of applicants to get residence cards. There is a list of documents for any category of applicants, including a passport.

For example, in the case of employment — a contract registered with the Employment Registry, Certificates of academic qualification, bank account statements, certificates of knowledge of the Greek language and so on. The application review period is 6 months.

Naturalisation. You can get a permanent residence permit based on the years you legally lived in Cyprus. You need to have residence on the island 7 years before the application date.

This term is reduced to 5 years if the applicant has parents or children with Cyprus citizenship. Each family member applies independently.

Golden Visa. At the same time, Cyprus has a program for foreigners, also called a Golden Visa. This visa allows one to live legally on the island and barter on investments in the country’s economy.

Investors get permanent residency, and the full process takes about 3 months. This way can be more affordable if you have the financial opportunity and want to get permanent residence shortly.

Cyprus’s golden visa program offers an investment route to getting a permanent residence permit. Compared to naturalisation, family reunion or marriage, the golden visa program is the quickest way to get Cyprus permanent residency.

How to obtain permanent residence in the European Union within half a year

Let’s understand why 180 thousands of immigrants choose Cyprus. There are five main rational advantages of this country:

1. Taxes. There are no taxes on foreign income and inheritance and low taxes on property and income. As we already said, the maximum individual income tax rate is 35%, and the total corporate rate is 12,5%.

2. High level of life. Cyprus is the 23rd economy in the World and 16th in Europe. The island also has the lowest level of crime in Europe.

3. Business climate. The country has a good level of trade freedom, which can be a point for bringing a business to European markets because investors with PR can buy a share in the local business.

4. Unlimited residency. The Cyprus permanent residency permit does not need to be renewed after it has been given. The permanent resident card is updated once every ten years, and the person must bring new photos.

It’s a more convenient residence permit type than a temporary residence one when investors must update their cards every 2—3 years.

5. The prospect of getting an EU passport. After 5 years of obtaining PR, you can apply for a Cyprus passport. And also important that a residence permit can be bequeathed.

6. Cyprus is a member of the EU. Since May 1, 2004, Cyprus has been a member of the EU. Investors who become citizens of Cyprus after receiving a golden visa have the option to travel to all 27 EU nations without the need for extra documentation.

7. The emotional advantage of Cyprus is the last but not least benefit. The country has not only great weather and climate, but there are a lot of monuments of the cultural heritage of different epochs.

There are four ways of getting a Golden Visa of Cyprus, and all of them will require investments for €300,000.

To purchase a real estate property. You can buy one or two objects of primary real estate for the total amount of €300,000 plus VAT. Standard VAT is 19%, but it decreases to 5% if you buy only an estate for a living. According to the terms of the program, you can’t invest in secondary real estate.

To buy a commercial estate property. Here you can buy one or two objects, but there is no difference between primary and secondary estate — both types fit the program conditions. You should pay VAT — 19%, without discounts.

To invest in the share capital of a Cyprus company. In this case, you need to choose a company conducting commercial activities and having 5 or more employees.

To buy the stocks of a Cyprus company. You can invest in stocks of local companies or investment funds. AIF, AIFLNP, and RAIF fit the program conditions.

These ways have nuances and additional costs, and we analyse them in detail further. Still, the main feature is that you can return your investments only after your Residence Card expiration date.

Examples of properties in Cyprus

Cyprus, Limassol

€695,000+

Apartments in a residential complex near the sea

78 m²

2

1

Cyprus, Limassol

€419,000 — €519,000

Apartments in a unique closed residential eco-project

96 m² — 127 m²

2—3

2—3

Cyprus, Limassol

€1,060,000+

Apartment in a luxury residence with guaranteed return

110 m² — 111 m²

1

1

To apply for a permit of permanent residence in Cyprus, the applicant must provide the necessary paperwork, which includes:

1. A completed MIP1 application form.

2. Originals and copies of valid passports of all the applicants.

3. A main applicant’s biography.

4. A declaration confirming an annual income of at least €50,000.

5. A confirmation of investment.

6. Proof of permanent residence in Cyprus.

7. A statement of the absence of employment in Cyprus.

8. A certificate of no criminal record for the main applicant and their spouse.

9. A marriage certificate.

10. A birth certificate.

11. Medical insurance for the whole family.

The PR programs allow foreigners of non-EU and non-EEA countries to get residence permits. Generally, applicants should have no criminal records or violations of migration law. There may be exceptions, but they relate to categories of refugees or asylum seekers.

If you decide to get a permanent residency through an investment program without employment in Cyprus, you must confirm an income outside Cyprus of at least €50,000 per year.

The investor can apply with his family members:

• spouse, without criminal records and employment in Cyprus,

• children under 18 financially dependent on an investor,

• children above 18 under 25 financially reliant on an investor, unmarried and studying in the university.

As we already said, there are four ways to invest in the Cyprus economy and get a permanent residence card. The number of relatives has no bearing on the investment’s size. The registration process and card issuance come at an additional cost to the investment.

For clarity, we combine investments in shares and stocks and evaluate the primary and extra costs for one person.

As you can see, the minimum cost is in stocks and shares, but the risk of that type of investment is much higher than in estate. With passive income from the investments, you can rent out real estate and compensate for the difference in costs in the long term.

Investors can earn 5% a year by renting out their home. A 3-bedroom apartment in the heart of Limassol typically costs €2,500 per month to rent. In Ayia Napa and Nicosia, renting a comparable item will set you back roughly €1,000.

The processing time for obtaining Cyprus permanent residency is 3 months. The government typically considers the application for 2 months. Afterwards, the investors must come to the island to submit biometrics. The Cyprus permanent residence card is issued within 40 days after that.

Individual cost calculation for permanent residence in Cyprus

Get the cost calculation

1. There are four rational reasons to choose Cyprus: the level of taxes, the high level of life, the business climate and the prospect of getting an EU passport. And there is one significant emotional reason — the great environment and beautiful nature.

2. You can get a resident permit in Cyprus through a naturalisation program or investments in the Cyprus economy. Startup Visa, Digital Nomad Visa and Long-term residence permit allow you to stay legally in the country but don’t give you an RP directly.

3. Investment can be called the fastest way to get RP of Cyprus. To participate in this program, you must invest €300,000 in the Cyprus economy. You can buy residential or commercial real estate. Also, you can buy shares or stocks of Cyprus companies. You also should have confirmed income outside Cyprus — at least €30,000 per year.

4. Investment program allows you to add family members: spouse, children and parents.

5. There are additional costs for participation in the investment program, starting from €15,780. Minimum VAT and other expenses are when you buy shares or stocks, but this case is the riskiest. Maximum VAT is in case of purchasing a commercial estate. In this case risk of investments is low. And the case with average risk and expense is when you buy real estate.

6. There are five main steps to getting a residence permit through investments: preliminary Due Diligence, document collection, fulfilment of the Program conditions and obtaining a residence card. So, we will be glad to accompany you at all stages.