Tax incentives and access to the European business market
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Non-EU citizens obtain Cyprus permanent residence by investing at least €300,000 in real estate or securities.
Permanent residents may not pay taxes on global income, including dividends and capital gains. The country has no inheritance tax and low income and property tax rates.
The Cypriot jurisdiction is one of the best places to register the tax residency of an international business or open a new company. The corporate tax rate in the country is only 12.5%.
A permanent resident can obtain Cyprus citizenship after five years of living in the country. Citizens travel without visas to 170+ countries, including the European Union and the UK.
There is no tax on global income and inheritance and low property and income taxes rates. The corporate tax rate is one of the lowest in Europe — 12.5%.
Prices on Cypriot real estate grow by 1—4% every year. The same yield is applied to leases of residential property.
Permanent residence is issued for life and is passed on to children. 5 years after receiving permanent residence, its holder can apply for Cyprus citizenship and become a full-fledged citizen of the European Union.
Unlike under many other investment immigration programs, investors with the Cyprus permanent residence can buy shares in local businesses, open their own companies or transfer operating companies to the island’s jurisdiction.
Cyprus has been included in the IMF list of developed economies since 2001. According to the Human Development Index, Cyprus ranks 31st in the world. The island has the lowest crime rate in Europe.
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Including children from previous marriages
With physical or mental disabilities
The investor can choose from several investment options of €300,000: buy residential or commercial real estate, shares of Cypriot companies or units of local investment funds.
If the applicant has chosen to invest in non-residential property, buying or renting housing on the island will also be necessary. In this case, there are no space or cost requirements.
Investments can be returned only after the permanent residence expiration or obtaining citizenship.
The investor can buy one or two new properties with a total value of €300,000 plus VAT. The standard VAT rate is 19%. But if the property is the only housing and the investor plans to live there and not rent it out, VAT is reduced to 5%. It is not possible to buy a resale property.
Immigrant Invest has a database with hundreds of reliable properties, including those at the construction stage, which our clients can buy without a commission. Our lawyers will organize a trip and accompany investors when choosing a property.
| Investor | Married couple | Family of 3 or more people | |
|---|---|---|---|
| Purchase of a residential property | €300,000+ | €300,000+ | €300,000+ |
| VAT The standard rate is 19%, for the only housing — 5% | €15,000+ | €15,000+ | €15,000+ |
| Legal services | 1% of the transaction amount | 1% of the transaction amount | 1% of the transaction amount + €500 per each additional applicant |
| Confirmation of income The annual minimum income must be deposited in a Cypriot bank account and kept for three years | €30,000+ per year | €35,000+ per year | €40,000 per year + €5,000 per family member starting with the fourth one + €8,000 per parent |
| Immigration submission fee | €500 | €500 | €500 + €500 per child over 18 and parent |
| Registration fees | €70+ | €140+ | €210+ + €70 per family member starting with the fourth one |
The investor can buy one or two commercial properties with a total value of €300,000 plus VAT. The property can be new or for resale. Offices, shops, hotels or a combination worth at least €300,000 qualify as commercial properties under the option.
| Investor | Married couple | Family of 3 or more people | |
|---|---|---|---|
| Purchase of a commercial property | €300,000+ | €300,000+ | €300,000+ |
| VAT The standard rate is 19% | €57,000+ | €57,000+ | €57,000+ |
| Legal services | 1% of the transaction amount | 1% of the transaction amount | 1% of the transaction amount + €500 per additional applicant |
| Confirmation of income The annual minimum income must be deposited in a Cypriot bank account and kept for three years | €30,000+ per year | €35,000+ per year | €40,000 per year + €5,000 per family member starting with the forth one + €8,000 per parent |
| Immigration submission fee | €500 | €500 | €500 + €500 per child over 18 and parent |
| Registration fees | €70+ | €140+ | €210+ + €70 per family member starting with the fourth one |
Equity investment in a Cypriot company that conducts business and employs at least 5 people in Cyprus.
Investments in units of Cypriot investment funds in the form of AIF, AIFLNP, and RAIF.
| Investor | Married couple | Family of 3 or more people | |
|---|---|---|---|
| Investment option: 1. Shares of Cypriot companies 2. Units of Cypriot investment funds |
€300,000+ | €300,000+ | €300,000+ |
| Confirmation of income The annual minimum income must be deposited in a Cypriot bank account and kept for three years | €30,000+ per year | €35,000+ per year | €40,000 per year + €5,000 per family member starting with the forth one + €8,000 per parent |
| Due Diligence | €15,000 | €25,000 | €25,000 + €10,000 per family member over 12 years old |
| Immigration submission fee | €500 | €500 | €500 + €500 per child over 18 and parent |
| Registration fees | €70+ | €140+ | €210+ + €70 per family member starting with the forth one |
| Purchase of a residential property | Purchase of a commercial property | Investments in securities | |
|---|---|---|---|
| Investment | €300,000+ | €300,000+ | €300,000+ |
| VAT | €15,000+ | €57,000+ | — |
| Confirmation of income The annual minimum income must be deposited in a Cypriot bank account and kept for three years | €40,000 per year | €40,000 per year | €40,000 per year |
| Due Diligence | €25,000 | €25,000 | €25,000 |
| Immigration submission fee | €500 | €500 | €500 |
| Registration fees | €210 | €210 | €210 |
| Fee for a permanent residence card | €7,000 | €7,000 | €7,000 |
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Obtaining Cyprus permanent residence by investment takes about two months. Everything can be done remotely, so flying to the island is unnecessary. The applicant only needs to collect documents and select an investment object.
Due Diligence is a mandatory step in any residency program for investors. Its results define whether the investor becomes a resident of the country.
To increase the chances of approval, Immigrant Invest conducts preliminary Due Diligence.
A certified Anti Money Laundering Officer checks the investor’s documents and searches for information about them in international databases. If there is a problem, we suggest a solution, such as attaching an affidavit to the application or choosing another program.
The check is confidential and takes only one business day. Thanks to it, the rejection risk reduces to 1%.
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We help collect, translate and apostille documents, get medical insurance and conclude a real estate lease agreement.
We hand the documents over to our agent in Cyprus when everything is ready.
The main set of documents includes:
When buying a property, we submit documents to the Department of Lands and Surveys of Cyprus, including an application to reduce the VAT rate to 5%. The investor transfers €200,000 and VAT to the developer.
We have our own database of properties, including those under construction. We will help you decide on the type of investment or choose a property, draw up a contract of sale and conduct a deal.
The applicant does not have to fly to the island as our agent in Cyprus can submit all the documents.
The decision to grant permanent residence is made within two months. Within a year after the approval, the investor and their family must visit the island to submit biometric data and obtain permanent residence.
Everyday life issues remain after obtaining permanent residence in Cyprus as the investor has to communicate with banks, the migration service and other officials. We will help to get the necessary documents and make everything go smoothly.
We collect and submit the necessary documents and take over communication with officials.
We request a tax resident status to the tax office after a standard stay in the country for more than 183 days a year or 60 days for property owners who run a Cypriot company.
We help to choose a bank and prepare documents for opening an account.
We prepare the documents and apply if you want your parents or close relatives to move to Cyprus.
We have a realty database and work directly with Cypriot developers, so you do not have to pay a commission. We help choose a region, type of real estate and suitable property, including at the construction stage. We accompany you when selecting a property and making a deal.
We conclude a contract for the management of the real estate. We undertake the preparation of housing, the search for tenants, the conclusion of an agreement, rent and taxes.
Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.
Zlata Erlach
Yes, they are. All investments can be returned after the permanent residence expiration or obtaining citizenship. If you sell securities before this time, the status will be cancelled. If the investor sells real estate, they must buy another property for the same or higher price.
The minimum investment amount is €300,000. The investor also needs to open a bank deposit of €30,000 per person, undergo Due Diligence with a fee of €15,000, pay administrative and registration fees of €570 per person, as well as the fee for a permanent residence card of €5,000 and get medical insurance. If the applicant invests in non-residential property, it will also be necessary to buy or rent a property on the island.
The citizenship by investment program is suspended in Cyprus. Previously, an investor could get the country’s passport by investing 2 million euros.
A Cypriot permanent resident can become a citizen after 5 years of living on the island. Additionally, they confirm knowledge of the language and culture of Cyprus, as well as pass an interview at the migration service.
It is mandatory to visit the country within a year after the approval of permanent residence — to submit biometric data and receive a permanent residence card. After that, it is enough to visit the island once every two years, keep investments, and also have an income of €30,000 per person per year.
A permanent resident without tax residency may not pay tax on global income, including the one from investments: taxes must be paid only on profits earned on the island.
Tax residents must pay income tax on all their income and other taxes. The income tax rate depends on the income amount, e.g. up to €28,000 per year are taxable under 20%, and €60,000 per year — is under 35%.
It is unnecessary to become a tax resident, even if you live in the country for more than 183 days a year.
Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.
Zlata Erlach
