Permanent Residency In Cyprus
Cyprus has been a full member of the European Union since 2004. The island is located in the north eastern Mediterranean Sea, at the crossroads of Europe, Asia and Africa. The strategic location of the island has played an important role in its development as a financial centre.
With its warm and stable climate and geographical position Cyprus is considered an attractive place of residence. At least 320 days of sunshine a year classify the island as one of the sunniest European locations.
In addition to pleasant weather, the investment landscape in Cyprus is beneficial due to the island’s well-qualified labour force, attractive taxation and a reliable transport and telecommunications system. Cyprus ranks highly because of its favourable tax regime for new residents, particularly high net worth individuals.
Cyprus has a modern, free-market, service-based economy, with an effective and transparent regulatory and legal framework, giving international investors and business confidence to invest, grow and prosper.
Benefits and competitive advantages
- The immigration permit gives a NON-EU national, the right to permanently reside in Cyprus with no renewal requirements
- Exempts you from immigration entry procedures (i.e. Visitor’s Visa)
- Your family can also obtain it (married spouse, children under 18 years old and financially dependent children up to 25 years old)
- The parents of both spouses can also obtain Permanent Residence as dependents
- Visa-Free Travel – Permanent residency in Cyprus lifts travelling restrictions and elaborate visa requirements across EU, facilitating access to the Schengen zone
- Fast Track Application processing and final approval granted within 2-3 months.
- For property acquisitions taking place prior to the 31st December 2016, the land registry transfer fees are reduced by 50% and totally abolished for those properties carrying VAT.
- For property acquisitions taking place prior to 31st December 2016, no Capital Gains Tax is payable whenever this property is subsequently sold.
- After obtaining permanent residency, the holder may elect to become Cyprus tax resident by residing in Cyprus for more than 183 days. A Cyprus tax resident is exempt from income tax on worldwide dividends and interest income. In addition to this, a Cyprus tax resident is exempt from any tax on gains on the disposal of shares or other securities.
Criteria for a successful application
- A guarantee deposit of €30,000, transferred from overseas, has to be deposited in a Cyprus Bank. The deposit is released after a three year period.
- Annual income from abroad of not less than €30,000 has to be remitted from overseas to an account on the applicant’s name in a Cyprus Bank. It may be used by the applicant for his living expenses. This amount covers both the applicant and his/her spouse, but it increases by €5,000 for every dependent person of his/her family who is also granted a permanent residency in Cyprus.
- The applicant must purchase a new property, not resale property, in Cyprus for at least €300,000 (excluding VAT if applicable), and at least €200,000 (excluding VAT) should be paid before submitting the application.
- All funds for the purchase of the property must be transferred from overseas.
- Contracts for the sale of the property must be deposited at the Land Registry Office.
- The applicant and his/her spouse must submit a confirmation of a clean criminal record from their country of origin.
- The applicant and his/her spouse shall confirm that they do not intend to be employed in Cyprus in any direct or indirect manner.
- The applicant and his family included in the Immigration Permit must visit Cyprus at least once within one year from the day of approval of the application and subsequently at least once every two years. There is no minimum time requirement therefore, the visit may last a single day.