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How to obtain a residence Permit in the Republic of Cyprus and other Related Matters

How to obtain a residence Permit in the Republic of Cyprus and other Related Matters

Overview

Cyprus, officially the Republic of Cyprus, is an island in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea and one of its most popular tourist destinations. Taking into consideration and acknowledging the competition targeting Cyprus from other low tax or no tax jurisdictions we remain confident that Cyprus continues to provide a complete value proposition for foreign investors for a very large number of reasons.

Over the years the Cyprus Government has assisted foreigners (non – E.U. members) to get a residence permit and even a Cypriot (E.U.) nationality through numerous of regulations and laws.

Residence Permits

The Cyprus Government issues two types of Residence Permits:

  1. Temporary Residence Permit: For applying for this type of residence permit the applicant shall need to have an account in the Cyprus bank and purchase-sale contract of real estate in the Republic. You may obtain a Residency permit for a period from one up to four years.
  2. Permanent Residence Permit: For applying for this type of residence permit the applicant shall need to have annual income of at least Euro 10,000.

A permanent residency permit will be given to eligible persons that can prove that they want to immigrate to Cyprus. For this reason the authorities will need to be “convinced” that the applicant/or his family lives in Cyprus for at least 6 months per year (approximately 185 days).

Applicants will not have the right to seek a Cypriot passport outright, but can seek a Cypriot passport/nationality after 7 years of stay through a corresponding application.

Permanent Residence Permit in Cyprus

Who is entitled?

Third country nationals legally and continuously residing in Cyprus for 5 years prior to the submission of the application and who possess valid residence permits.

Nature of Long Term Residence Permit

The Permit is valid for 5 years and renewed upon expiry. Long term resident – EC is either affixed to the passport or be given as a separate residence permit.

Benefits of the Long Term Residence Permit

  • Access to employment and self-employment activities and conditions of employment and working conditions
  • Right to state education, vocational training
  • Recognition of professional diplomas, certificates and other qualifications
  • Tax benefits
  • Social Security- Social assistance and Social protection
  • Cyprus is not part of the Schengen List however the holder of the residence permit can be granted relevant rights in other EU Member States according to each state’s national legislation.

Conditions

  • Legally and continuously residing in Cyprus for a period of 5 years
  • Adequate income from employment and/or other sources to support themselves and their dependants
  • Available accommodation for themselves and their dependants
  • Employment contract of at least 18 months or open duration

Categories eligible to apply for a Permanent Residence Permit

Under Regulation 5 of the Aliens and Immigration Regulations of 1972, aliens may apply for a residence permit in Cyprus if they fall under either of the categories described below:

  1. Persons with the intent to invest in agricultural, fishing, animal farming sectors, provided they have acquired the analogous land and they have available a capital of approximately €475,500.
  2. Persons who intend to work as self-employed in the mining sector provided that they have available capital of €380.400 and provided that a permit for mining is secured.
  3. Persons who intend to work as self-employed in a trade or profession in the Republic provided that they have in their possession a relative permit, and they have freely a capital of €286.000 and provided that they can secure such business permit from the authorities.
  4. Persons who intend to work as self-employed in a profession or science in the Republic provided that they have the corresponding academic or professional qualifications and provided that there is demand for such professions in Cyprus.
  5. Persons who have been offered permanent employment in the Republic, which will not create undue local competition.
  6. Persons who possess and have fully and freely at their disposal a secured annual income, high enough to give them a decent living in Cyprus, without having to engage in any business, trade or profession. The annual income required should be at least Euro 11,000 for a single applicant and moreover at least Euro 5,500 for every dependent person.
  7. International Business Companies entitled to hire foreigners: A company may hire foreigners only upon the condition that it has a strict ownership structure and transparent capital sources, it has fully operative administrative office and it has stable financial growth confirmed by annual accountancy sheets.

For new Companies established in Cyprus there is the need to prove that the owner can support himself and his dependent persons financially during one year of stay in Cyprus until the new company fully operates as well as receive a certificate from the Registrar that the total possessions of the Company are not less than Euro 48,000. For existing Companies established in Cyprus there is an administrative procedure which needs to be performed and documents to be submitted.

A New Procedure for obtaining a Residence Permit

A new and fast procedure for obtaining a Residence Permit has been recently adopted by the Cyprus Government.

  • Period of examination would not exceed 2 months
  • Secured minimum annual income of Euro 30,000 from sources arising from abroad (additional Euro 5000 for each dependant)
  • Title Deed/contract of sale of an immovable property in Cyprus of a minimum market value of Euro 300,0000 (exclusive of VAT) – proof of payment of Euro 200,000 (exclusive of VAT) paid from sources abroad
  • Deposit of a minimum capital of Euro 30,000 in a Cyprus account for three years
  • Criminal Record certificate certified by a Cyprus Embassy
  • Statement that the applicant does not intend to work in Cyprus
  • Health Insurance

Successful applicants must visit Cyprus within the first year of the date of issuance of the permit and later the applicants should visit Cyprus once every two years. Dependants of the applicant can also obtain a Residence Permit.

Acquisition of a Cypriot Passport- The new scheme

The Cyprus Government has also approved numerous of criteria where a person may obtain a Cypriot passport/nationality doing away the 7 year requirement, in order to attract wealthy individuals and businesses as a measure to assist the Cyprus economy during this difficult period of recession. As such it is not necessarily adopted that this measure will be a permanent one.

The exceptional procedure of naturalization under economic criteria, in general, suggests the following:

1. Direct Investments

The applicant should proceed with direct investments in the Republic of Cyprus amounting to a minimum of €5 million. Direct investments include among other things purchases of immovable property, businesses / companies, shares, financial assets (e.g. securities registered and issued in the Republic of Cyprus, including those to be issued from the Solidarity Fund under 2013 Act for the establishment of a National Solidarity Fund), participation in a company / consortium in charge of the execution of a public project; or

2. Entrepreneurial Activities

The applicant should be a shareholder in Company set up and operating in Cyprus, provided that the headquarters of the Company are located in Cyprus, that the Company paid at least € 500.000 annually in State funds for the last five years before the submission of the application and that the Company employs at least 10 Cypriot nationals. For each such Company it is allowable for citizenship applications to be submitted by a maximum of two shareholders; or

3. Bank Deposits

The applicant should have deposits in Cyprus of at least € 3 million, broken down as follows:
(A) An amount of € 2 million in the Growth & Investment Fund,
(B) An amount of € 0,5 million in the Research & Technology Fund,
(C) An amount of € 0,5 million in the Solidarity & Employment Fund..

It should be noted that the above-mentioned deposits must be committed within the Republic of Cyprus for a period of no less than five (5) years; or

4. Cyprus compensation scheme for lost investments:

A new regulation has been announced of ''citizenship in exchange for investment'', for those with a three million euro and greater loss to the levy on the island's bank deposits in the Bank of Cyprus and Laiki Bank.

Conditions for applying for passport:

1. The applicant must not have a criminal record and his/her name must not be included in the list of individuals whose property within the EU has been placed under restrictions.

2. In all cases 1-4 above, the applicant must be the owner of a residence within the Republic of Cyprus of purchasing cost of at least € 500.000, plus VAT.

Source: CA Advocates (Pourgoura & Aspri LLC)

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