Residence by Investment Program Overview
Cyprus offers a residence-by-investment program for non-EU citizens, granting them permanent residency in exchange for investments in real estate or securities.
Beneficiaries of the program are exempt from taxes on global income, including dividends and capital gains, and are also free from inheritance taxes. The country further enhances its appeal with low property tax rates, as well as a highly competitive corporate tax rate of just 12.5%.
After five years of residency, individuals are eligible to apply for citizenship. With its strategic location, favourable tax policies, and high quality of life, Cyprus has become a prime destination for both investors and expatriates.
Benefits of the Cyprus Permanent Residence
- Tax Optimization: Cyprus offers a favourable tax environment with no tax on global income or inheritance, alongside low property and income tax rates. The corporate tax rate is among the lowest in Europe, at 12.5%.
- Investments Return: Real estate prices in Cyprus grow by 1-4% annually, with similar returns from leasing residential properties.
- Citizenship: Permanent residency is granted for life. After 5 years, residents can apply for Cypriot citizenship, gaining full European Union membership.
- Business Opportunities: Cyprus permanent residents can buy shares in local businesses, open companies, or transfer operating businesses to the island.
- Safe Haven and Flexibility: Investors can visit Cyprus anytime and stay as long as they wish, making it an ideal “plan B” destination with financial security through local banks and housing options.
- High Quality of Life: Cyprus has been listed as a developed economy by the IMF since 2001 and ranks 29th in the Human Development Index globally.
- Top-Quality Healthcare and Education: Permanent residents benefit from local education in schools and universities, as well as healthcare from the country’s medical facilities.
- Fast Processing Time: The application process takes approximately two months, with the entire procedure completed over three months.
- Family Residency: The program allows investors to include spouses and children in residence program.
- Return on Investment: Investors can recover their initial investment after five years, for example, by selling their properties if they acquire citizenship or permanent residency.
Requirements & Investment Options of the Cyprus Permanent Residence
To qualify for Residence, you must:
– Age over 18 years old
– Meet all the Application Requirements
– Select one of available the investment option
To qualify for the Cyprus Residence by Investment Program, applicants may consider one of the below Capital Transfer options or Business Investment Option;
Purchase of Residential Property:
Investors can acquire one or two new residential properties with a value of €300,000 plus VAT. The standard VAT rate is 19%. However, if the property will serve as the investor’s sole residence and will not be rented out, the VAT rate is reduced to 5%.|
Purchase of Commercial Property:
Investors can purchase one or two commercial properties with a minimum value of €300,000 plus VAT. These properties can be either newly built or resale. Eligible commercial assets include offices, retail spaces, hotels, or a mix, provided the total meets the €300,000 threshold.
Shares in Cypriot Companies:
Investors may invest EUR 300,000+ in Cypriot companies that actively conduct business and employ at least five people within Cyprus.
Purchase of Securities:
Investments can be made in units of Cypriot investment funds, including Alternative Investment Funds (AIF), Alternative Investment Funds with Limited Number of Persons (AIFLNP), and Registered Alternative Investment Funds (RAIF).
Get a Personalized Residency Costs
For you and your family, including all associated fees.
Get a Personalized Residency Costs
For you and your family, including all associated fees.
Procedures and time frame of the Cyprus Permanent Residence
To obtain Cyprus permanent residence, the process begins with mandatory Due Diligence to assess eligibility. Emirates Advisory conducts preliminary checks to enhance approval chances.
Next, the documents are prepared, which include translation, apostille, medical insurance, and an agreement for a lease on real estate. Once ready, they are submitted to our Cyprus agent.
For the investment, property-related documents are submitted to the Department of Lands and Surveys, along with an application to reduce the VAT rate to 5%. The investor then transfers €300,000 plus VAT to the developer.
The applicants are not required to travel as our Cyprus agent is responsible for all documentation. The process generally takes two months. After approval, the investor and their family must travel to Cyprus within one year to submit biometric information and finish the residency process.
Citizenship
Investors must have lived in Cyprus for at least 5 years before becoming citizens.
The Cyprus Residence by Investment FAQ's
Cyprus permanent residence holders enjoy the freedom to live in the country, visit any time, optimize taxes, register a company, and access Cypriot education and healthcare. Additionally, investors can apply for Cypriot citizenship after five years of residency, gaining even more privileges. The program also extends to spouses and children of investors. The application process is typically completed in about two months, making it a relatively quick option.
Yes, investors can include their spouses and children in the application.
- Adult children must be students under 25, unmarried, and financially dependent on the investor.
- Children with disabilities can apply regardless of age.
Cyprus has temporarily suspended its citizenship by investment program, which previously allowed investors to acquire a passport by investing €2 million.
However, a permanent resident can apply for citizenship after 5 years of living in Cyprus, provided they meet language and cultural knowledge requirements and pass an interview with the migration service.
The processing time for a Cyprus permanent residence application through investment typically takes around 9+ months.
Yes, investments are refundable under certain conditions:
- Investments can be returned once the permanent residence expires or upon obtaining citizenship.
- If securities are sold before this period, the residency status will be cancelled.
- If real estate is sold, it must be replaced with property of equal or greater value.
The minimum investment required is €300,000+.
Additionally, applicants must pay a processing fee and obtain medical insurance. If the investment involves non-residential property, the applicant must also purchase or lease a residential property in Cyprus.
Once permanent residence is granted:
- Applicants must visit Cyprus within one year to submit biometric data and receive their residence card.
- After this, visiting Cyprus at least once every two years is sufficient.
- Investors must demonstrate annually that their €300,000 investment is maintained and that medical insurance is in place for all family members.
- Every three years, family members aged 18 and over must provide a certificate of no criminal record from their home country and country of residence.
- Non-tax residents are not liable to pay tax on global income, including investment earnings. They are only taxed on income generated within Cyprus.
- Tax residents are taxed on income. The income tax rate varies based on the income amount:
- Up to €28,000 per year is taxed at 20%
- €60,000 per year is taxed at 35%
- Becoming a tax resident is not mandatory, even if you reside in Cyprus for more than 183 days a year.
Overview of Cyprus
Country Overview:
Cyprus is an eastern Mediterranean island known for its rich history, stunning beaches, and strategic location at the crossroads of Europe, Asia, and Africa. It is divided into the internationally recognized Republic of Cyprus in the south and the Turkish-controlled Northern Cyprus in the north, a region only recognized by Turkey.
The Capital: Nicosia
Languages: Greek, Turkish (official); English (widely spoken)
Economy: Services, tourism, and financial services are key sectors, with a growing focus on technology and shipping.
Currency: Euro (€)
The Economy of Country:
Cyprus has a high-income, service-based economy, with significant contributions from tourism, financial services, shipping, and real estate. The country has rebounded from the 2013 financial crisis, with tourism and investment from foreign nationals playing an increasingly pivotal role. The island is also becoming a hub for startups, particularly in tech and fintech sectors.
Global Connectivity:
Cyprus is well-connected to major international destinations through its two main airports, Larnaca and Paphos. Direct flights link Cyprus to Europe, the Middle East, Russia, and increasingly to destinations in Asia and North America, making it a convenient travel hub for both leisure and business visitors.
Visa-Free Access:
Cypriot passport holders enjoy visa-free or visa-on-arrival access to over 170 countries and territories, including the European Union member states, the UK, and the US. Cyprus is also part of the Schengen Area for short-term travel within Europe.
International Memberships:
Cyprus is a member of the European Union, the United Nations, the Commonwealth, and the Council of Europe. It also participates in various international organizations, including the World Trade Organization (WTO) and the World Health Organization (WHO).