Pursuant to the provisions of Regulation 6(2) of Aliens and Immigration Regulations the Minister of the Interior after informing the Council of Ministers has announced numerous changes and amendments in the policy regarding the issuance of relevant immigration permits concerning third-country nationals.
The investment criteria
Regarding the investment criteria, the following will apply:
The applicant should make an investment of at least €300,000 in one of the following investment categories:
(A) Investment in house/apartment
Purchase of a house or apartment from a development company, which should concern a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding apartment buildings):
Purchase of other types of real estate such as offices, shops, hotels or similar developments or a combination of these with a total value of €300,000. The real estate properties may also be subject to resale.
(C) Investment in share capital of a Cypriot company with activities and staff in Cyprus:
Initial investment in share capital of a new company of €300.000 or share capital increase of €300.000 in an existing company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five people.
(D) Investment in shares of a Cyprus Investment Organization for Collective Investments (type AIF, AIFLNP, RAIF):
Investment worth €300,000 in shares of a Cyprus Collective Investment Organization whose investments should be made in the Republic of Cyprus.
It is understood that any alienation of the holder of the immigration permit from the investment without immediately replacing it with another of the same or greater value, which should meet the conditions set in this procedure, will entail activation of the cancellation procedure of the license based on the provisions of Regulation 6.2 of the Aliens and Immigration Regulations.
Payment of at least €300.000,00 concerning the investments.
Evidence must be provided that the investment money has come from abroad and is not a product of internal borrowing (remittances, payment receipts with a foreign card, bank certificate, bank swift receipt) which must be linked to the similar investments.
The bank transfer must be effected from the personal account of the applicant and/or spouse, provided that the spouse is included as a dependent at the application. The amount of the investment value should be paid into the seller’s account in a Cypriot financial institution.
In addition to the investment based above, the applicant must be able to prove personal insured annual income (wages, pension, dividends, interest from bank rents) of at least €50,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child. The income will be proved only through Tax Declaration from country where the applicant is a Tax Resident.
The applicant and dependent family members must provide a health insurance certificate for medical treatment covering inpatient and outpatient care.
The applicant and spouse must submit a certificate of a clean criminal record from their country of origin as well as from their country of residence in case it differs, and in general they must not in any way pose a threat to public order or public security.
In cases where the applicant chooses to invest in a house/apartment, but the number of bedrooms of the investment property cannot satisfy the needs of the dependent family members, another property or properties must be indicated which will constitute the accommodation of these persons (e.g. property title deed, sales document, rental document).
Applicant and spouse will certify that they do not intend to be employed in the Republic with the exception of their employment as directors in the company in which they have chosen to invest under this policy
In cases where the investment does not concern the share capital of a company, the applicant and/or his spouse may be shareholders in companies registered in Cyprus and the income from dividends in such companies shall not be considered as an obstacle for the purposes of obtaining the immigration permit. They may also hold an unpaid directorship in such companies.
In cases where the applicant chooses to invest in real estate (excluding apartment buildings), in the share capital of a Cypriot company with activities and staff in Cyprus or in shares of a Cypriot Investment Organization for Collective Investments (type AIF, AIFLNP, RAIF), information must be presented regarding the place of residence of himself and his family members in the Republic (e.g. property title deed, sales document, rental document).
The immigration permit is issued to the applicant. This includes the applicant’s dependents who are the spouse and their minor children under the age of 18.
If they so wish, it is possible to issue two separate immigration permits to each of the parties of the couple without the obligation and the second one to meet the above criteria, provided that a separate application is submitted and the corresponding fee is paid.
Provided that in the event that an immigration permit granted to the investor is canceled for any reason, it will entail activation of the permit cancellation procedure for the other part of the couple, based on the provisions of Regulation 6, of the Foreigners and Immigration Regulations.
Unmarried children between the ages of 18 and 25, who proved that they are students of tertiary education abroad on the date of the submission of the application and who are financially dependent on the applicant, can submit their own, separate application for an Immigration Permit with the payment of the relevant fee. In such a case the father or mother and/or both parents together must present an additional annual income of €10,000 for each such dependent child.
Of outstanding importance is the control mechanism through which the investor on an annual basis from the date of obtaining the Immigration Permit must provide (mandatory) to the Civil Registry and Migration Department evidence that the investment still stands, that the investor maintains the required income determined for him/her and family members, and they are holders of a health insurance certificate, in case they do not continue to be beneficiaries of GESY. Criminal Records must also be provided for all adult family members.
Duration of Permit
The residence permit is of unlimited validity and is granted upon approval of the application to the investor and dependent family members. However, the residence permit (card) has an expiry date of 10 years from its issue date and must be replaced upon expiry.
The residence permit issued to the minor dependent members of his family is valid until they reach the age of majority (18 years).
Entry into force
The new policy enters into force on 2nd of May 2023.
Applicants who have demonstrably submitted purchase and sale contracts to the Department of Lands and Surveys from 02/01/2023 to 28/04/2023, will be able to submit applications with the previous criteria that were in effect from 24/03/2021.
Antonis K. Karas L.L.C is a reputable corporate and commercial law firm with a vast client base, international experience and proficiency in a wide range of business areas.
We are at your disposal for any questions you may have, or any clarifications needed.