By: A. Karitzis & Associates LLC
An immigration permit is granted to third country nationals who invest in Cyprus, pursuant to the provisions of Regulation 6 (2) of the Aliens and Immigration Regulations. The investment amount must be at least €300.000,00 (Euro Three Hundred Thousand) while must be investment in any of the following:
- Investment in a house/apartment by purchasing a NEW (first installation) house or apartment from a land development company of at least €300.000 (plus VAT); the funds to be used must be derived from sources outside the Republic of Cyprus.
- Investment in real estate (excluding houses/apartments) by purchasing of other kind of immovable properties (new or second-hand) such as offices, shops, hotels or similar developments (or a combination) with a total value of at least €300.000,00; all or part of the funds to be used must be derived from sources inside or outside the Republic of Cyprus.
- Investment of at least €300.000,00 in the share capital of a company incorporated under the laws of the Republic of Cyprus, which (company) had its headquarters and operated in the Republic of Cyprus, has (proven) physical presence in Cyprus and employs at least five (5) employees; all or part of the funds to be used must be derived from sources inside or outside the Republic of Cyprus.
- Investment of at least €300.000,00 in securities of Cyprus Collective Investment Funds (eg AIF, AIFLNP, RAIF); all or part of the funds to be used must be derived from sources inside or outside the Republic of Cyprus.
The Ministry of Interior, by its decision on 21 April 2023 has implemented from May 2nd the revised criteria by which the specific immigration permit is granted, aiming at the institutionalization of a control mechanism of the investors who are granted citizenship. In order to shield the process and eliminate weaknesses that were observed in the previous years in the PR policy, in the Ministerial decision, differentiated investment and quality criteria are defined, with stricter parameters regarding the required controls for the granting of an immigration permit, while control and verification mechanisms are defined.
In particular, contrary to the above mentioned investment of the €300.000,00 in which the investor could secure an Immigration permit for his non-dependant adult children, parents and in-laws, the revised criteria mention that no permanent residence permit is granted to any other adult persons, if an investment of a €300.000,00 has not been made. There is an exception though, to the unmarried children between the age of 18 to 25, provided specific evidence (university purposes). In other words, with this revision, citizenship will not be granted with one investment/license to parents, parents in-law and adult children.
Following the revised PR policy, although the amount of the investment does not change, a control mechanism is instituted to maintain the investment, while at the same time the income criteria were revised. Furthermore, the applicant will be required, among other things, to provide on an annual basis, evidence proving that he still maintains the initial investment and the required income determined for him and his family. Consequently, for each person applying for citizenship the income should be €50,000, instead of €30,000, while for each minor child it should be €10,000, instead of €5,000, and €15,000 for spouses. In cases where the holder of the immigration permit fails to provide the documents required, the immigration permit of himself and his family will be cancelled.
The revised criteria follow the aim of the Cyprus Government, to control and verify that the foreign investors maintain the initial investment, for which were granted the permanent residence permit in the Republic of Cyprus.
Author: Ioannis Ttavas | ADVOCATE – LEGAL CONSULTANT
