Understanding Bank Guarantees for Residency in Cyprus: Requirements, Validity, and Refund Process
Bank Guarantee is a type of a financial assurance and a necessary requirement for an entry or residence permit in the Republic of Cyprus from a third-country national. The Bank Guarantee as a financial assurance will cover any expenses in case of deportation from the Republic. This assurance is done by submitting either a personal or group bank guarantee, or a declaration by the employer.
The amount of the Bank Guarantee is not fixed but varies based on the applicant’s country of origin, as it is based on potential deportation costs (airfare, etc.), which differ depending on the country to which the applicant may need to be returned.
Furthermore, electronic money institutions operating in the Republic (e.g. Revolut, Paypal) cannot provide bank guarantee issuing services.
Validity of bank guarantee
The period for which the bank guarantee must remain valid is at least 10 years. When applying for the renewal of a residence permit, the submission of a new guarantee is not required, provided that the period until the expiration date of the existing guarantee is short, but covers the requested period of stay, plus an additional year.
The regime for students to apply is different, as the submission of a group guarantee is a possibility.
Refund of the Bank Guarantee
Indeed, the amount of the Bank Guarantee is refunded in certain cases. Specifically,
- In the case where a new employer submits a new guarantee or declaration on honour for a third-country national to cover the potential costs of their return to the country of origin,
- In the case that the legal residence status of the third-country national changes (g. family member of a Cypriot or EU citizen),
- In the case of the departure of the third-country national from the Republic, but the Republic has not incurred any deportation costs,
- In the case when the third-country national does not finally arrive in the Republic.
If at least one of the above circumstances apply, the interested party may request the refund of the amount by submitting a relevant written request to the Department.
The request must be made using a specified form, which must be filled out and signed upon submission. The specified forms should be submitted to the Civil Registry and Migration Department or to the Police Aliens and Immigration Units.
Upon completion of the evaluation process of the relevant request for the return of the guarantee by the competent department, an informational letter is sent to the applicant. The process of returning the amount takes approximately 3 months in total, starting from the registration of the request.
Furthermore, in the case of the deportation of the third-country national, any remaining balance from the deportation costs is refunded to the interested party, via wire transfer.
Our legal services
At our Cyprus law firm, we specialize in immigration cases, providing legal guidance and representation to individuals and businesses navigating the complexities of immigration laws and procedures. With many years of experience with immigration law cases, our law firm has successfully managed numerous immigrations matters and all relevant aspects such as guidance about bank guarantees. We can assist you with every aspect of your application, guide you through the process, and liaise with the different departments of the Immigration Services.
