How to obtain a residence permit in Cyprus

If you plan to live in Cyprus more or less permanently, you should obtain a residence permit. Below we will look at the procedures for obtaining permanent and temporary residence permits.

Permanent Residence Permit. Fast-track procedure

Cyprus operates a fast-track procedure for foreign nationals to obtain PR. The processing time for PR is 6-8 months. Previously, this procedure took 2 months, but currently, due to a large influx of applicants, the timeline has increased.

Advantages of the fast-track procedure

Obtaining PR under the fast-track procedure has many advantages:

• The residence permit has an unlimited validity period (issued for life)

• The residence permit is granted to the applicant's spouse, their minor children, as well as financially dependent adult children up to 25 years of age (if they are unmarried)

• Persons with a permanent residence permit are free to enter and reside in Cyprus without a visa

• PR holders are not required to actually relocate to Cyprus. The only condition is that they need to visit Cyprus at least once every two years

• Persons with a permanent residence permit have a "second home" in Cyprus

• Having PR itself does not affect tax obligations in Cyprus

• Actual residence in Cyprus leads to obtaining Cyprus citizenship (currently after 7 years, i.e. 2,555 days of residence within 10 calendar years)

 Requirements for the applicant. The PR applicant must meet the following criteria.

Investment criteria

The applicant must invest at least €300,000 (plus VAT, where applicable) in one of the following categories:

(A). Investment in residential property. Such property must be new and purchased from a developer. The applicant can purchase up to two housing units (not necessarily from the same developer).

The applicant must submit a Title Deed or a contract of sale for the property. They must show payment of at least €300,000 (excluding VAT). It is necessary that the money comes from abroad from the account of the applicant and/or spouse to the account of the property seller in a Cyprus bank.

Investments are also possible in secondary residential property, if the contract of sale for it was registered in the Land Registry before 07.05.2013.

In cases where the applicant invests in property where the number of bedrooms cannot meet the needs of dependent family members, they must show another property that will be the residence of these persons (providing a contract of sale or lease).

The purchase of property can also be made by a legal entity in which the applicant and/or spouse are sole shareholders or ultimate beneficial owners and which is legally incorporated in Cyprus or in another member state of the European Union or the European Economic Area.

(B). Investment in commercial property types (e.g., offices, shops, hotels, or a combination thereof). The property can be either new or secondary.

(C). Investment in the share capital of a Cyprus company. The company must operate in the territory of the Republic of Cyprus and must employ at least five people.

(D). Investment in shares of Cyprus collective investment funds (AIF, AIFLNP, RAIF)

Any sale or disposal of the acquired investment asset without immediately replacing it with another (matching the conditions of this procedure) of the same or greater value, results in the cancellation of the residence permit.

Income criteria

In addition to the above-mentioned investments, the applicant must provide proof that his/her annual income is at least €50,000. The annual income increases by €15,000 for a spouse and €10,000 for each minor child.

This income can be derived from salaries, pensions, stock dividends, interest on bank deposits, rental income received abroad, which must be supported by a tax return from the country where the applicant is a tax resident, or by an official certificate from an independent chartered accountant. The income of the applicant's spouse can also be taken into account when calculating the total income.

In the case of Category (A) investments, the sources of income must be outside Cyprus. For other investment categories, the total income or part of it may also come from sources in Cyprus, provided that it is taxed in the Republic.

Other criteria

• The applicant and his/her spouse must provide a clean criminal record certificate confirmed by the competent authorities of the country of origin, as well as the country of residence, if they differ.

• The applicant and dependent family members must provide health insurance policies covering inpatient and outpatient treatment.

• The applicant and his/her spouse must confirm that they do not intend to work in Cyprus, except for working as a director in a company in the case of Category (C). In the case of investments in Categories (A), (B), and (D), the applicant and/or spouse may be shareholders in companies registered in Cyprus. They may also hold the position of director in such companies without a salary.

• In cases where the applicant invests in Categories (B), (C), or (D), he/she must provide information about their place of residence in Cyprus (e.g., Title Deed, property purchase document, rental document).

The status of permanent resident does not impose any restrictions on the time spent in Cyprus. The only exception is that the resident must visit Cyprus at least once every 2 years.

Relatives of the applicant who also receive PR

Permanent residence permit is granted to the following relatives of the applicant:

• The applicant's spouse. If desired, two separate residence permits can be issued to each of the spouses without the need for the financially dependent spouse to purchase property. To do this, the financially dependent spouse must submit a separate application. In the event that the residence permit issued to the investor is cancelled for any reason, it will trigger the cancellation procedure for the spouse.

• Financially dependent minor children of the applicant and spouse. Minor children can be included in the PR applications of both spouses.

• Unmarried and financially dependent children aged 18-25 who can provide a student certificate valid for at least six months from the date of application. They can also obtain a permanent residence permit for an indefinite period without investing in property. In this case, parents must provide proof of additional income of €10,000 per year for each financially dependent child. The obtained PR remains valid even after its holder reaches the age of twenty-five, and even if he/she is already married, is not a student, and is not financially dependent on parents. However, this does not mean that the future spouse and children of such a person will receive PR.

Mechanism for monitoring compliance with criteria

The applicant must submit evidence annually from the date of obtaining the residence permit that they maintain the investment and that they and their family members hold health insurance policies. In addition to the above, the applicant and adult members of their family are required to submit a clean criminal record certificate from their country of origin, as well as from their country of residence, once every three years.

It is understood that if the holder of the residence permit fails to prove the above, it will result in the cancellation of the residence permit for themselves and their family members.

PR for two (or more) families

Suppose the applicant, having a child over 25 years old, wishes to obtain PR not only for their own family, but also for the child's family. Then they must purchase property worth at least €600,000 (excl. VAT). For two children, the property value increases to €900,000.

In the event that the investment relates to Category (A) and (B), proof of payment of at least 2/3 of the property contract amount must be provided.

Each of the families must show an annual income of at least €50,000 (plus €15,000/€10,000 for each dependent family member).

The investment can be made jointly in the name of the applicant and the adult child, or solely in the name of the applicant.

Permanent Residence Permit. Normal procedure

Suppose you cannot qualify for the fast-track PR procedure. For example:

• You purchased property worth less than €300,000

• You purchased secondary property

• Two families (yours and a child over 25) have purchased a new property worth more than €300,000, but less than €600,000. Accordingly, only one family can use the fast-track procedure, but not both.

In these cases, you can resort to the standard PR procedure. In addition to the property documents, you need to demonstrate sources of income outside Cyprus and the presence of funds in a Cyprus bank. The law does not specify exact figures for income and cash assets. It states that they must be sufficient for the normal residence of the applicant in Cyprus. The processing time for your PR application is also not specified.

It should be noted that since 2019, the Cyprus government has not issued a single PR under the standard procedure. Currently, you should not count on obtaining it.

Temporary Residence Permit (Pink Slip)

Suppose you do not want or cannot qualify for the status of a permanent resident of Cyprus, but at the same time you need to stay in Cyprus most of the time.

In this case, you can obtain temporary resident status for a period of one year, the so-called Pink Slip. This immigration status allows you to stay in the country for up to 365 days a year.

The Pink Slip can be renewed an unlimited number of times. To do this, you must submit renewal documents one month before the current Pink Slip expires. Your application can be under consideration for 6 months, during which you will legally stay in the country. If for some reason you need to leave the country after the current Pink Slip expires, but before receiving a new one, then to enter back into Cyprus, you will have to obtain a single-entry visa or use a multiple-entry visa if you have one.

A temporary residence permit has two disadvantages compared to a permanent one:

• Firstly, it must be renewed annually.

• Secondly, you cannot be absent from Cyprus for more than three months. If you leave the country and do not return (do not cross the border) within three months, then your Pink Slip "burns out", and you will have to enter on a visa and apply for a new Pink Slip.

Requirements for the applicant

The applicant must have sufficient income from foreign sources such as salary, pension, foreign bank deposits, rental income, dividends, etc.

Sources of income in Cyprus, such as dividends of a Cyprus company, rental income from Cyprus property, or even deposits in Cyprus banks derived from the applicant's past salaries in Cyprus in a company with foreign interests, also qualify under this criterion.

According to the amended policy, the corresponding income threshold must not be less than €2,000 per month or €24,000 per year. The threshold increases by 20% for a spouse and by 15% for each minor child of the applicant.

First-time applicants must show the import of cash to Cyprus (with corresponding confirmation from customs) or a bank transfer from abroad of at least €10,000.

First-time applicants must also provide the following documents:

• A recent clean criminal record certificate from the country of origin (or country of residence), duly certified and translated;

• Property documents (purchase contract, title deed, or lease agreement)

• A bank guarantee for 1 year or more. Issued by the bank upon freezing €512 in the account (per person)

• For children of school age - a certificate from the school confirming that the child is studying there

• Medical insurance

• A medical certificate of the results of specific examinations carried out in Cyprus, after the person's arrival in Cyprus.

Pink Slip Renewal

To renew the Pink Slip, the applicant must provide a detailed statement from a Cyprus bank for the last 12 months showing foreign money transfers in the applicant's name of at least €2,000 per month or €24,000 per year.

In addition, as part of the Pink Slip renewal application, the applicant must provide a statement from a Cyprus bank showing a balance of at least €6,000.

In conclusion, we note that it is advisable not to handle the process of obtaining immigration status in Cyprus on your own, but to contact a professional lawyer who specializes in such matters. Licensed Cyprus law firms – associate members of the Cyprus Developers Alliance - have vast experience in solving immigration issues and will gladly provide you with all the necessary support.