How do I obtain permanent resident status in Cyprus in 2 months through investment and purchase of real estate?

Permanent residency in Cyprus is attractive to investors since it provides not only the right to stay on the island without restrictions, but also the possibility to live in the country with a sustainable financial climate and low business taxes, receive high rental dividends, and be sure of the safety and health of your family because Cyprus is one of the safest countries in Europe with a clean environment and a warm climate. Therefore, we, the SPM team, will share in this article how you can get permanent resident status in Cyprus through investment in real estate, and most importantly, how you can acquire this status quickly, in just 2 months.

Cyprus is a small and rapidly developing island country. It is one of the safest countries in Europe and the world, as it has a low crime rate, high-quality healthcare, a stable financial situation, a growing real estate market, and the lowest business taxes in the world. Sustainable economic growth and safety induce the interest in permanent residency in Cyprus.

What an investor needs to know about Cyprus: 10 reasons to invest and obtain permanent resident status

As of 2021–2022, Cyprus ranks 13th out of 134 countries in the ranking of the safest countries in the world according to Global Finance. More recently, the island state ranked 5th according to Insurly, but the COVID-19 pandemic has made its adjustments. However, even now the country remains one of the safest and most promising in Europe. When it comes to tax conditions for businesses, Cyprus offers the lowest rates in the European Union.

The rating of the country is built taking into account the risks of natural disasters, crime, terrorism and wars, ecology, healthcare, economy, and the general satisfaction of the population with their lives.

There are almost no natural disasters in Cyprus, a mild climate, low crime rates, quality healthcare, and a developing economy. Only the frozen conflict with Türkiye, which has divided the island in two, and the impact of COVID-19 add a slight hint of bitterness. It was these criteria that influenced the decline in the ranking. Nevertheless, the entire territory of the country is safe, and there is a zero chance that the confrontation between the Turkish and Greek will be resumed. Therefore, you can relocate to Cyprus with peace of mind and buy accommodation here.

Today, the island attracts many entrepreneurs, investors, and large IT companies with its «safe haven» atmosphere — it boasts a high standard of living, 300+ sunny days a year, a measured pace of life, excellent European secondary and higher education, and operating British schools.

GDP growth by an average of 5% per year is another positive indicator. As of April 2022, according to официальным данным, опубликованным правительством Кипра, GDP grew by 8,4% and constitutes EUR 23.4 billion. And over the past 10 years, there has been a steady growth in the island’s GDP by several per cent per year, which makes the country’s economy one of the fastest growing in Europe.

All this is conducive to investment in real estate in Cyprus. Nonetheless, why choose this particular country for investment and obtaining a permanent residence permit?

10 reasons why it is worth obtaining permanent residency in Cyprus:

1. Some of the lowest taxes in the world (12.5% corporate tax, 2,5% rate under the IP-box program for innovative and IT companies). At the same time, there is no tax on inheritance and foreign investments and income. Rates on other taxes are lower than in most countries.
2. The real estate market is growing. Demand is up 30% in 2021 and another 40% in 2022. Rentals allow a steady high return on investment of 5-6% to 10-12% ROI during the hot season.
3. Simple process to start a company. Now, the island is an IT capital with an extensive Russian-speaking community.
4. You do not need to know Greek to live here. Almost the entire local population is fluent in English, there is also a huge Russian-speaking diaspora with entire neighborhoods, kindergartens and schools where you can speak your native language.
5. Simple and fast adaptation. Similar culture, religion, and the presence of many citizens of the CIS countries make it easier to get used to the island and local traditions.
6. You can obtain permanent resident status in Cyprus quickly — in just 2 months.
7. Permanent resident status is granted to the investor for life, it does not need to be renewed and can be inherited.
8. To obtain this status, you don’t need to reside on the island permanently. You can just come to provide your biometric data and then return only once every 2 years.
9. You will be able to acquire citizenship and a passport within 7 years after obtaining a permanent residence permit, which will allow visa-free travel to 170 countries of the world.
10. You can apply remotely. You only need to visit the country for the subsequent provision of biometric data.

Most importantly, Cyprus is one of the most comfortable countries in Europe for life and business, where wealthy people move with their families and relocate their companies.

5 pros of permanent residency in Cyprus

When living in Cyprus, you can be sure of your family’s safety but also run your business successfully, which is facilitated by 5 factors:

1. Cyprus is the country with the lowest taxes. Corporate income tax is only 12,5% ​​— you can’t find such rates anywhere else in Europe. There is also no inheritance or foreign income tax. Uniquely low personal income and property tax rates.
2. When investing in real estate, you can receive at least 8% per annum. This is because of the annual price increase both for purchase and rent by up to 4%.
3. You can also own a business. In many other countries, investors with a permanent residence permit may not buy a business. Here, however, you can relocate an existing company to the island, start a new company, or buy a share in a local business.
4. High quality of life. The economy is developing actively and steadily, the crime rate is very low, and the island ranks 33rd in the world according to the human development index.
5. You can become a citizen of the European Union. Once you have lived in the status of a permanent resident for 7 years, you can get a Cypriot passport. Your status will be inherited by your children.

How do I acquire permanent resident status in Cyprus: 2 options and eligibility

To understand how to move to Cyprus for permanent residency, you need to know that there are two options:

1. The usual way (the application review process takes up to 1 year);
2. Fast way (Fast-Track Option, obtaining the status in 2 months).

For investors, these methods will differ by the amount of investments.

1. Permanent residence permit (regular option)

With this option, you can obtain permanent resident status in Cyprus through investment by following the standard procedure, and the status will be granted to you 1 year after.

The conditions are as follows:

1. You buy or lease real estate. Then, your application is approved by the Civil Registry and Migration Department in Cyprus depending on the amount of investment — the less financial responsibility you have, the less likely you are to receive a permanent residence permit. Generally, approval is guaranteed for purchases of real estate worth over EUR 150,000.
2. The real estate you purchase may not be rented out — you must live in it.
3. Your foreign annual income must be at least EUR 10,000, plus EUR 5,000 for each family member.
4. You are not allowed to work on the island, but you can start a company in Cyprus and receive dividends from it.
5. You may decide not to live in the country, but you must visit it at least once every 2 years.
6. To acquire citizenship, you will need to live in the country for 7 years, as well as prove a connection with the country — for example, be a tax resident and have a place of residence.

2. Permanent residence permit under the expedited programme (Fast Track)

In addition to the standard procedure, there is also an expedited one. According to it, you can obtain permanent resident status in Cyprus through investment in just 2 months.

Here is what you need to do to be eligible:

1. Buy property in Cyprus from 300,000 €. Of this amount, 200,000 € must be paid even before the application. The amounts are shown without VAT, and the income must be transferred from abroad.
2. Properties to be purchased must be one or two houses or apartments; a house or apartment and a store of up to 100 m²; a house or apartment and an office of up to 250 m².
3. Only the primary market is suitable.
4. You cannot work on the island but open a company and receive dividends from it.
5. You do not have to live in the country but must visit at least once every 2 years.
6. To get citizenship, you must live in the country for 7 years, be a tax resident and have residency.
7. An apartment or house you buy cannot be sold. It must be owned for the duration of the permanent residence permit. If you need to sell, you must buy a new one instead of the old one for at least the same amount.

In addition, the Cabinet of Ministers of Cyprus has adopted new rules for issuing residence permits, which came into force on May 2, 2023, giving the process a certain uniqueness. According to these changes, the residence permit requirements have become stricter. However, some parameters remain the same. The new criteria in the regulations include the following changes:

• Level of annual income: a yearly payment of 50,000 € per applicant is now required to obtain a permanent residence permit. Previously, the threshold was 30,000 €.
• Additional costs for children: the new rules establish that minor children now require an annual cost of 10,000 € per child (previously, it was 5,000 €). In addition, for adult dependent children under 25 years of age, 10,000 € is now required, and for a spouse, 15,000 € (previously 5,000 €).
• Proof of income and ownership of real estate/company: applicants must prove annually that their annual income meets the established level and provide evidence of ownership of the real estate or company acquired.
• Parental Restriction: the applicant’s parents and spouse can no longer apply for a Permanent Residence Permit. The permit is granted only to the applicant’s immediate family — the marriage partner and dependent children, including adult students between 18 and 25, provided they have not formed their own family and are financially dependent on their parents.

The Minister of the Interior will review applications for investment residence permits, and a state fee of 500 € for the applicant and 70 € for each dependent is charged for each application.

The option you choose depends on your financial means.

Suppose you plan to obtain a permanent residence permit in Cyprus for an investment. In that case, it is also essential to consider the following points to go through the procedure successfully:

• The funds for the investment must come from the bank account of the principal applicant or their spouse, provided that the spouse is also included in the application as a dependent.
• The applicant’s annual income can only be verified through their tax return from the country of tax residency. This assures the authorities that you have a stable and sufficient income.
• All adult applicants must provide a certificate of no criminal record from their country of origin and their country of residence if they are different. This is required to verify your reputation and safety.
• All family members must provide a health insurance certificate for inpatient and outpatient treatment. This ensures that you and your family can access medical services in Cyprus.
• The property you purchase must be used as your residence and have enough bedrooms for all family members. This requirement ensures adequate living conditions for all family members.

Once your application for a permanent residence permit has been approved, you will be required to submit documents annually to the Department of Vital Statistics and Migration to confirm the following:

• Preservation of investment;
• Having the necessary income for the whole family;
• Having health insurance or participation in the government health care system (GESY);
• Up-to-date certificates of criminal records from all adult family members.

You can read more about the new criteria on the official website.

Permanent residency in Cyprus through investment: what types of real estate and investment objects to choose?

Real estate is not the only way to acquire permanent resident status in Cyprus. There are 4 investment options:

• residential real estate;
• commercial real estate;
• land (shares);
• shares.

Residential real estate must necessarily be primary. When buying multiple properties, the standard VAT rate is 19%, and developers may differ. Previously, when purchasing the first and only home for yourself in a new building had a reduced VAT rate of 5% on the first 200 m². Area. However, in April 2023, the Cypriot government introduced a bill on the new VAT rates on purchasing real estate in Parliament. Housing will now be categorized, and the 5% rate will apply to the first 90 m² for apartments and 170 m² for houses. All other areas will be taxed at the standard rate of 19%.

Commercial real estate may include several facilities from both the primary and secondary markets. Such facilities include stores, offices, and hotels.

Land shares may only be purchased from Cypriot investment funds, but these must only be collective investment funds like RAIF, AIF, and AIFLNP.

Shares (investment in the business) must be held by a company registered in Cyprus and employing at least 5 employees who are local Cypriot residents.

Thus, you can choose any attractive investment object, however, in each case, the investment amount must be at least EUR 300,000, excluding VAT.

Usually, buying real estate in Cyprus is easier and brings a return on investment at 8% per annum.

Requirements for the applicant to move to Cyprus for permanent residency

Buying a flat or an office in Cyprus is not enough to obtain the status. The Cypriot authorities also need to make sure that your investment funds have been obtained legally. Therefore, you will need to prove their origin and convince the authorities that you have a stable high income and registration on the island.

The requirements for you as an investor:

1. You can only invest money earned abroad.
2. You need to prove that your source of income is legal.
3. You and your spouse must have no criminal record.
4. You must keep 30,000 € on deposit in any bank in the country for 3 years.
5. You must earn 50,000 € per year from abroad for yourself, 15,000 € for your wife/husband, and 10,000 € for each of your children.
6. You are not entitled to employment and you and your spouse will have to acknowledge this in writing in the form of a statement.
7. You must have a registered residence address. Even if you have invested in shares, you still have to buy or rent a flat to register your place of residence. In this case, there are no requirements for the price of lodging.

Who else can acquire permanent resident status in Cyprus with you?

You, as an investor, as well as some members of your family, can move to Cyprus for permanent residency:

• your spouse;
• your minor children;
• your children under the age of 25, university students who have not been married, and who are financially dependent on the applying investor;
• your child of any age, including an adult, if he/she has any physical or mental impairments.

All of the above persons may inherit the right to permanent residency. However, future spouses of the investor’s children, as well as grandchildren, will not have this status — they will need to apply for a temporary residence permit.

What documents are needed for permanent resident status in Cyprus?

You can apply completely remotely, the list of documents for Cyprus will be the same whether you apply personally or remotely:

1. Filled in the MIP1 application form.
2. Document confirming bank transfer of investment money from abroad.
3. Purchase/sale agreement, title documents for real estate or documents for the purchase of shares for the amount of EUR 200,000 excluding VAT.
4. Confirmation of permanent income from another country for the required amount for the applicant and his/her family members.
5. Certificate of no criminal record.
6. Statement of waiver of employment on the island for you and your spouse.
7. Copies of travel passports, curriculum vitae, marriage certificate, and birth certificates of children.
8. All documents must be translated into English and include an Apostille.
9. Payment of a single duty of EUR 500 for yourself, your spouse and children under 18 and a registration fee;
10. If needed, an additional payment of EUR 500 for each of the children aged 18-25 and parents applying for a permanent residence permit.

You can submit this entire set of documents personally or through a representative, or by mail to the Civil Registry and Migration Department.

We, SPM, will gladly take care of these concerns, advise you and supervise the process of obtaining permanent residency in Cyprus.

Procedure for obtaining permanent resident status in Cyprus

You can contact us for help with the acquisition of a permanent residence permit and purchase of real estate, but you need to know the steps to be taken:

1. Verification of income legality. We will conduct a Due diligence procedure for an independent assessment of the investment object and determine whether the source of income for the permanent residency program will be approved.
2. Collection of documents. Once the verification is over, we will provide you with a list of required documents. As soon as you collect and provide the paperwork to us, we will translate it into English and transfer it to licensed specialists for the Apostille affixation.
3. Opening an account with a local bank and transferring EUR 30,000 to it. We will help you choose a bank, collect all the necessary documents and prove that your deposit money has been earned legally.
4. Property purchase. You purchase the property by paying the developer a lump sum payment of at least €200,000 excluding VAT. We will submit the purchase agreement and title deeds to the Cyprus Land Department.
5. Submitting an application for permanent resident status to the Civil Registry and Migration Department. No need to fly here for this — our specialist will do everything for you.
6. After submitting the application, the consideration process by the Ministry of Internal Affairs will last for 2 months.
7. Obtaining a permanent residence permit. Once approved, you and your family can fly to the island, get your ID cards, and provide biometric data. This does not have to be done immediately, you can visit the country within a year after the application is approved.

Below you will find a checklist to help you easily navigate the steps to be taken and avoid getting lost in them. You will also find a link where you can download a PDF file with the checklist on how to acquire permanent resident status in Cyprus.

How do I understand that permanent residency in Cyprus through investment is the right choice for me?

Usually, the reason for wanting a permanent residence permit in the island state is low taxes on business and a sustainable financial climate. A growing economy and rising real estate prices let you get a greater rate of return on investment.

In addition, the island is conducive to a happy life, it has a mild climate and warm weather; there are rarely any storms. This island is the sunniest of all Mediterranean countries with 300 sunny days a year. It is also easy to adapt to the country and there will be no lack of communication, as a lot of people here are Russian-speaking.

Please also find out more about innovation hubs and why it is profitable to invest in them. The innovation hub in Cyprus is an actual haven with low taxes and an ultra-preferential IP-box tax regime.

We are also pleased to offer you the top 10 residential real estate facilities in Cyprus for expedited permanent resident status acquisition. You can view the apartments, compare prices, and choose whatever suits you best.

SPM is your most valuable contact in Cyprus.

Download the check list in PDF