Purchasing Property in Cyprus for Permanent Residency

Cyprus offers a streamlined pathway to Permanent Residency (PR) through property investment. This program is an attractive option for non-EU nationals seeking to obtain PR in an EU member state. Below, we outline the key legal and financial requirements, as well as the benefits and considerations involved in purchasing property in Cyprus to gain residency.

Legal Requirements for Permanent Residency

1. Investment in Real Estate

• Minimum Investment: To qualify for the Cyprus Permanent Residency Permit (PRP) under the Fast Track program, you must purchase new residential property (or properties) with a total minimum value of €300,000 (plus VAT).
• The purchase must be made from a developer and should involve new properties (resale properties do not qualify for the Fast Track scheme).
• The investment should be free of encumbrances, meaning the property must not be subject to any mortgages or legal claims.

2. Clean Criminal Record

• Applicants and their dependents must have a clean criminal record from their country of origin and any country they have resided in.

3. Proof of Income

• The applicant must demonstrate a secure annual income of at least €30,000. This amount increases by €5,000 for each dependent (spouse and children) and €8,000 for each dependent parent.
• This income must come from sources outside of Cyprus (such as salaries, investments, or pensions).

4. Permanent Residency Permit Application

• The applicant must submit the PRP application through the Civil Registry and Migration Department of Cyprus.
• A deposit of at least €200,000 (plus VAT) towards the purchase must be made before applying for the permit.

5. Application Process Time

• Under the Fast Track process, permanent residency is typically granted within 2-3 months of submitting the complete application.

6. No Employment in Cyprus

• The applicant and their dependents cannot be employed in Cyprus, though owning a business or receiving dividends from Cypriot companies is permitted.

Eligibility for Family Members

• The applicant’s spouse, children (under 18), and unmarried dependent children (ages 18-25) who are full-time students can also gain residency.

• Parents and parents-in-law of the applicant can also be included, provided an additional investment is made or higher income is demonstrated.

Other Considerations

1. Permanent Residency vs Citizenship

• While permanent residency allows you to reside indefinitely in Cyprus, it is not the same as citizenship. However, obtaining PR can be the first step towards citizenship after 7 years of legal residency in Cyprus.

2. Renewal Requirements

• The Cyprus Permanent Residency Permit does not need to be renewed as long as the holder visits Cyprus at least once every two years.

3. Tax Advantages

• Cyprus offers one of the most favorable tax regimes in the EU, with no inheritance tax and low property taxes, making it attractive to property buyers.

4. Living in Cyprus

• Permanent Residency holders are not restricted to a specific part of Cyprus and can freely live anywhere within the Republic of Cyprus. However, they are not allowed to live in the Turkish-occupied northern part of the island.

5. Future Citizenship

• Permanent residency can pave the way toward Cypriot citizenship, which offers all the benefits of EU citizenship, including the right to live, work, and travel freely within the EU.

Benefits of Permanent Residency in Cyprus

• Ease of Travel: PR holders can easily enter and stay in Cyprus without needing a visa.

• Family Inclusion: The ability to include family members (spouse, children, and parents) in the application.

• High Quality of Life: Cyprus offers a safe, peaceful environment with excellent healthcare, education, and infrastructure.

• Access to Education: Permanent residents can enroll their children in private schools and international schools in Cyprus.

Steps to Purchase Property and Apply for Residency

1. Choose a Property: Select a property from a developer in Cyprus that meets the €300,000 threshold (plus VAT).

2. Legal Representation: Hire a Cypriot lawyer to handle the property purchase and residency application.

3. Sign the Contract of Sale: Once the property is chosen, sign the sale contract and submit it to the Cyprus Land Registry.

4. Submit the Residency Application: Provide all required documents, including proof of income, clean criminal record, and proof of property purchase, to the Civil Registry and Migration Department.

5. Receive Residency: Once approved, residency is typically granted within 2-3 months.