by Chrysovalantis Papantoniou, Associate Lawyer at Dionysiou & Partners LLC
The Minister of Interior in his attempt to promote foreign investment and trigger economic growth, introduced new provisions for the acquisition of Immigration Permit as of 24th of March 2021.
The main aim of the amended Regulation 6(2) of the Aliens and Immigration Regulations is to encourage third country nationals to invest not only in real estate but in other fields as well.
- Investment Criteria
The applicant must invest at least €300,000 in one of the following investment categories:
(A) Investment in a house/apartment: Purchase of a house or apartment from a development company, which should concern a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding houses/apartments): Purchase of other types of real estate such as offices, shops, hotels or related estate developments or a combination of these with a total value of €300,000. The purchase of interest can be the result of a resale.
(C) Investment in Cyprus Company’s share capital, with business activities and personnel in the Republic: Investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, based and operating in the Republic of Cyprus and having a proven physical presence in Cyprus and employing at least five (5) people.
(D) Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF): Investment worth €300,000 in units of Cyprus Investment Organization Collective Investments.
The applicant should, in addition to the investment, be able to prove that he has at his disposal a secure annual income of at least €30,000. This annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent (of the applicant and/or his spouse). This income should derive from abroad and may include salaries or wages, pensions, dividends from shares, fixed deposits, rents, etc.
In cases where:
- the applicant chooses to invest as per 1.1 (A) above,in calculating the total amount of income, the spouse’s income may also be taken into account.
- the applicant chooses to invest as under 1.1 (B), (C) or (D), his total income or part of it may also come from sources coming from activities within the Republic.
- Other Requirements
The applicant and his spouse must submit a clean criminal record certificate from their country of residence or from the Republic in case they reside in Cyprus and generally they should not be considered as a threat in any way to public order or public security in Cyprus;
- The applicant and his spouse shall confirm that they do not intend to undertake any sort of employment in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest under this policy;
- In cases where the investment does not concern the company’s share capital, the applicant and/or his spouse are allowed to be shareholders in companies registered in Cyprus and the income from the dividends derived from such companies may not be considered as an obstacle for the purposes of obtaining the Immigration Permit. In such companies, they may also hold the position of an unpaid Director;
- In cases where the applicant chooses to invest under (B), (C) or (D) above, he should provide evidence regarding his accommodation in the Republic (e.g. title of ownership or contract of sale and proof of payment for the property or rental agreement);
- Abolishment of Fixed Deposit
The requirement for the Applicant to deposit a fixed amount of €30.000 in a Cypriot bank account, locked for three years, has now been abolished.
- Dependent persons
- The Immigration Permit is issued to the applicant and it covers as dependent persons his /her spouse and children under the age of 18.
- Unmarried children of the Applicant between the ages of 18 and 25, only when it is proven that, at the date of the application, they are attending higher educational institutions abroad and provided they are financially dependent on the Applicant can submit their own, separate application for an Immigration Permit with the payment of the relevant fee. In cases where the children are students of a Higher Institutions of the Republic of Cyprus, then they must submit through the Institution an application for acquisition of a temporary residence permit in the Republic as students.
- The applicant’s parents and parents-in-law are still eligible to apply, with the condition that the applicant will present only an additional annual income of €8,000 for each dependent parent.
- Higher value investment for including adult children
An essential addition to the Regulations is that an Immigration Permit may also be granted to children of the applicant over the age of 18, who are not financially dependent on the applicant, on a higher value investment, subject to the provisions set out below:
- The market value of the €300,000 investment should be multiplied by the number of adult children, who will invoke the same investment for the purpose of obtaining an Immigration Permit. For example, in case the applicant has one adult child he should make an investment worth €600,000, if he has two adult children the value of the investment should amount to €900,000 etc.
- In case the investment will concern the purchase of real estate, i.e., where the applicant chooses to invest as per paragraph 1.(A) and 1.(B), a proof of payment of at least 66% of the market value of the real estate must be submitted upon application.
- In such a case, each adult child will be able to prove that they have at their disposal a secured annual income of at least €30,000, which will increase by €5,000 for each dependent person, as provided in Section 2.2. In addition, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.
For further information or clarifications, please contact S. Dionysiou & Partners LLC at email@example.com/ +357 22 272360.