Amendments to the Cyprus Permanent Residence Scheme according to Regulation 6(2) of the Aliens and Immigration Regulations (Permanent Residence Permit – Fast Track)
The Council of Ministers approved a proposal by the Ministry of Interior to revise the criteria for granting Permanent residency under the provisions of Regulation 6(2) of the Aliens and Immigration Regulation (Permanent Residence Permit – Fast Track).
As per the Minister of Interior, Mr. Constantinos Ioannou, the Ministry of Interior is aware of the risks involved in the implementation of these Schemes and the main aim of these amendments is to establish more solid and stricter criteria to grant the Permanent residency, to improve any distortions and to establish a mechanism which will monitor that the applicant will be in compliance with all the criteria.
The new amendments to the Cyprus Permanent Residence Scheme according to Regulation 6(2) of the Aliens and Immigration Regulations will come into force on the 2nd of May 2023.
As per the announcement of the Civil Registry and Migration Department (CRMD) on 27/04/2023, applicants whose Sale & Purchase Agreements have been lodged at the Department of Land Registry between 02/01/2023 until 28/04/2023, will be able to submit their applications to the CRMD following the criteria prior to the new amendments.
Investment in a house/apartment
The minimum amount of at least €300.000 (excluding V.A.T.) shall be paid in advance to the land development company, regardless of the delivery date of the property, and the relevant documentation evidencing the settlement of this amount shall be submitted to the CRMD, in order for the applicant to be able to submit his/her application successfully. The investment amount shall be transferred from the personal bank account of the main applicant or his/her spouse provided that the spouse is included as a dependant through the main application.
Another significant amendment is the increase of the required annual secure income of the main applicant from €30.000 to €50.000. The annual income must be increased by €15.000 for the spouse and €10.000 for each minor child of the applicant and/or his/her spouse. It is noted that the secured annual income of the main applicant can only be proved through salary from employment, pensions, stock dividends, interest on deposits, rents coming from abroad, and the annual income shall only be proved through the main applicant’s tax return from the country in which he/she declares to be a tax resident. The tax declaration shall only be provided in cases where the applicant has made an investment in the purchase of a house or apartment by a Land Development company, and in the calculation of the total annual income, the spouse’s income can be taken into consideration.
In the cases where the applicant has invested either in:
- real estate (excluding houses/apartments)
- share capital of a Cyprus Company with activities and employees in Cyprus
- units in a Cyprus Collective Investment Organization (AIF, AIFLNP, RAIF)
the total annual income or part of this can also arise from sources originating from activities in the Republic of Cyprus, provided that the applicant is taxable in Cyprus.
Additional major amendments
All adult applicants shall provide a Clean Criminal Record from their country of origin and/or their country of residence. Additionally, all family members shall provide Medical Insurance Certificate for medical treatment covering inpatient and outpatient care.
In case that the applicant will proceed with the investment in a house/apartment, if the number of bedrooms of the property cannot satisfy the needs of the dependent members of the applicant’s family members, the applicant shall indicate another property or properties which will constitute the place of residence of these persons, along with documentation evidencing this (i.e. the property title deed, sales agreement, rental agreement).
Another important amendment is that the main applicant can include only his/her spouse, minor children, and adult children up to the age of 25 years who are unmarried and who are university students financially dependent to the main applicant. The main applicant will no longer be able to include the parents as well as parents-in-law to be granted Permanent Residence as their dependents.
Compliance with the criteria and preservation of the investment
Once the application is approved from the CRMD, the applicant is required to submit on an annual basis from the date of obtaining the Permanent Residence permit, evidence that he/she maintains the initial investment, that he maintains the required income determined for him and his/her family members and that he/she and his/her family members are holders of a Medical Insurance Certificate in case they do not continue to be beneficiaries of the General Healthcare System (GESY).
In addition, the applicant and his/her adult family members are required to provide an updated Clean Criminal Record from country of origin and/or country of residence. Ιn case the holder of the Permanent Residence Permit fails to evidence all of the above, th Permanent Residence Permit will be cancelled for the applicant and/or his/her spouse and family members.