The Council of Ministers has approved a proposal from the Ministry of Interior to revise the criteria for granting Permanent Residency under the provisions of Regulation 6(2) of the Aliens and Immigration Regulations (Permanent Residence Permit – Fast Track).
According to the Minister of Interior, Mr. Constantinos Ioannou, the Ministry recognises the risks involved in the implementation of such schemes. The primary aim of these amendments is to introduce more robust and stringent criteria for granting Permanent Residency, address any existing distortions, and establish a monitoring mechanism to ensure applicants continue to comply with all the set criteria.
The new amendments to the Cyprus Permanent Residence Scheme, in accordance with Regulation 6(2) of the Aliens and Immigration Regulations, will come into effect on the 2nd of May 2023.
As per the Civil Registry and Migration Department (CRMD) announcement on 27/04/2023, applicants whose Sale & Purchase Agreements have been lodged with the Department of Land Registry between 02/01/2023 and 28/04/2023 may submit their applications under the previous criteria before the new amendments come into force.
Key Amendments to the Scheme
Real Estate Investment
A minimum investment of €300,000 (excluding VAT) must be paid in advance to the land development company, irrespective of the delivery date of the property. Documentation proving the settlement of this amount must be submitted to the CRMD for the application to proceed. The investment must be transferred from the personal bank account of the main applicant or their spouse, provided the spouse is listed as a dependant in the application.
Annual Income Requirement
One of the significant amendments is the increase in the required annual secure income for the main applicant from €30,000 to €50,000. The annual income must be increased by €15,000 for a spouse and €10,000 for each minor child of the applicant and/or spouse. The secure annual income can only be proven through employment salary, pensions, dividends, interest on deposits, and rents originating from abroad. This income must be demonstrated through the main applicant’s tax returns from the country in which they declare tax residency. The spouse’s income can be considered when purchasing a house or apartment through a Land Development company.
If the applicant has invested in the following categories the total or partial annual income may also originate from sources within Cyprus, provided the applicant is taxable in Cyprus:
Real Estate (excluding houses/apartments)
Share capital of a Cyprus company with activities and employees in Cyprus
Units in a Cyprus Collective Investment Structure (AIF, AIFLNP, RAIF)
Additional Amendments
Clean Criminal Record
All adult applicants must provide a clean criminal record from their country of origin and/or residence. Additionally, all family members must present a Medical Insurance Certificate covering inpatient and outpatient care.
Accommodation Requirements
If the applicant invests in a house/apartment, the number of bedrooms must meet the needs of the applicant’s dependent family members. If not, the applicant must designate another property to accommodate them and provide relevant documentation (i.e. title deeds, sales or rental agreements).
Family Members
The main applicant can now include only their spouse, minor children, and adult children up to 25 years old who are unmarried and financially dependent as university students. The inclusion of parents and parents-in-law for Permanent Residency is no longer allowed.
Compliance and Preservation of Investment
Once the application is approved, the applicant must submit evidence on an annual basis from the date of obtaining the Permanent Residence Permit to prove they maintain the initial investment and income levels for themselves and their family members. They must also confirm they hold valid Medical Insurance if they are not beneficiaries of the General Healthcare System (GESY).
In addition, the applicant and their adult family members are required to provide an updated clean criminal record from their country of origin and/or residence. Failure to meet these requirements will result in the cancellation of the Permanent Residence Permit for the applicant and/or their dependants.
If you require further information, please contact us at info@pelaghiaslaw.com.
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