Local
articles | 28 August 2013 | DFK Demetriou Trapezaris Limited

Cyprus - Your Gateway to Europe

The Cypriot Government introduced on 24 May 2013 amended criteria and conditions for Cyprus Permanent Residency permits and Cyprus Citizenship to foreign investors in an effort to promote foreign investments to Cyprus.

1. Cyprus Permanent Residency

Foreign persons who want to obtain Cyprus Permanent Residency through means of an investment, there are two options available, the Category 6(2) Fast Track and the Category F methods.

1.1  Category 6(2) Fast Track

To qualify for the Category 6(2) Fast Track, the Applicant must:

  • Purchase a property located in Cyprus of at least €300,000  + VAT
  • Pay at least €200,000 of the purchase price prior to Application
  • Deposit a minimum €30,000 in a Cyprus Bank for at least 3 years.
  • Show a stable means of income of at least €30,000 per year. This amount increases by €5,000 for every dependant such as a wife or child.
  • Through this method the application is reviewed within 2 months.

1.2  Category F method

Category F Permanent Residence is the standard non-fast tracked method of applying and obtaining Cyprus Permanent Residence.

To qualify for Cyprus Permanent Residency Category 6, the Applicant must:

  • Purchase a property located in Cyprus of at least €300,000 + VAT
  • Pay a minimum of 30% of the property price.
  • Provide proof that has adequate funds to live a comfortable life in Cyprus.

Through this method the application is reviewed within 12 months.

1.3  Benefits

  • No minimum residence stay required
  • Can move into house immediately
  • Residency can be granted in 2 months
  • Applies to whole family
  • Can lead to Cyprus citizenship
  • Easier travel within the EU
  • Lower tuition costs within Europe

1.4  Required Documentation

When the applicant meets the above financial criteria, the following documents must be submitted with the application:

  • Certified copy of valid passport of the applicant.
  • Curriculum Vitae (including academic qualifications).
  • Declaration of a secured annual income of the parent from abroad of at least €30,000 , (original documents and affidavit or declaration). The necessary annual income is increased by €5,000 for each person dependent to the parent.
  • Official Statement by the applicant that he/she does not intent to work or be engaged in any form of business in Cyprus.
  • Health Insurance Policy for the applicant
  • Original Criminal Record Certificate duly certified for the applicant
  • Birth Certificate of the applicant dully certified

2. Cyprus Citizenship

As a member of the European Union, every Cypriot citizen is also European Union citizen. As a European Union citizen you will have the right:

  • not to be discriminated against on the grounds of nationality
  • to move and reside freely within the EU
  • to vote and stand as candidates in municipal and European Parliament in any EU country
  • to be assisted by another EU country’s embassy or consulate

Becoming a Cyprus Citizen

Non-Cypriot citizens are entitled to apply for Cyprus citizenship if they fulfill one of the following six sets of criteria:

2.1  Mixed Investments and State Donations

The applicant must:

  • Purchase shares and/or bonds of at least €2.0 million issued through a Cyprus Investment Company. Applicant should deposit the amount with the Cyprus Treasury until the shares and/or bonds are issued.
  • Donate at least €500,000 to the State Research and Technology Fund.

2.2  Direct Investments

The applicant must have direct investments in Cyprus of at least €5.0 million in the following ways but not limited to:

  • Purchase of immovable property
  • Purchase of businesses or companies that are based and have activities in Cyprus.
  • Purchase of shared in companies registered in Cyprus
  • Purchase of financial assets such as bonds, securities and debentures registered and issued in Cyprus
  • Participation in a company/consortium that have undertaken to carry out public projects.
  • The above conditions require the applicant to retain the assets for a period of at least three years.

For investments in financial instruments the value of the portfolio must not decrease below €5.0 million for a three-year period.

2.3  Bank Deposits

The applicant must have a personal fixed term deposit for three years in a Cypriot bank or deposits of privately owned companies or trusts in Cyprus of at least €5.0 million.

2.4  A Combination of 2.1 , 2.2 and 2.3

A combination of the conditions set out above in 2.1, 2.2 and 2.3 amounting to at least €5.0 million.

2.5  Business Activities

The applicant must be a shareholder or beneficiary owner of a company (or group of companies) whose management is in Cyprus and which over the last three years has paid State Funds (corporate tax, V.A.T or other taxes) and remuneration for the purchase of business services (legal, accounting, auditing) of at least €500,000per year.

Alternatively if the company is active in Cyprus and has established central offices in Cyprus and employees at least 5 Cypriot citizens then the minimum amount to be paid for the above is €350,000 for the last three years.

If the company employees at least 10 Cypriot citizens then the amount is reduced to €200,000 for the last three years.

It is important to note that for every such company, applications for naturalization may be submitted by a maximum of 2 shareholders who preferably hold the majority of the share capital.

2.6  Persons whose deposits with the Bank of Cyprus or Popular Bank have been impaired due to measures implemented on 15th March 2013

Any non-Cyprus citizens who incurred an impairment on any deposits held in Bank of Cyprus and/or Popular Bank in the amount of at least €3.0 million  may apply for Cyprus Citizenship.

If the loss is less than €3.0 million, a combination with 2.1 and 2.2 as described above can be made for the balance of the required amount of €3.0 million.

2.7  Terms And Conditions

Along with any of the criteria set out above in 2.1 to 2.6 an applicant for Cyprus citizenship must also satisfy the following criteria, both at the time of application and at any point after citizenship is granted:

  • A clean criminal record
  • His/her name must not be included in any list of persons whose assets are frozen within the EU
  • A permanent privately owned residence in Cyprus of at least €500,000 +VAT

Cooperation Partners
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