Cyprus has increasingly become a prime destination for investors and their families seeking residency in Europe. The appeal is not only in its geographic and cultural charm but also in the strategic economic benefits it offers.
In 2024, the Cyprus Residency by Investment (RBI) program emerges as a particularly attractive choice, offering a straightforward pathway to residency through various investment options, with real estate being the most popular.
In this article, you will learn:
- The Essentials of the Cyprus Residency by Investment Program
- Nine Benefits of Obtaining Residency in Cyprus
- The Documents Required for Your Application.
Let’s jump right in.
What Is the Cyprus Residency by Investment Program? Requirements and Key Details
The Cyprus Residency by Investment program offers non-EU nationals a route to permanent residency through a substantial financial investment within Cyprus.
Applicants must invest at least €300,000 in one of several eligible categories, such as first-time sale residential properties from a developer, commercial real estate, shares in Cypriot companies with substantial local operations, or units in Cyprus-based investment funds.
This investment must be proven to originate from funds transferred from abroad, enhancing the program's exclusivity and ensuring a direct economic benefit to Cyprus. Designed to be straightforward yet rigorous, the program secures residency rights while bolstering the local economy.
9 Benefits of Cyprus Residency by Investment Program
There are several benefits when it comes to acquiring your Cypriot residency. Here are the most important ones:
1. Cyprus Permanent Residency Status
Investors gain permanent residency quickly, typically within a few months of application if all criteria are met. This speedy process is ideal for those looking to relocate swiftly and enjoy the benefits of residency without the lengthy waits associated with other nations' programs.
2. Easier Travel within Europe
Residency in Cyprus offers more convenient travel, vacation, and business opportunities throughout Europe. This is especially advantageous for investors interested in exploring business prospects or enjoying leisurely stays in various European destinations with minimal complications.
3. Favorable Tax Regime
Cyprus offers low personal (starting at 20%) and corporate tax (12.5%) rates and no inheritance tax, which is attractive for investors aiming to maximize their financial gains and secure wealth for future generations. The tax benefits extend to income generated both inside and outside of Cyprus.
4. High Quality of Life
Cyprus ranks highly for its quality of life, driven by its excellent healthcare system, reputable international schools, and a variety of leisure activities. The island’s beautiful beaches, scenic landscapes, and Mediterranean cuisine make it a delightful place to live and work.
5. European Lifestyle on a Mediterranean Coast
One of the biggest perks of living in Cyprus is the appealing lifestyle marked by its Mediterranean climate, offering an average of 320 days of sunshine annually, ideal for beach enthusiasts.
The island is home to 76 Blue Flag beaches, ensuring high environmental and safety standards for family enjoyment. Cypriot cuisine is a flavorful mix of Greek and Turkish influences, with popular dishes like souvlaki and moussaka that highlight the local, fresh ingredients.
The culture is a rich tapestry woven from the island’s extensive historical influences, celebrated through vibrant music, dance, and numerous religious festivals. This blend of beautiful landscapes, historical richness, and a laid-back lifestyle defines life in Cyprus.
6. Investment Flexibility
The program’s flexibility allows investors to choose from a range of investment options, including real estate, shares in local companies, or investment funds. This diversity lets investors align their residency goals with their financial strategies and interests.
7. Family Inclusion
The residency permit covers not just the main investor but also their spouse, dependent children, and adult children under specific conditions. This inclusive approach means that families can plan a collective future in Cyprus, ensuring stability for all members.
Here’s a list of dependents that can also be included in your application:
- Spouse
- Children under the age of 18
- Unmarried children between the ages of 18-25 who are students and financially dependent.
8. English Widely Spoken
Another huge advantage is the language. As English is predominantly spoken in Cyprus, particularly in the business and tourism sectors, new residents find it easier to integrate and communicate. This eases the transition for international investors and their families, facilitating both social and professional interactions.
9. Potential Path to Citizenship
After maintaining their investment and fulfilling certain conditions, investors may have the opportunity to apply for Cypriot citizenship. This option provides long-term security and additional benefits, including full EU citizenship rights and a second passport.
What Documents Are Required for Cypriot Residency by Investment?
When it comes to the paperwork required for your application, we’ve summarized it in a simple table below for your convenience:
|
Document Required |
Description |
|
Passport and Identification Documents |
True copies of valid passports for the applicant and all dependents. |
|
Proof of Financial Investment |
Contracts of sale, stamped and registered, with proof of payment for at least €300,000 from funds transferred from abroad. |
|
Financial Statements |
Declarations of a secure annual income of at least €50,000 from abroad, increased accordingly for dependents. |
|
Criminal Record Certificate |
Clean criminal records from the country of residence, certified, for the applicant and their spouse. |
|
Health Insurance Policy |
Comprehensive health insurance valid in Cyprus for the applicant and all dependents. |
|
Marital and Birth Documents |
Certified and translated marriage and birth certificates for a spouse and children, respectively. |
|
Bank Guarantee |
Letter from a Cypriot bank showing a deposit of €50,000, pledged for three years. |
|
Employment and Income Verification |
Statements confirming no intent to undertake employment in Cyprus, with the exception of directorship in the invested company, if any. |
It's essential to highlight that documents not in either Greek or English need to be translated into one of these languages and duly authenticated.
FAQs About Cypriot Residency by Investment Program
Are there any property-related costs associated with the Cyprus Residency by Investment Program?
Investing in Cypriot property involves several cost considerations, including variable VAT rates where the first residential property attracts 5% VAT and subsequent properties incur 19% VAT, with an application fee of €300 for the reduced VAT rate.
Stamp duties are levied on a sliding scale based on the property's sales price, ranging from 0% for sales up to €5,000, to 0.15% and 0.20% for higher brackets, with an example calculation showing a total stamp duty of €705 on a €400,000 purchase. Title deed transfers for newly built properties are exempt from fees, potentially reducing upfront costs.
What are the average rental yields in Cyprus?
According to the Global Property Guide, the average gross rental yield in Cyprus stands at 4.93%, offering moderate returns to investors. The best property investment locations in Cyprus are Limassol, Larnaca, and Paphos, among other cities.
Is it still possible to acquire Cypriot citizenship by investing €2 million in real estate?
No, it’s no longer possible. The direct citizenship by investment program in Cyprus, which allowed investors to obtain citizenship through a €2 million investment in real estate, was discontinued in 2020.
The Final Word
The Cyprus Residency by Investment program offers a robust opportunity for investors seeking a secure and beneficial pathway to European residency.
Through a substantial financial investment starting at €300,000, investors can enjoy permanent residency status, a favorable tax regime, and a high quality of life in one of the Mediterranean's most welcoming countries. The program is designed not just for the primary investor but also extends to their family, ensuring that everyone can enjoy the benefits of living in Cyprus.
If you are considering applying for this program, get in touch with our team today. At High Net Worth Immigration, we can help you decide on the most suitable investment path, choose and buy a property in Cyprus, obtain your residency, open a bank account, and much more.
