FREQUENTLY ASKED QUESTIONS ABOUT THE CYPRUS PERMANENT RESIDENCY (FAST TRACK OPTION)

Q. What is the minimum investment and minimum annual income required for the Fast Track option?

A. For the Permanent Residency Fast Track Procedure the minimum requirement is €300,000 (before VAT) plus a secure annual income of €30,000 increased by €5,000 for each dependent person, from legal sources other than employment in Cyprus. (Note the Civil Registry and Migration Department may demand additional amounts if they are not satisfied with the type or quality of the income presented).

Q. Is size of the residence (number of bedrooms) required for Permanent Residency permit related to the number of people applying ?

A. The size of the residence (number of bedrooms) is not related to the number of people applying. However, the investment amount is related to the number of people applying and also to the status of the children of the family.

For the fast track procedure, Permanent Residency may be granted to children of the applicant over the age of 18, who are not financially dependent on the applicant, provided that the market value of the acquired properties attributed to each such child is at least €300.000 (excluding VAT).

For example, if the main applicant has two adult children, financially independent, then he must buy real estate valued at €900.000 (excluding VAT). In such an event a payment for the 66% of the market value of the real estate must be submitted with the application. Also note that in such an event, each child shall submit the necessary documentation with his/her application (e.g. secured annual income of €30.000, a deposit in a financial institution in Cyprus amounting to €30.000, which is bound for 3 years).

Q. What if the applicant decides to sell the real estate that was presented to the authorities together with the original application for Permanent Residency ?

A. Alienation (that is the sale) of the purchased property will result in the cancellation of the Permanent Residency Permit pursuant to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations. A sale is allowed only if an immediate replacement with another property of the same or higher value and in accordance with the conditions of the procedure (that is sold for the first time by a development company) are presented to the authorities.

Q. After the applicant is granted Permanent Residency, is he allowed to rent the real estate that was bought to acquire the PR ?

A. The simple answer is YES.

Q. Can you buy real estate that is not new and not from an approved developer ?

A. NO for the Fast Track applicants (Regulation 6.2). Fast Track applicants are required purchase a new (not resale) property residence for himself and his family of not less than €300,000 (before VAT) and the vendor must be the Developer who built this property. It is possible to buy two properties, as long as they are both new and from the same Developer. Possible combinations are: Residential properties (one or two), Residential properties plus & Shop upto 100m2 or Residential properties plus Offices upto 250m2.

Q. Can you buy the required real estate with bank or other lending ?

A. The main requirement is that the investment and the income must come from legal sources from abroad (pensions, permanent deposits, business activities, stocks, company shares etc.). This means that the applicant can borrow from overseas if he wishes but he cannot borrow from Cyprus banks or other financial institutions to buy the required real estate.

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Q. Which countries can the holder of the Cyprus Permanent Residency Permit enter without an Entry Visa ?

A. Cyprus is obliged by the EU regulations to join the Schengen area but it has delayed implementation. Therefore the time being, third national Permanent Residency holders still require a travelling visa to other EU countries. Holders of of a Cyprus Permanent Residency Permit definitely have an easier procedure to get a Schengen Visa.

Q. Can a holder of Cyprus Permanent Residency Permit work in Cyprus or in the EU ?

A. Holders of this permit are not entitled to work in Cyprus or in the EU, but they are allowed to own a Cyprus registered company and to receive dividends from its profits. All company transactions have to be transparent and it has to be a genuine viable business.

DISCLAIMER: PLEASE NOTE THE ABOVE ANSWERS ARE PRESENTED AS GENERAL INFORMATION. THEY ARE NOT TO BE TREATED AS FORMAL LEGAL ADVICE. READERS SHOULD ASK FOR LEGAL ADVICE BEFORE TAKING IMPORTANT DECISIONS.