Southern Cyprus Real Estate – Permanent Residency

What is the Southern Cyprus Real Estate Permanent Residency Program?

The Southern Cyprus Real Estate Permanent Residency Program is an immigration initiative by the Republic of Cyprus designed to attract foreign investment. It grants non-European Union nationals an indefinite permanent residency permit (Immigration Permit under Regulation 6(2) or Category F) in exchange for a qualifying investment, with real estate being the most popular option. This permit allows you and your family to live in Cyprus permanently without the need for frequent renewals, offering a stable and secure “Plan B” in a strategic European location. It is important to note that this program grants permanent residency, not citizenship, though it can lead to citizenship after a specified period.

Purpose of the Cyprus Permanent Residency by Investment

The primary objectives of the Cyprus Permanent Residency by Investment program are multifaceted. Firstly, it aims to attract significant foreign direct investment into the Cypriot economy, particularly stimulating the vital real estate and construction sectors. Secondly, it seeks to diversify the country’s economic base and create new employment opportunities. By drawing high-net-worth individuals and their families, Cyprus strengthens its position as an international business and financial hub, benefiting from increased consumption and business activity.

Eligibility Criteria for Southern Cyprus Real Estate Permanent Residency

To qualify for the Cyprus Permanent Residency by Real Estate, applicants must meet specific criteria:

• Investment Requirement: You must invest a minimum of €300,000 (plus VAT) in one of the following categories:
  • New Residential Property: Purchase of one or two new residential properties (apartments or houses) from a licensed development company, with a total value of at least €300,000. Resale properties generally do not qualify for this option.
  • Commercial Property: Purchase of other types of real estate, such as offices, shops, hotels, or related developments, with a minimum value of €300,000. This category allows for both new and resale properties.
  • Investment in Cypriot Company Share Capital: Investment of at least €300,000 in the share capital of a Cypriot company that is registered and operating in Cyprus, has a proven physical presence, and employs at least five people.
  • Investment in Collective Investment Funds: Investment of at least €300,000 in units of a Cyprus Investment Organization of Collective Investments (AIF, AIFLNP, RAIF).

  It is crucial that the investment funds are proven to have been transferred to Cyprus from abroad. An initial payment of at least €200,000 (plus VAT) for real estate investments must be made before submitting the application.

• Annual Income: You must demonstrate a secured annual income of at least €50,000. This income must be derived from sources outside Cyprus, such as salaries, pensions, dividends, fixed deposits, or rental income from abroad. The required income increases for each dependent:
  • Additional €15,000 for your spouse.
  • Additional €10,000 for each dependent child.
  • Additional €8,000 for each dependent parent (of either the applicant or spouse).
• Clean Criminal Record: All adult applicants (over 16 years old) must provide a clean criminal record certificate from their country of origin and any country they have resided in for the past five years. These documents must be legalized or apostilled and officially translated.
• No Employment Intention: The applicant and their dependents are generally not permitted to be employed in Cyprus. However, they are allowed to be shareholders in Cypriot companies and receive dividends from such companies. They can also hold directorships in companies where they have invested.
• Health Insurance: Proof of comprehensive health insurance covering medical care in Cyprus is required.
• Age: The main applicant must be over 18 years old.
• Physical Presence: While there’s no strict residency requirement for living in Cyprus, permit holders must visit the country at least once every two years to maintain their permanent residency status. A mandatory visit within one year of approval is required for biometric data collection.

Application Process for Southern Cyprus Real Estate Permanent Residency

The application for Cyprus Permanent Residency by Investment typically follows these steps:

1. Property Selection and Purchase:Identify and select a qualifying property (or properties) that meets the investment threshold. Sign the Sale Agreement and make the initial payment of at least €200,000 (plus VAT). The Sale Agreement must be deposited at the Land Registry Department.
2. Document Preparation:Gather all necessary personal, financial, and investment documents. This includes valid passports, birth and marriage certificates, comprehensive proof of income from abroad, bank statements, criminal record certificates, property deeds or sales agreements, and proof of fund transfers. All non-English/Greek documents must be officially translated and apostilled/legalized.
3. Submit Application:The complete application dossier, along with the required fees, is submitted to the Civil Registry and Migration Department in Nicosia. It is highly recommended to engage a local Cypriot immigration lawyer to handle the submission and liaise with the authorities on your behalf.
4. Due Diligence & Approval:The Cypriot authorities conduct thorough due diligence checks on the applicant and the investment. The “Fast-Track” process typically results in approval within 2-6 months, provided all documents are in order and criteria are met.
5. Biometric Data Collection:Upon receiving approval, the main applicant and all adult family members included in the application must visit Cyprus within one year to provide their biometric data (fingerprints and photographs) for the production of the permanent residency cards.
6. Receive Permanent Residency Card:After biometrics are collected, the permanent residency cards are issued, usually within approximately 40 days. These cards are valid indefinitely, though they require renewal every 10 years for biometric updates.

Benefits of Southern Cyprus Real Estate Permanent Residency

Obtaining permanent residency through real estate in Southern Cyprus offers a multitude of advantages for you and your family:

• Permanent Residency Status: The permit is granted for an indefinite period, providing long-term security and stability without the need for periodic renewals (only the biometric card needs updating every 10 years).
• Residency in an EU Member State: Enjoy the right to live in an EU country, with access to its high standards of living, education, and healthcare (through the General Healthcare System – GESY, after fulfilling requirements).
• Family Inclusion: The program allows for the inclusion of your spouse, financially dependent children up to 25 years old (if unmarried students), and even your parents and parents-in-law, offering a multi-generational solution.
• Favorable Tax System: Cyprus boasts one of the most attractive tax regimes in the EU, including a low corporate tax rate (12.5%), no inheritance tax, no wealth tax, and no tax on worldwide income for individuals who are not considered tax residents of Cyprus.
• High Quality of Life: Benefit from a Mediterranean climate, a safe environment with low crime rates, excellent healthcare facilities, quality international education options, and a relaxed, family-friendly lifestyle.
• Strategic Location: Cyprus’s geographical position at the crossroads of Europe, Asia, and Africa makes it an ideal hub for business and travel, offering excellent connectivity.
• Travel Flexibility: While the PR permit itself does not grant visa-free Schengen access directly (as Cyprus is not fully in Schengen for land borders yet), it provides visa-free entry to Cyprus and can simplify applications for Schengen visas for travel within the wider EU. Cyprus became a full Schengen member for air and sea borders on March 31, 2024.
• Investment Opportunity: The investment in real estate offers the potential for capital appreciation and rental income, combining immigration benefits with a sound financial decision.

Recent Changes and Program Updates (2025)

The Cyprus Permanent Residency by Investment program has undergone several adjustments to enhance its robustness and align with current immigration trends. Key updates for 2025 include:

• Increased Income Requirements: The minimum annual income thresholds have been updated and are now more stringent. The main applicant needs €50,000, with increased amounts for each dependent, as detailed in the Eligibility Criteria. This ensures applicants have substantial independent means.
• Emphasis on New Properties (Residential): For investments in residential property, the focus remains strongly on new constructions purchased directly from licensed development companies, excluding resales in this specific category to stimulate the new-build market. Commercial properties, however, can be new or resale.
• Parents as Dependents: The inclusion of parents (of both the main applicant and spouse) is still permitted, but it requires meeting the higher associated income thresholds.
• Strict Fund Origin Verification: Authorities are increasingly vigilant in ensuring that all investment funds originate from legitimate sources outside Cyprus, requiring robust proof of funds.
• No Direct Citizenship by Investment: It’s important to reiterate that the “Cyprus Citizenship by Investment” program was discontinued in November 2020. The current program grants permanent residency, with the possibility of naturalizing for Cypriot citizenship after 7-8 years of actual and legal residency in Cyprus, meeting specific naturalization criteria (including language and civics tests).
• Schengen Access for Air & Sea Borders: As of March 31, 2024, Cyprus joined the Schengen Area for air and sea borders. This facilitates travel for PR holders when flying or sailing to other Schengen countries, although full land border integration is still pending a future decision by the EU Council.

Key Requirements and Investment Options at a Glance

Tips for a Successful Application

• Engage Legal Counsel: It is highly recommended to work with a reputable Cypriot immigration lawyer. They can assist with due diligence, navigate the property purchase process, ensure compliance with all legal requirements, and manage the submission of your application dossier.
• Source Funds Properly: Ensure all investment funds are legally sourced and can be clearly traced. Maintain meticulous records of all transactions. Proof that funds were transferred from abroad is mandatory.
• Accurate Documentation: Pay close attention to detail when preparing your documents. Ensure all forms are correctly filled, and all supporting documents are valid, complete, legalized/apostilled (if required), and officially translated into Greek or English.
• Understand Tax Implications: While Cyprus offers an attractive tax regime, it’s crucial to consult with a qualified tax advisor regarding your potential tax residency status in Cyprus and its implications for your worldwide income.
• Plan Your Visit: Be prepared to visit Cyprus for property selection (if applicable), to open bank accounts, and for the mandatory biometric data collection after your application is approved.

Final Thoughts

The Southern Cyprus Real Estate Permanent Residency program offers a compelling opportunity for non-EU investors seeking a stable, long-term residence in a welcoming European environment. With its straightforward application process, competitive investment threshold, and numerous benefits for families, Cyprus remains a top choice for those looking to enhance their global mobility and quality of life. By carefully following the guidelines and staying informed about the latest updates, you can successfully secure your permanent residency and embrace the Cypriot lifestyle.