16.04.2024
In today’s world, many people choose to migrate to other countries in search of better opportunities for themselves and their families, both in terms of career advancement and a better lifestyle. Some people are forced to migrate to escape dangerous conditions, while others, more fortunate, choose to invest in a new location and take advantage of the benefits that host countries have to offer.
According to the UN Department of Economic and Social Affairs, Europe continues to receive the largest number of migrants in the world. Cyprus is often included in the top 10 lists of countries with the most attractive permanent residence programs.
The Cyprus Permanent Residence by Investment program offers several options for potential investors. These options include investments in real estate, shares in Cypriot companies and shares in Cypriot investment organizations. This creates a variety of opportunities for those interested in becoming a resident.
The investor must meet investment and quality criteria. In terms of investment criteria, the applicant has four options:
- Investment in a house or apartment: purchase of a house or apartment from a development company for an amount of at least 300,000.00 euros + VAT. It is imperative that in this category the sale does not involve a resale of the property. In addition, the applicant can purchase up to two housing units (apartments or houses) provided that the total market value of the property must be equal to or exceed EUR 300,000.00 + VAT, but it is not necessary that the two properties belong to the same development company.
- Investment in real estate (other than a house or apartment): the purchase of offices, shops, hotels or other types of real estate or a combination of them for a total purchase price of 300,000 euros, and in this category the investment can be the result of the resale of real estate.
- Investment in the share capital of a Cyprus company carrying out commercial activities. An investment of a minimum of €300,000 in the share capital of a company, which must be based and operate in Cyprus and employ at least five people.
- Investments in units of the Cyprus Investment Collective Investment Organization (forms AIF, AIFLNP, RAIF). An investment of at least €300,000 in collective investment units of a Cyprus Investment Organisation, which must be held in Cyprus.
In addition to the above investments, the applicant must be able to prove that he has at his disposal a guaranteed annual income of at least EUR 50,000, with the income requirement increasing by EUR 15,000 for a spouse and EUR 10,000 for each of them minor children. It is important to note that the income must come from abroad and can consist of wages, pensions, dividends from shares, interest on bank deposits, rent or any other source of income.
The quality criteria applied to investors are simple and generally similar to those established in most countries. The quality criteria are mainly concerned with ensuring that the applicant and his spouse have no criminal records from their country of origin and their country of residence, if different. In addition, the applicant and his dependent family members must obtain a health insurance policy that covers inpatient and outpatient treatment.
Permanent residence by investment differs from other types of residence precisely in that the applicant’s emphasis is on investment in Cyprus, and for this reason the applicant and his /her spouse must confirm that they do not intend to engage in any form of employment in the Republic. Despite the ban on working in Cyprus, the program under discussion allows the investor to conduct another business in Cyprus and receive dividends, which is considered an important attribute of the program.
It is clear from the criteria that this program actively promotes investment in the real estate sector, given that two of the four available investment options involve the purchase of residential or commercial real estate. While the promotion of real estate is obvious, the benefits the country receives from the program are not limited to the real estate sector. The investment criteria clearly help to attract foreign investment to Cyprus, supporting local businesses and supporting regional development.
