Сyprus permanent residency by investment

Permanent residence in Cyprus is granted by investment starting at €300,000. Investors may choose to invest in real estate, business, or securities. The process takes 9 months or more after the application is submitted.

The investor must also confirm an annual income of at least €50,000 earned outside Cyprus. If family members also apply for permanent residence, the required income increases by €15,000 for a spouse and €10,000 for each child.

The costs of obtaining Cyprus permanent residence include:

• €300,000 — investment amount;
• €18,000 or more — additional expenses such as VAT, stamp duty, registration of the sale and purchase agreement with the Department of Lands and Surveys, and legal services.

When applying for a residence permit, the investor pays an application fee of €500 per family member. The issuance of a residence card costs €70 per person, and medical insurance costs €170.

The standard VAT rate is 19%. However, first‑time buyers may benefit from a reduced rate of 5% on the first 130 m² of residential property, provided that:

• property's value does not exceed €350,000;
• total transaction value is under €475,000;
• interior area does not exceed 190 m².

Permanent resident status in Cyprus grants the right to live in a safe EU country without restrictions, optimise taxes, study at local schools and universities, and access free medical care.

The fastest way to obtain permanent residence is through the state investment program, which requires an investment of at least €300,000 in the country’s economy. The status is granted for life, and citizenship may be obtained after 8 years.

Cypriot citizenship may be obtained by naturalisation, birth, or marriage.

Permanent residents follow the naturalisation route. They must have resided in the country for at least 8 out of the last 11 years. Applicants must also prove uninterrupted residence for one year before applying and must not have spent more than 90 days outside Cyprus during that period.

A Cypriot passport is valid for 10 years for adults and 5 years for children. It must be renewed 6 months before expiration.

Although Cyprus is part of the European Union, it is not a member of the Schengen Area. Therefore, Cyprus permanent residence does not grant visa‑free access to Schengen countries. However, a Cypriot passport allows visa‑free travel to 168 countries.

Cypriot citizenship cannot be obtained directly by investment. There are only three legal paths: naturalisation, birth, or marriage.

Investors may first obtain permanent residence by investment of at least €300,000 in real estate or securities. Citizenship may be applied for only after 8 years of residence.

Cyprus offers a permanent residence program for investors. Temporary residence permits are not granted by investment. However, they may be issued on other grounds such as family reunification, education, volunteering, medical treatment, or employment, including remote work.

The program requires investors to retain their investments. If an investor sells the real estate, they lose their permanent resident status. To avoid this, they may purchase a new property worth at least €300,000.

If the investor obtains citizenship or permanent residence on another legal basis, they may exit the investment by selling the property or securities.

Cyprus is considered one of the most favourable tax jurisdictions in the EU. Personal income tax is progressive: from 20 to 35%. The corporate tax rate is 12.5%.

There are no taxes on property, wealth, inheritance, or gifts.

A person becomes a Cyprus tax resident by spending over 183 days a year in the country. Since 2017, the 60‑day rule also applies if the individual:

• spends no more than 183 days in any other country;
• is not a tax resident elsewhere;
• conducts business or is employed in Cyprus;
• owns residential property in Cyprus.

Non‑residents pay tax only on income earned within Cyprus.

Holders of permanent residence obtained by investment are not allowed to be employed in Cyprus. However, they may own businesses, establish companies, or relocate existing ones to the Cypriot jurisdiction.

The Cyprus migration authority may refuse to issue permanent residence to foreign nationals who:

• do not meet the minimum investment or income requirements;
• provide false information or forged documents;
• have a criminal background or pose a threat to national security.

Each application is reviewed individually, so these are only the most common grounds for refusal.