Cyprus is an attractive tourist destination with an excellent geographical location. It is situated at the crossroads of three continents: Europe, Asia and Africa. The strategic location of the island has played a significant role in its development as a financial center. Cyprus, with its beautiful beaches and its tropical Mediterranean climate, is considered an ideal destination for permanent residence for non-European Union (EU) nationals.

Cyprus has the lowest crime levels in the EU, a relatively low cost of living and no inheritance tax. It has high quality healthcare and offers access to leading medical centers. Additionally, it is a brilliant destination for British education, with a wide range of private English schools and universities, giving access to European, US and Canadian universities.

Cyprus has been a full member of the EU since 2004. The legal system in Cyprus is based on English statute and English common law. It has a prosperous, free-market, service-based economy which has grown in recent years. Its efficient legal framework and regulations give foreign investors certainty to invest and grow.

In line with the Cyprus Government’s intent to increase foreign investment and to help its economic development, Regulation 6(2) of the Aliens and Immigration Regulations has recently been simplified by the Ministry of Interior in order to issue residence permits to applicants from non-European countries.

CyprusPermanent Residence Program

Henley & Partners Cyprus Permanent Residence Program

Requirements

The main requirement is the purchase of new immovable property of a total market value of at least EUR 300,000 plus VAT. The applicant must submit the application form accompanied with a contract of sale and proof of payment of at least EUR 200,000 plus VAT. The contract of sale must have been submitted to the Cyprus Department of Land and Surveys. The property can also be bought by a company provided that the company is registered in the name of the applicant or the applicant and spouse, and they are sole shareholders.

The applicant may purchase up to two residential properties (apartments/houses), or one residential unit and one shop (with a minimum area of 100 m2), or one residential unit and one office (with a minimum area of 250 m2), provided that the combined value exceeds EUR 300,000. The Government of Cyprus has specified that new properties qualify and can only be purchased directly from the developer. Furthermore, multiple units must be purchased from one developer.

The applicant must submit a confirmation letter from a Cyprus bank that they have deposited a minimum of EUR 30,000 from abroad into an account which will be locked for three years. After the expiration of this period, the money will be released without restrictions.

The applicant must provide supporting evidence of a secured annual income of at least EUR 30,000 deriving from abroad. This income must increase by EUR 5,000 for the spouse and for each child and by EUR 8,000 for each dependent parent. This income may include salaries from employment, rent, pensions, and dividends from shares, etc.

The residence permit issued to an applicant covers the applicant’s spouse, any children under the age of 25, as well as the parents of the main applicant and spouse. Unmarried children aged between 18 and 25, who can prove that they are students or undergraduates, and are financially dependent on the applicant, may submit a separate application to obtain a residence permit. In this case, the parents must present an additional annual income of EUR 5,000 for every such dependent child. It is noted that every dependent child must submit all the required documents with their application.

The parents of a couple who applied or have already received the residence permit, are also entitled to acquire the permanent residence permit without purchasing additional real estate. The main applicant must prove additional income of at least EUR 8,000 for each dependent parent. A separate application must be submitted for each dependent parent.

A residence permit may also be granted to children of the applicant who are over the age of 18, who are not financially dependent on the applicant, provided that a property is acquired for each child for a market value of at least EUR 300,000 (excluding VAT). A confirmation of payment for 66% of the market value of the dwelling must be submitted with the application. The non-dependent child must submit all other supporting documents required by Regulation 6(2) with their application, such as the secured annual income of at least EUR 30,000 and a deposit into an account with a minimum value of EUR 30,000 fixed for three years.

In all cases, the applicant, their spouse and all dependents included in the application must have a clean criminal

V170901

Henley & Partners Cyprus Permanent Residence Program

• Fast track application procedure, within two months

• High approval rate if all criteria are satisfied

• It is not necessary to reside in Cyprus, but a visit once every two years is required

• Dependents can be enrolled in high quality private schools, offering English language courses

• Residence applies to the whole family (applicant, spouse and children under 18 years old). Dependent children between 18–25 and parents of the applicant are also eligible

• The whole process can be arranged without being present in the country; however, a visit is required for biometric capturing

Key Advantages

record from the country of residence. Furthermore, they must not be included in the list of people on whose name there is a freezing or confiscation order of property within the boundaries of the EU. The applicant and their spouse and all dependent children over the age of 18 must provide a declaration that they do not intend to be employed in Cyprus. All the documentation must be duly translated and certified. Another requirement is a health insurance policy for the applicant and their dependents.

Procedures and Time Frame

A fee of EUR 500 is payable with the submission of the application as well as an additional EUR 50 for the biometric capturing. The application will then be examined by the Civil Registry and Migration Department and will be submitted to a permanent secretary of the Ministry of Interior for a decision within two months. The applicant, spouse and dependents need to visit the migration office in Nicosia in order to capture their biometrics. Their visit can take place either with the submission of the application, during the application process, or immediately after approval.

Once approval has been granted, the applicant and all the family members included in the application must visit Cyprus within one year to obtain the actual permit.

Taxation

If the individuals are physically present in Cyprus for more than 183 days in a tax year, they will be considered tax residents of Cyprus in that tax year. If the individuals are subsequently physically present in Cyprus for less than 183 days in a tax year, they will be regarded as non-tax residents for that tax year.

An individual who is a tax resident of Cyprus under the provisions of the Income Law but non-domiciled will be excused from the Special Defence Contribution.

The corporate tax rate is 12.5%. A Cyprus tax resident who is not considered domiciled in Cyprus is exempt from the taxation of dividend or interest income.

Citizenship

Residence permit holders are entitled to apply for Cypriot citizenship through naturalization, enabling qualification for a Cypriot passport, after seven years of holding a residence permit.

V170901

Theresa Fernandez Pam Golding International Representative

Telephone +27 21 762 2617 Email projects@pamgolding.co.za pamgolding.co.za/international

Pam Golding South Africa Monterey, 12-14 Klaassens Road, Bishopscourt Cape Town, 7708

pamgolding.co.za/international

Nigel Barnes Managing Partner

Telephone +27 21 850 0524 Mobile +27 82 749 8537 Email nigel.barnes@henleyglobal.com

Henley & Partners South Africa Great Westerford 240 Main Road, Rondebosch Cape Town, 7700

henleyglobal.com

© 2017 by Henley & Partners. The H&P monogram and Henley & Partners are among the registered and unregistered trademarks of Henley & Partners Holdings Ltd. All rights reserved.

Henley & Partners is the global leader in residence and citizenship planning. Each year, hundreds of wealthy individuals, families and their advisors rely on our expertise and experience in this area. Our highly qualified professionals work together as one team in over 25 offices worldwide.

The concept of residence and citizenship planning was created by Henley & Partners in the 1990s. As globalization has expanded, residence and citizenship have become topics of significant interest among the increasing number of internationally mobile entrepreneurs and investors whom we proudly serve every day.

The firm also runs a leading government advisory practice which has raised more than USD 6 billion in foreign direct investment. We have been involved in strategic consulting and the design, set-up and operation of the world’s most successful residence and citizenship programs.