Revised Cyprus permanent residency rules as of May 2023

News / 2023 / Revised Cyprus permanent residency rules as of May 2023
Fancy a Mediterranean island lifestyle on the beach? Or perhaps wine-tasting in family-owned vineyards is more like your cup of tea? Why not both and more? From gold sandy beaches with clean water, to more mild temperate scenic mountain villages, Cyprus has you covered.

How do you get there, you ask?
  1. An investment of at least €300,000 is required, but there’s a few ways you can achieve that.
    • Buy a house or apartment from a development company at a first sale of min €300,000 (plus VAT).
    • Purchase of other types of real estate i.e., offices, shops, hotels or similar with a total value of €300,000 – This can result from a combination of said assets.
    • Invest €300,000 in the shares of a newly registered Cyprus company or in the case of an existing company, an increase in the share capital worth €300,000. The company must be based and operating in Cyprus with physical presence and at least 5 employees.
    • Invest €300,000 in units of Cyprus Investment Organization Collective Investments (i.e., AIF, AIFLNP, RAIF). The investments must be held in the Republic of Cyprus.
  2. The applicant must have a secure income of at least €50,000 derived from abroad (income from points 1b, 1c and 1d count as well) and an additional €15,000 for his spouse and €10,000 for each dependent child (must be under the age of 18).
  3. The applicant and his/her spouse must provide a clean criminal record certificate from their country of origin and their country of residence.

What if I sell or give away my investment?
You can immediately replace it with other investments of the same value to avoid cancellation of the residence permit.
Simple as that.

What can be considered as secure income? You said something about 50.000 secure income?
Income from abroad such as salaries or wages, pensions, dividends from shares, bank deposits interest, rents etc., all count. These can only be proven through a tax return declaration from the country that the applicant is a tax resident of.
Income from investments in Cyprus assets count as well i.e., commercial real estate (i.e. offices, shops, hotels etc.), investing in shares of a Cyprus company or in Cyprus Investment Organization Collective Investments (i.e., AIF, AIFLNP, RAIF).
That’s great and all, but are there any other benefits to Cyprus? I heard something about Non- Domicile Tax status?
On top of all the benefits that a Mediterranean island lifestyle has, Cyprus offers lucrative non-domicile tax benefits such as 0% tax on dividends for individuals that are Cyprus tax residents.
Individuals who are tax resident of Cyprus can enjoy the stability afforded by full EU membership status, no inheritance tax, no gift tax, no wealth tax and the benefit of Non-Domiciled Tax Residency status under which they will be exempt from the Special Defence Contribution (SDC) for 17 out of 20 years.

Ok how about relocating my business in Cyprus? I guess the corporate tax is high right?
No, not at all.
Setting up a Cyprus company gives you the benefit of the fourth lowest corporate income tax of 12.5% (the only countries with lower corporate income tax are Hungary, Lithuania, and Ireland). Therefore, it makes sense to relocate your company to Cyprus.
With a pool of high skilled workers and numerous University graduates, you can find employees that can help your business thrive.

OK where should I stay then, in Nicosia? Larnaca? Limassol?
There is no right or wrong answer. You can live where you feel best at home. Cyprus offers a good stock of residential properties for sale or rent. Three quarters of the population are concentrated into its five main cities Nicosia, Limassol, Larnaca, Paphos and Famagusta.
Cyprus offers its residents the choice to have a diverse lifestyle should they chose it.

Ok let us give it a try I guess?
So, what are you waiting for? Get in touch with us at Oneworld.
Oneworld Ltd is one of the leading advisory, corporate, immigration and business services firms in the island, with offices in Nicosia, Limassol and associated offices around the world.
Contact us for a free personal and tailored advice.

Request more info

Sitemap | © Copyright, All Rights Reserved. | Designed & Developed by Dot.Cy