Cyprus – The new Investment Program for 2021
By: P. Constantinou & Co Ltd
The Cyprus Ministry of Interior published recently the legal framework, information, and criteria for its new plan to attract foreign investments in Cyprus.
This new plan aspires to fill the gap created in the Cyprus Economy after the abolition of the previous Cyprus Investment Program in October of 2020. Foreign investors can obtain an Immigration and Residence permit in Cyprus if the criteria set out in the new plan are met.
The Minister of the Interior decided, after informing the Council of Ministers, to issue an Immigration Permit to third-country national applicants, in cases of investments that meet the requirements of this policy. The capital that will be used for the investment must come from abroad.
The applicant must invest at least € 300,000 in one of the following investment categories:
- Purchase of a house or apartment from a land development company, which should involve a first sale of at least €300,000 (plus VAT).
- Purchase of other forms of real estate such as offices, shops, hotels, or similar developments or a combination of these with a total value of €300,000.
- Investment of €300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic, has proven physical presence in Cyprus, and employs at least five persons.
- An Investment worth €300,000 in shares of Collective Investments in Cyprus such as AIF, AIFLNP, or RAIF.
Please note that if an investor sells its investment he must immediately replace it with an equal or bigger value investment otherwise the Minister will have to cancel the Residency permit.
The investor applying for the residency permit will also have to prove that he has at his disposal a secured annual income of at least €30,000. The annual income increases by €5,000 for each dependent family member and €8,000 for each dependent parent. This income may derive from salaries for work, pensions, dividends, permanent deposits, rent, etc.
The applicant and his/her spouse must submit a clean criminal record certificate from their country of residence or from the Republic, in case they reside in Cyprus. They must also state that they do not intend to work in the Republic with the exception of their employment as Managers in a Company in which they have chosen to invest.
In cases where the investment does not concern a Company’s share capital, the applicant and/or his spouse may be shareholders in Companies registered in Cyprus and the dividend income in such companies may not be considered as an obstacle for the purposes of obtaining the Immigration License.
In cases where the applicant chooses to invest, he must provide information about his place of residence in the Republic such as title deed of real estate, purchase documents, or rental documents.
All applicants will have to pay a fee of €500 upon submission of the application, and, if all the criteria of this policy are met and if there are no reasons concerning either the applicant’s criminal record or reasons of public order and public security, the application will be forwarded for consideration and decision by the Minister of Interior. It is estimated that the examination period of the application from the date of submission of the completed application will be approximately two months.