Top Reasons to Invest in Cyprus
Cyprus is strategically located at the crossroads of three continents – Europe, Africa and Asia – Cyprus plays a key stabilising role in the region of the Eastern Mediterranean. The island is an ideal investment gateway to the EU, as well as a portal for investment outside the EU, particularly into the Middle East, Eastern Europe, India and China.
Legal and Regulatory Framework Based on English Common Law principles, Cyprus’ comprehensive and robust legal and regulatory framework is widely recognised as a business-friendly and effective system that ensures transparency and reliability in business practices.
- Strategic Location
- Multicultural workforce – population
- Two International airports
- Wide options of International schools
- High quality lifestyle and living
- One of the best climates worldwide
- Top 5 safest country in the world (Value Penguin 2015)
- Safest Country for young people (the Guardian 2017)
- Top 4 best retirement destination globally (Knight Frank 2016)
Financial Tax Benefit
- One of the lowest corporate tax rates in the European Union at 12.5%
- An attractive double tax treaty network covering more than 60 countries
- A member state of the European Union, investors are offered access to all EU tax directives
- Dividend income exemption based on relaxed conditions
- No withholding tax on outgoing dividend, interest for royalty payments
- Gains from trading in securities are tax exempt
- Notional interest deduction available for equity investment into Cypriot companies
- A competitive intellectual property regime (in line with the nexus approach)
- Option for foreign permanent establishment profits to be tax exempt
- Tailor-made provisions for the investment funds industry
- Competitive tonnage tax for shipping companies and an approved EU open registry
- Foreign exchange gains or losses are tax neutral
- An attractive personal tax regime for international professionals and non-domiciled individuals
- Tax deductions for investment into start-ups
- No succession, inheritance or gift taxes
- No immovable property taxes.
Permanent Residency Scheme
Cyprus Permanent Residency is a legal status that entitles Non-EU citizens and qualifying dependents to enter and stay as permanent residents in Cyprus with no limitations. It does not expire; therefore, the holder does not need to renew it. It is also known as a Cyprus immigration permit or unlimited residency.
To obtain a Permanent Residency permit in Cyprus with the fast-track option, the applicant must invest at least €300,000 in real estate. This residency can cover the whole family and does not expire.
A holder of such a permit can apply for Cyprus citizenship after five years of residing in the country.
The legal basis of the permanent residence scheme is Regulation 5 and 6(2) of the Aliens and Immigration Regulations.
Permanent residence programs
A PR in Cyprus is divided into several main categories.
Permanent residency by investment
“Cyprus residency by buying a property” type of permits is for investors who purchase property in Cyprus and have sufficient income from abroad:
- Category 6.2 Fast Track Permanent Residency can be obtained by investing at least €300.000 (plus VAT) in a brand-new house or apartment in Cyprus.
- Permanent Residency Category F requires an investment in real estate of at least €100.000 (plus VAT) and annual income from abroad which covers living expenses while residing in Cyprus, without working or doing business. The required yearly income starts from €9568 for one applicant plus €4613 for each dependent person.
Fast-track procedure for obtaining a PR
Requirements for Cyprus permanent residency by investment
The following criteria apply to investors looking for Cyprus residency:
- The investor must buy a new house or apartment or any of the combinations mentioned below, from a development company for the minimum amount of €300.000 plus VAT (VAT is 19% or 5% for the first property bought for own use).
- The investor must register his sales agreement at the Land Registry and pay at least €200.000 plus VAT to be able to apply. The payment must be made in the bank account of the seller in Cyprus, and the money should be transferred from abroad.
The delivery date does not matter, so properties under construction can be included.
The property can be bought in the name of a company in which the absolute owner or ultimate beneficiary will be the investor or his/her spouse. The investor may buy up to two properties provided the total sales price is as mentioned above and can be any of the following combinations:
- Two residential properties (houses or apartments)
- Residential property and a shop (up to 100 sq.m)
- Residential property and office (up to 250 sq.m)
If the investor wishes to sell the property, he must replace it with another of the equal or higher value and to follow all the conditions mentioned above.
The investor, together with his/her spouse, must prove yearly income from abroad of minimum €30.000, which is increased by €5.000 for each dependent (spouse and children). It is also increased by €8.000 for each dependent parent or parent-in-law and provided this is satisfied they can also apply and get the permanent residence permit.
It can be any income and usually includes salaries, pensions, dividends, fixed deposits, rents etc.
The Permanent Residency permit covers the spouse and children up to 18 years old.
- Permanent residency in Cyprus is valid for life.
- The whole family and parents can apply to get a residence permit.
- A Permanent resident of Cyprus after completing five years (total of 1825 days) of legal stay in Cyprus is entitled to apply for Cyprus Citizenship. This is the naturalisation scheme based on years of residence (M127).
- Residency card is obtained within two months through the fast-track process.
- PR holder might be eligible to apply for becoming Cyprus Tax resident with the advantage of being exempt for worldwide dividend and passive interest income and from the profit of the sale of securities.
- PR holder benefits by the newly established General Healthcare system and is entitled to free healthcare.
- PR Category F is a flexible procedure which allows the holder to get a permanent residency in a European country with a minimal investment.
What We Can Do for You
We provide hands-on support with
- Location selection process
- Setting up a business/office in Cyprus
- Setting up banking facilities
- Relocation of staff & family members
- Facilitation of newcomers
- Aftercare services for existing investors