Filenews 24 March 2021
The 3rd revision of criteria concerning the rapid process of granting An Immigration Permit to applicants who are third-country nationals and are investing in Cyprus, announced today, the Department of Population and Migration Records.
1 LEGAL BACKGROUND
1.1 Pursuant to the provisions of Regulation 6(2) of the Immigration and Immigration Regulations, the Minister of the Interior has decided, after informing the Council of Ministers, to issue an Immigration Permit to applicants for third-country nationals in cases of investments which meet the conditions of this policy.
1.2 The applicant must meet one of the investment criteria set out in Paragraph 2.1, as well as the quality criteria set out in Paragraph 3 below. It is understood that the money to be used for the investment should demonstrably come from abroad.
2 INVESTMENT CRITERIA
2.1 The applicant should make an investment of at least €300,000 in one of the following categories of investments:
(A) Investment in a house/apartment: Purchase of a house or apartment by a land development company, which should relate to a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding houses/apartments): Purchase of other forms of real estate such as offices, shops, hotels or similar developments or a combination thereof with a total value of €300,000. Such properties may also relate to resales.
(C) Investment in the share capital of a Cyprus Company with activities and staff in Cyprus: Investment worth €300,000 in the share capital of a company registered in the Republic of Cyprus, which is based and operates in the Republic of Cyprus and has a proven physical presence in Cyprus and employs at least five (5) people.
(D) Investment in units of a Cyprus Collective Investment Organisation (type AIF, AIFLNP, RAIF): Investment worth €300,000 in units of a Cyprus Collective Investment Organisation.
It is understood that any alienation of the holder of the Immigration License from the investment he has made without its immediate replacement with another of the same or greater value, which must meet the conditions set out in this proceeding, will entail activation of the process of annulment of the Permit under the provisions of Regulation 6 of the Immigration and Immigration Regulations.
2.2 The applicant should, in addition to the investment under Section 2.1 above, be able to demonstrate that he has at his disposal an insured annual income of at least €30,000. The annual income is increased by €5,000 for each dependent family member and €8,000 for each dependent parent (the same and/or spouse). This income may come from wages for work, pensions, share dividends, permanent deposits, rents, etc. from abroad in cases where the applicant chooses to invest as Paragraph 2.1. (A). The calculation of the total income may also take into account the income of the applicant's wife.
In cases where the applicant chooses to invest as Paragraphs 2.1. (B), 2.1. (C) or 2.1. (D), his or her total income or part of it may also be derived from sources from activities within the Republic.
3 QUALITY CRITERIA
3.1 The applicant and his wife must submit a white criminal record certificate from their country of residence or from the Republic if they reside in Cyprus and generally do not pose any threat to public policy or public security.
3.2 The applicant and his wife shall certify that they do not intend to work in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest under this policy.
3.3 Where the investment does not relate to the share capital of a Company, the applicant and/or his wife may be shareholders in Companies registered in Cyprus and the income from dividends in such companies may not be considered as an impediment for the purpose of obtaining the Immigration License. They may also hold the position of Director in such companies without pay.
3.4 Where the applicant chooses to invest as Paragraphs 2.1. (B), 2.1. (C) or 2.1. (D), he should present information on his place of residence in the Republic (e.g. title to property ownership, purchase document, rental document).
4 LEGAL DATA
4.1 Investment in a house/apartment or other immovable property:
The applicant submits at his request a title of property or a purchase document in the name of his and/or his wife filed with the Department of Lands and Surveys for residence or other building with a market value of at least €300,000 (plus VAT if applicable) and official receipts for the payment of an amount of at least €200,000 (excluding VAT), regardless of the date of delivery of the property.
It is understood that at the time of submission of the application, evidence should be provided that the investment money has come from abroad and is not the product of internal borrowing (transfers, receipts of payment by card abroad, bank certificate) which should be linked to the corresponding investments. The balance of the value of the investment should be paid into the seller's account at a financial institution in Cyprus.
It should be noted that the purchase of immovable property will be accepted even when it is made by a legal person to whom the applicant and/or his wife are the sole shareholders or final beneficiaries and who is legally established in the Republic or in another Member State of the European Union or the European Economic Area.
For the purposes of applying Paragraph 2 in relation to the purchase of a house/apartment, it is specified that:
(a) The applicant may purchase up to two (2) units of residence (apartments or dwellings), if the total market value complies with the provisions of Paragraph 4.1 above. In the case of a couple, the above condition applies in total to the couple.
(b) This purchase must relate to dwellings sold by the development company to a first-time buyer, unless the purchase of the dwellings took place before 07/05/2013. Purchase documents relating to resales of dwellings and deposited in the Land Registry before 07/05/2013 (the date of filing of the purchase documents will be confirmed by the Department of Lands and Surveys), will be accepted for the purposes of implementing this policy.
It is noted that the properties do not have to be purchased by the same land development company.
4.2 Investment in the share capital of a Cyprus Company with business activities and staff in Cyprus:
For the purposes of implementing this policy, the applicant shall require a total investment of €300,000, the physical presence of the company in the Republic and the employment of at least five (5) employees. In this case, the following documents should be presented:
Share purchase agreement
Shareholder Certificate and Certificate of Company Formation from the Registrar of Companies and Official Receiver
Business profile of the company including business objectives etc.
Proof of payment (e.g. bank transfer)
Evidence of the employment of employees from the Department of Social Insurance.
4.3 Investment in units of the Cyprus Collective Investment Organisation (type AIF, AIFLNP, RAIF):
For the purposes of implementing this policy, the applicant shall require a total investment of €300,000 in investment units and the production of the following documents:
Securities or other confirmation for units purchased
Proof of payment (e.g. bank transfer)
Confirmation by the Securities and Exchange Commission of the establishment of the Fund
Memorandum of understanding of the Fund or the Investment Plan.
5 EXPENDITURE REQUIREMENTS
5.1 The Immigration License is issued to the applicant. This includes the dependants of the applicant who is the wife and their minor children up to the age of 18.
If they so wish, two separate Immigration Licenses may be issued to each of the parties of the couple without the obligation and the latter meets the above criteria, provided that a separate application is submitted and the corresponding fee is paid.
Provided that in the event that the Immigration License granted to the investor is cancelled for any reason, it will entail activation of the process of cancellation of the License for the other part of the couple, in accordance with the provisions of Regulation 6 of the Immigration and Immigration Regulations.
5.2 Unmarried children between the ages of 18 and 25, only when they are proven to be higher education students abroad at the date of application and who are financially dependent on the applicant, can submit their own separate application for an Immigration License upon submission of the appropriate fee. In such a case the father or mother and/or both parents together should present an additional annual income of €5,000 for each such dependent child.
If the children are students in Higher and Higher Education Institutions of the Republic they must apply for a temporary residence permit in the Republic as students under the relevant legislation (EU Directive). Upon completion of their studies in Cyprus they will be able to apply for their own Immigration License, as mentioned above with the payment of the appropriate fee, regardless of their age, provided only that the parents will present an additional annual income of €5,000.
This License will continue to apply after the age of 25 even if the child is not still unmarried and/or a student and/or financially dependent on his parents. It is understood that the spouse and their minor children may not be included as dependent persons in this License. It is also understood that if the Immigration License granted to the investor/parent is cancelled for any reason, it will entail activation of the process of cancellation of the License for this child, based on the provisions of Regulation 6 of the Immigration and Immigration Regulations.
5.3 Immigration authorisation may also be granted to the parents of the applicant and his wife, by submitting separate applications for each person and paying the corresponding fee, provided only that the applicant will present an additional annual income of €8,000 for each dependent parent. It is understood that their spouse and minor children may not be included as dependent persons in this License. It is also understood that if the Immigration License granted to the investor/child is cancelled for any reason, it will entail activation of the process of cancellation of the License for these parents, based on the provisions of Regulation 6 of the Immigration and Immigration Regulations.
6 HIGHEST VALUE INVESTMENT FOR INCLUDING INTERNATIONAL TECHNICALS
An immigration permit may also be granted to adult children of an applicant who is not financially dependent on the provision that a higher value investment is made, on the basis of the provisions of Paragraph 2, as set out below:
The market value of the investment of €300,000 should be multiplied according to the number of adult children, who will rely on the same investment for the purpose of obtaining an Immigration License. For example, if the applicant has an adult child he will have to make an investment worth €600,000, if he has two adult children the value of the investment should be €900,000 and so on.
In the event that the investment relates to the real estate market, i.e. where the applicant chooses to invest as Paragraphs 2.1. (A) and 2.1. (B), a certificate of payment of at least 66% of the market value of the properties should be submitted together with the application.
It is understood that, in such a case, each adult child will be able to prove that he has at his disposal an insured annual income of at least €30,000, which will be increased by €5,000 for each dependent person, as the provisions of Paragraph 2.2. In addition, it is noted that the investment can be made jointly in the name of the applicant and the adult child or exclusively in the name of the applicant.
7 PROCEDURE FOR REQUIREMENT AND EXAMINATION
Applications, together with the required accompanying documents, will be submitted to the Department of Population and Migration Records (TPM) personally or through a representative (regarding 22308676 and 22308633). A fee of €500 is paid when the application is submitted.
In the case of an application by means of a representative, it should be accompanied by written authorisation from the applicant indicating the full details of the representative and his address and contact numbers.
The application will be processed expedited by the TPM and submitted to the Minister of the Interior, through the Director-General of the Ministry of the Interior (SERVICE).
8 TIMELINES
If all the criteria of this policy are met and if there are no grounds relating either to the applicant's criminal record or to reasons of public policy and public security, the application will be forwarded for examination and decision by the Minister of the Interior.
It is estimated that the period of examination of the application from the date of submission of the completed application will be around two (2) months.
9 OTHER INFORMATION
Persons granted an Immigration Licence must obtain permanent residence in the Republic within one (1) year from the date of approval of the application submitted, and their family members must not remain outside the Republic for a period of two (2) years. Otherwise the Immigration License ceases to be valid under Regulation 6(3) and/or may be cancelled under Regulation 6(4).
10 REQUIREMENTS
The forms are available online on the website of the Department of Population and Migration Archive and are as follows:
- Application Form (MIP1)
- List of documents submitted together with the application
- List of documents submitted together with the application for children who are students abroad
- List of documents submitted together with the application for applicant parents
- Responsible Statement on the applicant's annual income,
- Responsible Statement for the attestation of the non-employment of the applicant and his/her spouse in Cyprus with the exception of their employment as Directors in a Company in which they have chosen to invest under this policy.
