Filenews 28 April 2023
The Ministry of Interior informs that as of Tuesday, May 2nd, revised criteria regarding the accelerated procedure for granting an immigration permit to third-country nationals investing in Cyprus enter into force.
The revision of the criteria has been approved by the Council of Ministers, on April 21, 2023, with the aim of shielding the process of the Plan and eliminating weaknesses that were observed and may have left room for its exploitation.
The revision sets out differentiated investment and quality criteria, with stricter parameters in terms of required immigration controls, and sets out control and verification mechanisms.
Specifically, the investor could, on the basis of the previous Scheme, obtain an Immigration Permit for both his parents and in-laws with only one investment in the Republic in a property worth €300,000. Now with the revision, no permanent residence permit is granted to any other adult persons (see parents and in-laws) who have not themselves invested in Cyprus.
In addition, on the basis of the control mechanism, the applicant is obliged, inter alia, to provide on an annual basis evidence proving that he continues to maintain the initial investment and the required income determined for himself and his family. In cases where the holder of the Immigration Permit fails to provide the required documents, his and his family's immigration permit will be cancelled.
It is noted that applicants, who have demonstrably submitted purchase and sale contracts to the Department of Lands and Surveys from 02/01/2023 until 28/04/2023, will be able to submit applications based on the criteria previously in force, from 24/03/2021.
More information on the criteria can be found on the website of the Civil Registry and Migration Department. - see below
Criteria related to the accelerated procedure for granting an Immigration Permit to applicants who are third-country nationals and invest in Cyprus
Fourth revision of criteria, 2 May 2023
1 LEGAL FRAMEWORK
1.1 Pursuant to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of Interior decided, after informing the Council of Ministers, to issue an Immigration Permit to applicants who are third-country nationals, in cases of investments that meet the requirements of this policy.
1.2 The applicant must meet one of the investment criteria of Paragraph 2.1, as well as the qualitative criteria of Paragraph 3 below.
It is understood that the money that will be used for the investment must be proven to come from abroad, from the bank account of the applicant himself and / or his spouse, if he will be included as a dependent person in his application. The amount of the investment value should be paid from the applicant's bank account to the seller's account at a financial institution in Cyprus.
2 INVESTMENT CRITERIA
2.1 The applicant must 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 must be for a first sale of at least €300,000 (plus VAT).
(B) Investment in real estate (excluding houses/apartments):
Purchase of other types of real estate such as offices, shops, hotels or similar developments or a combination thereof with a total value of €300,000. These properties may also involve resales.
(C) Investment in the share capital of a Cyprus Company with activities and personnel in Cyprus:
Initial investment in the share capital of a new company of €300,000 or share capital increase of €300,000 in an existing 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 Fund (type AIF, AIFLNP, RAIF):
Investment of €300,000 in units of a Cyprus Investment Collective Investment Fund whose investments should be carried out in the Republic of Cyprus.
It is understood that any alienation of the holder of the Immigration Permit from the investment he has made without its immediate replacement with another of the same or greater value, which should meet the conditions set out in this procedure, will entail the activation of the procedure for cancelling the Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
2.2 The applicant must, in addition to the investment under Section 2.1 above, be able to prove that he/she has at his/her disposal a personal insured annual income of at least €50,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child of the applicant and/or his/her spouse. This income may derive from wages for work, pensions, share dividends, interest on deposits, rents, etc. coming from abroad, which will be proven only through his tax return from the country in which he declares tax resident, for cases where the applicant chooses to invest as referred to in Section 2.1. (A). The income of the applicant's wife may also be taken into account in calculating the total income.
In cases where the applicant chooses to invest as Paragraphs 2.1. (B), 2.1. (C) or 2.1. (D), its total income or part thereof may also derive from sources derived from activities within the Republic, provided that it is taxed in the Republic.
3 QUALITY CRITERIA
3.1 The applicant and his/her spouse must submit a certificate of clear criminal record from their country of origin as well as from their country of residence in case they differ, and generally not constitute in any way a threat to public order or public security.
3.2 The applicant and his/her dependent family members must present a Health Insurance Certificate for medical care covering inpatient and outpatient care.
3.3 The applicant and his spouse will certify that they do not intend to be employed in the Republic with the exception of their employment as Directors in a Company in which they have chosen to invest under this policy.
3.4 In cases where the investment does not concern the share capital of a Company, the applicant and/or his/her spouse 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 purposes of obtaining the Immigration Permit. They may also hold the position of Director in such companies without remuneration.
3.5 In cases where the applicant chooses to invest as Paragraphs 2.1. (B), 2.1. (C) or 2.1. (D), he/she must present information about his/her place of residence and that of his/her family members in the Republic (e.g. title deed, purchase document, rental document).
In cases where the applicant chooses to invest as Paragraph 2.1. (A), but the number of bedrooms of the investment property cannot meet the needs of dependent family members, he must indicate another property or other properties that will constitute the place of residence of these persons (eg title deed, purchase document, rental document).
4 LEGALIZATION ELEMENTS
4.1 Investment in a house/apartment or other real estate:
The applicant submits with his application a title deed or a buyera document in the name of his/her spouse submitted to the Department of Lands and Surveys for a residence or other building with a market value of at least €300.000 (plus VAT if applicable) and official receipts for the payment of at least €300.000 (excluding VAT), regardless of the date of delivery of the property.
It is understood that when submitting the application, evidence must be provided that the money of the investment has come from abroad and is not a product of internal borrowing (remittances, receipts of payment by foreign card, bank certificate) which should be linked to the corresponding investments. The remaining value of the investment will have to be paid into the seller's account with a financial institution in Cyprus.
It is noted that the purchase of real estate will be accepted even when it is made by a legal entity in which the applicant and / or his spouse are the sole shareholders or the ultimate beneficiaries and which 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 clarified that:
(a) The applicant may purchase up to two (2) residential units (apartments or houses), provided that the total market value meets the provisions of Section 4.1 above. In the case of a couple, the above condition applies to the pair as a whole. (b) This purchase must concern houses sold by the development company to a buyer for the first time, unless the purchase of the houses took place before 07/05/2013. Purchase and sale documents relating to resales of houses submitted to the Land Registry before 07/05/2013 (the date of submission of the purchase and sale documents will be confirmed by the Department of Lands and Surveys) will be accepted for the purposes of implementing this policy. Please note that real estate does not have to be purchased from the same land development company.
In cases where the purchase and sale document has been signed or the title deed for the property has been issued within a period exceeding one year from the date of submission of the application, the applicant is obliged to submit with his application a recent Certificate of Immovable Property Search from the Department of Lands and Surveys.
4.2 Investment in the share capital of a Cyprus Company with business activities and personnel in Cyprus:
For the purposes of implementing this policy, the applicant is required to make a total investment of €300,000, physical presence of the company in the Republic and employment by it of at least five (5) employees. In this case, the following documents should be provided:
- Certificate of shareholders and Certificate of Incorporation 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 by the Department of Social Insurance.
4.3 Investment in units of a Cyprus Investment Fund for Collective Investments (type AIF, AIFLNP, RAIF): For the purposes of implementing this policy, the applicant is required to make a total investment of €300,000
in investment units whose investments should be carried out in the Republic of Cyprus and to provide the following documents:
- Securities or other confirmation for units purchased
- Proof of payment (e.g. bank transfer)
- Confirmation by the Hellenic Capital Market Commission for the establishment of the Fund
- Memorandum of the Fund or Investment Plan.
5 DEPENDENTS
OF APPLICANT 5.1 The Immigration Permit is issued to the applicant. This includes the applicant's dependents who are their spouse and minor children under the age of 18.
If they wish, it is possible to issue two separate Immigration Permits to each of the parties of the couple without the obligation and the second to meet the above criteria, provided that a separate application is submitted and the corresponding fee is paid.
It is understood that in case the Immigration Permit granted to the investor is cancelled for any reason, it will entail the activation of the procedure for the cancellation of the Permit for the other party of the couple, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
5.2 Unmarried children between the ages of 18 and 25, only when they are proven students of higher education abroad on the date of submission of the application and who are financially dependent on the applicant, may submit their own, separate application for obtaining an Immigration Permit by submitting the appropriate fee. In such a case, the father or mother and/or both parents together must have an additional annual income of €10,000 for each such dependent child.
If the children are students in 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). After completing their studies in Cyprus, they will be able to submit their own application for an Immigration Permit, as mentioned above by paying the appropriate fee, regardless of their age, provided that the parents present an additional annual income of €10,000. This Permit will continue to be valid after the age of 25 even if the child is not still unmarried and/or a student and/or financially dependent of his/her parents. It is understood that their spouse and minor children may not be included as dependents in this Permit. It is also understood that in case the Immigration Permit granted to the investor/parent is cancelled for any reason, it will entail the activation of the procedure for cancelling the Permit for that child, based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
6 HIGHER VALUE INVESTMENT FOR INCLUSION OF ADULT CHILDREN
An Immigration Permit may also be granted to adult children of an applicant who are not financially dependent provided that an investment of higher value is made, on the basis of the provisions of Paragraph 2, as defined below:
The market value of the investment of €300,000 should be multiplied according to the number of adult children who will claim the same investment for the purposes of obtaining an Immigration Permit. For example, if the applicant has an adult child he should make an investment worth €600.000, if he has two adult children the value of the investment should be €900.000 etc.
In case the investment will concern the purchasereal estate, i.e. where the applicant chooses to invest as referred to in Paragraphs 2.1. (A) and 2.1. (B), a certificate of payment of at least 66% of the market value of the real estate must be submitted with the application.
It is understood that, in such a case, each adult child will be able to prove that he/she has at his/her disposal an insured annual income of at least €50,000, which will increase by €15,000 and €10,000 respectively for each dependent person, as the provisions of Section 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.
It is noted that, in cases where the number of bedrooms of the investment property cannot meet the needs of the dependent family members of the investor, it should indicate another property or other properties that will constitute the place of residence of these persons (eg title deed, purchase document, rental document).
7 APPLICATION SUBMISSION AND EXAMINATION
PROCEDURE Applications, together with the required accompanying documents, will be submitted to the Civil Registry and Migration Department (CRMD) personally or through a representative after arranging an appointment or in any other way decided. Upon submission of the application, a fee of €500 is paid, as well as a fee of €70 for each person included in the application for the issuance of the Alien Registration Card (CMP) for cases where it does not exist.
In case of submission of an application through a representative, it must be accompanied by a written certified authorization of the applicant in which the full details of the representative as well as his address and contact numbers should be mentioned.
The application will be processed expeditiously by the Department of Interior and will be submitted to the Minister of Interior, through the Permanent Secretary of the Ministry of Interior (YPES).
8 TIMETABLES
If all the criteria of this policy are met and if there are no reasons relating either to the applicant's criminal record or to reasons of public order and public security, the application will be forwarded for examination 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 (2) months.
9 APPLICATION
FORMS The forms are available electronically on the website of the Civil Registry and Migration Department and are as follows:
- Application Form (ΜIP1)
- List of documents submitted with the application
- Solemn Declaration for the annual income of the applicant,
- Solemn Declaration certifying 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.
10 CONTROL MECHANISM COMPLIANCE WITH THE CRITERIA AND MAINTENANCE OF THE INVESTMENT
The applicant is obliged to provide to the Civil Registry and Migration Department, on an annual basis from the date of obtaining the Immigration Permit, evidence that he maintains the investment, that he maintains the required income determined for himself and his family and that he and his family members hold a health insurance certificate, in case they do not continue to be beneficiaries of the GHS. In addition to the above, the applicant and the adult members of his/her family are required to submit on an annual basis a certificate of clear criminal record from their country of origin, as well as from their country of residence.
It is understood that, in case the holder of the Immigration Permit fails to prove the above, it will entail the activation of the procedure for cancelling the Permit of himself and his family members based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
ENTRY INTO FORCE OF REVISED POLICY
This policy comes into effect on 02/05/2023.
ADDITIONAL INFORMATION AND CLARIFICATIONS
- IMPORTANT CLARIFICATION REGARDING THE INVESTMENT CRITERION (D) REGARDING THE INVESTMENT IN UNITS OF A CYPRUS INVESTMENT COLLECTIVE INVESTMENT UNDERTAKING (TYPE AIF, AIFLNP, RAIF): Regarding the Investment Criterion (D) concerning the investment in units of a Cyprus Collective Investment Fund (type AIF, AIFLNP, RAIF), it is clarified that investments should be made in the Republic of Cyprus.
- The documents accompanying the application should be duly translated and certified.
LICENSE DURATION
- The right of residence granted upon approval of the application to the investor and his adult dependent family members shall be of unlimited validity. However, the residence permit (card) has an expiry date of 10 years from its issue and must be exchanged upon expiry.
- The residence permit issued to minor dependent family members is valid until they reach the age of majority (18 years).
