Do you know why residents are willing to buy a property in Cyprus rather than in any other country?
Yes, Cyprus has a well-developed infrastructure and a diverse range of entertainment options, as well as gorgeous landscapes and attractions and architecture to stare at for hours but… the country’s program of economic citizenship is the main reason why people choose to have a permanent home or to invest in a property in the country!
You can acquire citizenship if you invest in the economy or real estate of the country for more than two million euros. Cyprus is one of a few countries where it’s possible to get citizenship; in contrast with other European countries where you will need to apply for a residence permit only.
Low taxes on real estate registration are also appealing to investors.
When purchasing a new property, a 5% VAT rate is applied instead of 19%, giving the buyer of new real estate the opportunity to save a significant amount of money. It is worth mentioning that there are no limits on renting out real estate obtained through the passport program. As a result, property owners might earn revenue and partially return their investments.
Residence permits and citizenship through investments
In 2009, Cyprus launched the Golden Visa program, allowing residents to get a residence permit for both the owner of the property and his family.
To do so, future residents and property owners must provide a series of KYC documents, as well as confirmation of ownership of the property and an annual income of at least 30,000 euros, plus 5,000 for each spouse and each dependent family member, and 8,000 euros for each parent of the applicant.
Family members need to also confirm that they do not intend to work in Cyprus.
Usually the process takes up to 3 months and almost always with a favourable verdict. Those who apply for a resident permit but want to buy a property in Cyprus less expensive, the process can take up to 10 months, and there is no assurance that the decision will be made in favour of the applicant.
Cyprus’s resident permit has no time limit, and there’s restriction to stay in Cyprus permanently (except for visiting the island every two years).
In addition, Cyprus provides a Permanent Residence Program (PRP) through real estate investment – also known as “fast track program”. The PRP program grants investors permanent residency in the country, allowing them to travel across the European Union, when investing in a property worth €300,000 + VAT or higher. The Permanent Residence Program covers the investor, the applicant’s spouse, their parents and their children under the age of 25.
The investment might be obtained by an individual or by a firm in which the applicant has a beneficial ownership interest. The investment can be made in either a single property or two properties for maximum €300,000 + VAT.
The PRP is available two months after the property is purchased.
Temporary residence permit
If you are unable to obtain permanent resident status in Cyprus but need to spend the most of your time in the country, you can apply for a temporary resident status, known as a “Pink Slip”, which allows you to stay in the country for up to 1 year each year.
The “Pink Slip” can be renewed as many times as you wish and one month before the expiration date. The application is usually quick and until it’s issued you have the legal right to live in the country without breaking the law.
- Things to consider when applying for the temporary residence permit:
It should be renewed annually (it is not a complicated procedure if you seek assistance from a Cypriot lawyer)
- People are not allowed to leave the country for longer than three months.
If one leaves the country and does not return within three months, your “Pink Slip” will be terminated, and will be required to enter the country with a visa and submit documentation for a new “Pink Slip”
If you are interested in finding more information regarding residency permits, including the Golden Visa, the PRP on a “fast track-basos” and/or available properties in Cyprus for investment, please do not hesitate to contact our professional team.