The Cyprus investment ecosystem in general and the fund industry in particular have just been given a boost by the recent amendments to the Cyprus Permanent Residence Scheme. Indeed, the program, which provides that a residence permit granted according to Regulation 6(2) of the Aliens and Immigration Regulations (the “Regulations”) gives Non-EU nationals the right to permanently reside in Cyprus, was amended on 24th of March 2021. Basically, there are now four ways in which an investor can acquire his/ her permanent residency in Cyprus:
- Investment in Residential Real Estate: Purchase of a house/apartment of at least € 300,000.00 + VAT, which should be a first sale of the property.
- Investment in Commercial Real Estate: Purchase of other types of real estates, such as offices, shops, hotels, or similar developments, or a combination thereof with a total value of €300,000.00. Resales are acceptable for this type of investment.
- Investment in the share capital of a Cyprus Company which has economic substance and has employees and offices in the Republic of Cyprus: An investment of at least € 300,000.00 in the share capital of a company registered, based, and operates in the Republic of Cyprus, and employs at least five employees.
- Investment in units of a Cyprus Alternative Investment Funds: an investment of at least € 300,000.00 in units of an AIF, AIFLNP, or RAIF.
The Regulations give the eligibility for Investors in Units of Alternative Investment funds (AIFs, AIFLNPs and RAIFs) to the Permanent Residency Scheme, provided that the Investor invests minimum €300,000.00 and keeps his investment for a minimum period of 5 years. The same eligibility also applies to Investors who make an investment of at least € 300,000.00 in the share capital of a company which is registered, based, and operates in the Republic of Cyprus, and which can demonstrate an economic substance and employs at least five employees in the Republic of Cyprus.
Furthermore, the need for the applicant to make a fixed deposit of € 30,000.00 in a domestic bank and lock it for a 3-year period has been scrapped according to the new amendments to the regulations. It is however important to note that the amended regulations provide that where the applicant chooses to acquire his / her residency through an investment in units of an AIF or shares of a Cyprus company, the applicant should present evidence about his/her place of residence in the Republic of Cyprus such as a title deed, sales agreement, or rental agreement.
While the minimum income of € 30,000.00 per annum for the main applicant (the Applicant must show evidence that his income derives from abroad), increased by €5,000.00 for each dependent family member and € 8,000.00 for each dependent parent of the Applicant or his/her spouse, is still maintained for applicants who choose to acquire the Permanent Residence through Investment in Residential Real Estate, however for applicants making investments through Investment in AIF Units or shares in Cyprus registered company, the new amendments provide that the Applicant’s income may derive from activities within the Republic of Cyprus, such as dividends from shares and periodic distributions from the investment fund.
Regarding employment in Cyprus, the Applicant and his/her spouse must warrant that they do not intend to work in the Republic of Cyprus, however they may be employed as Directors in the Cyprus Company in which they chose to invest in, but without receiving a Salary. Income from dividends in shares of companies shall not be considered as a barrier to obtaining the Permanent Residency.
The Permanent Residence permit is issued to the applicant and his / her spouse and dependent children up to the age of 18. However, as before the amendment to the existing regulations, a permanent residence permit can be granted to unmarried children aged between 18 and 25, under the condition that at the date of the application, they are attending higher education institutions abroad and provided they are financially dependent on the Applicant. Such dependent children shall submit their own separate applications for an Immigration Permit upon payment of the appropriate fee.
It is important to highlight that, if the children of the Applicant aged between of 18-25 are enrolled in Higher Education Institutions in Cyprus, they will have to apply for a Temporary Residence Permit in the Republic in their capacity as students under the relevant legislation. Following the completion of their studies, they will be entitled to apply for a Permanent Residence Permit irrespective of their age with the only pre-requisite that the main Applicant provides evidence of an additional annual income of € 5,000.00 per annum for each dependent child.
The new amendments to the Regulations give the right to the main Applicant to include his ADULT CHILDREN in the application, even though they are not financially dependent on him / her, however the minimum investment of €300,000.00 need to be multiplied by the number of adult children the main Applicant intends to include in the application. In this case, each adult child needs to prove that they have at their disposal a source of foreign minimum income of € 30,000.00 per annum, plus €5,000.00 for each dependent person on the adult child.
Last but not least, the main Applicant must provide a a clean criminal record from his country of origin and residence in order to ensure that the program is not abused.
Osys Global is very well positioned to serve and advise potential investors who are interested to invest in units of alternative investment funds or set up their own fund, investment firm or Forex business, and at the same extend the benefit of the Permanent Residency in the paradisiac island of Cyprus to all members of their family. Aphrodite’s birthplace is a blessed island in the Mediterranean where one can enjoy more than 300 days of sunshine year around, beautiful and clean beaches, rich culture and history, friendly people, tasty and healthy food and above all a modern gateway to do business with the rest of the EU and the MENA region.
