Temporary and Permanent Residence in Cyprus

The Republic of Cyprus is a Eurasian island country in the Eastern Mediterranean, south of Turkey and west of Syria and Lebanon. It is the third largest island in the Mediterranean Sea and one of its most popular tourist destinations. An advanced, high-income economy with a very high Human Development Index, the Republic of Cyprus was a founding member of the Non-Aligned Movement until it joined the European Union on 1 May 2004.

Cyprus was placed under British administration in 1878 until it was granted independence in 1960, becoming a member of the Commonwealth the following year. In 1974, following 11 years of inter-communal violence and an attempted coup d’état by Greek Cypriot nationalists, Turkey invaded and occupied the northern portion of the island. The inter-communal violence and subsequent Turkish invasion led to the displacement of hundreds of thousands of Cypriots and the establishment of a separate Turkish Cypriot political entity in the north. These events and the resulting political situation are matters of ongoing dispute. The Republic of Cyprus has de jure sovereignty over the entire island of Cyprus and its surrounding waters except small portions, Akrotiri and Dhekelia, which are allocated by treaty to the United Kingdom as sovereign military bases. The Republic of Cyprus is de facto partitioned into two main parts; the area under the effective control of the Republic of Cyprus, comprising about 59% of the island’s area, and the Turkish-occupied area in the north, calling itself the Turkish Republic of Northern Cyprus, covering about 36% of the island’s area and recognized only by Turkey.

Due to double-taxation avoidance agreement between Cyprus and Russia and due to low taxes Cyprus is very popular among Russian clients as a jurisdiction for low-tax companies incorporation. Relocation to Cyprus is also very popular among Russians.

Immigration to the Republic of Cyprus

Foreigners may make an application to obtain an Immigration Permit on the basis of one of the Categories referred to in Regulation 5 of the Aliens and Immigration Regulations. An Immigration Permit will not be granted to anybody unless the Immigration Control Board recommends to the Minister of Interior that such person belongs to one of the following Categories:

Category A: Persons who intend to work as self employed in agriculture, cattle breeding, bird breeding or fish culture in the Republic, provided that they have in their possession adequate land or a permit to acquire same, they have fully and freely at their disposal capital of approximately EUR 430,000 and such an employment should not negatively affect the general economy of the Republic.

Category B: Persons who intend to work as self employed in mining enterprises in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of approximately EUR 350,000 and such an employment should not negatively affect the general economy of the Republic.

Category C: Persons who intend to work as self employed in a trade or profession in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of approximately EUR 260,000 and such an employment should not affect negatively the general economy of the Republic.

Category D: Persons who intend to work as self employed in a profession or science in the Republic, provided that they have academic or professional qualifications, for which there is demand in Cyprus. Possession of adequate funds is also necessary.

Category E: Persons who have been offered permanent employment in the Republic, which will not create undue local competition.

Category F: Persons who possess and have fully and freely at their disposal a secured annual income, high enough to give them a decent living in Cyprus, without having to engage in any business, trade or profession. The annual income required should be at least EUR 10,000 for a single applicant and additional EUR 5,000 for every dependent person, but the Immigration Control Board may demand additional amounts as necessary. Most applicants come under this Category, the majority of them being pensioners or retired persons.

Citizenship of the Republic of Cyprus (Summary)

Citizenship is based upon the Republic Law of 1967. The legal basis for citizenship is divided between those born before and those born after August 16, 1960, the date of independence. All questions regarding Turkish Cyprus should be directed to the Cypriot Embassy. Citizenship by birth: All citizens of the United Kingdom and Colonies who were born in Cyprus between November 5, 1914, and August 16, 1960, and who were resident in Cyprus during the five years preceding independence (August 16, 1960). Citizenship by descent: Person born in wedlock, after August 16, 1960, whose father is a citizen of Cyprus, regardless of the country of birth. In the event the father is unknown or stateless, Cypriot citizenship may be passed on by the mother. Citizenship by naturalization: seven years of legal residency is required. Dual citizenship is recognized.

Question related to immigration to Cyprus:

Question: May I receive information on how I can apply for residency in Cyprus through the investment program and how I can eventually apply for citizenship?
Answer: There is no official investment program in Cyprus. However, those who invest 170,000 EUR into Cyprus Company may get temporary residence permit which can become permanent residence after 5 years of residence. You can apply for citizenship by naturalization after 7 years of residence in Cyprus (5 years as temporary resident + 2 years as permanent resident). If you are citizen of EU-country different (simplified) conditions for temporary residence apply.
Question: May I ask a few more questions at this stage? What are the conditions for residency in Cyprus, i.e. how many days a year do I have to stay in the country to maintain my residency and do I lose my residency if I do not live there? What kind of company do I need to invest the money in and is it not possible to invest it in real estate?
Answer: You must stay 6 months + 1 day to maintain your residency. In case you stay less your residency may be withdrawn. You cannot invest in real estate (if you are not seeking Category F permit which does not imply right to work and to be gainfully employed in Cyprus). Normally, you are expected to incorporate a new company in Cyprus and invest 170,000 EUR in it in order to get Residence Permit with the right to work as a key manager.

Question: I am contacting you from United Arab Emirates, and I am interested in company setup in Cyprus for getting residency and permanent status. I have sufficient funds on my disposal which may be required in the Cypriot bank. I have my family of two children (below 18) and a wife. Kindly let me know your charges and cost involved in the procedure. Thanks.
Answer: Setup of a company in Cyprus as such does not give the opportunity to get temporary residence permit. Non-EU nationals are expected to invest at least 170,000 EUR in the company (which may be your own newly registered company) in order to be eligible to apply for temporary residence permit. It will be valid for one year and renewed semi-automatically provided your company is doing business and you work in the company on a managerial position. Permanent residency is possible after 5 years of residence in Cyprus. Our legal fee will be as follows: 3,000 EUR for company incorporation, 5,000 EUR for your residence permit, and 2,000 EUR per each family member. It will make 14,000 EUR in total.

Legal Fees and Other Costs

Elma Global charges flat fixed fees EUR 5,000 per main applicant (except for minor children) for preparing and filing an application for an immigration permit for Non-EU citizens including assistance with the completion and filing of all the necessary forms and inclusive of all the disbursements and taxes. The government fees for the granting of an Immigration Permit amount to EUR 120 and are paid against a receipt following the approval of the application and before the issue of the Immigration Permit. Incorporation of Cyprus Company normally costs EUR 3,000. If you wish to use our legal assistance in obtaining permanent residence in Cyprus or incorporate a low-tax company, contact us today