How to Become a Resident of Cyprus by Buying Property?
Who doesn’t wish to buy property in a heavenly place? It especially stands true for the lovely islands of the Mediterranean Sea. Among multiple options, you can’t go wrong with Cyprus as your intended destination. In an official capacity, it is known as the Republic of Cyprus and lies about 65km from the southeast border of Turkey. Apart from being the third largest island in the Mediterranean, it’s also a great tourist attraction for individuals worldwide. Wonderful weather and breathtaking clear beaches around the year make Cyprus a highly sought-after country.
The international community considers Cyprus as a whole a single country, but in reality, it is divided into 2 defacto states. Two-thirds of the island is under the internationally acknowledged government of the Republic of Cyprus. This part of the island uses Euro as currency, with the Greek majority in the population. Turkish Republic of Northern Cyprus (TRNC) covers the northern one-third of the island. Only Turkey has officially accepted its independence. Here, the population is mainly Turkish, with the Turkish lira as currency. A United Nations peacekeeping mission is keeping the situation under control.
Let’s see why Cyprus is important enough that you should opt for its residency by purchasing some property.
The Importance of Cyprus
Cyprus carries great strategic value because of its geographical location at the crossways of Africa, Europe, and Asia. It’s the only EU country that offers permanent Residency by Real Estate Investment. Many features mark it as an exceptional place to relocate:
- Beautiful sunny Mediterranean weather almost all year
- Spectacular beaches
- The safe environment along with the lowest crime rate in Europe
- High quality of education and health sectors
- Minimum taxes in Europe
- Freedom to work with European Union regarding goods, services, and people.
Now, let’s explore how to become a resident in Cyprus.
Cyprus Residency by Investment
Through Cyprus Residency by Investment program, an individual can get a temporary or permanent residence permit to stay in the country. Later, this residence permit can be easily converted to a Cyprus Citizenship permit.
Various means for obtaining residence permits by investment include investing at least €300.000 in one of the following categories:
1. Buying a residential new property
“Cyprus residency by buying a property” kind of permit is for investors with an income source from abroad. They purchase property in Cyprus to become a resident of the island. You can get Category 6.2, Fast Track Permanent Residency, by investing in a new house or apartment with a price value of at least €300,000 (plus VAT).
An investor may buy more than one property on the condition that the total sales price is as mentioned above. You can use any of the suitable combinations:
- Two residential properties, which can be apartments or houses.
- Residential property and a shop, the area can be up to 100 sq.m.
- Residential property or office. The limit is up to 250 sq.m.
If an investor needs to sell the property he had originally bought to achieve a Cyprus residence permit, he must replace it. The replacement can be made with a property of equal or higher value.
The point to note is that off-plan properties are also included in this category, whatever the delivery date.
2. Purchasing commercial properties
This option may include offices, shops, hotels, or other relevant developments. You may even opt for a combined mix of these options. Resales or used properties can also be added here.
3. Investment in Cyprus Company’s share capital
This category symbolizes purchasing shares or establishing a Cyprus company and investing in the share capital. The company requirements are:
- It should be based and operated in the Republic of Cyprus.
- The company must have a proven physical presence with at least five people as its employees.
Our focus here is to explore having a Cyprus residency by buying property. Let’s shed light on the potential benefits of such an action for an applicant.
Benefits of Cyprus Residency by Buying Property
You can enjoy countless benefits of becoming a resident of Cyprus through real estate investment. Some of them include the following:
- You and your close family can visit any EU country.
- Not just the applicant but his dependents also get permanent Cyprus Residency. These may include spouses, minors, adults up to 25, and dependent parents.
- By being a holder of Cyprus permanent residency through real estate investment, you do not automatically become a Cyprus tax resident. Also, you are under no obligation to stay in Cyprus.
- By gaining permanent Residency by real estate Investment and staying in the country, you can become eligible for Cyprus citizenship.
- After becoming a Cyprus resident, you only need to stay 60 days a year to achieve tax residency on the island. You can then enjoy all the positive points of the country’s tax system.
- You can bring along your parents or your spouse’s parents as well.
- The Permanent Residence Card holds a life-long validity.
Apart from these advantages, an individual must meet specific requirements to gain Residency through Investment (Property)
Requirements for Cyprus Residency by Property Investment
The Golden Visa route for Cyprus goes in different directions. One path is investing in real estate property for permanent residence. The investment requirements are:
- You must purchase real estate property worth at least €300,000. The property was bought from the developer on the primary market.
- As an applicant, you must deposit a sum of €30,000 into a Cyprus bank for a three-year duration.
- You must provide proof of having an annual income of at least €30,000 outside Cyprus.
- You must also provide a higher annual income if you are also applying for family members. You will add €5,000 more for every dependent (spouse and children) and an additional €8,000 for any parents (yours or spouse’s) on your income.
- You must have no history of a criminal record.
What are the Income Criteria for the Applicant?
As mentioned earlier, you need to offer a minimum annual income of €30.000 and additions of €5.000 for every dependent family member and €8.000 for each dependent parent. The critical point is that the spouse’s income can also be included.
The term income may include:
- salaries or wages,
- fixed deposits, and
- rental income.
Who is Considered the Dependent Person while Applying?
You need to know the finer details about your dependent persons while applying for Cyprus Residency by buying property. Your dependents are defined as:
- Your spouse and up to 18 years old children.
- Children between 18 – 25 years old. Such children must be unmarried and also university students.
- Suppose the dependent children wish to study at any university in Cyprus. In that case, they need to apply initially for a student visa. After finishing their studies, they can submit their application for an Immigration Permit (without expiry). You as a parent will only be required to show an extra annual income of €5.000 for every such child.
- Parents and parents-in-law
General Documents Needed to Apply
It’s better to provide the relevant documents thoroughly to avoid future complications.
- Proof of investment with related documents. Such as an Investment in a house/apartment or commercial properties: Contract of sale.
- Proof of ownership and transfer of the necessary funds.
- The applicant’s CV showcases his professional and academic qualifications
- Civil documents, such as birth certificates or proof of marriage.
- Passport-size pictures
- Police records show no previous criminal history of the applicant.
- Proof of dependent adult children about their undergoing studies.
Let’s take a look at popular spots in Cyprus for buying property.
Most Popular Cyprus Locations for Buying Property
Nicosia, the capital of Cyprus, is the best place to live or buy property if you like the lush green landscape, rich cuisine, and a more than 90% English-speaking population. However, Greek is the official language. No seashore exists here.
Limassol is another great city, with beaches nearby. For a lover of multiple sports and nightlife, it’s a perfect spot to buy property. Larnaca and Paphos are the best cities for those applicants who wish for a calmer pace of life. Lush green villages and lovely seaside areas are abundant here for nature lovers.
Estimated Cost of Property
You will face different property costs depending on the location. You will find that the main cities of Nicosia and Limassol and properties along the coast are more expensive than other real estate choices. You should keep in mind that sellers may require a deposit. Although there is no property tax in Cyprus, municipality taxes still apply. The cost of such taxes varies with area and the property type.
It’s truly beneficial and easy to become a resident of Cyprus by buying property. The thing is to buy at the best possible spot that suits your personal and professional goals. In 2021 Residency requirements by Investment some conditions have been abolished. Namely, the pledge of €30.000 for 3 years and the necessity to purchase properties from the same development company.
A holder of Cyprus Residency by Investment is eligible to apply for citizenship after 5 years of actual stay in Cyprus within a 7-year period. Your future generations can also enjoy lovely Cyprus as their future destination.