In reference to our recent announcement on changes to the Permanent Residency Program (“PRP”) for third-country nationals investing in Cyprus, M. Target Group hereby clarifies the investment and qualitative criteria to be met.

INVESTMENT CRITERIA

The applicant must make an investment of at least €300,000 in any of the following categories:

(A) Investment in residential property:

• an investor can purchase a new-built house or apartment directly from a developer for at least €300,000 (plus VAT);
• it is possible to invest in two (2) units totaling to €300,000 (plus VAT) from different developers;
• proof of payment of at least €200,000 (plus VAT) should be presented, irrespective of the date of delivery of the property;
• payment amount should derive from external sources and is payable to the developer’s bank account in Cyprus;
• the property may be purchased through a Cyprus company of which the applicant and/or the spouse are beneficial owners.

(B) Investment in non-residential property:

• an investment can be made in any other types of real estate, both new-built and resale, such as offices, shops, hotels or similar developments or a combination thereof for a total value of at least €300,000;
• proof of payment of at least €200,000 (plus VAT) should be presented, irrespective of the date of delivery of the property;
• payment amount should derive from external sources and is payable to the developer’s bank account in Cyprus;
• the property may be purchased through a Cyprus company of which the applicant and/or the spouse are beneficial owners.

(C) Investment in share capital of a Cyprus company:

• an applicant can make an investment worth at least €300,000 in the share capital of a company registered in the Republic of Cyprus, which operates and has a proven real substance in Cyprus and employs at least five (5) people;
• submission of an investment plan may be required.

(D) Investment in shares of Cyprus Collective Investment Funds (of AIF, AIFLNP, RAIF types):

• an investment worth at least €300,000 can be made in any of the above Cyprus Investment Funds;
• submission of a prospectus or investment plan may be required.
  

FINANCIAL CRITERIA

• The applicant should, in addition to the investment as specified above, be able to demonstrate that he has at his disposal, alone or together with the spouse, a guaranteed annual income of at least €30,000 deriving from legal sources such as salary, pension, rents, dividends, etc. An additional €5,000 has to be added for each dependent family member and €8,000 for each dependent parent / parent-in-law.
• In case of investment category (A) above, the annual income should derive exclusively from abroad.
• In case when investment categories (B) – (D) are chosen, the total annual income may also include the income derived from business activities in Cyprus.
  

QUALITATIVE CRITERIA

• The applicant and spouse must submit a Clean Criminal Record Certificate from their country of residence or from the Republic, in case they reside in Cyprus.
• The applicant and spouse shall confirm that they do not intend to be employed in the Republic, except of employment as directors by a company in which they have invested under this procedure.
• In cases where the investment does not involve investment in share capital of a company, the applicant and/or the spouse may be shareholders in companies registered in Cyprus and the relevant income from the dividends will not be considered as an impediment for the purposes of acquiring the PRP. They may also be non-salaried directors in such companies.
• In case if investment categories (B) – (D) are chosen, the applicant shall provide evidence of his/her place of residence in the Republic (i.e., Title Deed, Sale Agreement, Rental Agreement).
  

DEPENDENT FAMILY MEMBERS

The following relatives of the main applicant could be granted a permanent residency under the same application:

• Spouse; and
• Minor Children up to the age of 18; and
• Unmarried Adult Children between the age of 18 and 25, provided that they are financially dependent students in an institution of tertiary education abroad. In the event that the children study in an institution of tertiary education in the Republic, they have to submit through the institution an application for acquisition of a temporary residence permit in the Republic as students, according to the provisions of the relevant legislation (EU Directive). After the completion of their studies in the Republic, regardless of their age, they will be able to submit their own application to obtain the PRP as described above, on the condition that their parents may prove an additional annual income of €5.000 for every such child; and
• Parents; and
• Parents-in-law.
  

POSSIBILITY TO INCREASE INVESTEMENT TO APPLY FOR ADULT NON-DEPENDANT CHILDREN

A permanent residency permit may also be granted to adult children of an applicant, who are not financially dependent on the applicant, provided that the total worth of the investment to be made is increased as per the below:

• The value of the investment of €300,000 should be multiplied by the number of adult children, who will rely on the same investment of the main applicant for the purpose of obtaining an immigration permit.
• The investment may be either under the applicant’s name or jointly by the applicant and the adult child.
• Each adult child shall prove the existence of secured annual income of at least €30.000 + €5.000 for each dependent person.
  

EXAMINATION PERIOD

The estimated period of examination of the application from the date of submission until the final decision of the application, will be approximately two (2) months.

OTHER TERMS AND REQUIREMENTS

The permanent residency permit will be automatically cancelled if the interested person fails to acquire residence in Cyprus within one year from the approval of the application, in case the applicant is residing outside Cyprus. It will also be cancelled if the applicant is absent from Cyprus for a period of 2 (two) years.

M. Target Group remains at your disposal for any additional information or clarifications.