Permanent residence card program requirements in Cyprus Following recent updates

As of May 2, 2023, the permanent resident card investment program in Cyprus, under the fast-track option, has specific requirements as follows:

• The latest dependent categories include: spouse of the primary applicant, minor children under 18, and dependent adult children up to 25 years old who are full-time students supported financially by the primary applicant.
• Investment of €300,000 or more in residential real estate, along with confirmation of payment of at least €300,000 + VAT to the investor (regardless of the completion date of the property). Investors can purchase a maximum of two residential properties or new apartments for this purpose.
• The source of funds for purchasing the property must come from the primary applicant’s personal bank account outside of Cyprus or from the spouse of the primary applicant, provided that the spouse is a dependent in the same application.
• The primary applicant must prove an annual income of at least €50,000 from a country outside of Cyprus. For each dependent member, additional proof of income is required: €15,000 for the spouse and €10,000 for each dependent child. The combined income of the primary applicant and spouse can be submitted when applying.
• Annual income must be demonstrated through the income tax return of the investor in the country where they declare tax residency. This declaration must be supported by relevant documentation based on specific cases and the source of declared income, including bank statements from outside Cyprus regarding interest from savings, lease agreements for rental income from properties, annual salary confirmations from relevant employers, and dividend certificates from investments.
• All applicants over 18 must provide a clean criminal record certificate (issued no more than 6 months prior to application submission) from their country of birth and their current country of residence.
• All applicants must provide a health insurance certificate that includes both inpatient and outpatient care.
• The property used as an investment to submit the application and declared as the primary residence must have enough bedrooms to accommodate the primary applicant and all dependents in the application. If the investment property does not meet this requirement, additional accommodation for members must be provided by submitting a Certificate of Ownership, Sale Agreement, or Lease Agreement for the additional accommodation.
• A residency requirement of 1 day every 2 years.

Why is the Cyprus Government Implementing These Changes?

Following a prolonged impact from the COVID-19 pandemic, compounded by the ongoing conflict between Russia and Ukraine, European governments are increasingly concerned about national security and border security issues. This is especially true for Schengen countries, which have opened their borders for free movement among member states.

This trend has caused investment migration programs to come under scrutiny, with many politicians and lawmakers labeling them as a potential threat to the security of the European Union. Consequently, for the past two years, the European Council and the European Parliament have continuously pressured member states to halt citizenship and immigration investment programs.

As a result, nearly all European citizenship investment programs have been shut down, leaving a limited number of migration investment programs that are under constant pressure to “change to survive.”

Thus, these new changes by the Cyprus government to the permanent residence card investment program are a necessary evolution. They help streamline the application process, ensuring a more rigorous, accurate, and efficient selection of deserving investors to participate in the program.