A residence permit through property investment, Regulation 6(2)

Regulation 6(2) of the Aliens and Immigration Regulations is the legal hook for an immigration permit for a third-country national who invests in Cyprus. The practical rules are the Migration Department’s criteria, 4th revision, in force from 2 May 2023, and still the document published on Gov.cy. The Department has also said that the transitional window for using the older, 3rd-revision criteria is closed. A new application is examined on the criteria in force on the day it is filed, not on the day the sale contract was deposited.

This permit is not citizenship. It is not tax residence. It is not the 5 per cent VAT relief. It is permission to reside, on conditions, for a person who is not an EU citizen.

The investment

The applicant must invest at least €300,000 in one of four categories. The one this page is about is a house or apartment bought from a development company, a first sale, worth at least €300,000 plus VAT. Up to two housing units are allowed, including for a couple, if the total market value meets that test. They need not be bought from the same developer. A resale of a dwelling does not qualify, unless the contract was filed at the Land Registry before 7 May 2013.

The other categories, stated briefly so they are not confused with a flat, are: other real estate such as offices, shops or hotels, which may be a resale, totalling €300,000; €300,000 in the share capital of a Cyprus company that has a real presence and at least five employees; or €300,000 in units of a Cyprus collective-investment fund whose investments are held in the Republic. Selling the investment without immediately replacing it with another that meets the same rules cancels the permit.

The money has to be shown to have come from abroad, from the applicant or from a spouse who is included as a dependant. The Department’s later clarification also allows a transfer from a company account where the applicant or the spouse is the sole shareholder and that shareholder is on the application. It must not be a domestic loan. At least €300,000 excluding VAT has to be shown as paid, by official receipts, even if the keys come later. The balance is paid into the seller’s account at a Cyprus bank. A purchase in a company name is accepted only if the applicant and the spouse are the only shareholders or the ultimate beneficial owners, and the company is established in Cyprus or another EU or EEA state.

The income

On top of the investment, the applicant needs a secured annual income of at least €50,000. That rises by €15,000 for the spouse and by €10,000 for each dependent minor child. For a house or apartment under category A, this income must come from abroad. The Department says it is proved by a tax return from the country where the applicant declares tax residence, or, under the later clarification, by certificates from an independent certified accountant. The spouse’s income can be counted. For the non-property categories, income from inside Cyprus can be used. Do not mix those sentences up. A buyer of a flat cannot point to a new Cyprus salary to fill the €50,000.

The rest of the file

The applicant and the spouse provide clean criminal-record certificates from the country of origin and, if different, the country of residence. They hold health insurance for inpatient and outpatient care, unless they are inside GESY. They confirm they will not work in Cyprus, except as directors of a company they invested in under this policy. Where the investment is not the company-share category, they may hold shares in Cyprus companies and may be unpaid directors. Dividend income from those shares is not treated as the forbidden employment.

The contract or the title must be in the applicant’s name or the spouse’s, and it must have been filed at the Department of Lands and Surveys. If the contract was signed, or the title issued, more than a year before the application, a recent Land Registry search certificate is required.

The fee on submission is €500, plus €70 for each person who needs an aliens registration certificate. The Department’s estimate, if the file is complete and there is no public-order concern, is about two months. That estimate is not a promise.

Family

The permit covers the spouse and children under 18. Unmarried children aged 18 to 25 who are students abroad and financially dependent can apply on their own, with an extra €10,000 of income for each such child. Adult children who are not dependent need a higher investment: the €300,000 is multiplied by the number of those adult children who rely on the same investment. One such child means €600,000, two mean €900,000. In that case, proof of payment of at least 66 per cent is required at application, and each adult child needs their own €50,000 income test.

After it is granted

The right is described as unlimited in time, but the residence card expires after ten years and has to be replaced. Cards for minor children last until 18. The holder must acquire residence in Cyprus within one year of approval if they were living abroad, or the permit ceases. An absence of two years, or taking up permanent residence abroad, also ends it.

Every year the holder shows that the investment is still in place, and that health insurance continues if the family is not in GESY. The Department’s clarification relaxed two points: the annual proof of the income level is no longer required, and the clean criminal-record certificate is every three years rather than every year. The investment evidence and the insurance evidence remain annual. If the holder cannot show them, the permit can be cancelled, and the family’s permits with it.

What this is not

It is not a route to a job. It is not automatic tax residence: the 60-day and 183-day rules are separate, and a person who may not work still needs a lawful tie, such as a directorship that the policy allows, if they want the 60-day rule. It is not the Council of Ministers acquisition permit under Cap. 109. A non-EU buyer needs that permission as well before title is registered. The two files use some of the same papers and they are not the same decision.