CYPRUS PERMANENT RESIDENCE
- Submit a title deed or contract of sale for a property valued at least €300,000 (+ VAT). The property must be new. It is not mandatory for an applicant to purchase just one property.
- Receipt that the purchase is made from funds received from sources outside Cyprus
- Receipt of annual income of at least €30,000 from sources outside Cyprus.
- Receipt of additional annual income of €5,000 a year for each dependent and €8,000 for each parent of the main applicant or spouse, if they are included in the application
- Deposit at least €30,000 into a Cypriot bank for a minimum fixed three-year period
- Clean criminal record certificate issued by the police authority of their country of residence
- Declare their intention not to be employed in Cyprus – PR holders are however permitted to own Cyprus companies and receive dividends
- Visit Cyprus within one year of the grant of the PR
KEY FACTORS OF CYPRUS PR
- The maximum period for granting PR under the simplified procedure is two months. PR status does not impose any restrictions to the period of stay in Cyprus. The only exception is that a holder must visit Cyprus at least once every two years to maintain PR and are free to enter and live in Cyprus without the need to obtain a visa.
- Actual residence in Cyprus may lead to eligibility for Cyprus citizenship by naturalization, currently after seven years of staying in Cyprus within 10 calendar years.
- PR can be granted not just to the main applicant but also to the following relatives of the applicant. Applicant’s spouse – Applicant must provide proof of an additional €5,000 in secure annual income and a separate PR application should be submitted for the dependent spouse
- Dependent minor children up to 18 years old of the main applicant and his/her spouse can be added as dependents in both parents’ applications upon payment of the relevant fee. Applicant must provide proof of an additional €5,000 in secure annual income for each dependent minor child
- Financially dependent children from 18 to 25 years old who are unmarried students can be added as dependents in both parents’ PR applications. Applicant must provide proof of an additional €5,000 in secure annual income for each financially dependent child
- The parents of the main applicant and his/her spouse. The applicant must prove additional income of at least €8,000 for each dependent parent or parent-in-law. A separate PR application should be submitted for each dependent parent or parent-in-law
- Additional PRs may also be granted to non-financially dependent children of the applicant over the age of 18, but this will require the applicant to invest in additional real estate with a market value of at least €300,000 (+VAT) per child.
CYPRUS AT A GLANCE
Attractive Tax System
Cyprus has a simple and transparent tax system with one of the lowest corporate tax rates in the EU and multiple exemptions for both corporates and individuals.
The main characteristics of the Cyprus tax system are outlined below:
- Low corporate income tax rate of 12.5%
- EU & OECD Compliant
- Access to EU directives (e.g. Parent-Subsidiary)
- Extensive double tax treaty network with over 60 countries
- Dividend participation exemption (subject to conditions)
- Exemption from tax on gains from the disposal of securities (e.g. shares, bonds)
- Notional interest deduction on equity applies to all taxpayers and all business activities
- No withholding taxes on interest and dividends
- No taxation of capital gains (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus)
- No succession taxes
- No Controlled Foreign Company (CFC) rules
- Tax neutrality on foreign exchange differences unless they arise from trading in currencies or currency derivatives
- Foreign tax relief on income subject to both Cypriot and overseas tax
- Exemption on profits of foreign permanent establishments (subject to conditions)
- Company reorganization rules based on the EU Mergers Directive allow for tax-neutral group restructuring
- Attractive Intellectual Property regime in line with “modified nexus approach” (OECD Action 5)
- No exit tax rules
- 50% exemption on employment income exceeding €100,000 per annum for non-residents taking up employment in Cyprus
- No tax on dividends, interest and rental income of non-domiciled individuals
Modern Legal Framework
Our country’s competitive advantages are significantly enriched by a robust and transparent legal and regulatory framework and an attractive tax regime, which offers a wide range of incentives and advantages both for legal and natural persons.
Cyprus’ legal system, based on English Common Law principles, is widely recognized as a business-friendly and effective system that ensures transparency and reliability in business practices. Offering foreign businesses a familiar and reliable framework within which to operate, Cyprus’ legal system is also fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws and regulations and EU AML directives.
The very core script of the Cyprus Companies Law (CAP. 113) is a replica of the UK Companies Law. However, it is important to note that since its adoption several decades ago, the Law was, and still is, a subject of numerous amendments in the effort of the government to implement all the reforms necessary in order to remain competitive.The Companies Law, as all other legislation in the Republic of Cyprus, is fully compliant with EU Directives and Regulations. As such, any physical person, both from the EU or a third country, who registers his or her company in Cyprus, can engage in business activities without any restrictions.
- most Blue Flags per capita in the world
- most dense concentration of Blue Flag Beaches
- most Blue Flag beaches per coastline
Cypriots are known worldwide for their genuine and sincere hospitality and friendliness. Like Cypriot culture, Cypriot cuisine is an amalgamation of different influences from Greece, the Mediterranean region and the island’s previous conquerors.
Quality of Life
High quality of life is without a doubt one of Cyprus’ most attractive attributes. Indicatively, the island was ranked as the 5th best relocation destination worldwide by the 2013 Knight Frank Global Lifestyle Review, while Limassol, the second biggest city in Cyprus has been ranked 4th best retirement destination globally by the 2016 Knight Frank Global Lifestyle Review.
Besides its natural beauty, Cyprus offers a highly valued safe environment, with low stress levels and crime rates, ideal for a peaceful family life. Acknowledging the island’s safety and security standards, ValuePenguin has ranked Cyprus 5th worldwide and 1st among smaller Countries in its Safest Countries in the World study for 2015 and ranked 5th safest country for 2020 by Insurly