Cyprus Citizenship by Investment, Permanent Residency and more
An EU passport is one of the best passports to gain global access. And the Cyprus Citizenship by Investment Program is one of the easiest ways to get citizenship in an EU country and an EU passport.
Also known as Golden Visa, Cyprus offers citizenship by investment and permanent residency through real estate investment. These two Cypriot immigration investment programs are quick and effective. Cyprus is a full EU member state and most of the people on this beautiful island speak English.
Cyprus mesmerizes with its great location close to many EU countries, impressive nature, vibrant history, as well as favorable tax and financial regulations. This makes the “Jewel of the Mediterranean” a popular destination for investors, entrepreneurs, expats, retirees, and tourists alike.
In this week’s My Kypros Home blog article read up on the Cyprus citizenship by investment program, the Cyprus permanent residency program and how to get an EU passport.
Benefits of living in Cyprus
The European country and marvelous island Cyprus is a popular tourist destination and attractive place to live. Cyprus is an environmentally clean country, which unites wonderful beaches, lush forests, untouched nature, and impressive mountains, where you can even go skiing. People enjoy the fresh air, beautiful clear skies, and a relaxed lifestyle. Besides, everyone loves the sunny weather with more than 300 days of sun per year – from investors and entrepreneurs to expats, digital nomads, retirees, medical tourists, and holidaymakers.
Cyprus has a vibrant history with the first evidence of human habitation in Cyprus tracing back to around 10,000 BC. The strategic location led to colonization by a large number of civilizations. Likewise, for more than 50 years, Cyprus was a British colony. This is why most people on the island speak English today. However, the main language and culture in Cyprus are Greek, but the North has a Turkish background.
In addition, there are many ancient myths in Cyprus. The most intriguing one is that the island is also the birthplace of the goddess of love Aphrodite (Venus in the Roman culture). According to legend, she rose from the sea just outside the village of Paphos. In fact, this place connects myth and astronomy: as Cypriot nights are often very clear, you can see many stars and planets. But best visible is the bright planet, Venus.
In Paphos, you will also come across authentic relics from the past and an archeological site dating back to the 4th century BC. The remains of ancient palaces gave this town the status of a UNESCO World Heritage site.
Cyprus also has the lowest crime rate in Europe. The island offers very favorable tax regulations for individuals and companies residing there. The healthcare and education system is exceptional.
Moreover, Cyprus is a great place to do business. The corporate tax is only 12.5%, and there are many other tax advantages, for example, no withholding tax and no inheritance tax for private individuals.
Discover the 8 top reasons how living in Cyprus will make your life better, and plan moving to Cyprus today.
Cyprus Citizenship by Investment Program
With 2.15 million Euros plus VAT, the Cyprus investment program is the quickest and easiest way to citizenship of a European country. Discover the requirements, suitable real estate investment options and how to go through the approval process smoothly.
- The first step is to buy a real estate (house, apartment, office) of two million Euros. This can be a commercial or residential property and it can be rented after it was bought, as long as 19% VAT is paid. You can only pay 5% VAT but are not allowed to rent it in this case. The investment can be in one or several properties, and it must run for at least five years. After three years, the investment can be reduced down to 500,000 Euros. This investment must be maintained so that the investor can maintain his/her citizenship.
- Cyprus offers a great variety of landscapes, cities for doing business and smaller villages for a more relaxed lifestyle. Tailored to your individual needs and preferences, there are various real estate options to choose from. Explore gorgeous properties for investment here.
- Second, Cyprus requires a donation of 75,000 Euros each to the government’s Research and Development Fund as well as the Land Development Organization. These donations are included in the total investment amount of 2.15 million Euros.
- Applicants must have a proven clear criminal record and have health insurance. But there is no language test, medical examination or interview for citizenship applicants. In addition, it is not necessary to live in Cyprus permanently, as long as you return every two years. the country of Cyprus.
- Application Process
- After buying the property, the applicant can apply for citizenship and EU passport. Then, Cyprus issues your new Cypriot citizenship and Cypriot passport in just six months or less. This is the quickest process within the EU. Depending on your original country with first citizenship you may be entitled to dual citizenship.
- Purchasing the property, filling out the application form, providing the supporting documents and dealing with the local authorities is manageable. If you don’t want to break your head over this or simply want to focus on other aspects of your life, an agency can facilitate this process for you at an affordable price. It will save you a lot of time and energy in return. Yes, I want to make my life easier. My Kypros Home works with high-quality local partners to get you through the citizenship application process smoothly.
- Family Members
- The investor can bring along his family members. This includes all children up to the age of 28 and future generations (citizenship by descent). The investor’s parents can also qualify by making a further 500,000 Euros investment in real estate.
- Who can apply
- Anyone can apply. The Cyprus citizenship by investment program is very popular for Chinese, Russian and Arab citizens.
- Taxes and Legal Fees
- With the real estate purchase, 19% VAT applies to commercial properties, and for residential properties, if you plan to rent them. However, residential properties only have 5% on the first 200m² of the first and main permanent residence property, if you live in them. This can be a key factor when selecting a suitable investment property
- Lawyer fees apply to process the citizenship application and to purchase the property. This typically is between 30,000 Euros and 40,000 Euros for a family. Government processing and application fees for a family of three on average are 17,000 Euros. If you rather hire an affordable agency to deal with this process, continue reading here. My Kypros works with high-quality local partners to save you time, energy and headache in the citizenship application process.
- To encourage international investment, non-domiciled investors don’t have to pay tax in Cyprus for personal investment income including dividends and interest. In addition, you don’t have to pay income tax on the first 19,500 Euros per year. Moreover, there is no withholding tax and no inheritance tax. For business owners, Cyprus has one of the lowest corporate tax rates in Europe at 12.5%.
Now you know how to get Cyprus citizenship. The requirements and the application process is straightforward. Consider hiring a professional and affordable agency to help you through this process. My Kypros Home collaborates with high-quality local partners to save you time, energy and headache in the citizenship application process.
Benefits of an EU Passport
Cyprus is a full member of the EU. Consequently, the citizens of Cyprus are European citizens. The Cypriot passport allows you the freedom to work, travel, study and live anywhere within the 28 countries of the European Union. This includes countries like Germany, France, and the UK. Furthermore, Cypriot citizens can travel to 169 countries without a visa or with a visa on arrival.
Cyprus is not part of the Schengen area. Schengen refers to the EU passport-free and customs-free zone which covers most European countries. If you wish to travel to the Schengen area and hold a Cyprus passport, you need to apply for a visa. With an EU passport (Cyprus passport), this process is quick and easy. More information on how to apply for a Schengen visa.
Cyprus Permanent Residency Permit (PRP)
This is also known as the fast-track model, which gets you a permanent residency in Cyprus within two months. This permanent residency permit does not allow you to work in Cyprus, but you can be the owner of a Cypriot business and you can receive dividends from this. After seven years of legal residency, you are eligible for citizenship, as long as you fulfill some requirements like being a Cypriot tax resident.
- First, you must purchase a property in Cyprus with a minimum value of 300,000 Euros plus VAT. And you have to pay 200,000 Euros from this amount before the application. The property can be one or two housing units (apartments or houses). In addition, the home can be rented as long as 19% VAT is paid. You can only pay 5% VAT but are not allowed to rent it in this case.
- Second, you have to make a fixed-term deposit in a Cypriot bank of at least 30,000 Euros, for at least three consecutive years.
- Your annual income must be at least 30,000 Euros. For every dependent child, your annual income must be another 5,000 Euros and additional 8.000 Euros for dependent adults like spouses or parents. The income must be derived from non-Cypriot-sources. Finally, you need to have a clear criminal record.
- To keep your permanent residency status, you must visit the country at least once every two years.
- Application Process
- Purchase the property, prepare the documents, and make sure that at least 200,000 Euros are paid before you submit your application. Apply for the RPR and receive an approval within 2 months.
- In case this sounds too complicated or you simply want to focus on your business or other things, an agency can help you with the whole process at an affordable price. Yes, I want to save time and energy.
- Family Members
- The applicant can bring along his family, including his/her spouse and children.
- Who can apply
- Anyone can apply.
Non-Domicile “Non-Dom” status
Since 2018, the rules for Cyprus tax residents under the so-called Non-Domicile or “Non-Dom” status are even more favorable. Tax is not applicable in Cyprus for globally generated income from interest and dividends, for example, from stock investments. The country guarantees this for 17 years after the application.
According to the law, anyone who spends over 60 days (two months) per year in Cyprus is entitled to become a tax resident or Non-Dom. This makes it a very attractive place for entrepreneurs and digital nomads.
The Cyprus Citizenship by Investment Program is one of the easiest ways to get citizenship in an EU country and an EU passport. The requirements and the application process is straightforward.
My Kypros Home is here to make your life easier. We provide information and services around relocating to Cyprus. In addition, we offer practical services around business set-up, retirement, travel assistance, and medical tourism.