Obtain permanent residence in Cyprus: will money speed up the process? Article about real estate in Cyprus

Living on a fabulous island in the Mediterranean is the dream of almost every foreigner. The Republic of Cyprus is precisely that amazing place. In addition to the wonderful climate and fantastic nature, the standard of living in this island state is quite high. It is quite difficult for average foreigners to obtain citizenship on the island. Even despite the fact that the country is considered a transition between third countries and the EU. Emigration to Cyprus from Russia under simplified conditions is possible only for wealthy citizens. By investing a couple of million euros in the island economy, you can obtain Cypriot citizenship in just 2–3 months. Investment in real estate in Cyprus is also a prerequisite for issuing permanent residence status. How to obtain a residence permit in Cyprus will be discussed further. But first, we’ll tell you what life on the island promises for emigrants.

Pros and cons of Cypriot life

Before moving to Cyprus from Russia for permanent residence, you should familiarize yourself with the local peculiarities of life. A citizen of Russia will certainly enjoy year-round summer. However, there are also nuances here that will certainly cause dissatisfaction among foreigners. First, the good stuff.

Pros:

Short and warm winter (+15–20 degrees).
Relative proximity to Russia and the EU.
Genuinely friendly and welcoming people. Cypriots involved in tourism speak Russian more or less normally.
Fairly high standard of living.
Affordable housing prices. This makes buying property in Cyprus so attractive.
Security, there is virtually no theft here. It is considered normal to leave the car open with the ignition keys.
Prices in stores located outside resort areas are affordable relative to European prices. But compared to Eastern European countries, goods are more expensive. Fruits and vegetables are cheap.
Visa-free entry to many countries. In addition to the Eurozone, a residence permit for Cypriot emigrants will provide free access to 158 countries: Africa - Cameroon, Botswana, Egypt, Kenya, Madagascar, Tanzania, Togo, Tunisia, St. Helena, Zambia, etc.; Americas - Argentina, Bahamas, Barbados, Bolivia, Canada, Brazil, Colombia, Chile, Dominican Republic, Caribbean, Haiti, Jamaica, Mexico, etc.; Asia - Cambodia, Georgia, Indonesia, Israel, Laos, Japan, Singapore, Sri Lanka, South Korea, etc.; Europe - Albania, Liechtenstein, Bosnia and Herzegovina, Macedonia, Croatia, Iceland, Monaco, Norway, Serbia, Turkey, Ukraine, Switzerland, etc.; Oceania - Australia, Fiji, New Zealand, Samoa, Tonga, etc.
Possibility of dual citizenship. This means that a Cypriot passport in 8 years will not become a basis for renouncing your native citizenship.

Cyprus on the map

Even such a beautiful power at first glance is not flawless. And here there are problems and difficulties. Therefore, before obtaining Cypriot citizenship, you should consider the following disadvantages:

The entire state relies on the tourism industry. Therefore, in the off-season the economy significantly slows down.
The island's economy cannot be called very stable, so long-term investment in Cyprus is a rather risky undertaking.
Northern Cyprus is effectively under Turkish rule. Although local residents believe that Northern Cyprus is dominated by occupiers and hope that this part will soon return to the control of the island.
The houses do not have central heating (so sometimes in winter you have to turn on the heaters), and the water is heated purely by solar heat.
A residence permit in Cyprus when purchasing real estate does not give the right to work. This permit can be obtained only 5 years after acquiring permanent residence status.
All medicine is paid, insurance is expensive. But wealthy Russian women can afford childbirth in Cyprus, and often entrust such an important moment of their lives to Cypriot doctors.
Utilities and gasoline are expensive.
It is unlikely that you will be able to fully assimilate into local society.
The official language is Greek. Distributed only in Greece itself and on the island. It is quite difficult to study.
Average salaries are low, although prices for many goods are quite high. This is due to the limited market - the cost of delivering products significantly increases their cost.

Preparatory stage for obtaining Cypriot citizenship for Russian citizens

If a decision has been made to immigrate to Cyprus and there is an intention to subsequently become a citizen of the republic, then you will need to go through several immigration steps. This process can take years.

You can arrive to the island either by air or by sea. To visit Cyprus, Russians will need a visa. To do this, you need to pay a visit to the diplomatic mission of this country in Russia or contact the single visa center at the applicant’s place of residence in one of the Russian regions. More detailed information can be found on the website of the Cyprus Embassy in the Russian Federation.

Once on the island, you should apply for a residence permit at the office of the Department of Immigration and Citizenship. Information about the contacts and locations of the Department's offices in the cities of Cyprus can be found here.

With a residence permit issued for a year and then renewed for the same period, you can live in Cyprus for at least five years before submitting an application for permanent residence.

Larnaca Airport is the air gateway to Cyprus

But you can move on to the stage of obtaining citizenship only after seven years of permanent residence on the island. In total, at least 12 years pass from the moment of arrival to the moment of receiving a passport. But this is for most categories of applicants. For some, the period for obtaining a passport is much shorter. For example, you can become its owner in just six months. But we will tell you how to do this below.

A Cyprus passport is especially in demand among a certain category of Russian immigrants. Cyprus is not suitable for everyone as a kind of springboard for jumping into the European Union. Obtaining Cypriot citizenship is easy and hassle-free, and you can wait at least 12 years. Cyprus is a country that is extremely interested in attracting foreign investment, so only a very wealthy person can become a citizen of Cyprus without any problems. They love money here, and it’s not for nothing that Cyprus is considered the “offshore paradise” of Europe.

Social guarantees

If you move to Cyprus for permanent residence on a legal basis, you can receive all the same guarantees and benefits that are intended for native residents. For example, the Social Insurance Fund pays the following types of benefits (in euros):

for a wedding - 711;
for a funeral - 711;
for the birth of a child - 533.

Families with student children also receive significant benefits. For example, if there are more than three children in a family, 854 euros are paid for each child receiving higher education. Families with a low income receive additional benefits for each child: if there is one child in the family - 102 euros, if there are four - 450 euros for each. There are also one-time benefits for large families to purchase a car. The same type of benefits are provided to disabled people.

The fact that the Republic of Cyprus is a socially oriented power is also evidenced by the fact that when in 2011 a decision was forced to increase the VAT rate by 5%, benefits totaling 20 million euros were distributed among residents. Thus, on average, pensioners and families with children received compensation in the amount of 150 euros.

Flag and coat of arms of Cyprus

Tax system

As such, immigration to Cyprus from any other country does not give rise to taxes on the island. Obtaining tax resident status is associated with living in the country for more than 183 days a year. Before obtaining a residence permit in Cyprus, read the list of taxes and fees that will have to be paid to the Cyprus treasury on income received on its territory and abroad.

Personal taxes

Income tax. Paid on a progressive scale: 0% - up to 19.5 thousand euros per year; 19.5–28 thousand - 20%; 28-36 thousand - 25%, 36.3-60 thousand - 30%, more than 60 thousand - 36%.
Capital gains tax. Calculated from the profit from the sale of real estate. The rate is 20%.
Special collection for defense.
Expats receiving pensions from abroad must also pay tax under one of two systems (at their discretion):
The first 3,420 euros per year are tax-free, the rest of the pension is taxed at a rate of 5%.
The entire pension is included in the total income fund and is subject to income tax in the general manner. This option is beneficial when income is small and less than 19,500 euros per year. This means that a 0% rate will be applied.

Taxes on legal entities

Business is one of the ways to go for permanent residence in Cyprus. As elsewhere, doing business is inextricably linked with replenishing the state treasury. To be fair, it must be said that the Cypriot tax system is quite loyal. If in countries such as Germany or Switzerland about 40–45% of the income received has to be given to the treasury, then for island enterprises this figure is 20–25%.

Citizenship by naturalization

Photo: pixabay
Before you leave for permanent residence in an island state in order to obtain a local passport here on a general basis, you need to say goodbye to your homeland for a very long time. The thing is that the main requirement for such applicants is long-term residence in the country. According to the law - 7 years over the last 8 years. This means that you need to live here almost permanently. And for the last year you cannot leave the territory of the state at all.

Here are the grounds that may serve as a refusal to grant permanent residence in Cyprus for Russians and other foreign immigrants:

Fraud.
Connections with the country's enemies. We are talking mainly about Turkey.
Having a criminal record.

Each applicant receives Cypriot citizenship on a general basis for himself. That is, the spouse and children can move to Cyprus only on the basis of family reunification. This will reduce the residency requirement from seven to three years. But they will not be able to immediately receive passports of the Republic together with the main applicant.

Penetrating Cyprus through its northern part is also not a very good idea. The authorities of the Greek part of the island carefully check the passports of foreigners. The presence of a stamp from the Turkish part of the island is the reason for refusal to issue a visa to the Republic. A residence permit in Northern Cyprus gives the right to legal residence in this territory. It is prohibited to work and conduct business under a residence permit; this can only be done by citizens of the Turkish Republic of Northern Cyprus (TRNC). It is very difficult to obtain citizenship of Northern Cyprus: you must live here for at least 10 years, and you cannot travel outside the TRNC.

Other options for obtaining permanent residence in Cyprus

Permanent residence is easily obtained by citizens who invest an amount of 1 million euros or more in the Cyprus economy or purchase real estate for a total amount of 300 thousand euros. Such persons can immediately count on permanent residence, bypassing the five-year period on a long-stay visa.

Permanent residence status allows you to unlimitedly cross the country's border, but if you wish, it is enough to come here once every two years and the length of stay in Cyprus is not specified.

Work in Cyprus

Those citizens who plan to work in this country should know that it is very difficult to get a job in Cyprus. In order to qualify for any well-paid position, you must confirm to the employer your uniqueness as a specialist and prove that there are no professionals of this level in Cyprus.

After this, a contract is concluded and a Cyprus visa (residence permit) is issued for a period of one year with the right to extension.

All registration is the responsibility of the employer, so no one will contact a mid-level employee. A prerequisite for getting a job is a good knowledge of English.

Since the official language in Cyprus is Greek, knowledge of it will be a big plus when applying for a job. The government of the country is interested in top-notch specialists, and computer scientists and high-level programmers enjoy a special status here.

A doctor with a narrow and rare specialization can also count on a highly paid job and the loyalty of the migration authorities when obtaining permanent residence status.

Emigration through marriage

As one of the options for obtaining permanent residence in Cyprus, you can consider marriage with a resident of the country, but in order to obtain this status, you must have lived in marriage for at least three years and have serious evidence that this marriage is not fictitious.

Study in Cyprus

It should be borne in mind that many options for moving for permanent residence to another country in Cyprus are not entirely convenient. For example, obtaining higher education in Cyprus is quite expensive and the administration of higher educational institutions prefers to accept Cypriots than residents of other countries.

Therefore, enrolling in universities on this island is not very popular among Russians. It is believed that the level of teaching in educational institutions in Cyprus, despite advertising, is much lower than the level of teaching in other EU countries.

In many countries, universities have been operating for hundreds of years and are initially focused on accepting not only their compatriots, but also a large number of foreign applicants.

This fact is not advertised, but employers in other countries have a somewhat wary attitude towards graduates of Cypriot educational institutions. If two specialists apply for one position, one of whom has a diploma from the University of Cyprus, and the other with a diploma from a Prague or Madrid university, then preference will be given to the second applicant.

Frederick Institute of Technology

Applying for an F visa

The most convenient option for obtaining a residence permit followed by obtaining permanent residence status (PR) is a visa category “F”. This visa, also called a pensioner visa, is issued to citizens of third countries, including Russia, that are not members of the European Union.

This document gives its owner the right to permanently reside in Cyprus, but prohibits working and receiving money for it. That is, an applicant for a visa of this category must be financially secure. To obtain an F visa you must have the following:

Bank account in the amount of 20 thousand euros;
Regular income regularly received from abroad of at least 1 thousand euros per month;
Insurance policy issued by a Cyprus company;
A notarial deed confirming the presence of your own real estate or a lease deed for a period of one year;
Additional documents.

The administrative system of Cyprus is quite unpredictable, since there have been cases where citizens with 10 thousand euros in their account received what they wanted, while those with 25 thousand euros were denied. The same applies to the amounts of monthly receipts.

Officially, a pensioner must receive at least 1 thousand euros per month, but in reality he may be refused without explanation, because the principle here is that the more, the better.

If the applicant has an insurance policy issued by a company in another country, it will only be considered as an additional one by the Cypriot immigration authorities, and the main policy will need to be taken out from a Cypriot company.

Residence permit by investment

Some immigrants stop at the stage of assigning them the status of a residence permit (here it is called Pink Slip ). For wealthy people, the process of obtaining a residence permit is much faster and easier. For an investor residence permit, the following requirements must be met:

Having a stable income from abroad. It should be enough to provide for the investor and his family members included in one application. Because Pink Slip employment is prohibited. Moreover, the funds must be transferred to an account in any Cypriot bank.

Investment of 300,000 euros in real estate. This may be one large property or several smaller properties.

Placing funds in a deposit account at a bank. The placement period is 3 years. Upon expiration, the money is returned in full to the investor.

The first step on the path to an investor residence permit is obtaining a tourist visa. According to it, an immigrant can legally stay on the island for 90 days in a six-month period. Having already arrived here, you can apply for Pink Slip. Their list is as follows:

bank statement confirming the presence of the required amount in the current account;
passport;
photos;
receipts for payment of state duty;
for investors - a real estate purchase and sale agreement or documents confirming the opening of your own business.

Documents are reviewed within 2–3 months. However, the applicant's compliance and trustworthiness checks are less stringent than in most other European countries. The residence permit is valid for 1 year. After which it can be extended.

To maintain your residence permit status, you only need to visit the island at least once every 2 years.

After 5 years of being in Pink Slip status, you can apply for permanent residence. Permanent residence is issued for 5 years and does not require renewal.

Citizenship by Investment

Villas in Cyprus, photo: pixabay
In the country of Cypriots (one of the few), the possibility of being awarded a local passport for special economic achievements is spelled out at the legislative level. This road cannot be called inexpensive. However, in just 2-3 months you will receive Cypriot citizenship through investment.

In 2021, thanks to amendments made to the legislation last year, in order to comply with the investor program, one main condition must be met - investing two million euros. Moreover, this money can be invested in any state assets - shares, land, real estate or bonds. The fourth part (that is, 500 thousand) should go towards purchasing housing. Moreover, citizenship or residence permit when purchasing real estate does not mean that the property can be sold (as, for example, in Germany).

Real estate, which is a prerequisite for participation in the investment program, must be preserved until the end of life. The only option is to sell this property and buy another for an amount of at least 500 thousand euros.

The remaining amount can be distributed at your discretion - for the purchase of shares, bonds or land. The only condition is that bonds can only be purchased for 500 thousand euros. Although this option is the most attractive from a liquidity standpoint. After all, 3 years after Cyprus citizenship is obtained by investment, the acquired assets can be sold and profits withdrawn from the island.

In addition to having two million euros, investors are required to:

No criminal record for the entire family.
The investment period is at least three years.
Availability of a Cyprus residence permit. Obtaining a residence permit when purchasing state assets is a pure formality dictated by the EU through the highest governing body of this community. The investor is given this status at the time the passport is issued.

The most important advantage of this migration program is the absence of requirements for residence qualifications, knowledge of language and culture. In addition, in addition to the investor himself, his entire family, including children (up to 28 years old), husband/wife and even parents, receives a residence permit in the Republic.

To go to live in Cyprus, investors need to go through the following procedure:

Selecting an investment object. Moreover, if you choose real estate, you will only have to be present directly when purchasing real estate in Cyprus. You can choose an apartment or house remotely.
Drawing up and signing a purchase and sale agreement. All investor funds are transferred to a special escrow account. Access to it is usually only available to the owner himself and a lawyer appointed by him.
Preparation of documents. Required: certificate of no criminal record; contract of sale; a document confirming the submission of the registration agreement to the Cadastral Department; real estate appraisal certificate; receipts for payment of state fees in the amount of 5 thousand euros for each family member. All documents must be translated and notarized.
Submission of documents for Cypriot citizenship for the whole family. Most often, migrants engage lawyers for these purposes.
Waiting for a decision. Typically, Cypriot citizenship through the purchase of real estate is issued within 3–4 months.
Issuance of passports. This can be done through a personal visit to the island or at the Moscow Consulate.

Cyprus Citizenship by Investment Program

In 2013, the Cypriot authorities launched a citizenship by investment program. From 2021, any foreigner can obtain a Cyprus passport if he meets the conditions: mandatory investments in funds and additional investments.

You can choose one of three options for additional investments or combine them:

investments in real estate, land and infrastructure projects;
purchase and creation of Cypriot companies;
investments in alternative investment funds (AIF); registered alternative investment funds (RAIFs); into the financial assets of Cyprus companies licensed by the Cyprus Securities and Exchange Commission (CySec).

Cyprus citizenship is granted to the investor, spouse, as well as minors and financially dependent children under 28 years of age: students or sick children, provided that they are not married. The investor’s parents can also obtain citizenship, but to do this they need to buy another home worth at least 500,000 euros.

From 2021, the parents of the investor’s spouse can also obtain citizenship if they unite with the investor’s parents and jointly purchase one property worth at least 1 million euros.

From 18 August 2021, politically exposed persons can take part in the program 12 months after the end of their political career. Previously, this period was 5 years.

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Citizenship for the purchase of real estate

Photo: pixabay
As mentioned above, obtaining permanent residence status in Cyprus when purchasing real estate is a reality prescribed at the legislative level. But in addition to assimilation into the legal life of Cypriots, transactions for the purchase and sale of real estate provide an opportunity to earn money. This is due to the fact that the demand for real estate in resort areas is constantly growing, and prices are 20–30% lower than in Spain, and 40–50% lower in France. Therefore, you can choose housing to suit any request.

To obtain Cypriot citizenship when purchasing real estate, you need to invest 2 million euros. Moreover, there can be several objects, and they can be for different purposes - commercial and for personal purposes. However, the conditions for them will be different. According to the state program, the issuance of a passport when purchasing real estate in 2021 occurs only if the following requirements are met:

purchase of residential property worth 2 million euros;
acquisition of commercial properties worth 2 million and additional housing worth 500 thousand euros.

The second option is more expensive than the first by 500 thousand euros, however, commercial real estate is the main condition for opening a business on the island.

Work immigration

To obtain a residence permit in Cyprus for Russian businessmen, you must obtain permission and confirm your relationship to one of the categories:

A - farming. You must have your own land and at least 430 thousand euros.
B - self-employment in the mining industry. It is necessary to prove that this activity will not harm the Republic and confirm the availability of 350 thousand euros.
C - self-employment in any specialty. You will need permission from the civil service and the availability of 260 thousand euros.
D - work in the scientific field, the amount of initial capital is 260 thousand euros.
E - full-fledged work visa.
F - accommodation for persons who may not work. To do this, you need to have 10 thousand euros for yourself annually, 5 thousand for each family member.

It is the latter type of visa that is in greatest demand. It is issued by wealthy people who have their own business in their homeland and receive a residence permit in Cyprus when purchasing real estate purely for vacations and holidays in truly heavenly conditions.

Cyprus is a real dream for Russians. For most ordinary compatriots, the dream remains a dream. But wealthy Russians have established themselves in Cyprus through property purchases and additional investments in the island economy.

Obtaining resident status in Cyprus

Before planning to emigrate to Cyprus, you should carefully read the reviews on various websites dedicated to the migration of Russians abroad. There you can get a lot of information from people who have permanent residence status and have lived on the territory of this island for quite a long time.

Before applying for permanent residence in a given country, you must live for at least 5 years under a residence permit in Cyprus and only after that apply for permanent residence. There are several ways to obtain a residence permit in Cyprus:

Opening your own company in Cyprus;
Work in Cyprus by invitation;
Marriage to a resident of the country;
Admission to an educational institution;
Large investments or purchase of expensive real estate.

Cyprus on the world map

Opening a business and company

Registering and opening your own business is a fairly simple procedure and does not take much time. Many entrepreneurs are ready to open their own business here because the offshore zone principle allows them to pay fairly low taxes in Cyprus compared to other countries, as well as optimize the tax payment process itself.

The income tax is 12.5% and is the lowest in Europe. If the company does not work with residents of the European Union, then VAT is not paid.

Bank of Cyprus

Those companies that focus on computers, programming and high technology can have a good start.

Numerous reviews from Russian entrepreneurs give reason to conclude that agricultural or trading business will not work in Cyprus for the reason that these niches are completely occupied by local residents.

Registration and opening of offshore companies continues to be very popular among Russians, despite the financial crisis. You can purchase an already registered company, and this can be done through an intermediary company with the appropriate power of attorney.