BECOME A
GLOBAL CITIZEN
[slide-anything id=”4019″]
Cyprus Permanent Residence
Tax incentives and access to the European business market
sum
period
to the island
Permanent residence in Cyprus can be obtained by investment in real estate or securities worth at least €300,000.
Permanent residence holders may not pay taxes on global income, including dividends and capital gains. The country also has no inheritance tax, low income and property tax rates.
The Cypriot jurisdiction is one of the best places to register the tax residency of an international business or open a new company. This is because the corporate tax rate in the country is only 12.5%.
After 5 years of living on the island, a permanent resident can obtain Cypriot citizenship and travel without visas to 170+ countries, including the European Union and the UK.
Benefits of permanent residence in Cyprus
100+ visa-free countries with the Turkish passport
China
Japan
Singapore
South Korea
+ 12 countries
Kenya
Madagascar
Seychelles
Tanzania
+ 18 countries
Ireland
Kosovo
Russia
Kiribati
Micronesia
New Caledonia
Niue
+ 10 countries
Bahamas
Barbados
Caymans
Haiti
+ 27 countries
Aruba
Brazil
Colombia
Peru
+ 8 countries
Who is eligible for permanent residence in Cyprus
- Over 18
- Without convictions, sanctions, restrictions or bans on entry the EU countries and the UK
- With an impeccable personal and business reputation
- With an owned or rented accommodation
- With a medical report
- With a legal income of €30,000 per year for the main applicant
- With medical insurance
Including children from previous marriages
- Students
- Financially dependent on an investor
- Unmarried
With physical or mental disabilities
Costs for an investor
An investor can choose from several investment options of €300,000: to buy residential or commercial real estate, shares of Cypriot companies or units of local investment funds.
If the applicant has chosen to invest in non-residential property, buying or renting housing on the island will also be necessary. Again, there are no space or cost requirements.
Investments can be returned only after the permanent residence or citizenship expiration.
Mckhavens consulting has its database with hundreds of reliable properties, including those at the construction stage, which our clients can buy without a commission. Our lawyers will organize a trip and accompany investors when choosing a property.
Purchase of a residential property
VAT
Legal services
Investor
€300,000+
€15,000+
1% of the transaction amount
Spouses
€300,000+
€15,000+
1% of the transaction amount
Family of 3 or more people
€300,000+
€15,000+
1% of the transaction amount
+ €500 per each additional applicant
Confirmation of income
€30,000+ per year
€35,000+ per year
€40,000 per year
+ €5,000 per each family member starting with the forth one
+ €8,000 per each parent
Due Diligence
€15,000
€25,000
€25,000
+ €10,000 per each family member over 12 years old
Immigration submission fee
€500
€500
€500
+ €500 per each child over 18 and each spouses’ parent
Registration fees
€70+
€140+
€210+
+ €70 per each family member starting with the forth one
Medical insurance
€2,000+ per year
€4,000+ per year
€6,000+ per year
+ €2,000 + per year per each family member starting with the forth one
An investor can buy one or two commercial properties with a total value of €300,000 plus VAT. The property can be new or secondary. Offices, shops, hotels or a combination worth at least €300,000 qualify as commercial properties under the option.
Purchase of a commercial property
VAT
Legal services
Investor
€300,000+
€57,000+
1% of the transaction amount
Spouses
€300,000+
€57,000+
1% of the transaction amount
Family of 3 or more people
€300,000+
€57,000+
1% of the transaction amount
+ €500 per each additional applicant
Confirmation of income
€30,000+ per year
€35,000+ per year
€40,000 per year
+ €5,000 per each family member starting with the forth one
+ €8,000 per each parent
Due Diligence
€15,000
€25,000
€25,000
+ €10,000 per each family member over 12 years old
Immigration submission fee
€500
€500
€500
+ €500 per each child over 18 and each spouses’ parent
Registration fees
€70+
€140+
€210+
+ €70 per each family member starting with the forth one
Medical insurance
€2,000+ per year
€4,000+ per year
€6,000+ per year
+ €2,000 + per year per each family member starting with the forth one
Investment option:
1. shares of Cypriot companies;
2. units of Cypriot investment funds
Investor
€300,000+
Spouses
€300,000+
Family of 3 or more people
€300,000+
Confirmation of income
€30,000+ per year
€35,000+ per year
€40,000 per year
+ €5,000 per each family member starting with the forth one
+ €8,000 per each parent
Due Diligence
€15,000
€25,000
€25,000
+ €10,000 per each family member over 12 years old
Immigration submission fee
€500
€500
€500
+ €500 per each child over 18 and each spouses’ parent
Registration fees
€70+
€140+
€210+
+ €70 per each family member starting with the forth one
Medical insurance
€2,000+ per year
€4,000+ per year
€6,000+ per year
+ €2,000 + per year per each family member starting with the forth one
Costs for a family of three
An investor with their spouse and a child
Purchase of a residential property
Purchase of commercial property
Investments in securities
Investment
€300,000+
€300,000+
€300,000+
VAT
€15,000+
€57,000
_
Confirmation of income
€40,000 per year
€40,000 per year
€40,000 per year
Due Diligence
€25,000
€25,000
€25,000
Immigration submission fee
€500
€500
€500
Registration fees
€210
€210
€210
Fee for a permanent residence card
€7,000
€7,000
€7,000
Medical insurance
€6,000+ per year
€6,000+ per year
€6,000+ per year
Step-by-step procedure for obtaining permanent residence in Cyprus
Obtaining permanent residence in Cyprus by investment takes about two months. Everything can be done remotely, so it is not necessary to fly to the island. The applicant will only need to collect documents and select an investment object.
Due Diligence is a mandatory step in any residency program for investors. Its results define whether the investor becomes a resident of the country.
To increase the chances of approval, Mckhavens consulting conducts own preliminary Due Diligence.
A certified Anti Money Laundering Officer checks the investor’s documents and searches for information about him in international databases. If there is a problem, we suggest a solution, such as attaching an affidavit to the application or choosing a different program.
The check is confidential and takes only one business day. Thanks to it, the risk of rejection is reduced to 1%.
We help collect, translate and apostille documents, get medical insurance and conclude a real estate lease agreement.
We hand the documents over to our agent in Cyprus when everything is ready.
Main set of documents includes:
- A completed MIP1 application form.
- Originals and copies of valid passports of all the applicants.
- A main applicant’s biography.
- A declaration confirming an annual income of at least €30,000.
- A confirmation of investment.
- Proof of a permanent address in Cyprus.
- A statement on the absence of employment in Cyprus.
- A certificate of no criminal record for the main applicant and their spouse.
- A marriage certificate.
- A birth certificate.
- Medical insurance for the whole family.
When buying a property, we submit documents to the Cyprus Department of Lands and Surveys of Cyprus, including an application to reduce the VAT rate to 5%. The investor transfers €200,000 and VAT to the developer.
We have our own database of properties, including those under construction. We will help you decide on the type of investment or choose a property, draw up a contract of sale and conduct a deal.
The applicant does not have to fly to the island as our agent in Cyprus can submit all the documents.
The decision to grant permanent residence is made within two months. Within a year after the approval, the investor and their family must visit the island to submit biometric data and obtain permanent residence.
Additional services after obtaining permanent residence in Cyprus
Everyday life issues will remain after obtaining permanent residence in Cyprus as the investor will have to communicate with banks, the migration service and other officials. We will help to get the necessary documents and make everything go smoothly.
We collect and submit the necessary documents and take over communication with officials.
We help to choose a bank and prepare documents for opening an account.
We conclude a contract for the management of the real estate. We undertake the preparation of housing, the search for tenants, the conclusion of an agreement, rent and taxes.
We have our database of properties, and we work directly with Cypriot developers, so you do not have to pay a commission. We help choose a region, type of real estate and suitable property, including at the construction stage. We accompany you when selecting a property and making a deal.
The applicant does not have to fly to the island as our agent in Cyprus can submit all the documents.
We request a tax resident status to the tax office after a standard stay in the country for more than 183 days a year or after 60 days for property owners who run a Cypriot company.
We prepare the documents and apply if you want your parents or close relatives to move to Cyprus.
Answers to frequently asked questions
Yes, all investments can be returned after the expiration of the permanent residence or citizenship. If you sell securities before this time, the status will be cancelled. If an investor sells real estate, he is obliged to buy another property for the same or higher price.
The minimum investment amount is €300,000. The investor also needs to open a bank deposit of €30,000 per person, undergo Due Diligence with a fee from €15,000, pay administrative and registration fees of €570 per person, as well as the fee for a permanent residence card of €5,000 and get medical insurance. If the applicant has chosen to invest in non-residential property, then it will also be necessary to buy or rent a property on the island.
The citizenship by investment program is suspended in Cyprus. Previously, an investor could get a country’s passport by investing 2 million euros.
The owner of the permanent residence in Cyprus can become a citizen of the country after having lived on the island for at least 5 years. Additionally, they will need to confirm knowledge of the language and culture of Cyprus, as well as pass an interview at the migration service.
It is mandatory to visit the country within a year after the approval of permanent residence — to submit biometric data and receive a permanent residence card. After that, it is enough to visit the island once every two years, keep investments, and also have an income of €30,000 per person per year.
A permanent resident without tax residency may not pay tax on global income, including the one from investments: taxes must be paid only on profits earned on the island.
Tax residents must pay income tax on all their income and other types of taxes. The income tax rate depends on the income amount, e.g. up to €28,000 per year are taxable under 20%, and €60,000 per year — is under 35%.
It is not necessary to become a tax resident, even if you live in the country for more than 183 days a year.
Schedule a meeting
Let’s discuss the details
Do you prefer messengers?
Matthew Oke Havens
Senior Consultant & Partner (Africa)