Investing in real estate in Cyprus is one of the easiest and safest investments. More and more foreign investors follow this path.
Why is Cypriot citizenship so in demand?
Citizens of some non-EU countries see Cyprus not only as a country with loyal taxation. The south island is a small European republic in which it is wonderful to live, travel, study and work.
Among the main advantages of Cypriot citizenship are:
- EU membership
- travel to more than 170 countries of the world without a visa
- high standard of living for families and single people
- friendly attitude of Cypriots towards foreigners
- excellent climate and proximity to the warm sea
- great ecology - there is only one industrial plant on the island, and it is very small
- ease of integration into society - there are many foreigners in Cyprus, and the local population speaks English.
Cyprus has a rich culture and a long history. Today the island is a calm place for those who are tired of the bustle of the metropolis, dullness and eternal cold.
Attention! The CIP program (Cyprus Investment Program) was canceled in the fall of 2020.
What is CIP and what are its conditions
This is a government program that allows people to quickly and easily obtain citizenship of the Republic of Cyprus by investing in the country's economy.
Most often, CIP is seen as an opportunity to obtain a Cyprus passport for the purchase of real estate worth at least €2,000,000.
To do it, a number of conditions must be met:
- have an open Schengen visa at the time of application
- pay €200,000 to government funds
- have no criminal record
- not have denied citizenship in any other EU country
- pass the test for the "purity" of income
- the minimum investment period is 5 years, after which the property can be sold, but the investor must have a home in Cyprus worth at least €500,000.
Since 2018, the island, in accordance with the requirements of the European government, has established a quota (limit) for the number of so-called "golden passports" per year: 700 units. However, there have never been more than 500 applications per year.
The term for processing an application and issuing a Cypriot passport in 2020 was increased to 9 months. Previously, the process took 6 months. The 3 extra months will be spent on a more thorough check of the investor and the source of his income.
Investments in a facility under construction or primary housing
This is the most economical option: it involves the purchase of real estate for €2,000,000. It should remain in the ownership of the investor for at least 5 years, then it can be sold.
If you believe the forecasts of analysts, property in Cyprus will only grow in value, so the investor will be able to make money on this. But it is imperative that the investor owns real estate not less than €500,000 - otherwise, participation in the CIP may be canceled.
When buying residential real estate in Cyprus, not only the investor, but also their spouse and children under 28 years of age receive the right to obtain citizenship. But, if adult children (from 18 years old) are married, they no longer fall under the program.
It is also possible to apply separately for passports for the parents of both spouses. But for this you need to make an additional investment of €500,000.
From 2020, the children, parents and spouse of the investor can apply for citizenship at the same time as the investor. This greatly speeds up and simplifies the procedure. At the same time, no one from the whole family needs to pass exams in the knowledge of the Greek language.
Investment in resale or commercial property in Cyprus
In the case of buying a secondary or commercial object, the investment increases to €2,500,000. At the same time, €500,000 must necessarily go to residential real estate - it is assumed that the investor will live in it.
Except for the amount, all other conditions apply in the same way. The program also applies to family members, and the period for obtaining passports takes 9 months.
Cyprus Residence Permit Category F
The investor and their family can obtain a Cyprus residence permit of category F if they do not want to apply for citizenship immediately. The government program issues a residence permit if real estate is purchased for an amount of €300,000.
What are the conditions for obtaining a residence permit of category F:
- no previous convictions for applicants
- the investor's deposit account with a Cypriot bank has at least €30,000
- the investor, their spouse and minor children have the means for living: €30,000 per year for the investor and €5,000 per year for each family member
- residence permit can also be obtained by the parents of the investor / their spouse, but then the income should be €8,000 per year per person more
- the property is primary, and it was purchased from a developer (not from a private person) for €300,000 or more
- the investor and their family members are not allowed to work or conduct business in Cyprus.
The residence permit is inconvenient because the investor and his family do not have the right to leave the island for a long time. Otherwise, the residence permit will be canceled and it will have to be reissued.
Additional costs and fees
A real estate investment from €2,000,000 is not the final amount to be spent.
The investor needs to incur the following additional costs:
- make a voluntary non-refundable contribution to government funds in the amount of €200,000
- pay taxes for the purchase of luxury real estate, including stamp duty
- pay taxes for home ownership for 5 years
- when buying real estate, pay all the necessary state fees
- pay for all services of developers, translators, notaries, etc.
Cyprus citizenship by investment in real estate is a reliable and profitable option to obtain an EU passport not only for the investor, but also for their family. In addition, the procedure does not have any economic risks, while additional opportunities open up for the investor. If Cypriot citizenship is not your option, you can always apply for permanent residence in Cyprus.
DOM Real Estate Agency specialists have vast experience in resolving migration issues and in real estate registration. The state has a passport lawyer accredited by the Ministry of Finance of Cyprus. Therefore, they will gladly go through all the steps to obtain a permanent residence permit and a Cyprus passport with you and provide the necessary support absolutely free of charge. Contact for consultation.