Permanent residence permits in Cyprus allow individuals to live freely, depart the island, and return without the need for visas and permits, and they expedite the naturalization process for obtaining citizenship. Many countries do not impose double taxation, making this option suitable for conducting business.
1. Program Conditions
The permanent residence permit in Cyprus is referred to by various names, with "Permanent Residence Permit" being the official term used in Cypriot documents. Colloquially, it is known as the "yellow slip" due to its previous issuance on a yellow-colored card.
There are three main ways to obtain a permanent residence permit in Cyprus:
- Through investing at least 300 thousand euros in the economy of the Republic, primarily in primary real estate purchases by foreigners.
- By purchasing real estate of any value.
- Through naturalization, after residing on the island for 5 years on a residence permit.
While all three options are suitable for relocation and other purposes, employment is not permitted under this visa. The only viable options are running a business, receiving dividends from shares, or renting out residential or commercial properties.
1.1 Naturalization Process
Naturalization involves establishing long-term legal residence on the island, which is a lengthy process. The first two options mentioned above expedite the application for a permanent residence permit.
When applying for a permanent residence permit after 5 or more years of residency, applicants must demonstrate employment, regular income, a place of residence (preferably owned property), and overall trustworthiness. Russian citizens need to provide a criminal record certificate, while others require similar documentation.
1.2 Real Estate Investment up to 300 Thousand Euros
While this option does not guarantee application approval, purchasing housing for at least 100 thousand euros (experts sometimes recommend 200 thousand euros) can potentially grant the owner and their family members the right to a Permanent Residence Permit. The exact amount is not specified in official documents.
Applicants must prove sufficient income for self-sustainment and, for dependents (spouses and minor children), income for their support. Typically, this amounts to around 20 thousand euros per applicant per year and 5 thousand euros for each dependent.
Additionally, a deposit of at least 30 thousand euros is required. If non-residents can confirm solvency, they stand a chance of obtaining a permanent residence permit. The approval process is unspecified but may take up to a year or slightly longer.
1.3 Investments of 300 Thousand Euros or More
Foreign investors can expedite their permanent residence permit applications by contributing at least 300 thousand euros to the Republic of Cyprus's economy. This can be achieved through securities investments or, more commonly, purchasing real estate in new developments.
Key conditions in 2024 for this investment option include:
- Purchased real estate must be new, either completed or at any construction stage, and acquired through one or more developers.
- The total value of one or more properties must exceed 300 thousand euros, excluding VAT and registration fees.
- At least 66% of the property's cost must be paid upfront, with the remaining balance possibly mortgaged or paid in installments.
- Commercial properties must not exceed 250 m2 in total area.
- All investment funds must originate from sources outside Cyprus, and applicants must maintain a deposit of at least 30 thousand euros in a Cypriot bank account.
- Additionally, applicants must demonstrate a stable annual income, including specific amounts for themselves, spouses, and minor children.
- The applicant needs to confirm a stable annual income: at least 50 thousand euros for himself, 15 thousand euros - additionally for a spouse, 10 thousand euros for each minor child.
- Income must be confirmed to originate from abroad, except in cases involving dividends from Cypriot company shares or rental income from purchased real estate, which also affects taxation.
Applicants and their family members must provide a criminal record certificate, along with additional documentation to prove the legitimacy of income sources and property purchases in Cyprus.
have confirmed their financial dependence on their parents (e.g. they are studying at a university and cannot work) are entitled to apply together with the applicant. Even if adult children pass the age of 25 or marry, their residence permit will not be revoked - but their spouse and children will no longer be able to obtain a similar permit on this basis. They may be advised to apply for a residence permit based on reunification with relatives living in Cyprus.
In addition to these costs, the buyer will need to pay property tax (see section below), state fees, title, and stamp duty (depending on the purchase price). This should also include the execution and translation of documents and their apostilization, and certification by a notary or mukhtaris.
Registration of a residence permit under the simplified program costs 500 euros for the application and 70 euros - for each member of the applicant's family, including himself. If it comes to adult dependent children, they need to pay the full amount for themselves: 500 + 70 euros.
If you entrust the business of collecting all the papers and assistance in the registration of a Permanent Residence Permit, then "turnkey" such a service will cost about 2500 euros. In this case, the lawyer can be the official representative of the applicant, and he does not need to go to Cyprus.
You can move without delays, without waiting for the documents to be ready - a national visa will help.
2. Terms of Obtaining a Permanent Residence Permit in Cyprus
The application review period for the yellow slip based on investments typically ranges from 2 to 6 months, with an additional 1-2 weeks allocated for paperwork processing. This expedited process allows individuals to reside on the island under a national visa while awaiting permit approval, with most procedures being manageable remotely.
Approval for other types of residence permits can take longer, averaging between 3 to 10 months. However, specific timelines are not stipulated, and consideration may extend up to a year or slightly longer in some cases, necessitating at least one visit to the island during this period.
3. Advantages
Compared to the pink slip (residence permit), the yellow slip (permanent residence permit) offers several advantages:
- Does not require periodic renewal but may be revoked under certain circumstances.
- Allows indefinite absences from the island, with a minimum stay requirement of at least 2 days per year to maintain validity.
- Requires only 5 years of residency for naturalization, compared to 7 years for the residence permit, with no departure allowed during the last 12 months.
- Facilitates visa applications for Schengen countries, the European Union, and sometimes other countries like the United States.
It is essential to note that while the permanent residence permit in Cyprus allows unrestricted travel within the island, it does not grant visa-free travel to Europe, a privilege reserved for Cypriot citizens.
4. Citizenship of Cyprus
Currently, citizenship of Cyprus can only be acquired through naturalization, which involves meeting specific residency and eligibility criteria. These include:
- Residing on the island for at least 8 years, with the last 12 months spent continuously in Cyprus (if based on residency permit).
- Residing on the island for at least 3 years, if based on marriage to a Cypriot citizen.
- Providing a clean criminal record from the last country of residence and demonstrating compliance with local laws during the residency period.
- Proving stable income sources through employment, business ownership, or other means.
- Passing language and history/culture tests.
The primary requirement for citizenship is a prolonged period of residence on the island. This can be achieved through either a residence permit or a permanent residence permit, with the latter offering more flexibility and convenience in terms of travel and renewal.
5. Taxation
When you buy a new property, you must pay tax (VAT): 5% of the value if the area does not exceed 200 m2 and if the house is purchased for yourself, and 19% if it is going to be rented out or if it exceeds the specified area.
It should be understood that 5% is a very attractive tax, but it can be "used" only once in 10 years. If you have already bought a property at a reduced tax rate, you will have to pay the full 19% for the next one within a decade. This does not apply to those who purchase secondary real estate - it is not subject to this tax, but also does not give the right to a simplified residence permit.
The maintenance of real estate will cost 0 euros per object owned by the owner, but this does not mean that you do not have to pay at all. It is necessary to pay an annual municipal tax, as well as taxes on communications (maintenance of sewerage and garbage disposal).
If you rent an apartment or house, you must also take income tax into account. In the case of moving and permanent residence, it makes sense to familiarize yourself with all the taxes that you will have to pay on the island in connection with the ownership of housing and not only.
6. What is the current situation with housing in Cyprus?
There are currently many new projects underway in all the cities of the island. This means that it is quite easy to buy a home in a Cypriot new building. The best part is that it shows a stable growth in price: it means that the investment will be profitable.
Offers suitable for participation in the program of accelerated obtaining a residence permit, too, there are enough. As a rule, these are apartments or villas in closed complexes, new buildings with a high level of service and privacy. Quite a few options are located on the first coastline or in developed residential areas, but you can find a place away from the hustle and bustle and closer to nature.
There are no problems with renting. The real estate market has enough options to choose the right place to live for yourself and your family. Renting is good for those who are going to naturalize under the residence permit - or buyers of real estate, who decided to first look around and get acquainted with Cyprus.
When it comes to choosing a city to move to and buy an apartment/house, you need to take into account some nuances. Limassol today - the busiest and most cosmopolitan seaside city, but the housing prices (both for buying and renting) are noticeably high. Many people here speak Russian, and you can find plenty of work options. Statistics say that in Limassol there is about 15-20% Russian-speaking population, sometimes there are Russian even on signs and restaurant menus.
Nicosia on the pace of life is comparable to Limassol, but the capital is located literally in the center of the island and does not have access to the sea. Therefore, many foreigners are reluctant to move here, expecting a 100% Mediterranean lifestyle from Cyprus. Nevertheless, the capital gives its residents many opportunities and the most developed and convenient infrastructure. The main Cypriot universities are also concentrated here - this is important for those who want to get a good European education for themselves or their children.
Paphos, Larnaca, and Paralimni (with adjacent Protaras and Ayia Napa) - are quieter cities, and real estate prices in them are lower. However, it is in these locations is more seasonal: in winter, life here slows down. Some people like this tranquility, while others prefer a more active lifestyle.
It is worth noting that buying real estate for a foreigner is not difficult. The choice of housing is large, prices, compared to the rest of Europe, reasonable, and the paperwork is not complicated. In addition, you can get a fairly favorable mortgage. Foreign citizens are approved with a down payment of about 30-50% at 6-7% per annum - and it is in new buildings. But bank programs are different, so you need to clarify this question for each specific situation.
7. What do Russians do in Cyprus?
The question about occupations is very long, it is simply not possible to answer it in full. However, it is possible to distinguish large groups of people by their occupation:
- Working in Cyprus. This is quite a large group of relocates who want to stay on the island or they have a long contract with a local firm. As a rule, they are issued a work visa (working residence permit) with the possibility of extension, so they do not have problems with the fact that legally reside on the island.
- Students. Also quite a large group of people. Their main "accumulation" falls on Nicosia and Limassol, as it is in these cities are universities.
- Financially independent people. Here you can include freelancers and remote workers, as well as those who have their own business outside Cyprus and receive income from it. Another option for generating income is renting out real estate abroad.
- Businessmen. These are people who have opened a company on the island and are developing it. It can be a subsidiary foreign company or a branch.
- Cypriot wives. This group is also quite numerous, so it is impossible not to mention it. These are women married to a Cypriot citizen and living in their country. They can work or be housewives, in the latter case their circle of socialization is just the same as Russian housewives, mothers with children, and even grandmothers with grandchildren.
Some people moved to Cyprus to live temporarily: Russians who disagree with the current political regime of Russia, researchers or contract workers, volunteers, and just freelancers who are traveling around the world and do not like to sit in one place. It is easiest for them to obtain a residence permit through a host organization (for workers, researchers and volunteers), a digital nomad visa, or as a financially independent person.
8. Moving to Cyprus: how to get a visa and residence permit
Since 2022, Russians cannot obtain a "simplified" pro-visa to Cyprus, but there is still the option of a national visa. Its registration is made in consulates (Moscow, St. Petersburg, Yekaterinburg, Krasnodar), the fee is 80 euros for an adult and 40 euros for a child over 6 years old. You can also apply for a visa through a travel agency.
In any case, you will need a basic package of documents:
original and a copy of the foreign passport;
a copy of the internal passport;
two photos 3,5 x 4,5;
an application form filled out in English;
medical insurance with a coverage of 30 thousand euros;
hotel reservation or invitation from a Cypriot resident;
bank account certificate or a letter of sponsorship;
if available, copies of Schengen, Romanian/Croatian/Cypriot/Cypriot national visas for the last 3 years;
birth certificate - for minor children;
travel authorization from the second parent - if the minor travels with one parent;
photo of the child on the visa application - if the minor is traveling on the parent's passport entry and not on his/her passport.
The fee is not paid at the Central Bank rate but at the consulate rate. Therefore, it may cost a little more.
It is also possible to get to Cyprus, by having an open Schengen visa (not single entry) or a visa from one of the EU countries. Today, this method is more complicated for Russians, but it can also be used.
The residence permit depends on the purpose of the trip and the way of providing for the applicant and his family. Conditionally, you can divide them by type into several groups:
- Worker's residence permit. It is issued by the company/employer for the employee and his family members. Can be extended up to 6 years (depending on the type of activity). Separate "varieties" - visa of a housekeeper (documents drawn up by the host family), visa of a researcher or volunteer.
- Residence permit of a financially independent person. Documents are drawn up independently - both for the applicant and his family. It is necessary to confirm that the family receives a regular income from abroad and will not work on the island. This can also include a digital nomad visa and a startup visa.
- Student residence permit. It is issued by the applicant based on enrollment in a Cypriot university.
- Residence permit for family members of a Cypriot. It is obtained to move and reunite with a close relative - a citizen of the Republic of Cyprus. This is usually the spouse (and her children from previous marriages), but can be children or parents.
If a non-resident resides on the island based on a residence permit for 5 years or more, he/she is entitled to apply for a permanent residence permit. This will be the next (but not mandatory) stage of naturalization - if this is the goal. Russia in this case will not confirm dual citizenship.
DOM Real Estate Agency helps in the purchase of all types of real estate - including the registration of residence permits. In the purchase of one or more objects worth 500 thousand euros and above assistance in the application is free of charge.
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