Cyprus Residence by Investment: the Ultimate Guide

Ahh, Cyprus… The European tax haven that’s long been the fastest and cheapest way to buy your way into European citizenship.

Cyprus is undeniably one of the most popular destinations in the investment immigration world. 

It’s not as much of a tax haven anymore with the EU Commission clamping down, and it’s no longer the cheapest European passport up for grabs (Latvia has snatched that title). 

But perhaps you don’t have millions of dollars to splurge on a citizenship-by-investment program in another popular EU country. 

Worry not. There is a perfectly good alternative: the Cyprus permanent residence-by-investment (RBI) program.

For just €300,000 and in two short months, Cypriot residence by investment could be all yours. 

An island filled with high-net-worth individuals living the laid-back Mediterranean lifestyle, in a country that’s on the cusp of joining the Schengen zone – there aren’t many other jurisdictions that’d be able to offer you a better deal. 

Are you willing to go through the bureaucratic motions? We can guide you through all of it and make it as quick and painless as possible. 

Read on as we explain why you should choose Cyprus, how its residence by investment program works, and what steps you need to take to make it a reality.

What is Residence by Investment?

For those not aware, residence-by-investment programs are run by countries that want to attract foreign capital and thus offer residence in exchange for a capital injection.

All sorts of countries around the world run RBI programs, but some of the most coveted ones are the so-called European golden visas. 

Offering a ‘golden ticket’ to the European Union and allowing people to freely travel all over the region, these programs are some of the most popular ones in the investment immigration world. 

That’s because they require smaller sums of money to be invested than European citizenship programs and are usually very fast to process applications (approximately two to three months). 

Plus, family members can be added to residence-by-investment applications, thus giving entire families a ‘Plan B’ – a safe and stable haven to fall back on if living elsewhere becomes impossible for whatever reason. 

All in all, residence by investment programs offer a great way for foreign investors to live in Europe. They also open up numerous investment opportunities and throw many good deals your way.

Why Choose Cyprus for Residence by Investment? 

Cyprus is a balmy island in the Mediterranean dotted with lavish villas and outrageously expensive cars. 

As the sunniest country in Europe, the laid-back culture and the high-quality lifestyle it offers foreign individuals has long attracted investors to the country. 

Limassol, the capital, is also known as the Moscow of the Mediterranean because so many Russians have made it their home, either via obtaining residence or citizenship in Cyprus. 

So, what’s attracting Russians and so many others to Cyprus? 

First of all, Cyprus is an incredibly stable country in terms of its politics and economy. Sure, it’s an island-state, which limits its economic options to tourism, gambling, and financial services. 

But Cyprus has got a few more tricks up its sleeve.

Most notably, it’s been a member of the European Union for a while now.

Needless to say, Cyprus might become even more deeply integrated within the EU system, which isn’t always a great thing from a tax and regulation standpoint but is a positive factor when it comes to stability. 

Cyprus is also strategically located. With ties to the EU, Turkey, the Middle East and North Africa, it’s a great country to do business in any or all of these regions. It also has a business-friendly tax regime with low corporate tax rates. 

Did you know it’s one of the safest countries in the world, if not the safest? 

If you have family that you would like to relocate or you like knowing that you’ll be safe and sound in your new place of residence, then Cyprus might be just what you need.

Sure, the surge in foreign investment has caused a real estate development frenzy in Cyprus, and has grown the prices considerably too. But it also means there is a huge variety of luxury condos and beachside villas up for grabs.

Why not snatch one of them up and get a chance to live and travel freely in the European Union?  

Alternative European Residence Programs to Cyprus

state investment as a pathway to residence, but as of 2023, this option is no longer available. 

However, there are still several other investment routes available, such as investing in venture capital funds, creating jobs, or making a significant cultural contribution. While you’ll only have to wait five years to apply for citizenship in Portugal compared to the ten or more it takes in other countries, there are more hoops to jump through. Learn more about Portugal’s golden visa. 

Latvia: If you don’t think the ultra-modern living of Cyprus is for you, then €250,000 could get you into Latvia. Purchase real estate or start a business and become a resident, gaining access to the entire Schengen area and it’s a done deal. Learn more about Latvia’s golden visa program.

Greece: The Hellenic Republic takes the crown as one of the cheapest RBI programs available at the moment. If you had €250,000 lying around and want to invest it in picturesque real estate, you can do so in Greece and get a residence permit out of the deal. 

Extremely flexible in the way that it has structured its investment options, Greece is a real alternative to Cyprus because of its similar history, culture, and climate. Learn more about Greece’s golden visa program.

The Cyprus Residence-by-Investment Program 

The Cypriot residence program is one of the longest-standing and most popular RBI programs in Europe. 

Like pretty much every other investment program, the Cyprus golden visa arose from the need to boost foreign investment and help the country’s economic growth and development. 

Now, Cyprus heavily depends on the money coming in via its rich residents and citizens.

While you could have previously invested over two million euros to buy Cypriot citizenship straight away via its citizenship-by-investment program, that program ended in November 2020. 

Now, you and your family can become residents of Cyprus by investing a minimum amount of €300,000 (plus VAT) in real estate. Your application will then get processed and you’ll be issued your residence permit within two months.

After seven years of residence, you can apply for Cypriot citizenship via naturalisation.

Who Benefits Most from Cyprus Residence by Investment? 

As mentioned, the Cyprus residence by investment program won’t be for everyone. 

Some people simply won’t find it to be an attractive option for one reason or another, be it the size of the investment or the fact that Cyprus has a bit of a reputation in the offshore industry.

However, permanent residence in Cyprus will work beautifully in some Nomad Capitalists’ holistic strategies.

Who would we recommend it for?  

There are four groups of people that should consider obtaining permanent residence in Cyprus. 

US Citizens Looking to Renounce Their Citizenship

If you’ve reached the end of the road and wish to renounce your US citizenship, then a residence in Cyprus could be a great way to expand your travel options.

Many people who renounce their American citizenship will normally go for one of the cheaper Caribbean passports but are then left without access to certain regions and countries.

A Cypriot residence solves that. You could obtain residence in Cyprus, allowing you to live in the country and travel freely in Europe.  

And that’s not to mention that, eventually, you could even obtain a Cypriot passport, allowing you to not just live but also work freely in the entire European Union. 

Every coin has two sides, however. Running from the American government only to fall into the lap of the European Union might not be ideal for someone trying to execute a Nomad Capitalist strategy, so you need to consult a professional before taking such a major step. 

As always, we can help. 

Weak Passport Holders

It’s no wonder that the majority of European golden visa applicants are Russian and Chinese. Other nationals also apply, but there is one thing that unites them all – a weak passport. 

In a world that’s as interconnected as it is today, the difference between the number of countries that one can access visa-free might not be that great, but it’s the quality of those countries that matters. 

If you have a Tier B or Tier C passport, chances are you won’t have access to the top economies of the world. We’re talking about the US, Canada, Australia, the UK, Ireland and other Western European countries.

The hassle of getting visas every single time, especially if you’re an active entrepreneur or investor, can be a real drag. Residence in Cyprus can help.

Its imminent Schengen membership will mean that you can travel freely in the entire European region. It’s also expected that Cyprus will be added to the ESTA travel authorisation program of the United States soon. 

Plus, having permanent residence in Europe makes visa processes to enter many other countries that much easier. Officials can see that you’ve been vetted extensively, so there are protocols that allow you entry to the country simply based on your European residence. 

Individuals Needing Permanent Resident Status

Cyprus is one of the few residence-by-investment countries that offers its investors not just residence but permanent residence. 

Permanent residents have more benefits and allowances than temporary residents whose permits must be renewed – often on an annual basis – and can be revoked more easily. 

A European permanent residence in Cyprus will attract two types of people. 

First, those who are looking for a permanent residence program that requires minimal physical presence in the country. 

Since you will only have to travel to Cyprus once every two years to retain your permanent resident status, the country is extremely accommodating to the Nomad Capitalist lifestyle. 

Second, on the opposite end of the spectrum are the applicants who wish to revel in the perpetual sunshine of Cyprus and actually live there. 

Whether it’s solo people, couples or families, Cyprus offers an amazing quality of life and that’s an obvious lure. 

Those Who Don’t Want to Invest Millions in Citizenship

If you want to get European citizenship but don’t want to invest the millions required for immediate citizenship, then residence by investment could be the perfect way forward. 

Sure, you will have to wait for at least seven years to get your hands on the Cypriot passport, but if you have no other option, it’s still a great deal. 

Unlike other RBI countries, Cyprus only requires that you live in the country for one year preceding your naturalisation application. 

Other countries, like Portugal, Latvia or Greece will want you to live in the country and to pay taxes there for five years or more before you can apply to be naturalised. 

While it might take you a little longer to gain citizenship in Cyprus via the residence-by-investment program (seven years, at least), the trade-off is slightly cheaper personal income taxes, better corporate tax rates and a chance to live in a Mediterranean paradise.

How to Obtain Cyprus Residence by Investment

What’s really great about Cyprus is that the investment required to obtain residence is exactly that. In other words, there is no additional donation or any other unrecoverable ‘investment’ that needs to be made. 

In essence, you will be able to maintain or even get back all that you invested in Cyprus at the end of the required holding period. In addition, not only you but also your family can become residents of Cyprus under the same investment. 

Your legal spouse or civil partner and children up to the age of 25 (although they must be unmarried) can all be added to your residence application at no additional cost.

There are two requirements that you must fulfil to become eligible for residence in Cyprus. 

Make Your Investment

There are currently three main ways to gain residence by investment in Cyprus:

• Invest in real estate
• Invest in Cyprus companies
• Invest in Cyprus Investment Organisation of Collective Investments.

The real estate route is one of the most popular, and depending on your investment portfolio it can help you diversify your assets.

First, you will need to purchase a new property with a minimum market value of  €300,000 (plus VAT) in the country.

If you do not want to, you don’t have to invest as an individual. You can also use a legal entity to purchase real estate, but that entity must be registered in your (and potentially your spouse’s) name. There cannot be any other shareholders involved. 

And the good news continues: you have some freedom as to what kind of real estate you’re allowed to invest in. 

You can invest in one of the following:

• A house or apartment
• Other types of real estate such as offices, shops, hotels or related estate developments, or a combination thereof.

However, there is one notable restriction: the properties must be sold for the first time by a development company. However, if you purchase multiple properties, which is allowed, they do not have to be from the same development company.

We also strongly recommend that you consider diversifying your real estate portfolio to diminish risk. If tourism demand falls, your residential rentals might not be as liquid anymore. 

On the other hand, if the country experiences a financial slump and office space is no longer in demand, your residential property rental can help cover the losses. 

The property, or properties, that you buy must all be brand new; there is no resale possible when you’re applying for residence by investment in Cyprus.

And you know what buying new real estate entails? Yup, tax. VAT is charged on top of the minimum investment amount at a rate of 19%.

You can, however, apply to get a reduced VAT rate applied to your real estate purchase of up to 200 sqm. This means that 200 sqm will be taxed at 5%, and the remaining square meters (if applicable) will be taxed at the regular 19% VAT rate. 

Invest in Cypriot Companies

If real estate isn’t appealing to you, you have two more options. Firstly, you can invest €300,000 or more in the share capital of an existing or newly registered company in Cyprus. 

Invest in Cypriot Organisation of Collective Investments

The next option is to invest €300,000 in units of Cyprus Investment Organisation Collective Investments, whose investments should be held in the Republic of Cyprus.

We generally don’t like to recommend using the last two options since they carry a high degree of uncertainty and risk. It’s best to remember that if either of those ships sinks, so does your investment. 

However, with some clever planning and expert guidance from us and our connections, you could still make these relatively less risky. 

Prove You Have Solid Financial Footing

Second, in order to obtain residence by investment in Cyprus, you will need to show proof that you have a minimum of €50,000 coming in from abroad every year to sustain yourself. Income from pensions, deposits, rent, shares, real estate and others all count. 

Add €15,000 (per person) to the total sum if you’re bringing a spouse and/or children, and €10,000 if you’re adding dependent parents or parents-in-law to your residence by investment application. 

The main point of the foreign income requirement is to ensure that you will not work in Cyprus. It’s a way for the government to prevent you from taking jobs from the local population. And in any case, residence by investment should mean just that – residing, not working. 

That said, Cyprus does let you (and your spouse) own a locally registered business and receive dividends from said business. 

Additionally, you will need to park €30,000 in a Cypriot financial institution as an insurance policy of sorts. You won’t be able to touch that money for three years.

Both the bank deposit and the annual income must be transferred to Cyprus from abroad. 

How to Apply for Cyprus Residence by Investment

To apply for residence by investment in Cyprus, you will first need to ensure that you’re eligible to apply. You should be: 

• A non-EEA citizen
• At least 18 years old 
• A non-criminal offender 
• Not under any EU sanctions or restrictions 

Ready to apply? Here’s how.

Make the Investment

First things first, you’ll need to decide what sort of real estate to invest in.

Will you put all of your money in residential property? Or perhaps two? What about a warehouse and a small holiday condo? 

Although we’ve given you a basic outline of investing in Cyprus above, there is no substitute for speaking to an experienced immigration investment advisor. 

The Nomad Capitalist team can help you figure out what investment or combination of real estate investments will make the most sense for you. 

And once you’ve made your decision, we can help you to complete the legal transaction too. 

This will usually involve visiting Cyprus to view properties that we’ve pre-arranged for you (although you can also opt to buy without visiting). 

You will also need to open a local bank account and make a deposit of €30,000, as per the application requirements. This can be done remotely too, if needed. 

Actually, the entire investment and application lodging process can be conducted by giving power of attorney to a lawyer so that you don’t have to travel unnecessarily.

Submit Your Application for Residence

You’ll need to produce the following documents when applying for residence by investment in Cyprus: 

• A copy of your passport (and all family members, if applicable).
• Marriage certificates and birth certificates – if applicable.
• A criminal record certificate (you and your spouse), translated and certified.
• Your resume/CV.
• Title of ownership or contract of sale of a Cypriot property, minimum value of €300,000. If the sale isn’t final, you’ll need to produce a proof of payment for at least €200,000.
• Proof of foreign income amounting to at least €30,000 annually.
• Proof of another €30,000 in a bank in Cyprus, pledged for three years.
• Statements by yourself (and your spouse), stating that you will not undertake employment in Cyprus. 
• Proof of health insurance (for yourself and dependents, if applicable). 

Obviously, you will also need to fill out the extensive application to be considered for residence in Cyprus. 

Once all of the paperwork is submitted to the Civil Registry and Migration Department (and a fee of €500 is paid), it will take up to two months for your application to be processed. 

Obtain Your Permanent Residence Permit

The wait is over and you’ve been approved for residence in Cyprus; you’ll be issued with a residence permit that will make it possible for you to enter Cyprus. 

You (and your family, potentially) will need to travel to Cyprus within one year to obtain your permanent residence permit. 

This entails visiting a local migration office for biometric capturing (€50 fee per person).

Once that’s all processed, you will be issued your permanent resident permit (PRP) and will only have to visit Cyprus once every two years to maintain it.

Your permit will be revoked if you sell your investment property(ies), or if you become a permanent resident in another country.

Apply for Naturalisation 

Normally, residents by investment are interested in eventually obtaining the passport of Cyprus. 

If you’d like to do just that, you will need to remain a permanent resident for at least seven years before you can become eligible to apply. 

What’s different about Cyprus is that it doesn’t require you to be a tax resident in the country for all seven years, only the year before you lodge your naturalisation application. 

Enjoy Residence in Cyprus Like these Nomad Capitalists

‘Cyprus has been the perfect place to raise my family while expanding my business at the same time. I love having access to the European market and my family loves the quality of life on the island.‘

• Gerhardus Kuiper

‘Living in Cyprus has been amazing. Not only do we enjoy endless sunshine but the imminent Schengen access has got us planning all sorts of European adventures.’

• Kuanysh Medetov

‘I don’t physically live in Cyprus, but having permanent residence there has given me the peace of mind that I will always have somewhere to go in the world, especially in light of the COVID-19 pandemic.’

• Wan Zhi

The Pros of Cyprus Residence by Investment

The Cyprus residence by investment program is popular for a reason. Actually, reasons. 

Here are some of its main benefits that you can also enjoy if you become a resident of Cyprus:

• It’s super-fast. The application procedure is extremely efficient and you can obtain your residence permit in just two months. 
• Approval is almost guaranteed. If you fulfil all of the requirements, you’re almost certain to be approved. 
• No residence requirement. We know it’s called a residence program, but you don’t have to actually reside in Cyprus to obtain and retain permanent resident status. Simply visit the country once every two years and you’re good to go.
• No donation. Unlike many citizenship-by-investment programs, Cyprus does not require a donation. That’s basically money spent and gone for good. Instead, you’ll stay in control of your investment. 
• Permanent residence. Unlike other golden visa programs in Europe, investors in Cyprus are granted permanent residence as opposed to temporary residence. This carries with it more weight and more benefits. It’s also harder to revoke permanent residence. 
• Flexible investment options. Although you can only invest in real estate if you want to become a resident in Cyprus, you can mix and match residential and commercial properties to fulfil the eligibility criteria. 
• Residence doesn’t expire. Your permanent residence permit won’t expire for as long as you hold your investment property. You can also sell your property and immediately replace it with another one of equal or greater value – you will retain your permit in the process. 
• Bring your entire family. Your entire family is eligible to apply. Your spouse or civil partner, your minor children, as well as financially dependent unmarried children aged 18-25, can be added to your residence application. 
• It’s a safe and stable country. Cyprus is one of the safest and most stable countries in the world. If you don’t like surprises and just want to enjoy the sun setting into the Mediterranean while you sip wine, this is just the country for you. 
• People speak English. Not everyone wants to reside in a country where they would have to learn a new language. Although the official languages are Greek and Turkish, pretty much everyone speaks English in Cyprus. 
• High-quality education. If you have kids, then you’ll be glad to know that Cyprus has some top-notch educational institutions, from kindergarten all the way to college level. It’s all in English too. 
• One of the cheapest European passports. Sure, you will have to wait at least seven years, but for an investment of a mere €300,000, the Cyprus passport is the best deal there is. And if you hold a Cyprus passport, the entire European Union becomes your playground – live, travel, work and study freely.
• Own a Cypriot business. Even though you can’t work in Cyprus if you’re a resident by investment, you will be able to own a local business and receive dividends from it.
• High living standards. Cyprus is a world-class country with amazing infrastructure, excellent medical facilities and outstanding educational facilities. 
• Favourable tax regime. No tax on worldwide income, interest or dividends. There is also no inheritance tax and the overall tax structure is business-friendly.

The Cons of Cyprus Residence by Investment

Inevitably, the RBI program of Cyprus has some drawbacks. And this isn’t an exhaustive list.

If you want to make sure you avoid the common pitfalls of immigration investment, you must talk with a professional before you make any moves. 

• Not part of the Schengen Zone. Although Cyprus is on the very cusp of obtaining Schengen access, it’s not there yet, and most sources can’t confirm a reliable date.
• Must invest in new property only. When you purchase real estate, it must be brand new and cannot be a resale property. The government ensures it raises some extra funds by way of charging its foreign investors VAT. 
• It’s an island. While it has its charm, being an island also means some isolation. You will have to fly if you want to get to any of the other European countries, which aren’t that close. It also means its economy hinges on just a handful of industries, which can be limiting in terms of investment.

Cyprus Residence by Investment: FAQs

Is Cyprus Residence by Investment for You?

Cypriot residence is one of the best routes to acquire access to the European Union in a very short time and with no physical residence requirement.

But it’s not as simple as that. 

On the surface, all of the so-called European Golden Visa programs sound quite good, but they always have tax planning implications that you should keep in mind.

Plus, the European Commission is continuously pushing countries to tighten their rules and regulations or to shut down their investment programs altogether. 

You have to make a move before any of that happens because residence by investment in Cyprus is actually a really good deal. 

It will be the perfect place of residence for someone looking to add ‘power’ to their passport and residence portfolio, or for someone looking to renounce their US citizenship and gain a European passport instead. 

Cyprus is also one of the fastest and cheapest ways to obtain European residence – that’s a fact. 

It offers many benefits that can enhance your personal life and financial affairs. 

Ready to make it happen?To create your holistic plan outlining how you can legally reduce your tax burden, become a global citizen, and live the Nomad Capitalist lifestyle in Cyprus, get in touch today.