Revised eligibility criteria for investor immigration permits

Pursuant to regulation 6(2) of the Aliens and Immigration Regulations, the minister of interior of the Republic of Cyprus, having notified the council of ministers, has decided to revise the immigration permit criteria for third-country eligible applicants, publishing same on 7 May 2013.

A potential applicant should:

• submit a confirmation letter from a financial institution in Cyprus that he or she has transferred from abroad and deposited a minimum capital of €30,000 (US$40,000) into a three-year, fixed-term bank account; and
• prove, together with his or her spouse, that they have at their disposal a secured annual income of at least €30,000. This income shall increase by €5,000 for every dependent person and may derive from a variety of sources abroad including, inter alia, salaries from employment, pensions, dividends, fixed deposits and rents.

The application should be supported by title deeds or a contract of sale, which has been officially deposited with the Department of Lands and Surveys, for the purchase of a dwelling or other building in Cyprus with total market value of at least €300,000, and official receipts for payment of at least €200,000, irrespective of the date for the delivery of the dwelling.

Full payment of the value for the dwelling shall be settled in an account in a financial institution in Cyprus, having been transferred to Cyprus from abroad.

The purchase of the dwelling may be made either by the applicant and/or his or her spouse, or by a legal entity, provided that the legal entity is registered in the name of the applicant and/or his or her spouse, and he or she/they are its sole shareholders.

Where corporate shareholders are used, it must be proven that the sole shareholder(s) of the said legal entity is the applicant and/or his or her spouse.

For the purposes of implementation of the new policy, the applicant may purchase up to two residential units which might be independent, or one residential unit and a shop measuring up to 100 square metres, or a residential unit and an office measuring up to 250 square metres, provided that the total market value satisfies the thresholds stated above. Where the purchase is made in both names, these restrictions apply jointly for the applicant and his or her spouse (i.e. not for each of them separately).

The said purchase must be in relation to a dwelling (and the combinations described above) sold for the first time by a development company. In the case of acquiring two dwellings, both must be sold by the same company.

As from 7 May 2013, applications in relation to the resale of dwellings will not be accepted. Contracts of sale in relation to a resale of dwellings that have been officially deposited with the Lands and Surveys Department prior to 7 May 2013 (the date of depositing the contracts of sale is to be confirmed by the Department of Lands and Surveys), shall be accepted for the purpose of implementing the new policy.

An immigration permit issued to an applicant will also cover his or her spouse and children under the age of 18. Unmarried children aged between 18 and 25 that are financially dependent on the applicant will need to apply on a separate application to obtain an immigration permit. In such a case, the father or mother and/or both parents together must present an additional annual income of €5,000 for every such dependent child.

The immigration permit shall be valid until the age of 25 of the dependent child. Should such child wish thereafter to obtain a new immigration permit, it will be treated as an independent applicant and therefore would need to satisfy all the criteria stated above.

An immigration permit may also be granted to children of the applicant over the age of 18 who are not financially dependent on the applicant, provided that the market value of the acquired property attributed to each such child is at least €300,000. For example, where the applicant has a child that is 30 years old, and wishes to obtain an immigration permit, the applicant must purchase a dwelling valued at €600,000.

If the applicant has two adult children, financially independent, he must purchase a dwelling valued at €900,000. In such an event, a confirmation of payment for the 66% of the market value of the dwelling must be submitted with the application. Each child shall submit the necessary documentation with his application.

Eligibility criteria

A clean criminal record from the country of residence must be submitted by the applicant(s) and generally he or she/they should not be considered as a threat to public order or security in Cyprus.

The applicant(s) must declare that he or she/they do not intend to be employed in Cyprus in any direct or indirect manner. Income generated from dividends received by the applicants from a Cypriot company will not be deemed an impediment for the purpose of obtaining an immigration permit.

All the necessary documentation, including a translation in Greek or English, must be submitted duly certified.

Procedure

Complete applications and supporting documents must be submitted directly to the Civil Registry and Migration Department (CRMD) in Cyprus, and the relevant fee be paid on submission. The application shall be processed by the CRMD and be submitted to the Minister of Interior, through the ministry’s permanent secretary. An interview with the applicant shall take place only when it is deemed necessary by the permanent secretary. The MOI shall notify the applicant, or his or her agent, and the CRMD as to its decision.

Provided the criteria laid down by the policy are satisfied and there are no criminal record or public order/security concerns raised by the applicant, the review of the complete application shall not exceed two months and will be treated in a positive manner with a view to issuing an immigration permit. Once issued, the applicant and his family included in the immigration permit, must visit Cyprus at least once every two years.

Nick Tsilimidos is an associate at L Papaphilippou & Co in Cyprus