mygoldenvisa logo
Cyprus
March 31, 2024
4 min

Obtaining Cyprus Permanent Residence by Real Estate Investment

Brittany Collins

Investors may get a Cyprus golden visa by a €300,000 investment. The Cyprus investment program is the fastest way to permanent residence in Europe with a obtaining period of 3 months.

We’ll explore real estate investment options such as commercial and residential properties and will guide you through proving income sources and other essential requirements for securing your immigration permit.

Obtaining Cyprus Permanent Residence by Real Estate Investment

Obtaining Cyprus Permanent Residence by Real Estate Investment

7 Key Benefits of Obtaining Permanent Residence Through Real Estate Investment

1. Applicants obtain permanent residency within 3 months. It’s much faster than other investment routes, like Portugal, Greece and Spain. However, the application processing depends on the workload of Migration Department.

2. Living in the country. Foreigners with Cyprus Golden Visa may live in the country without restrictions and additional registration. Cyprus is in the top five countries in terms of security. With its warm climate all year-round and convenient geographical position, Cyprus is considered an attractive place for business and residence.

3. Unlimited duration immigration permit. The Cyprus immigration permit remains valid indefinitely as long as investors meet the necessary criteria. No more worrying about renewals or expirations.

4. Low corporate tax rates. Cyprus offers one of the lowest corporation tax rates within the EU at 12,5%.

5. Family-friendly program. Your spouse and children can also obtain permanent residency through this program. It is a family-friendly investment option, allowing investors to secure a bright future for relatives in one of Europe’s most sought-after destinations.

6. Low crime rates making Cyprus a safe place to live and invest. You can enjoy peace of mind knowing that your family and investments are secure.

7. Opportunity to get citizenship. Five years after receiving Cyprus golden visa, investors may apply for citizenship by naturalisation. You will need to throw a test on knowledge of the language and culture of the country and pass an interview.

Cyprus Real Estate market Overview

Investors continue to show interest in Cypriot real estate. In the third quarter of 2022, the total number of sales in Cyprus increased by 27%, compared to the same month last year.

Growth in demand for Cypriot property in April, 2023

Region

Change compared to April, 2022

Limassol

29%

Nicosia

‑3%

Paphos

58%

Larnaca

36%

Famagusta

Total

27%

Real estate purchase is one of the options to obtain Cyprus permanent residency under the golden visa program. Investors can choose an object to live or rent out. If the property is housing and the investor plans to live there, VAT is reduced from 19% to 5%. When renting property, investors can get an income of 5% per annum.

Property options of all types are available:

  • apartments,

  • villas,

  • hotel shares,

  • townhouses,

  • commercial property.

Investors who are granted a Cyprus golden visa may apply for citizenship five years later. You will need to pass an interview, a test to see how well you know the language and culture of the nation. The applicant will not have to give up his original citizenship because Cyprus accepts second citizenship.

Best areas to invest in real estate in Cyprus

Residential and commercial real estate in Limassol and Paphos will be the most lucrative investment in Cyprus. Both locations provide a wide range of housing at affordable costs.

The most resilient part of the market relates to the residential property segment in the range of €100,000— €300,000.

Residential properties between €100,000—€300,000 reached 7.600 in volume during 2022, representing a 19% annual growth and a 41% increase compared to 2019. This is mainly a result of strong demand for increasing investment activity in private-rented housing apartments, combined with the growing levels of relocators to Cyprus.

Cyprus property cost by region

Limassol

€2,300

Nikosia

€1,700

Paphos

€1,100

Larnaka

€1,300

Famagusta

€750

Cyprus Golden Visa Program Requirements

To be eligible for the Cyprus investment program foreigners must be:

  • over 18;

  • with a stable source of income;

  • with a strong moral standing;

  • not barred from entering the EU or the UK, be on any penalty lists, or have any criminal histories.

Individuals, who invest €300,000 or more have been eligible for permanent residence in Cyprus. The funds may be used to purchase residential and commercial real estate.

The investor can add their spouse and children under 18 to the application. Children between the ages of 18 and 25 can also apply if they are:

  • financially dependent on the investor;

  • unmarried;

  • enrolled in a university outside Cyprus.

Types of Real Estate Investments

Residential Property Investments. An investor may purchase one or two brand-new apartments for more than €300,000. The regular VAT rate is 19%. However, if an investor buys a home to live in, the VAT tax is only 5%. Property purchases by investors are prohibited in the secondary real estate market.

Diversifying your investments helps minimise risk while maximising potential returns on capital, making it an ideal strategy for securing permanent residency within two months.

Commercial Property Investments. If you’re business-savvy, consider commercial properties like offices or shops as they offer potential high returns on investments.

One or two commercial properties costing more than €300,000 can be purchased by an investor. On the primary or secondary real estate market, investors buy buildings for offices, stores, and hotels.

The cost of obtaining permanent residence by real estate investment includes property value and additional fees:

  • VAT — 19% for the purchase of new properties;

  • transfer tax when buying a resale property — 3 to 8%;

  • legal support — 1%;

  • administrative fees, depending on the investor’s family composition.

Cyprus permanent residence by real estate investment

Cyprus offers a wide range of high-quality real estate investments, ranging from luxurious villas to modern commercial properties

Documents Required under Cyprus Golden Visa Program

Applicants must provide the following documents:

  1. Completed applications under the special forms.

  2. Valid passport.

  3. Biography of the main applicant.

  4. Tax return confirming the annual income in the amount of at least €30,000.

  5. A certificate of ownership of the real estate.

  6. Testimony about unemployment in Cyprus.

  7. Certificate of no criminal record.

  8. Marriage, divorce and birth certificates.

  9. Medical insurance for investors and all family members.

How to obtain Cyprus PR by real estate investment

1

Choosing an investment property

Immigration experts reveal the nuances of all investment property types and advise the option considering investor wishes.

2

Collection of documents

Investors provise papers for personal identification and documents confirming the sources of the invested funds. The lawyer assists with medical insurance, real estate rental agreements, document translation and apostille, and other legal matters.

3

Submitting the required documents

When buying real estate, you need to transfer money and VAT to the developer in this step. After that, we submit the documents to the Land Registry Department. The government considers the application for 2—4 months.

4

Application approval

The relevant government department issues a letter of approval of the application.

5

Receiving a residence card

The investors must come to the island to submit biometrics. The Cyprus permanent residence card is issued for about 40 days.

With all these steps completed, you’ll be well on your way to obtaining permanent residence in Cyprus. It’s essential to maintain financial stability and adhere to immigration requirements throughout the process.

Conclusion

Investing in real estate or securities is a great way to obtain permanent residence in Cyprus. The Golden Visa Program offers unlimited duration immigration permits and low corporate tax rates for those who meet the minimum investment amount requirements and provide the necessary documentation.

Through this program, investors can choose from commercial or residential property investments. Permanent residents must prove their income sources and provide health insurance certificates.

Frequently Asked Questions

  • Can I Get Residency in Cyprus if I Buy a House?

    Yes, you can obtain permanent residency in Cyprus by purchasing a property. The minimum investment required is €300,000 for new residential properties. This will grant you an unlimited duration immigration permit as part of the Cyprus Golden Visa program.

  • Can you Get Cyprus Citizenship by Investment?

    No. Cyprus citizenship by investment program was suspended in 2020. Foreigners could obtain a Cyprus passport by investment through purchasing real estate worth at least €2 million.

  • How Can I Get Permanent Residency in Cyprus?

    To obtain permanent residency in Cyprus, invest at least €300,000 in real estate or commercial property. You must also provide proof of income sources and health insurance coverage while submitting your application to the authorities.