No Comments

Permanent Residence Scheme

As per the announcement of the Civil Registry and Migration Department (CRMD) on 27/04/2023, applicants whose Sale Agreements have been lodged at the Department of Lands and Surveys Offices between 02/01/2023 and until 28/04/2023, will be able to submit their applications to the CRMD and the criteria of the Cyprus Permanent Residence Scheme according to Regulation 6(2) as of 24/03/2021 will apply.

Considering the new amendments of the Cyprus Permanent Residence Scheme according to Regulation 6(2) of the Aliens and Immigration Regulations, as of the 2nd of May 2023, for the applicants whose Sales Agreements have been lodged before the 02/01/2023, they will no longer be able to include the parents and the parents-in-law to be granted Permanent Residence as their dependents.

The recent amendments were officially announced on Monday, 2/05/2023.

The Council of Ministers approved a proposal by the Ministry of Interior to revise the criteria for granting Permanent residency under the provisions of Regulation 6(2) of the Aliens and Immigration Regulation.

As per the Minister of Interior, Mr. Constantinos Ioannou, the Ministry of Interior is aware of the risks involved in the implementation of these Schemes and the main aim of these amendments is to establish stricter criteria to grant the Permanent residency, to correct any distortions and to establish a mechanism which will monitor that the applicant will be following these criteria.

The new amendments to the Cyprus Permanent Residence Scheme according to Regulation 6(2) of the Aliens and Immigration Regulations apply as of today, the 2nd of May 2023 and onwards.

As per the announcement of the Civil Registry and Migration Department (CRMD) on 27/04/2023, applicants whose Sale Agreements have been lodged at the Department of Lands and Surveys Offices between 02/01/2023 and until 28/04/2023, will be able to submit their applications to the CRMD and the criteria of the Cyprus Permanent Residence Scheme according to Regulation 6(2) as of 24/03/2021 will apply.

Investment in a house/apartment

The minimum amount of at least €300.000 (excluding V.A.T.) shall be paid in advance to the land development company(ies), regardless of the delivery date of the property, and the relevant documentation evidencing the settlement of this amount shall be submitted to the CRMD, for the applicant to be able to submit his/her application to the CRMD. The investment amount shall be transferred from the Bank Account of the main applicant or his/her spouse provided that the spouse is included as a dependent to the main applicant’s application.

Annual Income

Another significant amendment is the increase of the required annual secure income of the main applicant of at least €50,000. The annual income is increased by €15,000 for the spouse and €10,000 for each minor child of the applicant and/or his/her spouse. It is noted that the secured annual income of the main applicant can only be proved through salary from employment, pensions, stock dividends, interest on deposits, rents, etc. coming from abroad, and the annual income shall only be proved through the main applicant’s tax return from the country in which he/she declares to be a tax resident. The tax declaration shall only be provided in cases where the applicant has made an investment in the purchase of a house or apartment by a Land Development company, and in the calculation of the total annual income, the spouse’s income can be taken into consideration.

In the cases where the applicant has invested either in 1) real estate (excluding houses/apartments), or 2) in the share capital of a Cyprus Company with activities and staff in Cyprus, or 3) in units of a Cyprus Collective Investment Organization (type AIF, AIFLNP, RAIF), the total annual income or part of this can also arise from sources originating from activities in the Republic of Cyprus, provided that the applicant is taxable in Cyprus.

Additional significant amendments

All adult applicants shall provide a Clean Criminal Record from their country of origin and from their country of residence if it differs. Additionally, all family members shall provide Medical Insurance Certificate for medical treatment covering inpatient and outpatient care.

In case that the applicant will proceed with the investment in a house/apartment, if the number of bedrooms of the property cannot satisfy the needs of the dependent members of the applicant’s family members, the applicant shall indicate another property or properties which will constitute the place of residence of these persons, along with documentation evidencing this (e.g., the property title deed, sales agreement, rental agreement).

Family members

Another important amendment is that the main applicant can include only his/her spouse, minor children, and adult children up to the age of 25 years who are unmarried and who are university students financially dependent on the main applicant. The main applicant will no longer be able to include the parents, the parents-in-law to be granted Permanent Residence as their dependents.

Compliance with the criteria and preservation of the investment

Lastly, once the Permanent Residence application is approved by the CRMD, the applicant is required to submit to the CRMD, on an annual basis from the date of obtaining the Immigration Permit, evidence that he/she maintains the initial investment, that he maintains the required income determined for him and his/her family members and that he/she and his/her family members are holders of a Medical Insurance Certificate, in case they do not continue to be beneficiaries of the General Healthcare System (GESY). In addition, the applicant and his/her adult family members are required to provide an updated Clean Criminal Record from country of origin, as well as from country of residence. In case the holder of the Immigration Permit fails to prove the above, it will entail activation of the process of cancellation of the Permit of himself/herself and his/her family members based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice.

No Comments

CYPRUS ECONOMY

Cyprus Economic Outlook

March 1, 2022

GDP growth accelerated year-on-year in the fourth quarter. Although a detailed breakdown is not yet available, subsectors related to tourism—such as hotels and restaurants—and the internal market—such as wholesale and retail trade—were among those that performed well. Moving on to Q1 2022, easing restrictions should be lending some strength to the tourism sector. That said, domestic demand dynamics seem sluggish, with motor vehicle registrations down by double digits in January. In other news, on 14 January, Scope Ratings affirmed the country’s rating at ‘BBB-’, while maintaining a stable outlook. Among positive factors in the economy, Scope underlined the reformist government and the EU-sponsored recovery plan, although lingering vulnerabilities in the banking sector prevented an upward revision.

Cyprus Economic Growth

The economy should slow down this year, following a swift recovery in 2021, weighed on by a less favorable base effect. The gradual easing of Covid-19 restrictions at home and abroad should spark the key tourism sector. Meanwhile, the country’s vulnerability to new variants of the virus poses a risk to the outlook. Focus Economics analysts see GDP growing 4.1% in 2022, which is unchanged from last month’s forecast. In 2023, our panel sees the economy expanding 3.5%.

Cyprus Economy Data

2015 2016 2017 2018 2019
Population (million) 0.8 0.8 0.9 0.9 0.9
GDP per capita (EUR) 21,047 22,256 23,438 24,465 25,050
GDP (EUR bn) 17.8 18.9 20.0 21.1 21.9
Economic Growth (GDP, annual variation in %) 3.4 6.8 4.4 4.1 3.2
Consumption (annual variation in %) 2.8 4.4 4.5 3.3 3.0
Investment (annual variation in %) -0.2 48.9 24.1 -6.6 0.1
Exports (G&S, annual variation in %) 9.9 7.2 8.7 4.6 2.0
Imports (G&S, annual variation in %) 8.1 9.0 12.8 2.4 1.5
Industrial Production (annual variation in %) 4.8 10.3 7.7 6.6 3.2
Retail Sales (annual variation in %) 5.2 6.2 5.4 3.2
Unemployment Rate 14.9 13.0 11.1 8.4 7.0
Fiscal Balance (% of GDP) -1.0 0.3 2.0 -3.7 1.7
Public Debt (% of GDP) 108 103 93.9 101 95.5
Inflation Rate (HICP, annual variation in %, eop) -0.6 0.1 -0.4 1.0 0.7
Inflation Rate (HICP, annual variation in %) -1.6 -1.2 0.7 0.8 0.6
Inflation (PPI, annual variation in %) -5.1 -4.2 3.4 2.3 2.2
Policy Interest Rate (%)
Exchange Rate (vs USD)
Exchange Rate (vs USD, aop) 1.11 1.11 1.13 1.18 1.12
Current Account (% of GDP) -0.5 -4.2 -5.1 -4.4 -6.7
Current Account Balance (EUR bn) -0.1 -0.8 -1.0 -0.9 -1.5
Trade Balance (EUR billion) -3.2 -4.2 -5.0 -4.7 -4.7