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Exploring Residency In Cyprus? Here Is Why It Could Be The Best Option for US Citizens

Many non-EU nationals, including US citizens, are exploring relocation to countries that offer the safety, stability, and lifestyle they want for themselves and their families. Relocating to Cyprus from the United States or anywhere in the world could be the best choice for you and your family.

Cyprus has been chosen by thousands of third-country nationals, among them many Americans seeking a European base, as the place they wish to relocate to. The island offers a high standard of living and quality of life, highly developed infrastructure, and strong standards of education, marking it as a secure and safe environment where families can enjoy a stress-free lifestyle in an English-friendly EU member state.

Based on the 4th revision of the Criteria for granting an Immigration Permit to third-country nationals, which came into effect on 2 May 2023, a third-country national (including a US citizen) is eligible to submit a permanent residency application for himself/herself and family members (spouse, minor children, and adult children up to 25 years old) under the so-called Fast-Track Permanent Residence procedure, provided the specific economic, quality, and legal criteria described below are followed.

Economic Criteria For Cyprus Residency

1. A) Investment in a house/apartment:

Purchase of a house or apartment from a property developer, which must be a first sale worth at least €300,000 (approx. $327,000 USD) plus VAT. This route is popular with US families seeking a primary EU residence and a straightforward pathway to PR.

1. B) Investment in Cyprus real estate (excluding houses/apartments):

Purchase of other types of real estate such as offices, shops, hotels, or related estate developments, or a combination thereof, with a total value of €300,000 (approx. $327,000 USD). These purchases may result from a resale, offering Americans diversified options aligned with business or portfolio goals.

1. C) Investment in Cyprus Company’s share capital, with business activities and personnel in the Republic:

An initial investment worth €300,000 (approx. $327,000 USD) in the share capital of a newly registered company in the Republic of Cyprus, or an increase in the share capital worth €300,000 (approx. $327,000 USD) of an existing company registered in the Republic, based and operating in Cyprus, with a proven physical presence and employing at least five (5) people. Many US entrepreneurs choose this route to access EU markets.

1. D) Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF):

Investment worth €300,000 (approx. $327,000 USD) in units of a Cyprus Investment Organization of Collective Investments, whose investments should be held in the Republic of Cyprus. This can suit US investors preferring regulated fund structures.

Quality Criteria For Cyprus Residency

• The main applicant should prove a secure annual income of at least €50,000 (approx. $54,500 USD). This annual income should be increased by €15,000 (approx. $16,400 USD) for the dependent spouse and by €10,000 (approx. $10,900 USD) for each dependent child.
• The income can be proven only through a tax return declaration from the country the main applicant is a tax resident of (for US citizens, typically IRS returns) and/or through official certificates from an independent Certified Accountant.
• All adults included in the application should present a clean criminal record from their country of origin as well as the country of residence if it differs (for Americans, FBI).
• A medical insurance policy should be submitted for the main applicant and all family members included in the application.
• The applicant and his/her spouse shall confirm they do not intend to undertake employment in the Republic, with the exception of their employment as Directors in a company in which they have chosen to invest under the current regulations.
• In cases where the investment does not concern the company’s share capital, the applicant and/or spouse are permitted to be shareholders in companies registered in Cyprus. The dividend income derived from such companies is not considered an obstacle for the purpose of obtaining the Immigration Permit. In such companies, they may also hold the position of an unpaid Director.
• In cases where the applicant chooses to invest in the economic criteria (B), (C), or (D) he/she should provide evidence of accommodation in the Republic.
• In cases where the applicant chooses to invest as per economic criterion (A) and the number of bedrooms of the investment property cannot satisfy the needs of the dependent family members, he/she should indicate another property or properties that will serve as their residence.
• Once the children turn 18 years old, a separate PR application should be submitted for them, provided they can prove they are students in an academic institution outside Cyprus and financially dependent on their parents. The application can be submitted for children over 18 and up to 25 years old. Once approved, the PR permit will remain valid even if its holder exceeds the age of 25 and even if he/she does not remain a student and/or financially dependent.
• An Immigration Permit may also be granted to children over 18 who are not financially dependent on the applicant, on a higher-value investment. In such cases, the market value of the €300,000 (approx. $327,000 USD) investment should be multiplied by the number of adult children invoking the same investment for the purpose of obtaining an Immigration Permit (e.g., two adult children → €600,000 / ~$654,000 USD; three → €900,000 / ~$981,000 USD).

Legal Elements for US Citizens

• The application can be submitted provided a payment of at least €300,000 (approx. $327,000 USD) plus VAT has been completed.
• The funds used for the investment must be proven to have been transferred to Cyprus from abroad, from the applicant’s and/or spouse’s bank account (where the spouse will be included as a dependent). For US applicants, this typically involves international wire transfers with bank compliance documentation.
• The investment amount should be paid from the applicant’s bank account abroad to the seller’s account in a Cyprus financial institution.
• An Immigration Permit shall cease to be valid if the interested person and his/her dependents fail to acquire residence in Cyprus within one year from the approval of the application, in case they are residing outside Cyprus.
• An Immigration Permit shall cease to be valid if the interested person and his/her dependents acquire permanent residence abroad or are absent from Cyprus for a period of two years. For US citizens maintaining ties in the US, periodic presence in Cyprus remains essential.

Additional Important Information To Be Considered

The revised criteria lay down specific terms, conditions, and control procedures to prevent abuse of the program. Consequently, from the date of obtaining the Residence Permit, the applicant is obliged to provide the Civil Registry and Migration Department annually with the following:

• Evidence of maintaining the investment (e.g., title deeds, company share confirmations, fund statements).
• Proof of valid health insurance if they no longer benefit from GESY.
• A clean criminal record certificate from their country of origin and country of residence (this applies to the main applicant and adult family members; for US citizens, updated background documents as required).

Failure of the Cyprus Immigration Permit holder to prove the above will result in the cancellation of his/her and his/her family members’ Immigration Permit, following the provisions of Regulation 6 of the Aliens and Immigration Regulations.

How Long Does It Take To Get a Cyprus Residence Permit

It takes a minimum of two months for a PR application to be processed.

During this period, the applicant and his dependents are not legally allowed to stay in the Republic and therefore should proceed with the submission of a temporary residence application as visitors if they wish to legally stay in Cyprus until their PR application is processed. US citizens planning travel should time visits accordingly.

Benefits Of Holding A Cyprus Residency Permit

• Securing a residency permit in the Republic of Cyprus gives its holder the right to register with the National Healthcare System (GESY). Further conditions apply, read this article about Cyprus GESY.
• The PR holder can enjoy access to EU markets as they can be registered as shareholders and unpaid directors of a company registered in Cyprus. This grants the ability to engage across the EU, benefit from the low cost of doing business, and access the attractive, transparent tax regime of the Republic.
• Multiple competitive investment options to suit different US investor profiles.
• No language requirements; English is widely spoken.
• The residence permit obtained is PERMANENT and lasts for a lifetime.
• A PR holder can submit a Cypriot citizenship via naturalization application after five years of legal residence in the Republic.

Why Choose Us As Your Immigration Lawyers

Making an investment in a foreign country involves a number of difficulties and challenges. This is why it’s important for investors, especially US citizens balancing cross-border finances, taxation, and compliance, to appoint Cyprus lawyers to assist with the entire procedure.

At Andreas Demetriades & Co LLC we provide confidential, high-quality, timely, and cost-effective legal services. Wherever you are and whatever the need, we’ll be there for you as a resourceful and trusted partner for US and other non-EU clients seeking Cyprus Permanent Residency.

The content of this article is intended to provide a general guide to the subject matter and does not constitute legal advice. For any further information, please contact Eleni Simillidi, at Andreas Demetriades & Co LLC by email at info@demetriadeslaw.com or by phone +357 26 811 668.

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