Permanent Residency (Fast-track option)
To be eligible, you must purchase a property in Cyprus of a minimum value of €300,000, of which €200,000 must be paid prior to the application.
The property purchased may comprise of up to two housing units (apartments or houses) which may be independent, or one housing unit and a shop or a housing unit and an office. The property may be rented out.
You must also make a fixed term deposit in a Cypriot Bank of at least €30,000, for at least 3 consecutive years.
In addition, you must have an annual income of not less than €30,000, plus €5,000 for each dependent child and €8,000 for each adult dependent (spouse and parents). Income must be derived from non-Cypriot-sources.
If you obtain permanent residency under this program, you will not be allowed to work in Cyprus, but you can be the owner of a Cypriot company and receive dividends.
To maintain permanent residency, you must visit the country at least once every two years. Otherwise, your permit may be cancelled.
After 7 years of legal residency, you may be eligible for citizenship. You may be required to prove some ties to the country such as a place of abode and have been a Cypriot tax resident.
- Title deeds or contracts of sale (submitted to the Department of Lands and Surveys) for a property purchased in Cyprus.
- Proof of payment of at least €200,000.
- Proof that you have at your disposal the minimum annual income required accrued from overseas.
- Letter from a Cypriot Bank confirming that you have deposited the minimum amount in a deposit for 3 consecutive years. Proof of foreign-sources funds.
- Clean criminal record certificate issued by the authorities of your country of origin.
- Statement confirming that you will not be working as an employee in Cyprus.
European Economic Area
Dual citizenship is recognized in Cyprus. You are not required to renounce your previous nationality to become a citizen of Cyprus.
- Proof of Payment of Real Estate
- Title Deeds or Proof of Registration of Real Estate
- Bank confirmation letter regarding deposit
- Original and photocopy of passport
- Bank Statement
- Statement of Source of Income
- Proof of occupation
- Evidence of Residential Address
- Original Bank Reference Letter (Not older than 6 month)
- Evidence of Health Insurance
- Original Police Clearance Certificate
- Two passport-size photos
- Original or Certified copy of Marriage Certificate (if applicable)
- Original or Certified copy of Birth Certificate (if applicable)
- dual citizenship Yes
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required No
- Language skills required No
- Interview required No
- Investment Single €330,000
- Investment Family 4 €330,000
- Minimum annual income €30,000
- Time to citizenship 84
- Time to permanent residency
- Visa-free countries 175
- Financing available No
permanent residency benefits
Its official languages are Greek and Turkish, although English is widely spoken too. Since 2008, its official currency is the Euro (EUR).
Cyprus boasts a high standard of living, plenty of good quality schools and universities, low crime rates, low taxes and exceptional weather all year round, making it a prime choice for families, business people and retirees.
Visa Free Travel
Cyprus has one of the most attractive onshore tax regimes in the EU, and is considered a prime location for business relocation.
Becoming a Cypriot citizen does not make you liable to any kind of taxes. To be a Cypriot tax resident you must spend more than 183 days a year in the country.
Tax residents in Cyprus are subject to personal income tax on their worldwide income. Rates are progressive up to 35% for annual income in excess of €60,000. Capital gains, other than those relating to Cyprus-located immovable property, are tax-exempt. Rental income is subject to tax at standard rates, although 20% of the gross rental income for rental of buildings is tax exempt.
Dividend and interest income are not subject to personal income tax, although individuals both residents and domiciled in Cyprus for tax purposes are subject to the Special Defence Contribution (SDC), which taxes dividends at a flat rate of 17% and interest at 30%. SDC also taxes rental income at an effective 2.25% tax rate.
Profits from disposals of shares, bonds, debentures, founders’ shares, and other titles of companies or other legal persons incorporated in Cyprus or abroad and options thereon, are unconditionally exempt from income tax.
Capital Gains accrued by individuals on the disposal of immovable property are subject to a capital gains tax of 20%. A minimum exempted applies to capital gains from the disposal of private residence, agricultural land by a farmer, gifts between spouses, children and third degree relatives, family companies, gifts to charities, exchange of properties, among others. Capital Gains from the disposal of shares in companies that own Cyprus-situated immovable property, when at least 50% of market value of the shares derives from immovable property, are subject to capital gains tax.
The standard VAT rate in Cyprus is 19%. Reduced rates of 9% and 5% apply to certain goods and services.
There are no net wealth, inheritance and estate duties in Cyprus. There is a stamp duty on all documents related to property.
On corporate taxation, Cyprus has one of the lowest tax rates in the European Union. Resident companies are taxed on their worldwide income at a corporate tax rate of 12.5%.
Dividends received are usually not subject to taxation. Capital Gains derived from the sales of shares are tax-exempt, those from immovable property may be taxed at a 20% rate.
In addition, under the intellectual property (IP) regime, 80% of the net profit for the exploitation of intellectual property may be tax-exempt.
As of April 5, 2019, the Cypriot House of Representatives adopted a new implementing the provisions of the European Union (EU) Anti-Tax Avoidance Directive (ATAD). This introduces new rules on Controlled Foreign Corporations (CFCs), limits on the deductibility of exceeding borrowing costs and interest limitation rules that were previously absent.
There are no withholding taxes in Cyprus on payments on dividends and interests.
Due to this favorable tax regime, Cyprus is the gateway to the European common market chosen by many non-EU companies and a portal for investment from the West into Russia, Middle-east, Asia and South America. Learn more about Cyprus' corporate taxation, legal framework and tax treaties at incorporations.io/Cyprus.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax No
- Transfer tax Yes
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 183
- Personal income tax rate 35%
- Capital Gains tax rate 20%
- Investment income tax rate 0%
- Territorial taxation No