Investment requirements
In the case of the purchase of residential property in Cyprus today, the minimum investment volume must be €2 million excluding VAT, if applicable.
When purchasing commercial real estate – €2.5 million. This can be one or several objects. A combination of investments can also be made, for example in real estate and business or shares of Cypriot companies. The period for obtaining Cypriot citizenship when purchasing real estate is about 6 months. 3 years after acquiring citizenship, the investor has the right to sell real estate, but it is necessary to retain ownership of real estate worth at least 500 thousand euros.
Buying a property
The real estate transaction is supported by lawyers, and the investor has nothing to worry about. But it is better to know the stages and features of the transaction in advance in order to plan your actions.
Selecting an object
When choosing an object, the following criteria are taken into account:
- Property type: residential or commercial.
- Secondary or primary.
- City and region. If you plan to rent out residential property, choose it in resort areas.
- Seller's reliability. Before purchasing, you can organize your own inspection of the property to make sure there are no debts or arrests.
- Price. Study the real estate market, compare prices to choose the most profitable option.
- Profitability. When choosing an object, it is worth calculating how much profit it will bring when sold after five years or when rented out.
Buying property in Cyprus is a profitable investment.
The average return on such investments is 3–4% per annum. You can choose real estate remotely from Russia yourself or through an intermediary. In this case, you will have to go to Cyprus for a few days to look at different options and make the final choice.
Preliminary agreement, object reservation
Once the selection is made, the object or objects must be reserved. To do this, the investor comes to Cyprus, enters into a preliminary agreement and makes a deposit. To successfully complete a transaction, it is better to use the help of a lawyer; he will correctly prepare all the documents and ensure that the procedure is completed correctly.
After signing the preliminary contract, the object will be in reserve for 1–2 months. During this time, the lawyer will check whether there are any liens or encumbrances, debts or a ban on sale on the property.
Conclusion of a purchase and sale agreement
During the same 1–2 months, the lawyer prepares and agrees on a purchase and sale agreement with the parties. When everything is ready, the investor signs the contract and contributes another 30–50% of the transaction cost.
Then you need to obtain permission from the Council of Ministers of Cyprus to purchase real estate. To do this, the lawyer submits an agreement along with a package of documents for registration, and the investor pays a stamp duty of 0.15–2% of the transaction value, but not more than 20 thousand euros.
After this, the buyer deposits the remaining amount into the account and you can proceed to obtaining citizenship.
Registration of citizenship and obtaining a passport
Cyprus Law No. 141 (I)/2002 on Civil Status Acts sets out the general requirements for the package of documents, it includes:
- certificate of good conduct;
- real estate purchase and sale agreement;
- title of ownership of real estate or a receipt for registration of the purchase and sale agreement with the Land Committee (if the title has not yet been issued for the property);
- receipt for payment of the cost of real estate;
- confirmation of a bank transfer addressed to the property seller;
- a certificate of appraisal issued by a licensed independent real estate appraiser, upon request of the Ministry of Finance;
- an apostilled copy of the marriage certificate, if a spouse receives citizenship together with the investor.
The documents that the agent collected during the preparatory stage are added to this list. They will confirm the applicant’s trustworthiness and the legality of the funds invested in Cyprus real estate. The presence of the applicant and his family will be required when submitting fingerprints.
Then the Cypriot authorities check the documents. Sometimes, for additional verification, the applicant is invited to an interview.
General list of documents for obtaining Cypriot citizenship when purchasing real estate
Documents required to apply for participation in the program:
- application of the established form for participation in the program;
- a covering letter from an agent authorized to accompany the investor in the process of obtaining citizenship;
- copy of the passport;
- a copy of the residence permit, if available at the time of application;
- certificate of good conduct;
- birth certificate, etc.
If we are talking about the purchase of real estate for obtaining Cypriot citizenship, which is used as a tool for participation in the program, the documents required to submit include:
- contract of sale;
- certificate of ownership (title) or certificate of registration of the contract in the Department of Lands and Topography;
- confirmation of payment of the agreed purchase price;
- a copy of the payment order for the transfer of funds to one of the commercial banks in Cyprus in the name of the seller or selling company
- a certificate of assessment by an independent registered surveyor, if required by the Ministry of Banking, in the name of the seller (seller company);
- certificate of completion of construction work when it comes to a completed project. If construction is not yet completed, at least 5% of the property price must be frozen with a bank guarantee.
If there were encumbrances, you must provide a document confirming their removal.
Assistance in preparing a package of documents is provided by an official agent or agency, which has the right to mediate between government authorities and the participant in the Cyprus citizenship program when purchasing real estate. JustReal represents such an organization and is the official representative of the investment program.
How to obtain a residence permit in Cyprus
Temporary residence permit in Cyprus (residence permit)
In Cyprus, citizens of non-EU countries can obtain a temporary residence permit (Temporary Residence Permit), or Pink Slip, which comes in several types: guest, worker and student (student). Guest Pink Slip allows you to live in Cyprus for no longer than a year without the right to work.
To obtain a temporary residence permit in Cyprus, it is enough to buy real estate of any value. The period for obtaining a residence permit is six months. In this case, it is necessary to stay in Cyprus continuously for 180 days a year. Also, the residence permit must be renewed every year.
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The criteria for obtaining a Pink Slip by citizens of different countries are different, but the list of the main requested documents is as follows:
- completed application (Form M.61B);
- original and copy of a foreign passport (with a copy of the first page and the page with the last stamp on entry into the country), as well as four photographs;
- certificate of ownership of real estate (Title Deed) or lease agreement;
- statements of accounts in Cypriot and foreign banks (for each adult family member there must be at least 15 thousand euros, for each minor - at least 10 thousand euros);
- bank guarantee for 24 months from the date of application;
- medical insurance;
- marriage or divorce certificate, birth certificates of children (must be translated into English, apostilled or certified by the Ministry of Foreign Affairs of the issuing country and the Cyprus Embassy in that country).
When issuing a Pink Slip, the applicant also receives an Alien Book, or ARC (Alien Registration Certificate) - a document that is subsequently used by a foreigner in Cyprus as an identification document.
Ways to obtain Cypriot citizenship
The population of the Republic of Cyprus in 2021 is about 1.2 million people . At the same time, about 208 thousand foreigners live in the country. The number of immigrants from countries outside the EU is about 60 thousand. Of course, not every one of them seeks to obtain Cypriot citizenship.
According to official statistics, annually local authorities issue up to 2–2.5 thousand passports . At least 25% are Russians. In addition, an active desire to become a Cypriot is observed among the Chinese and Ukrainians. Largely thanks to the accelerated acquisition of Cypriot citizenship through investment.
Cyprus Citizenship by Investment (program canceled as of November 1, 2020)
In order to attract foreign direct investment and generally wealthy entrepreneurs from abroad to the country, in 2014 local authorities approved a special accelerated procedure for obtaining Cypriot citizenship . The project turned out to be very effective and today replenishes the state budget by hundreds of millions of euros per year.
In 2021, the legislation was amended and now you can obtain a Cypriot passport within a few months at least 2 million euros in the Cyprus economy (previously 5 million) in one of the following areas:
- Government bonds of Cyprus.
- Securities and other financial assets of Cypriot companies.
- Real estate (houses and apartments) or investments in construction projects in Cyprus.
- Create, buy or invest in a Cypriot company that provides jobs to at least 5 Cypriot citizens.
- Open a deposit in a bank in Cyprus for at least 3 years.
Additional requirements:
- No criminal record.
- Ownership of real estate for living in Cyprus worth at least 500 thousand euros.
- The foreigner is not included by the European Commission in the list of persons whose assets are frozen in the EU.
- Availability of a residence permit in Cyprus within 6 months before submitting the application (since 2016).
The investment must be made for a minimum of 3 years prior to the date of application for Cypriot citizenship and continue for a similar period after receiving the passport.
In some cases, the investment amount may be reduced. For example, in the case of creating a joint investment project by several persons.
Read more about how to obtain a Cypriot passport based on direct investment on the official website of the local Ministry of Internal Affairs - moi.gov.cy. The most popular way to obtain Cypriot citizenship for Russians and Ukrainians is the purchase of real estate.
Important . From November 2021, not only spouses and minor children, but also the investor’s parents can obtain Cypriot citizenship when purchasing real estate.
Cypriot citizenship by naturalization
Requirements
- Age 21 or older.
- No criminal record.
- Legal residence in Cypriot territory for at least 7 years . For spouses and children of Cypriot citizens, the period is reduced to 5 years .
- Legal and continuous stay in Cyprus for 12 months before submitting an application for citizenship.
Cypriot citizenship by birth
Requirements
A person born on the territory of Cyprus after 08/16/1960 automatically receives citizenship if at least one of the parents is Cypriot.
Cypriot citizenship by descent
Requirements
- Birth outside Cyprus after 08/16/1960, if at that moment the father had a Cypriot passport.
- Birth outside Cyprus after 06/11/1999, if at that moment the mother had a Cypriot passport.
Cypriot citizenship by marriage
Requirements
- Legal marriage with a Cypriot for 3 years .
- Permanent residence in Cyprus for at least 2 years .
