THINGS TO KNOW ABOUT THE CYPRUS FAST-TRACK PERMANENT RESIDENCE
The Immigration Permit under Regulation 6.2 of the Aliens and Immigration Regulations, has always been considered the best avenue for non-European investors seeking an expedited immigration permit, that allows them to reside permanently in Cyprus.
One of the key benefits of this Immigration Permit, other than its expedition, is the ability for all the family to obtain the Permanent Residence, such as the married spouse, children under 18 years old, financially dependent children up to 25 years old (provided they are engaged in a tertiary education at the time), parents and in-laws.
On the 24th of March 2021, Regulation 6.2 got the revamp it needed, by introducing new investment options for applicants and the possibility for the main applicant to be a Director with a salary.
Here are the 6.2 Things to Know about the Newly Revamped Cyprus Fast-Track Permanent Residence – Regulation 6.2:
1. New Investment Options for Applicants
The previous Regulation 6.2 required applicants to invest in new residential properties that have a total purchase value of at least €300,000 (excluding VAT) – classified as Investment (A).
The newly improved Regulation now permits applicants the option of investing either with a:
- Minimum investment of €300,000 (plus VAT if applicable) in commercial properties, including offices, shops, and hotel (NEW or RESALE), classified as Investment (B),
- Minimum investment of €300,000 in the share capital of a existing or a new Cyprus company having a physical presence and activities in Cyprus and employs at least 5 persons, classified as Investment (C),
- Minimum investment of €300,000 in compartments of Cyprus UCITS funds (AIF, AIFLNP, RAIF types), classified as Investment (D).
2. Time for a Return of Investment
Whilst the previous Regulation 6.2 focused mostly on the purchase of new real estate properties for residential purposes, the newly improved Regulation 6.2 aims to encourage and attract applicants that are seeking a Return on their Investment from the get-go.
The introduction of the new investment options (B), (C) and (D), will result in the Residence Permit becoming a lot more attractive and offer more value for applicants that are able to see their investments become fruitful from their first year of residency.
3. Time to depart from Pledging €30,000 in a Cyprus bank account
The previous Regulation 6.2 required applicants to pledge the amount of €30,000 for three years. Thew newly improved Regulation 6.2 has scrapped this requirement, making it more attractive to applicants that seek to utilize this amount of money on other matters.
4. Directorship with a salary and Shareholding
Investment (A), (C), (D):
The newly revamped Regulation 6.2. continues to request applicants to declare that they do not intend undertake any sort of employment in Cyprus when investing in residential properties, commercial properties and UCITS.
Applicants and their spouses, can be shareholders in any other type Cyprus company, not associate with Investment (B) and receive dividends from the said company, however they cannot be employed with a salary.
Investment (B):
However, Investment (B) allows for the main applicant (not the spouse) to be employed as a Director with a salary, in the company in which they choose to invest the minimum of investment of €300,000. This is an exception to the previous notion that no Permanent Resident holder is able to be employed in Cyprus. Furthermore, the main applicant can be included in the minimum number of employees that the company should have to be eligible for the Fast-Track process (at least 5). This is will be widely seen as a great advantage and boost for the Fast-Track scheme’s popularity and for the main applicants, who will benefit from being more actively involved in their investment.
Applicants and their spouses, can also be shareholders in the company and receive dividends from the said company.
5. The rest of the procedure remains the same
- The Main Applicant will continue to prove a secure annual income (including salaries from employment, pensions, dividends, fixed deposits, rentals) of at least €30,000,
- Each dependent added to the application will require the proven annual income to be increased by €5,000 for every dependent person (spouse and children) and by €8.000 for every dependent parent or parent-in-law.
- Income should derive from abroad in cases where the applicant invests in new residential units, however income can be generated from sources within Cyprus derived from the new investment options. The income of the applicant and the spouse can be taken into consideration.
- The funds invested for Investments (A), (B), (C) and (D) should be transferred and emanate from abroad
- The applicant and the spouse should provide a Clean Criminal Record from their country of residence.
6.2. Find the right investment and choose the right option
The introduction of the new investment options allows investors to do ‘investment shopping’ , prior to investing the minimum €300,000, that fits their needs and objectives.
Our Team is able to provide various opportunities for applicants seeking a favourable return on their investment made for the Cyprus Permanent Residence – Fast Track Immigration Permit (Regulation 6.2).
Our Team also assists in all the requirements needed to be eligible and to apply for the Permanent Residency Regulation 6.2, from the formation and registration of a company, Immigration Permit applications, purchase of property to the opening of bank accounts that may be needed to facilitate any of the above investment options a client may choose.
Contact us today for all information
Address: Faneromeni 106, Office 201, 6031, Larnaca, Cyprus
Telephone: +357 24 623 800 Fax: +357 24 332 991
Email: [email protected]
Website: www.toulouraslaw.com